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INDUSTRIAL POTENTIALITY SURVEY

(WEST BENGAL)

MSME

MINISTRY OF MSME111 & 112, B. T. ROAD, KOLKATA

1

REPORT

ON

INDUSTRIAL POTENTIALITY SURVEYOF

MURSHIDABAD (WEST BENGAL)

2015-2016

MSME-DI, KOLKATA

GOVT. OF INDIA

MINISTRY OF MSME 111 & 112, B. T. ROAD, KOLKATA –

INDUSTRIAL POTENTIALITY SURVEY

–108

2

F O R E W O R D

The Report on Industrial Potentiality Survey of Murshidabad district

has been prepared under the Action Plan Target for 2015-2016. The report

comprises of elaborate discussion on resource endowment, infrastructural

facilities, existing industrial activities and structure, present problems of

MSME units etc. A few project information on prospective MSE units is also

included in this report for ready reference.

In preparing this report, necessary data and co-operation was obtained

from various departments of State Govt., Central Govt., Financial

Institutions, Local bodies, Trade and Industry Associations, Dealers,

Consumers, etc. I would like to extend my sincere thanks and regards to all of

them for their sincere co-operation and assistance.

I hope this Report will be found very useful by Promotional Agencies,

Financial Institutes, NGOs and above all the MSME entrepreneurs of the

district.

I appreciate the efforts rendered by the Survey Team comprising of Sri

Ranjan Kumar Sethy, Asstt. Director (EI) and Sri D. Banerjee, Asstt. Director

(Stat.) of the Institute in preparing the report.

Dated : December, 2015 (K.L Rao) Place : Kolkata Director.

3

CONTENTS

Chapter Subject Page No.

Murshidabad District at a glance 4-7

Map 8

I Objectives, Scope and Methodology Of the Survey 9-10

II General Characteristics of the District 11-14

III Resources 15-27

IV Infrastructure 28-38

V Present Industrial Structure 39-46

VI Planning for Industrial Development 47-51

VII Plan of Action for Industrial development 52-53

VIII Central & State Govt. Schemes 54-57

IX State Govt. Policies & Incentives 58-63

X Sample Project Profile 64-88

4

District At A Glance

District:- Murshidabad

(A) AREA, POPULATION AND LITERACY

1) Geographical Area : 5324sq.kms

2) 2011 Census Total Population (Provisional) : 7,103,807

i) Male Population : 3,627,564

ii) Female Population : 3,476,243

iii) Urban Population : 1,400,692

iv) Rural Population : 5,703,115

3) Density of Population per sq. Km (in No.) : 1,334

4) Sex Ratio per thousand persons : 958

5) Total No. of Literates : 4,055,834

i) Male Literates : 2,177,187

ii) Female Literates : 1,878,647

iii) Male Literacy rate : 69.95

iv) Female Literacy rate : 63.09

v) Rural Literacy rate : 78.74

vi) Urban Literacy rate : 21.26

vii) Literacy rate for the : 66.59

district as a whole

5

(B) Administrative Set Up

1) District Headquarters : Behrampur

2) No. of Sub-Divisions : 5

3) No. of blocks : 26

4) No. of Mouzas : 2210

5) No. of Police Stations : 27

6) No. of Villages : 1886

7) No. of Panchayat Samities : 26

8) No. of Gram Panchayats : 254

9) No. of Municipalities : 7

(C) AGRICULTURE AND ALLIED ACTIVITIES

1) Reporting Area : 532.50 hec.

2) Net Cropped Area : 396.12

3) Area under non-agricultural use : 131.02

4) Forest : 0.77

5) Barren & Uncultivable Land : 1.58

6) Cultivable waste land : 1.32

7) Current fallow : 0.50

8) Fallow land other than current fallow : 0.11

9) Area irrigated by tank : 19.38

10) Area irrigated by river lift : 8.67

6

11) Area irrigated by Deep Tube Well : 22.35

12) Area irrigated by Shallow Tube Well : 0.86

(D) FISHERIES

1) Net Water Area : 4640.91

2) Net Water Area under effective Fishery : 664.10

3) No. of persons engaged in profession : 458

of Pisciculture (approx)

4) Approximate Annual Production : 50 qntls

(E) INFRASTRUCUTRE

1) i) Total State Highway : 114 kms

ii)Total National Highway : 149.95 kms

2) No. of Power Generating Stations : 2

3) No. of Mouzas electrified( upto 2013) : 1920

4) No. of Bank Branches : 239

5) Lead Bank : United Bank

of India.

6) No. of Industrial Estates : 3

7

(F) INDUSTRIES

1) No .of Registered Enterprises EM-II : 4812

(Since 2006-07 to 2014-15)

2) No. of Employment : 58618

(Since 2006-07 to 2014-15)

3) Udyog Aadhaar Memorandum(UAM)

Registration 2015-16 (Since October,15)

i) Micro : 31

ii) Small : 2

iii)Medium : 1

Total- 64

9

CHAPTER-I

OBJECTIVE, SCOPE & METHODOLOGY OF THE SURVEY

Objective:

The main objectives of the survey are:-

a) To assess the availability of local resources and infrastructure for development of Micro,

Small and Medium Sector units.

b) To study the existing industrial structure in order to find out the scope and possibility for

expansion of the installed capacity of the existing industries in the district and feasibility

of setting up new ones.

c) To identify new industries on the basis of existing demand & resources available in the

district and its neighboring areas.

d) To suggest & recommend MSMEs to be taken up for development.

Primary emphasis has been given on the study of those industries in the district which fall

within the purview of the small scale sector. The recommendations in this report, therefore,

mainly relate to small scale, tiny & cottage industries and are based on locally available

resources, marketing opportunities & other factors like availability of skilled personnel, technical

know-how, finance, raw materials, power & transport facilities etc.

Scope:

The present report emphasizes on the small scale industries and SSSBE, but the scope of the

report is more extensive.

In the various chapters of this report, developmental aspects of the district have been

analysed and assessed to find out the developmental scope. Human and material resources have

been analysed in the resource chapter. As regards Human resources,- literacy rate, occupational

pattern, etc. have been discussed, whereas material resources like agricultural produce, land

utilization, cropping pattern, live stock, sericulture etc. have also been examined.

The chapter on infrastructure covers both physical and social infrastructure available in the

district. Physical infrastructure covers land, factory accommodation, water, power,

communication, railways, road transport, etc. whereas social infrastructure includes

entrepreneurship, marketing potential, lending facilities, incentives, growth centers etc.

The present industrial scenario covering large, medium and small scale industries has been

discussed in the context of present industrial environment prevailing in the district.

10

After analyzing and assessing all these matters, a list of prospective MSME units has

been given in a separate chapter .Out of the prospective units, 5 major prospective industries

have been highlighted for which project schemes have also been appended with a view to help

the prospective entrepreneur s, promotional agencies and planners in the district.

Methodology :

The Office of the Development Commissioner, MSME, New Delhi issues guidelines for

preparation of industrial potentiality Survey reports.

For preparation of this report, data has been collected from two sources viz. primary and

secondary source. In the initial stage, questionnaires were prepared and dispatched to various

government and semi-government departments like District Industries Center, District Planning,

Bank, Agriculture, Forest, Animal Resources Development, power, employment, etc. for

collection of secondary data.

A separate questionnaire was also been designed and ‘stratified random sample’ method

was applied for generating primary data for field visit. During field visits, the team interacting

with existing entrepreneur, traders etc. for eliciting necessary response.

Finally, collected data has been compiled and analysed in details to prepare and shape this

report.

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11

CHAPTER-II

GENERAL CHARACTERISTICS OF THE DISTRICT

Murshidabad was the capital of Bengal, Bihar & Orissa during the British rule. In fact, the

capital had been shifted from Dacca to Murshidabab in 1704 A.D. Practically it got recognition

as an independent district in 1787 A.D. prior to that, it was within the geographical boundaries

of Birbhum & Bankura. Subsequently, in 1879, the district received a final shape and since then

its area has remained more or less same.

The district is basically agrarian in character. The major work-force of the district is

engaged in this sector. The agricultural sector makes the greatest contribution to the district’s

total income. The district is not endowed with many natural resources. In the secondary sector,

i.e. manufacturing, the district’s performance is far below the desired level. It has been identified

as an industrially backward district and categorized under Group ‘ C’ as per the Governments

new industrial incentive policy.

Location:

Spread over an area of 5324 square kilometers, Murshidabad district lies between latitude

23 43’30” & 24 50’20”’ 30” North and longitude 87 49’17” &88 46’00” East. The district head

quarter is at Berhampore which lies on the latitude 24 08’ North & longitude 88 16’ East. It is

the northern most district of presidency Division of West Bengal and is situated in the lower

Gangetic valley. The district’s map has the resemblance of an isosceles triangle with Farakka

police Station on the North-West tip forming its apex. In terms of area, the district occupies 6.07

percent of the total area of the state.

Boundary:

Murshidabad district is bounded by Santhal Parganas (Bihar) and Birbhum in the West,

the districts of Malda,& Nadia in the North, Bangaladesh in the East and districts of Burdwan &

Nadia in the south.The rivers Ganges & Padma flow from the Northern & eastern boundary of

the district whereas the river Jalangi runs along the southern boundary for a considerable stretch.

Administrative Set-up:

The district administration is headed by the District Magistrate. Berhampore town is

the Head quarter of the district. For administrative purposes, the district is divided into 5 sub-

divisions & 27 development blocks. A table showing the names of sub-divisions and the blocks

12

under their jurisdiction. The district has seven municipal towns, 11 Non-municipal towns, and 1

out growth. Furthermore, the district is sub-divided into 26 panchayat samaties, 254 Gram

Panchayats & 2210 Moujas.

Sub-division wise distribution of blocks

Sub-

Division

Police

Station

C.D.Block / M Panchayat Mouzas Inhabited

Villages

Samity Gram Gram

Sansad

Munici-

pality

(2011) (2011) No. Ward

Sadar

Sub-Div.

7 5 / 2 5 61 1035 383 323 2 39

Behrampore

Daulatabad

Behram-pore 1 17 317 144 124 - -

Beldanga (P) Beldanga-I 1 13 204 66 55 - -

Rejinagar

Shaktipur

Beldanga-II 1 11 171 71 61 - -

Nowda Nowda 1 10 162 39 28 - -

Hariharpara Harihar-para 1 10 181 63 55 - -

Behrampore Behram-pore(M) - - - - - 1 25

Beldanga (P) Beldanga(M) - - - - - 1 14

Kandi

Sub-Div.

5 5 / 1 5 50 766 552 510 1 17

Kandi (P) Kandi 1 10 151 93 84 - -

Khargram Khargram 1 12 186 155 138 - -

Burwan Burwan 1 13 185 160 155 - -

Bharatpur Bharatpur-I 1 8 121 92 82 - -

Salar Bharatpur-II 1 7 123 52 51 - -

Kandi (P) Kandi(M) - - - - - 1 17

Jangipur

Sub-Div.

5 7 / 2 7 61 1036 561 420 2 39

Farakka Farakka 1 9 147 73 56 - -

Samserganj Samserganj 1 9 154 38 24 - -

Suti Suti-I 1 6 106 61 46 - -

Suti-II 1 10 157 44 24 - -

Raghunathganj Raghunathganj-I 1 6 117 63 56 - -

Raghunathganj-II 1 10 156 85 36 - -

Sagardighi Sagardighi 1 11 199 197 178 - -

Raghunathganj Jangipur(M) - - - - - 1 20

Samserganj Dhuliyan(M) - - - - - 1 19

Lalbagh

Sub-Div.

6 5 / 2 5 44 736 474 430 2 33

Lalgola Lalgola 1 12 205 94 84 - -

Bhagwangola Bhagwangola-I 1 8 127 59 54 - -

Ranitala Bhagwangola-II 1 6 96 71 56 - -

Jiaganj (P)

Murshidabad

Murshidabad -

Jiaganj

1 8 153 132 127 - -

Nabagram Nabagram 1 10 155 118 109 - -

Murshidabad Murshidabad(M) - - - - - 1 16

Jiaganj (P) Jiaganj-

Azimganj(M)

- - - - - 1 17

13

Domkal

Sub-Div.

4 4 / 0 4 38 672 240 203 - -

Domkal Domkal 1 13 249 87 77 - -

Jalangi Jalangi 1 10 171 53 39 - -

Islampore Raninagar-I 1 6 125 64 57 - -

Raninagar Raninagar-II 1 9 127 36 30 - -

District

Total- 5

27 26 / 7 26 254 4245 2210 1886 7 128

Source- District Statistical Handbook, 2013

Bureau of Applied Economics & Statistics

Climate & Rainfall:

The climate of the district is generally hot and characterized by high humidity and well

distributed rainfall during the Monsoon. Summer lasts from March to mid- June. During this

period the climate is hot & dry. Mid-June to Mid-September, the district experiences moderate to

heavy rainfall due to the monsoons. Cold weather begins from the mid-November & lasts up to

the end of February. May is the hottest month with the mean maximum temperature of 360C (as

on 2013) & January is the coldest month with the minimum temperature of 100 c (as in 2013 ).

The total rainfall of the district was 1144 mm during 2013. The rainfall during the months

of June to October accounts for about 80 percent of the total rainfall of the year.

Soil:

The district of Murshidabad occupies a distinctive position in the ‘ Agricultural Map’ of

the state of West Bengal as the soil, weather & climate of this district permits multiple

cultivation. In fact, the river Bhagirathi has distinctly divided this district into two zones viz.

‘RARH’ and ‘BAGRI’ which are situated on the Western and Eastern side sides of the river

Bhagirathi respectively. The structure and texture of soil of the two zones are also different.

The soil of RARH is mostly day and lateritic clay type, comparatively heavy, grey or

reddish in colour. The land is high and slightly undulating having gentle slope from West to

East. The soil of the area is generally low in carbon content and acidic to neutral in reaction. The

main crops are paddy, potato but oil seeds and vegetables are cultivated successfully in all the

three seasons.

On the other hand, the soil of BAGRI is mainly alluvial type with comparatively light

texture, low in organic carbon content and soil reaction is slightly acidic to neutral. The principal

crops are jute, paddy etc.

Rivers:

The district is well-drained by a number of rivers and rivulets, the important amongst

them being the Ganges and its tributaries namely Bhagirathi, Jalangi and Bhairab. The Ganges

first touches the district at its extreme northern point and flows almost South-East. It then

14

bifurcates into two major streams, viz. Bhagirathi & Padma at Nurpur. The Bhagirathi which

branches off from the Ganges flows from North to South dividing the district into almost two

equal parts. The Jalangi starts its course in the Jalangi police station area on the East of the

district & Bhagirathi branches off from Padma in the Lalgola police station area. The River

Mayurakshi enters the district through Kandi sub-division. It is worth mentioning that the

Bhagirathi which had become non-navigable has been made navigable again with the

construction of Farakka Barrage.

Income:

The revenue earned by the district during 2012-13 is given below

( Thousand rupees)

Year 2011-12 2012-13

Land Revenue 237617 414478

Stamp Revenue & Registration Fees 787469 1056458

Excise Revenue 355945 478493

Sales Tax 607208 982682

Taxes on Vehicles 345917 413128

Entertainment Tax 4904 2497

ElectricityDuty - -

Agricultural Income Tax - -

Professional Tax 103520 106106

OtherTaxes 710 3990

Total 2443290 3457832 Source : District Magistrate, Murshidabad

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15

CHAPTER - III

RESOURCE

Resources provide the essential raw materials which form the backbone of the

manufacturing sector of an economy. Thus, availability of resources in a district plays a very

important role for acceleration of industrial growth. Industrial acceleration generates more

employment which in turn increases industrial production of the district. Keeping in view, the

important role played by resources for industrial development, an attempt has been made in this

chapter to assess and analyze the resources available in Murshidabad district.

Resources can be divided into two categories viz, Human Resources and material

Resources. Category wise resources are depicted below :-

A. Human Resources :

The presence of material resources is not the sole parameter to give shape to the

industrialization pattern of the district. It is the quality and volume of human resources available

in the district which finally utilizes the material resources in an optimal manner, thereby paving

the path for industrialization. Human resources include entrepreneurs, skilled labour, un-skilled

labour etc. which are prime factors for setting up industrial units. The human resources available

in the district are as follows:-

Population:

In 2011, Murshidabad had population of 7,103,807 of which male and female were

3,627,564 and 3,476,243 respectively. In 2001 census, Murshidabad had a population of

5,866,569 of which males were 3,005,000 and remaining 2,861,569 were females. Murshidabad

District population constituted 7.78 percent of total West Bengal population. As per 2011

census, the total population of the district was 7,103,807 consisting of 69.95 % of Male and

63.09% of Female. It was 7.78% of the total population of the state. The sex ratio was 958

female against 1000 male. The population of the district is given in the following table:-

Population of Murshidabad as per 2011 census.

Description 2011 2001

Actual Population 7,103,807 5,866,569

Male 3,627,564 3,005,000

Female 3,476,243 2,861,569

Population Growth 21.09% 23.76%

Area Sq. Km 5,324 5,324

Density/km2 1,334 1,102

16

Proportion to West Bengal Population 7.78% 7.32%

Sex Ratio (Per 1000) 958 952

Child Sex Ratio (0-6 Age) 968 972

Average Literacy 66.59 54.35

Male Literacy 69.95 60.71

Female Literacy 63.09 47.63

Literates 4,055,834 2,620,538

Male Literates 2,177,187 1,502,724

Female Literates 1,878,647 1,117,814

Literacy:

Average literacy rate of Murshidabad in 2011 were 4,055,834 compared to 2,620,538 of

2001. If things are looked out at gender wise, male and female literacy were 69.95 and 63.09

respectively. It is a well-established fact that a literate population serves as the driving force,

which steers the economy through the maze of growth and plays a vital role in determining the

industrial scenario of the district. Entrepreneurship and skills are the gifts of literacy, which

erect the strong pillars of development. Thus literacy serves as a catalyst of growth. Hence, a

concrete base of literacy is a necessary precondition attached to the feasibility of attaining

economic growth in a place. The average literacy rate in the district is 66.59%, which is much

higher than the state rate of 54.35% (as per 2001 census ) while the male literacy is better at

69.95% compared to the female literacy rate of 60.71%. .

Average literacy rate in Murshidabad district as per census 2011 is 66.59 % of which

males and females are 69.95 % and 63.09 % literates respectively. In actual number 862,332

people are literate in urban region of which males and females are 463,502 and 398,830

respectively.

As per 2011 census, 80.28 % population of Murshidabad districts lives in rural areas of

villages. The total Murshidabad district population living in rural areas is 5,703,115 of which

males and females are 2,917,822 and 2,785,293 respectively. In rural areas of Murshidabad

district, sex ratio is 955 females per 1000 males. If child sex ratio data of Murshidabad district is

considered, figure is 968 girls per 1000 boys. Child population in the age 0-6 is 812,960 in rural

areas of which males were 413,144 and females were 399,816. The child population comprises

14.16 % of total rural population of Murshidabad district. Literacy rate in rural areas of

Murshidabad district is 65.30 % as per census data 2011. Gender wise, male and female literacy

stood at 68.42 and 62.03 percent respectively. In total, 3,193,502 people were literate of which

males and females were 1,713,685 and1,479,817 respectively.

17

Distribution of Population over different categories of workers and non- workers

by sex in the district of Murshidabad, 2011

Category Number % of Col. to respective

total population Male Female Total

A. Total Workers :

(a) Main workers

Rural 1326510 208336 1534846 26.91

Urban 336114 151123 487237 34.79

Total 1662624 359459 2022083 28.46

(b) Marginal workers

Rural 286015 186944 472959 8.29

Urban 37028 57837 94865 6.77

Total 323043 244781 567824 7.99

B. Non-workers

Rural 1305297 2390013 3695310 64.80

Urban 336600 481990 818590 58.44

Total 1641897 2872003 4513900 63.55

Total Population (A+B) :

Rural 2917822 2785293 5703115 100.00

Urban 709742 690950 1400692 100.00

Total 3627564 3476243 7103807 100.00

Category Number % of Col. to respective

total workers Male Female Total

A. Total Workers :

1 Cultivators :

Rural 352277 16643 368920 18.37

Urban 11251 905 12156 2.09

Total 363528 17548 381076 14.72

2 Agricultural Labourers

Rural 753820 60367 814187 40.55

Urban 26022 2085 28107 4.83

Total 779842 62452 842294 32.52

3 Household Industry

Workers

Rural 52095 197237 249332 12.42

Urban 65416 151259 216675 37.22

Total 117511 348496 466007 17.99

4 Other Workers :

Rural 454333 121033 575366 28.66

Urban 270453 54711 325164 55.86

Total 724786 175744 900530 34.77

18

Total Workers : (1+2+3+4) = (a+b)

Rural 1612525 395280 2007805 100.00

Urban 373142 208960 582102 100.00

Total 1985667 604240 2589907 100.00

Source : Census of India, 2011

The above table suggests that cultivators and agricultural labourers dominate among the

total main workers. lt also shows that the district is agrarian and major part of the population is

dependent on agriculture. Cultivators and agricultural labourers together constitute 47% of the

total main workers.

Household industry workers who constitute about 20% of the total main workers are

mostly engaged in cottage and small scale industries. Other workers constituting about 33% of

the total main workers mostly consists of workers who are employed on casual basis or are

directly or indirectly engaged in the agricultural sector.

B. Material Resources:

Availability of material resources, both in quantitative and qualitative terms immensely

influences the structure and pattern of economic growth In a district. Material resources consist

of agricultural and allied production, forest production and mineral production etc. Agricultural

production dominates in the available material resources of the district. Other production like

forest and mineral are negligible or nil. A brief account of the material resources of the district is

given below:-

1 Agriculture

The district economy is dominated by agriculture. More than 80% of the population

directly depend on agriculture and 68.66 percent of the total geographical area of the district is

used for agricultural activities. The above data clearly signifies that agriculture contributes the

major share in the domestic product of the district. Agricultural production provides the

necessary raw materials for agro-based industrial units. Thus, the expansion of agro-based

industrial units depends on surplus production of agricultural produce. The area and production

of agro-products of the district for the year 2012-13 is highlighted in details in the following

table.

Area under Principal Crops in the district of Murshidabad

(Thousand hectares)

Crops 2011-12 2012-13

Foodgrains :

1. Rice 351.0 352.4

Aus 11.9 11.7

Aman 225.6 226.6

Boro 113.5 114.1

19

2. Wheat 97.1 99.2

3. Barley 0.5 0.4

4. Maize 3.8 4.9

5. Other Cereals - -

Total Cereals 452.4 456.9

6. Gram 5.2 5.7

7. Tur (a) (a)

8. Other Pulses 35.2 39.1

Total Pulses 40.4 44.8

Total Foodgrains 492.8 501.7

Oil Seeds :

1. Rapeseed & Mustard 81.4 87.1

2. Linseed 0.1 0.1

3. Other Oil seeds 16.1 19.2

Total Oil seeds 97.6 106.4

Fibres :

1. Jute 157.6 159.5

2. Mesta - 0.7

3. Other Fibres - -

Total Fibres 157.6 160.2

Miscellaneous crops :

1. Sugarcane 3.7 3.7

2. Potato 11.1 13.1

3. Tobacco - -

4. Tea - -

5. Chillies (dry) 4.2 4.3

6. Ginger 0.3 0.3

Total Miscellaneous crops 19.3 21.4

Production of Principal Crops in the district of Murshidabad

(Thousand tonnes)

Crops 2011-12 2012-13

Foodgrains :

1. Rice 957.3 973.7

Aus 26.4 26.9

Aman 556.0 554.7

Boro 374.9 392.1

2. Wheat 275.7 285.3

3. Barley 0.6 0.6

4. Maize 17.5 19.2

5. Other Cereals - -

Total Cereals 1251.1 1278.8

6. Gram 4.7 6.9

7. Tur (b) (b)

8. Other Pulses 33.8 36.1

20

Total Pulses 38.5 43.0

Total Foodgrains 1289.6 1321.8

Oil Seeds :

1. Rapeseed & Mustard 81.2 94.7

2. Linseed (b) (b)

3. Other Oil seeds 15.6 14.7

Total Oil seeds 96.8 109.4

Fibres :

1. Jute 2195.5 2176.8

2. Mesta - 8.8

3. Other Fibres - -

Total Fibres 2195.5 2185.6

Miscellaneous crops :

1. Sugarcane 214.9 302.4

2. Potato 291.7 364.7

3. Tobacco - -

4. Tea - -

5. Chillies (dry) 7.4 7.4

6. Ginger 0.6 0.6

Total Miscellaneous crops 514.6 675.1


Bureau of Applied Economics & Statistics

The district of Murshidabad, which has been earmarked as ‘ Major Agricultural District’

since pre-independence days enjoys a favourable agro-climatic condition supported by

availability of fertile alluvial soil. This has proved congenial for the district’s agricultural

development. However, the occurrence of floods almost every year and soil erosion by river

Padma has led to vast tracts of agricultural land being swallowed up by the rivers. Efforts are

being made by the district authorities to arrest this declining trends in agricultural area.

Land Utilisation:

Net area under cultivation in the district is 365000 hectares which constitutes 68%

of the total geographical area. The normal rainfall of the district is 1300mm, thereby

enabling a high cropping intensity of 225%. The land utilization pattern of the district is

highlighted as under.

Land Utilisation pattern of the Murshidabad District (2012-13)

(Thousand hectares)

Year 2011-12 2012-13

Reporting Area 532.50 532.50

Forest Area 0.77 0.77

Area under Non-agricultural use 130.94 131.02

Barren & unculturable land 1.68 1.58

Permanent pastures & other grazing land 0.01 --

Land under misc. treegroves notincluded in 1.16 1.08

21

Net area sown

Cultivable waste land 1.53 1.32

Fallow land other than Current fallow 0.20 0.11

Current fallow 0.94 .50

Net sown area 395.27 396.12

Source : Directorate of Agriculture (Evaluation), Govt. of WB

Cropping Pattern:

The cultivation of the district is by and large dependent on monsoons. Thus, the

cropping pattern is also dictated by the onset and retreat of the south-west monsoons. The

farmers of the district mainly follow the following cropping pattern:-

1. Winter paddy followed by Boro paddy.

2. Summer vegetables followed by kharif vegetables followed by winter paddy.

3. Rabi vegetables followed by jute.

4. Autumn paddy followed Rabi vegetables followed by Boro paddy.

Size of Land Holdings:

The size of the land holding in the district as per the last Agricultural Census

(2010-11) of West Bengal is given below:-

Sl.No Categories of Holding No. of

Holdings

Area of Holding

1 Below 1.0 acre 488104 235492

2 1.0 acre to below 2.0 acre 90794 146169



5 10.0 acre & above 31 344

Total 599107 438682


From the above table, it is seen that about 50 percent of the total land is held by about

70 percent small holders. Average size of land holding is also on the decline mainly due to

the breakdown of joint family system, giving an average land holding size of 0.75 hectares

which is quite low.

Agricultural Marketing:

The concept of Agricultural marketing covers the system of marketing of agricultural

produce. It serves as an important link between the producers and ultimate consumers. Marketing

to a producer may mean selling the produce in the nearest market or at the farm itself and getting

remunerative prices of that.

22

Now-a-days for progressive agriculture, emphasis has been put on increase of production

with introduction of modern technology and efficient disposal of the surplus produce to the best

advantage of the producer. This can be achieved only by developing an organized marketing

network to enable the producers to get fair and stable prices for their produce which will inspire

them to increase production further. There are different kind of marketing functionaries who are

known as middle man like Fariahs, Village merchants, Beparies, Aratdars, Whole sellers,

Brokers etc. They play a very important role in the process of marketing of agricultural produces

from the farms to the ultimate consumers.

However, the supply of quality seeds, fertilizers, pesticides are ensured by the dealer

network in the district as well as the Department of Agriculture. To promote further agricultural

development and to ensure qualitative production, the district also has pulses & Oilseeds

Research Station, Soil Testing Laboratory, Mobile Laboratory & Fertilizer Quality Control

Laboratory at Behrampore. The table below gives a glimpse of the agricultural infrastructure

available in the district.

Agricultural Infrastructure

There are (4) Regulated Markets in the district, being located at Lalbag, Cassimbazar,

jangipur and Kandi. Besides, there are as many as twenty seven (27) wholesale markets and

about 138 primary markets and hats in various rural areas of the district. However, market

facilities like shed, godown, etc. are not available in most of the markets. The market

infrastructure.

Market Infrastructure

Among the various agro-produce, the marketable surplus products are rice (about 50

percent), wheat (about 30 percent), potato (about 90 percent), Jute about (100 percent),

sugarcane (about 99 percent), pulses (about 50 percent), oilseeds (about 70 percents) and

vegetables (about 90 percent). Based on these surplus products, some agro-based units have

already been set up but more units can be set up. For storage of surplus potato and other

agricultural produce, there are eight (8) cold storages with a total capacity of 44830 MT in

the district.

Irrigation:

For agricultural production, the district depends to a great extent on the irrigation

facilities available. Irrigation indirectly assists industrial expansion by increasing agriculture

production.

There are various sources of irrigation in the district, but mostly the farmers depend

upon rain water, khals, beels & tanks/ponds for irrigation. These are all traditional systems of

irrigation. During dry season, the farmers depend on canals from Mayurakhi Project, RLI,

DTW & STW for cultivation of summer crops. Canal water is mainly used for boro paddy

23

cultivation. The various sources of irrigation along with area irrigated during 2012-13 is

shown in the following table:-

Area irrigated by different sources in Murshidabad District during 2012-13.

Source Thousand hectares

Govt.Canal 27.13

Tank 19.38

High capacity Deep Tubewell 21.89

Middle capacity Deep Tubewell 0.46

Low capacity Deep Tubewell -

Shallow Tubewell 0.86

River Lift Irrigation 8.67

Others 222.69

Source : 1) Irrigation and Waterways Directorate, Govt.of W.B.

2) Principal Agricultural Officer, Murshidabad

3) Asstt.Engineer, (Agri.Mech.), Murshidabad

Horticulture:

In horticulture production, the district enjoys a special advantage due to its

favorable soil and climatic condition. The main horticultural produces are mango, banana,

jackfruit, litchi, etc. The horticultural production of the district for 2013-13 is given below:

Area and Horticultural production in Murshidabad district for 2012-13

Name of Fruits / Vegetables Area (Thousand

hect.)

Production (Thousand

tonnes)

A. Fruits :

Mango 17.70 168.06

Banana 3.00 66.80

Pineapple 0.02 0.36

Papaya 0.77 28.00

Guava 1.20 9.50

Jackfruit 1.11 19.41

Litchi 3.31 33.20

Mandarin Orange - -

Other Citrus 0.33 3.70

Sapota 0.12 1.00

Others 0.71 3.21

Total 28.27 333.24

B. Vegetables :

Tomato 4.76 74.10

Cabbage 10.49 316.75

Cauliflower 10.60 302.45

Peas 1.40 7.25

Brinjal 17.23 315.40

Onion 2.67 30.90

24

Cucurbits 10.92 140.12

Ladies Finger 4.86 50.90

Radish 4.42 52.30

Others 19.93 168.51

Total 87.28 1458.68

Most of the horticultural produce meet only the local demand and there is not much

marketable surplus. Moreover, mango is the only fruit crop which has marketable surplus in the

district. Besides, mango is also available at affordable prices from the neighboring district of

Malda. So, a mango based food processing & preservation industrial unit can be set up in the

district.

Sericulture:

Murshidabad district is one of the few advanced districts of the state in the field of

sericulture activities. Due to suitable climate and soil, the rearing of silk worm is a major activity

in several blocks of the district. It is a traditional family work involving about 20,000 families in

the blocks of khargram and Nabogram. About 6,000 families in the Khargram block and 4,000

families in Nabagram block are engaged in sericulture activities. Besides, some families of other

blocks are directly or indirectly engaged in these activities. The farmers of these district produce

only mulberry cocoons due to better productivity and price.

The production of mulberry concoons and raw silk in the district is increasing

gradually. So, sericulture based units like cutlery, nylon net, bamboo rearing tray, motka,

spinning unit, bio-fertilizer, silk reeling, pupa oil extraction, etc. may set up in the district.

2012-13 2013-14

Mulberry

Concoons

Production

(in Kg.)

Rate

per Kg.

Value in

Lakh

Production

(in Kg.)

Rate

perKg.

Value in

Lakh

Multivoltine 32410 145 46.9945

Cross Breed 3208500 182 5839.47 3573360 190 6789.384

Bivoltine 27500 195 53.625 48800 200 97.6

Total 3268410 5940.0895 3622160 6886.984

Source: Directorate of Sericiuture, Govt.of West Bengal

Forests:

Forest is an important resource for industrial utilization. Its presence in Murshidabad

District is practically insignificant, covering only about 0.15 percent of the total geographical

area of the district. Mainly social forestry is practiced in the district. The forests mostly abound

in tropical trees.

25

Item Unit 2011-12 2012-13

Area by Class of Forest :

Reserved forest Hectare 90.11 90.11

Protected forest " 561.15 561.15

Unclassed state forest " 118.80 118.80

Khas forest " - -

Vested waste land " - -

Forest owned by corporate bodies " - -

Forest owned by private individuals " - -

Forest owned by civil authorities " - -

Total 770.06 770.06

Forest Produce :

Timber Thousand cu.

metre

125.54 0.46

Fuel " 294.00 0.33

Pole Number 663 585

Revenue & Expenditure :

Revenue Rs. in thousand 1624 4562

Expenditure " 3092 2586 *

Fishery:

Only sweet water fishes are available in the district. These fishes are available in the

rivers namely Bhagirathi, Bhajrab, Dwaraka, Jalangi, Babla, Padma,etc., Khalls ,beels, baors,

and tanks. Traditional sweet water fishes like kai,magur,rui, katla,etc. are available. The fisheries

department of the state is making considerable efforts to introduce modern methods of fish

rearing among the fishermen. Gradually, the fishermen are also adopting modern system of fish

cultivation and it can be hoped that in near future, production will increase even further. Present

position of fishery activities in the district for 2012-13 is given below:-

Particulars of Fisheries in the Blocks of Murshidabad for the year 2012-13

Sl.

No.

Name

of

Block

No. of

Govt.

Sche

mes

operat

ed

Expendi-

ture

('000 Rs.)

Assis-tance

to needy

fisheren

('000 Rs.)

Net area

available

for

pisci-

culture

(hect.)

Net area

under

effective

pisci-

culture

(hect.)

No. of

persons

engaged

in the

profess-

sionon

Approx.

Annual

produc-

tion

(qtl)

1 Behrampore 12 4349 4349 2110.07 1858.50 1908 125.60

2 Beldanga-I 12 43676 43676 2656.50 867.00 373 140.30

3 Beldanga-II 13 43257 43257 1300.00 1168.50 1320 100.00

4 Nowda 9 5892 5892 1342.36 321.40 252 128.00

5 Hariharpara 10 9319 9319 1321.99 1257.20 940 157.20

26

6 Kandi 9 7016 7016 1800.12 1332.00 1045 214.00

7 Khargram 7 646 646 2921.64 2408.10 1165 550.60

8 Burwan 7 661 661 2415.85 2140.20 1230 572.10

9 Bharatpur-I 7 1143 1143 1596.45 1428.60 978 640.00

10 Bharatpur-II 7 637 637 1644.65 1325.60 870 318.00

11 Farakka 7 629 629 1582.03 1340.30 975 300.00

12 SaSSIrganj 7 637 637 1536.26 675.10 460 340.10

13 Suti-I 7 637 637 1040.65 926.20 730 70.00

14 Suti-II 7 687 687 1510.40 750.00 550 319.00

15 Raghunathganj-I 8 655 655 1686.31 933.00 730 116.00

16 Raghunathganj-II 7 689 689 1629.62 1377.60 892 222.00

17 Sagardighi 9 885 885 2230.95 782.00 442 380.00

18 Lalgola 9 17815 17815 3647.71 3102.45 1520 250.10

19 Bhagwangola-I 10 4340 4340 925.48 800.10 360 87.20

20 Bhagwangola-II 8 637 637 962.73 912.50 740 90.00

21 Murshidabad-

Jiaganj

8 696 696 1788.05 1320.10 870 170.70

22 Nabagram 8 1721 1721 1638.31 221.10 160 30.15

23 Domkal 8 1197 1197 966.05 771.10 540 96.70

24 Jalangi 9 1227 1227 1254.11 1155.00 1015 150.00

25 Raninagar-I 7 830 830 357.35 265.00 130 72.70

26 Raninagar-II 7 629 629 4640.91 664.10 458 50.00

Sources District Statistical Handbook,2012-13

However, the annual production of fish is below the annual demand. So to meet the

local demand, fishes are brought from other states like Andhra, Odisha , etc.

Live Stock Resources:

Rearing of animals like cattle, buffalo, goat, sheep, etc. is the secondary occupation of the

farmers of the district. Due to rising unemployment levels, some have been set up poultry farms

and adopted animal rearing as their major occupation. The district, being an agrarian one has vast

tracts of cultivable land, which is used as grazing field during pre and post cultivation period. To

promote this sector, the state govt. has undertaken various programmes like providing training

facilities, spreading awareness about feasible livestock activities, providing cross-bred animals

and improved fowls to the cattle and poultry farmers etc. As a result, the number of cattle and

poultry farms is increasing noticeably in the district, making this sector profitable for further

exploitation. The livestock population of the district is given below:-

Livestock population as per last Livestock Census of Murshidabad District.

Sl.

No.

Name

of Block

Live-stock Poultry

Birds Cattle Buffaloe

s

Goats Sheep Other

s

1 Behrampore 83094 3189 95446 3362 828 295786

27

2 Beldanga-I 41341 2276 48706 5645 13 185914

3 Beldanga-II 63465 2204 51631 2336 162 163323

4 Nowda 37192 1340 80973 1096 159 52940

5 Hariharpara 50905 1849 95771 1167 464 259398

6 Kandi 55071 3830 56944 6230 1319 258924

7 Khargram 84788 5893 70797 14758 729 299947

8 Burwan 111420 2097 66134 10222 2040 281114

9 Bharatpur-I 96736 7512 57464 12322 764 187998

10 Bharatpur-II 56129 2726 37054 6724 2584 147142

11 Farakka 20559 3133 43149 1939 1409 69930

12 SaSSIrganj 9946 984 65913 474 35 147451

13 Suti-I 22311 2766 37791 6515 27 101534

14 Suti-II 14419 1591 67767 141 197 116127

15 Raghunathganj-I 23867 1875 28950 4809 929 108261

16 Raghunathganj-II 15895 4158 58846 1247 - 128229

17 Sagardighi 83694 4104 107610 25349 6865 279446

18 Lalgola 36294 1280 151721 500 35 326572

19 Bhagwangola-I 31274 1963 50423 246 7 138149

20 Bhagwangola-II 32135 1708 60626 1864 - 128847

21 Murshidabad-Jiaganj 41232 2062 61458 721 826 125681

22 Nabagram 63690 8083 74646 6271 2272 275607

23 Domkal 86476 2323 207133 155 28 384956

24 Jalangi 52087 1549 126840 62 26 328072

25 Raninagar-I 31595 960 64451 625 34 130300

26 Raninagar-II 48359 1570 74434 1830 72 114844

Source : 18th

All India Live-stock Census, 2007

There are no recognized slaughter houses in the district. So, production of meat, skin,

bones, etc.are not recorded. But field investigation revealed that a sizeable quantity of meat, skin

and bones are available in the district and small scale industrial units may be set up based on

these resources.

Mineral resources:

The availability of mineral resources is negligible in the district. Only clay from

alluvial tracts of the district can be used for manufacturing of bricks, tiles, pottery items, etc.

======= X=======

28

CHAPTER-IV

INFRASTRUCTURE

For speedy development of industry, infrastructural facilities play a very important role

by providing required support to the industrial units. So, availability of better infrastructural

facilities help rapid industrialization of the district and as such indirectly affect the economic

condition of the district. Considering the importance of the infrastructural facilities, the available

facilities in the district are elaborated in the following paragraphs.

The available infrastructural facilities in the district are divided into two categories viz.

physical infrastructure and social infrastructure. Physical infrastructure includes land,

accommodation, power, transport, communication, road etc. whereas social infrastructure

consists of entrepreneurship, market, lending facility, incentives, skilled persons, etc.

A. Physical Infrastructure:

Land:-

Land is one of the four prime requirements for setting up an industrial unit. For

construction of factory shed, office, store room, godown etc sufficient land is pre-requisite for an

industrial unit. In the district, fallow land is available in a few blocks which can be used for non-

agricultural purposes. Besides, cultivable waste land is also available in some blocks. This waste

land may be converted for industrial use. Block wise details of these lands are given below:-

Blockwise Culturable Waste Land and Fallow

Land in the District for the Year 2011-12 & 2012-13.

Thousand hectares

Year 2011-12 2012-13

Reporting Area 532.50 532.50

Forest Area 0.77 0.77

Area under Non-agricultural use 130.94 131.02

Barren & unculturable land 1.68 1.58

Permanent pastures & other grazingland 0.01 --

Land under misc. treegroves not included in Net area sown 1.16 1.08

Culturable waste land 1.53 1.32

Fallow land other than Current fallow 0.20 0.11

Current fallow 0.94 .50

The District Authority has set up a land bank for availability of land for setting up different

industrial units. Entrepreneur may also procure land from this bank by approaching the district

authority.

Factory Accommodation:

29

Factory accommodation like industrial estate and suitable land is needed for setting up

industrial units. The State Govt. has set up a commercial complex at Berhampore where some

electronic units have been accommodated. Besides, WBSIDC has also set up Industrial Estate at

Berhampore which has not yet become operational. There are no other industrial estates in the

district.

S. No. Name of Ind.

Area

Land

acquired

Land

developed

No of

Plots

No of

allotted

Plots

No. of

Units in

Production

1 Berhampur

Industrial Estate

10.86 acre 10.86 acre 59 59 46

2 Rejinagar

Industrial Estate

173 acres 173 acres - - -

3 Beldanga

Industrial Estate

28340 Sq.ft - - - -

Water:

For industrial purpose, water is available all over the district. Both ground and surface

water is available. Water is not a barrier for industrialization.

Power:

West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) is the sole

supplier of electricity in the district. WBSEDCL has a good network in the district and supplies

electricity for all purposes including industrial utilization. It is, in fact, strengthening its network

through a continuous process of development and expansion. A total of 1883 mouzas have

already been electrified in the district. Blockwise no. of mouzas electrified is shown in the

following table:

Block wise no. of mouzas electrified in Murshidabad District as on 31.3.2013

Sub-Division /

C.D.Block

Upto 31st March

2012 2013

Sadar Sub – Division 332 332

Behrampore 131 131

Beldanga - I 56 56

Beldanga - II 61 61

Nowda 28 28

Hariharpara 56 56

Kandi Sub – Division 510 510

Kandi 84 84

Khargram 138 138

Burwan 155 155

Bharatpur – I 81 81

30

Bharatpur – II 52 52

Jangipur Sub –Division 445 447

Farakka 62 64

Sassirganj 29 29

Suti – I 48 48

Suti – II 33 33

Raghunathganj – I 59 59

Raghunathganj – II 42 42

Sagardighi 172 172

Lalbagh Sub – Division 426 426

Lalgola 84 84

Bhagwangola –I 52 52

Bhagwangola –II 58 58

Murshidabad-Jiaganj 123 123

Nabagram 109 109

Domkal Sub – Division 205 205

Domkal 75 75

Jalangi 43 43

Raninagar – I 57 57

Raninagar – II 30 30

Total 1918 1920

Divisional Engineer, W.B.S.E.D.C.L

(Const.Div.), Murshidabad

The consumption pattern of power in the district for the year 2012-13 is shown below:-

Electricity Consumption Pattern in Murshidabad for the year 2012-13

Category Year-2013

(Upto March 2013) in

(in 000 K.W.H.)

Domestic 339327

Commercial 91283

Industrial 53316

Public lighting 5951

Agricultural irrigation & dewatering 94540

Public Water Works & Sewerage Pump 5869

Railway Traction & Non-traction 1208

Miscellaneous 9183

Total 600677

Source : District Statistical Handbook, 2013.

During the year 2012-13, electricity was mainly consumed for domestic and residential

purpose. For supply of electricity, the WBSEB has the following sub-stations in the district.

Extra High voltage (EHV) Sub-Stations in murshidabad District.

31

Sl.No Location Voltage

1 Amtala 132 kV

2 Gokarna 220 kV

3 Dhulian 132 kV

4 Raghunathganj 132 kV

5 Lalgola 132 kV

6 Farakka 132 kV

Apart from the above EHV sub-stations, the following High Voltage (HV) sub-stations

are also present in the district.

High Voltage (HV) Sub-stations in Murshidabad District.

Sl.No Name of the Power

Station

Unit Approved Capacity

(MW)

Installed

Capacity(MW)

1 Sagardighi Thermal

Power Station

Unit-I 300 300

Unit-II 300 300

Total Capacity 600 600

Sagardighi Thermal Power Station site is located at Manigram Village, 13 KM north of

Sagardighi town by the side of the SMGR( Sagardighi-Manigram-Gankar– Raghunathganj) Road

at a distance 20 KM from National Highway 34 in Murshidabad District, West Bengal and

around 240 KM from Kolkata. The nearest rail station is manigram adjacent to the site on Ban-

del– Barhawara branch line and 6.5 KM from Sagardighi Railway Station on Sainthia– Azim-

gunj line of Eastern Railway.In the first phase, two units of 300 MW each were synchronized on

21.12.2007 and 13.08.2008 respectively.

Ongoing Projects:

1. Sagardighi Thermal Power Project Phase II Unit 4 (500MW)

2. Sagardighi Thermal Power Project Phase III Unit 5(500MW)

3.Sagardighi Thermal Power Project Phase III Unit 6(500MW)

The capacity of some sub-stations may be increased under the development plan of

WBSEB. So, power supply is expected to improve in future.

Sl.No Name of the Power Station Unit Approved

Capacity (MW)

Installed

Capacity(MW)

2 NTPC,Farakka Unit-I 200 200

Unit-II 200 200

Unit-III 200 200

Unit-IV 500 500

Unit-V 500 500

Unit-VI 500 500

32

There is a NTPC Thermal power plant at Farakka. It supplies power to WBSEDCL and

other states.

Railways:

The district enjoys a good railway service provided by Eastern Railways. Following

broad gauge rail lines connect the district with the rest of the country.

Lines Distance

1. Lalgola- Palasi 77 Km

2. Farakka-Salar 170Km

3. Tildanga- Azimganj 83Km

The Lalgola - Palasi line connects the district with Sealdah, Farakka- Salar line connects

with Siliguri and Howrah, Tildanga-Azimganj line connects the district with Howrah, Katwa and

Bihar. Local express and mail trains run at regular intervals. These lines pass through almost all

important towns in the district.

For transportation of goods, loading and unloading facilities are available at Berhampore

court and Casimbazar Station.

Roads:

The district also enjoys a good network of road communication. Not only towns but

almost all villages are linked by either metal road or village/earthen road. Besides, NH-34 passes

through the district touching Beldanga, Berhampore, Farakka etc. It connects the districts with

Kolkata,Siliguri and NE Region. The length of the NH-34 within the district is 134 km. The

State Govt. is planning to convert this NH into Express way. The length of roads in the district is

given below:

Road maintained by various agencies in the district as on 31.03.04

(in km.)

National Highway

NH 34 133.5

NH 60 1.45

NH 80 15

Total 149.95

State Highway

SH- 11 1. Md bazar - Sainthia - Sultanpur (0 - 32)

2. Sultanpur - Kandi - Khagraghar - Baharampur (32 - 82)

3. Baharampur - Chunakhali - Jalangi (82 - 132)

4. Jalangi - Karimpur - Tehatta - Krishnanagar (132 - 226)

5. Krishnanagar - Ranaghal (226 - 251)

Total Capacity 2100 2100

33

SH -11A 1. Raghunathganj - Lalgola - Bhagabangala (0 - 65)

SH -7 1. Rajgram - Nalhati (0 - 31)

2. Nalhati - Moregram via NH-60 (0 - 0)

3. Moregrarn - Alinagar (31 - 51)

4. Almagar - Kulee (51 - 71)

5. Kulee - Ramjibanpur (71 - 100)

6. Ramjibanpur - Palita - Palitpur - Natunhat (100 - 129)

7. Natunhat - Muraiipur - Karjona (129 - 148)

8. Karjona- Burdwan (148 - 163)

9. Burdwan - Arambagh Burdwan portion (163 - 196)

10. Burdwan - Arambagh Hooghlv portion (196 - 205)

11. Arambagh - Goghat - Ramjibanpur (205 - 226)

12. Ramiibanpur - Khirpai (226 - 244)

13. Chandrakona- Keshpur (244 - 265)

14. Keshpur - Midnapore (265 - 289)

Total 114 Km.

All important towns and places in the district are connected with District Head quarters,

Berhampore by metalled roads. Surrounding districts, Kolkata and Siliguri are also connected

with the district by National Highways and State Highways. So the district is well connected

with the various important towns/places within the districts as well other parts of the country by

good road network.

Road Transport:

Road transportation facility is available in all the important markets and places of the

district. As these towns and places are linked by metalled roads with district Headquarter as well

as other parts of the state and country, long route buses and trucks ply frequently. CSTC,

NBSTC, SBSTC and private express buses run along the NH-34 which run through the district.

These buses ply between Kolkata to different towns in North Bengal. Besides, buses also ply

from Berhampore, Farakka, Beldanga, Raghunathganj, Lalbag, Kandi, Jangipur etc. to various

destinations of the district and state. The following table shows the important routes in the

district.

Sl.

No

Name

of Block

P.W.D. Zilla Parishad Gram Panchayat &

Panchayat Samity

Pradhan Mantri

Gram Sadak

Yojana

Surfaced Un

surfaced

Surfaced Un

surfaced

Surfaced Un

surfaced

Surfaced Un

surfaced

1 Behrampore 85.00 - 60.06 114.90 25.00 170.00 47.78 -

2 Beldanga-I 23.00 - 15.34 47.76 103.00 220.00 43.63 -

3 Beldanga-II 53.00 - 39.35 20.31 65.00 62.00 30.60 -

4 Nowda 38.00 - 22.50 - 115.00 28.00 32.93 -

5 Hariharpara 40.00 - 38.51 100.49 156.00 146.00 84.13 -

6 Kandi 73.00 - 49.00 27.75 36.00 125.00 68.89 -

7 Khargram 60.00 - 39.32 55.38 160.00 60.00 62.38 -

8 Burwan 70.50 - 64.88 22.60 50.00 70.00 51.34 -

9 Bharatpur-I 27.50 - 20.71 43.12 47.00 43.00 62.16 -

34

10 Bharatpur-II 44.00 - 29.34 25.16 122.60 47.43 79.18 -

11 Farakka 15.00 - 26.79 26.84 121.00 82.00 18.15 -

12 Samserganj 25.00 - 38.41 102.60 193.00 112.00 17.32 -

13 Suti-I 20.50 - 37.05 8.95 80.00 115.00 - -

14 Suti-II 25.00 - 26.82 83.18 149.00 92.00 13.18 -

15 Raghunathganj-I 37.50 - 39.90 91.10 230.00 114.00 14.20 -

16 RaghunathganjII 21.00 - 34.26 38.35 75.00 47.00 23.94 -

17 Sagardighi 40.50 - 70.80 28.20 188.00 112.00 95.21 -

18 Lalgola 30.00 - 9.84 32.16 240.00 172.00 39.06 -

19 Bhagwangola-I 35.00 - 5.30 52.67 36.00 12.00 67.91 -

20 Bhagwangola-II 10.00 - 9.54 48.46 147.00 158.00 72.62 -

21 Murshidabad-

Jiaganj

50.00 - 106.8

7

82.13 160.00 175.00 47.60 -

22 Nabagram 56.00 - 47.30 60.70 282.00 432.00 - -

23 Domkal 54.00 - 75.39 4.61 42.00 313.00 157.34 -

24 Jalangi 41.00 - 45.37 26.63 75.00 429.00 18.10 -

25 Raninagar-I 26.00 - 2.00 - 87.00 28.00 31.76 -

26 Raninagar-II 38.00 - 31.55 48.25 140.00 110.00 77.48 -

Source:-1) B.D.O.s, Murshidabad2) Zilla Parishad, Murshidabad, 3) P.W.D. (Roads), Murshidabad

Air Transportation:

There is no Air Port in the district. The nearest Air port in the district is Netaji Subhas

Chandra Bose International Air Port at Dum Dum, Kolkata. It is about 180 kms. away from

Berhampore town.

Water Ways:

The Bhagirathi river passes through the district in north-south direction and river Ganga

& Padma flow in north-east direction along the border of India and Bangladesh. These rivers are

quite navigable and steamer services are available. Besides, there are several other navigable

rivers namely Jalangi, Bhairab, Mayurakshi, etc. A good number of ferry services are available

along these rivers. However, since the district is flood prone, navigability of rivers is adversely

affected during the monsoons. Another major problem faced by the district is soil erosion along

the banks of river Padma which has led to inundation of vast tracts of low lying land.

B. Social Infrastructure: Entrepreneurship:

Expansion of industry depends to a large extent on experienced entrepreneurship.

Adequate entrepreneurs are indispensable for setting up of industries and their management.

Such experienced entrepreneurship is yet to build up in the district. As a result, expansion of

35

industry is not up to the desired level. Whatever industries exist in the district at present, are

mostly traditional. Only skilled entrepreneurs can divert the line of industry from traditional base

to non-traditional and modern technology based industry.

To promote the growth of industries in the district and to build up entrepreneurial

strength, the district authorities and promotional agencies have undertaken various programs like

motivational campaign, EDP, technical & managerial training, etc. to motivate the educated

unemployed youths towards self-employment.

At present, it is observed that the local educated youths are showing their eagerness in

setting up cottage type industries as the employment opportunities in the Govt. sector is almost

nil. These youths may also be trained as proper entrepreneurs by providing them various training

facilities and marketing and financial assistance.

Market Potential:

Markets for finished goods are essential for survival and healthy expansion of industry.

Market size again depends on the size of consumers and their consumption pattern. Consumption

pattern depends upon the income of the population. The population of the district as per 2001

census (p) was 58.66 lakhs. Most of them belong to the lower income group, comprising mainly

of farm labour, casual labour and daily wage earner. So, the market basically target this lower

income group people, who mainly consume primary goods like cloth, cheap food items, iron &

aluminum utensils, agricultural implements, construction items etc. But some products like rice,

flour, mustard oil, plastic etc. are consumed by all groups of people.

Apart from above, the district houses comprises of a number of schools, offices &

commercial/ trading establishment which need a considerable amount of stationery goods. But

most of these are brought from outside of the district.

Markets for agro-based items specially food items are also available in the surrounding

districts like Burdwan, Nadia, Hoogly, Howrah, Kolkata,etc. As the district serves as a link

between South-Bengal & North-Bengal, entrepreneurs can also avail the markets of Siliguri and

NE Region where processed food items, plastic goods, paper boards, chemical items like

detergent powder, shop,etc. have good markets.

Lending Institute:

Easy availability of finance for meeting the fixed and working capital needs is required

for smooth running of an industrial unit. A well branched network of lending institutes can meet

this requirement for industries.

36

Commercial and Gramin Banks in the Blocks of Murshidabad for the year 2012-13

Sl.

No.

Name

of Block

Number of Bank offices

Commercial Bank Gramin Bank

1 Behrampore 16 4

2 Beldanga-I 6 4

3 Beldanga-II 7 3

4 Nowda 7 2

5 Hariharpara 5 3

6 Kandi 4 1

7 Khargram 8 1

8 Burwan 9 2

9 Bharatpur-I 4 3

10 Bharatpur-II 5 4

11 Farakka 7 1

12 SaSSIrganj 6 2

13 Suti-I 4 3

14 Suti-II 5 2

15 Raghunathganj-I 7 1

16 Raghunathganj-II 5 1

17 Sagardighi 10 3

18 Lalgola 9 2

19 Bhagwangola-I 5 2

20 Bhagwangola-II 5 1

21 Murshidabad-Jiaganj 5 1

22 Nabagram 7 7

23 Domkal 8 5

24 Jalangi 7 3

25 Raninagar-I 5 2

26 Raninagar-II 5 3

Total 171 66

As per Census 2011 Population and Source : Lead Bank Officer, Murshidabad

All leading banks have their branches in the district. 239 bank branches consist of 155

commercial, 67 Gramin, 13 Co-operative, 2 Land Development, 1 WBFC and 1 UTI branches.

Among these banks, UBI works as the Lead Bank with 44 branches in the district.

Sl.

No.

Name of

District

Lead Bank CD Ratio

June 2014

CD Ratio Ratio June 2015 (Amount in

crore)

Deposit Advance CD Ratio

15 Murshidabad United Bank of

India

42 8888.97 4136.42 46

Banks, being the major lending institutions in the district, provide funds to various

sectors like agriculture and allied industries and other sectors. Thus, as far as credit disbursement

37

is concerned, agriculture sector has achieved 57.6% of its target whereas MSME sector is

lagging far behind by achieving a mere 24.28% of its target. However, service sector has

expelled by achieving 184.83% of its target in credit disbursement.

The C.D ratio of the district (as on June 2015) is 46% with total deposit of Rs.8888.97

crores .Compared to the C.D ratio of the state, which was around 65% during June 2015, the

district ratio requires further improvement. Credit facilities on easy terms to the MSME sector

and expansion of entrepreneurial activities will enable the banking sector to achieve higher

targets.

Mega Projects:

Notwithstanding anything contained anywhere in the scheme the State Govt. may

consider granting special package of incentives under this scheme to a Mega project having due

regard of the characteristics of the project, case by case basis, in the following areas:

a) Size of investment.

b) Special nature of the industry.

c) Employment Potentiality.

d) Downstream effect of the industry.

e) Ancillarisation of the industry.

f) Export potentiality.

Technical Skills and Training Facilities:

Availability of technical skill is an essential factor, which influences the manufacture of

quality products which can compete in the markets. As per live Register of Employment

Exchange, 8780 Industrial Supervisors, 9012 Skilled & Semi-skilled persons, 18955 Clerical,

90878 unskilled persons etc. were available as on 31.3.2003. These skilled and unskilled persons

can be utilized for setting up of new units. For use of modern technology, skilled persons are

available from Kolkata and other neighboring districts.

Training facilities are also available in the district. A textile college is situated at

Berhampore. Besides, another polytechnic Institute is also located at Berhampore to providing

training in civil, mechanical and electrical trades. There is one ITI to provide training in different

trades viz. fitter, surveyor, mechanist, electrician, wireman, carpentry, moulder sheet, metal

works, welder, blacksmith, etc. Govt. of India, Sericulture Department has set up a sericulture

Training Centre at Berhampore to impart training on modern technology in respect of sericulture

activities. Apart from these, various training facilities are also available in the neighboring

districts like Kolkata.

38

Growth Centres / Focal Points:

It is well known fact that industries do not disperse uniformly over all the districts. It is

concentrated in some areas, without judicious blending over the regions of the district. So there

should be conscious efforts of the Govt. agencies and planners to disperse the industries to

various viable centers for balanced growth of industries in the district. Therefore, investment and

development efforts are to be made at such places/centers, which have development potentiality

but have not been optionally explored. Such places are termed as growth centers.

To identify the growth centers, certain factors are considered. They are (i) population size

and growth of the settlement (ii) Availability of economic overheads. (iii) Transport and

communication facilities (iv) Minimum provision of secondary infrastructure (v) Proximity to

the existing commercial centers and markets (vi) Concentration and availability of various

material resources (vii) Occupational pattern of the working force. (viii) Lastly the availability

of technical skilled man power. In the view of the above factors in view, the following places

have been identified as possible growth centers in the district.

1. Berhampore

2. Farakka

3. Beldanga

4 Murshidabad-Jiaganj

5. Rghunath Ganj-I

6. kandi

7. Lalbag

8. Azimganj

9. Dhuliyan

10. Jangipur

11. Domkal

12. Omarpur

Though the district is industrially backward, a good number of cottage and small scale

industries have been set up in these growth centers and have generated considerable employment

opportunities for the rural and urban masses of the district.

In Omarpur, more than 30 plastic based units under Haldia Downstream Project have

been set up, which have favorably changed the economic scenario of that area.

However, there are no proper Industrial Estates in the district. WBSIDC has set up an

Industrial Estate at Berhampore, but same has not yet become operation.

======= X=======

39

CHAPTER-V

PRESENT INDUSTRIAL STRUCTURE

To find out the scope and prospect for new industrial units as well as expansion of

existing ones, study of the present industrial structure is important. In this chapter, an attempt

has been made to highlight the district’s industrial structure and point out the present problems

and prospects of industries so that promotional agencies can lay out their future plan for

development of industries in the district.

General industrial Climate:

As there is no large & medium industrial units, the MSE, tiny & cottage industries

dominate the industrial scenario of the district.

In the MSE sector, the existing unit can be classified into three broad categories viz. food

based, fabrication, and servicing units. In food based units, rice mills and paddy husking, wheat

flour and mustard oil units dominate. There are about 12 rice mills in the district. They mostly

cater to the local demand. But due to abundant supply of rice from other parts of the state, the

units face marketing problems. Paddy husking units are tiny units and works as servicing units.

Wheat flour units are in the small scale & tiny sector and mostly work as servicing units. They

also sell their finished goods in the local markets. Mustard oil units collect raw materials from

local markets as well as from other states. There are also several units producing rice, flour &

mustard oil in the same premises. Mustard oil and wheat flour units also face problems of stiff

price competition and poor product quality.

In the fabrication category, the MSE units mainly produce Steel Almirah, furniture, gate grills,

etc. The major problem facing these units is shortage of working capital due to which they

cannot purchase raw materials in bulk and at cheaper prices from Kolkata. The servicing &

repairing units are spread all over the district. Repairing and servicing of cycle, cycle rickshaw,

electronic goods, watches, etc. are the main activities of the servicing & repairing group.

Apart from these, a few plastic based units have been set up at Ragunathganj-I as Haldia

Petrochemical Down Stream units. But these are faced with the problem of raw material

shortage, which needs immediate attention. Opening of a raw material bank in the Govt. sector

may help to mitigate the problem to a certain extent. A number of tiny units manufacturing bidi,

tile, wooden furniture, handloom parts etc. also operate in the district and are scattered all over

the district. Few brick making unit have been set up in Jangipur, Bharatpur & Ragunathganj area.

All these units face the common problems of power shortage, shortage of working capital

etc. But labour is cheap, abundant and belong to the local area.

40

For further development of industry in the district, skilled managerial personnel and

adequate financial support from financial institutes, mainly banks are required. In addition to

these, assistance from promotional agencies is also indispensable.

Heavy Industries

The District is having the largest Power Plant at Sagardighi 12 km from Raghunathganj,

it also having a Central power plant at Farraka. NTPC Generating 1600MW power. A

Hydropower project is upcoming in the district. The District has it largest manufacturer of Bidi

most of the Women of the district are involved in manufacturing Bidi. The district also have one

Iron & Steel Manufacturing Company, in the city of Jangipur,which is also the landmark in the

district.The Town of Omarpur is the hub for manufacturing Plastic house hold goods.

Medium Scale Enterprises

There are no significant medium industries in the district.

Major Exportable Item

Bell-metal and brass utensils are manufactured in large quantities at Khagra,

Berhampore, Kandi, Baranagar and Jangipur. They are exported as well as sold in the local

markets. Locks and Betel nut cutters of a superior kind are made at Dhulian and iron chests at

Jangipur. The problem of getting raw materials for the brass and bell-metal artisans of the district

is, however, acute. While delay in getting raw materials owing to the complicated procedural

formalities involved in the submission of applications for raw materials has been almost a

constant factor, the industry has also been affected by the change in consumers demand in favor

of stainless steel, plastic and ceramic goods and crockery.

Service Enterprises

Cold storage is the important Service Industry and is the only potential service

industry in the district

Small Scale Industries:

The district has no such large and medium scale industry except Sagardighi Thermal

Power Station and NTPC, Farakka , although traditional industry in the tiny & cottage sectors

have flourished since pre-independence days. Most of the artisans are engaged in the

manufacture of traditional silk products. Other traditional activities like paddy husking, oil mill

(ghani), wheat grinding, bidi, etc. are expanding gradually.Along with these traditional activities,

41

some non-traditional activities like fabrication items, plastic products, bricks etc. are also

practiced.

Number of MSE units set up and registered in the district during the period 2006-07 to

2015-16( upto September,15) is shown below along with their employment and investment in

plant and machinery.

Number of Small Scale Industrial Units Filed Entrepreneur Memorandum to the

Directorate of Micro and Small Scale Enterprises in Hooghly District

Ministry of Micro, Small and Medium Enterprises(MSME) has notified the Udyog

Aadhaar Memorandum(UAM) under the MSMED Act, 2006 vide gazette notification [SO No.

2576(E)] dated 18-09-2015 in order to promote ease of doing business for MSMEs.

Prior to the introduction of the Udyog Aadhaar, to obtain MSME or SSI Registration,

two filing namely Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-

II) had to be filed. With the introduction of Udyog Aadhaar, the process of obtaining SSI or

MSME registration has been simplified.

Year Micro Small Medium Total

2015-16

(Since October,15)

31 2 1 34

The above table is self-explanatory. Analysis of the table shows that on an average 480

units were issued EM-II by District Industries Center (DIC) yearly. This has generated

employment for about 58618 persons. In fact, the growth rate has been showing a slightly

downward trend . The major reasons for this may be attributed to use of outdated technology,

shortage of working capital, lack of ancillarisation due absence of large scale industrial units,

Years No of Regd Units Employment Invt. in Plant & Machinery

( in Lakh)

2006-07 384 3747 1425.00

2007-08 831 9025 2760.56

2008-09 599 4483 1839.96

2009-10 320 4072 1883.92

2010-11 304 23320 1379.55

2011-12 721 4028 1428.89

2012-13 244 2259 1973.17

2013-14 347 2321 1913.75

2014-15 837 4098 3311.57

2015-16 (Upto Sept) 225 1265 1410.76

Total 4812 58618 19327.13

42

excessive dependence on traditional activities, absence of dynamism entrepreneurship, lack of

adequate knowledge about markets etc .The major industry groups in which these MSE units

have been set up are food, wood products, metal products, hosiery and garments and servicing

and repairing. In food industry, the dominating units are paddy husking, wheat grinding, Oil mill

(ghani) and rice mills. Cycle & rickshaw repairing, electrical & electronic goods repairing &

servicing units dominate in servicing & repairing sector. The main unit is wood products in

wooden furniture. In metal products, gate & grill manufacturing, steel almirah & furniture, etc.

are the main manufacturing units. Besides, in non-metallic mineral products, tile making and

brick fields are the main units.

The industries are mostly concentrated in the blocks of Berhampore, kandi,

Ragunathganj, Beldanga and so on. Rice mills are concentrated at Berhampore and Beldanga, Oil

mills at Beldanga, fabrication at Lalbag, plastc products at Kandi and wheat grinding and paddy

husking units are found throughout the district. Other tiny& cottage industries are found more or

less in all the blocks of the district.

Khadi and Village Industries:

For employment generation and development of the rural economy of the district, Khadi

and Village Industries play an important role. Handicraft activities are practiced in almost all the

blocks of the district. Among the KVIs, Village Pottery,Cane & khandasari, Carpentry,

Blacksmithy, Conch & shell products, Khadi silk cloth etc. are the prominent industries.

These industries involve low capital investment and are totally labour intensive. Besides,

agriculture being a seasonal activity, has limited employment opportunities to offer. Hence, the

Khadi and Village Industries have emerged as the sources of alternative employment for the rural

masses. Among the KVICs, pottery is an important activity, being mostly concentrated in the

blocks of Berhampore and Kandi. About 190-200 families are engaged in this activity providing

employment to an estimated 1000 number of persons. Manufacturing of conch shell products is

another popular activity of the district, practiced mostly in Jitpur, Bajitpur, Lakshminathpur areas

of Domar block and Amla in Bharatpur-I block. About 800 families (2500 persons

approximately) in these two blocks depend on this industry for their livelihood. Besides these,

silk weaving is practiced in various blocks of the district, the major concentration being in the

blocks of Islampur, Ragunathganj-I & II and jiaganj. Mat making is commonly practiced in the

Jitpur and Bajitpur areas of Domkal block. Other activities like umbrella assembly, shoe making,

bidi manufacturing broom making, manufacturing of ropes and fibres etc. also find a notable

place among the village industries of the district.

For promotion and expansion of Khadi & Village Industries, Khadi & Village Industries

Board (KVIB) has provided multi-faceted support through its various training programmes,

43

marketing assistance through ‘GRAMIN’ marketing agency, margin money provision against

credit provided by banks, modernization schemes etc.

Some Khadi and Village Industries in the district are:

Indian Cork (Shola)

Sholapith is a milky-white sponge-wood which is carved into delicate and beautiful

objects of art. Shola is a plant which grow wild in marshy waterlogged areas. The biological

name of shola is Aeschynomene Indica or Aeschynomene Aspera (bean family) and it is a

herbaceous plant. The sholapith is the cortex or core of the plant and is 1 ½ inch in diameter. The

outer harder brown skin is removed by expert hands to reveal the inner soft milky-white and

spongy material, almost similar to "Thermocol", artificially produced in a laboratory.

However, sholapith is much superior to thermocol in terms of malleability, texture, lustre

and sponginess. Artisans use it for making artifacts used for decoration and ornate head-wears of

bridal couple.

In Murshidabad the shola crafts are flowery designs, decorative head-wears of gods and

goddesses, garlands, intricate figurines like faces of gods and goddesses, elephant-howdahs,

peacock-boats, palanquins and so on are made of sholapith.

Bell Metal Works

Bell-metal and brass utensils are manufactured in large quantities at Khagra,

Berhampore, Kandi, Baranagar and Jangipur. They are exported as well as sold in the local

markets. Locks and betelnut cutters of a superior kind are made at Dhulian and iron chests at

Jangipur. The problem of getting raw materials for the brass and bell-metal artisans of the district

is, however, acute. While delay in getting raw materials owing to the complicated procedural

formalities involved in the submission of applications for raw materials has been almost a

constant factor, the industry has also been affected by the change in consumers demand in favor

of stainless steel, plastic and ceramic goods and crockery.

Silk and Sari

The Baluchari sarees are figured silk saree produced in the town of Baluchar in

Murshidabad district. Baluchar sarees essentially have a silk base with silk brocaded designs

with respect to their colours, where in spite of a rich composition; the Baluchar bootidars almost

avoid strong contrasts. Each pattern is treated in a colour which harmonises with the ground on

which it is laid. The most popular colours used are red, blue, yellow, green and scarlet. The

Baluchari sarees have large floral motifs interspersed with flowering shrubs. Traditionally the

Muslim community was also known to produce these Baluchars with figured patterns depicting

44

court scenes, horse with a rider, women smoking hookah. The Kalka design or the cone motif is

often surrounded with floral borders.

Murshidabad, apart from its silk industry which has formed a great part of the textile

heritage of India is also renowned for its historical sites such as the Hazaarduari Palace

(translated as the palace with a thousand doors) and the Nizamat Kila, which was the fortress of

the Nawabs, which were built by the British Duncan McLeod in 1837.At present, Murshidabad is

a hub for sericulture and handicrafts.

Details for Identified cluster

Name of the cluster: 1) Plastic Products,

2) Brass

3) Bell Metal

Details for Identified cluster in West Bengal implemented by Directorate of Micro & Small

Scale Enterprises, Govt. of West Bengal

Name of the district:- MURSHIDABAD

Sl. Subject. Name of the Clusters

Plastic Products Brass & Bell Metal

1 Principal Products Manufactured

in the Cluster

Plastic utensils Brass & Bell Metal items

2 Name of the SPV The Umarpur Plastic

Shilpa Samabaya

Samity Ltd.

Khagra Brass & Bell Metal

Association Welfare Society

3 No. of functional units in the

clusters

56 200

4 Turnover of the Clusters Rs. 65 Cr. Rs. 20 Cr.

5 Value of Exports from the Clusters Nil Nil

6 Employment in Cluster 500 500

Handicraft:

The common handicraft activities pursued by the artisans of the district include bell/brass

metal works, cane & bamboo works, ivory-carving, shoal pith works, decoration items etc.

The district has a long standing goodwill in the production of quality craft work of

bell/brass metal wares. The artisans of bell/brass metal works are concentrated in the blocks of

Berhampore, Kandi, Jiaganj, Jangipur, Nabagram, Beldanga and Khagra. In Khagra alone 25

units involving 150 artisans are engaged in this trade. However, stiff competition from other

45

sectors like stainless steel utensils, melmoware/plastic products has forced this sector to operate

at a sub-optimal level whereby full capacity utilization has remained outside its reach.

Besides,rising cost of raw materials and shortage of working capital have hindered the growth of

this sector.

Cane & Bamboo works are found in the blocks of Beldanga - I & II, Bharatpur-I & II,

Raninagar-I, Hariharpara, Nowda and Berhampore. The products mainly cater to the local

demand of the farmers. Packaging and transportation of agro produce creates demand for

bamboo baskets. Decorative cane and bamboo items are also produced.

Artisans of the district are well versed in the skill of wood carving. About 25 units,

generating employment for 157 persons are found operating in the blocks of Berhampore and

Jiaganj. Both sandal wood and common wood are used for carving. The products are generally

marketed through Govt. sales emporium and handicrafts co-operative societies. Traditional

carving techniques have given way to new and modern methods in order to meet the changing

demand of the market. In fact, sandal wood products have good export potential and can fetch

good foreign exchange if the world markets are properly tapped.

Other handicraft activities mainly include shoal craft with around 15 units in Berhampore

block, kantha stitch around 14 units in Bharatpur-II, Kandi and Berhampore block and jute

handicrafts with about 70 units in and around Raninagar-I and Islampur blocks.

Handlooms:

The district of Murshidabad has a rich tradition in handloom activities. The weavers have

the skill and expertise to produce quality products. Both silk and cotton products are produced.

While the major silk products include Silk kora saree, Garad saree, beluchari saree, Jamdani

saree, Silk motka dhuti,etc. the major cotton products are saree, dhuti, gamcha,lungi,mosquito

net, etc.

The blocks of Khargram, Ragunathganj-I, Ragunathganj-II, Raninagar and Burwan have

a high concentration of silk weavers whereas Domkal, Bharatpur-II, Farakka and Shamsherganj

specializes in cotton weaving. There are about 130 weavers’ (silk) co-operative socities with

12000 weavers (approx.) working with 9400 looms. There also exist 68 cotton weavers co-

operative societies with 5000 looms and 7000 cotton handloom weavers (approx.). These co-

operative societies mostly market their products through their own sale outlets or through Govt.

marketing agencies like Tantuja, Tantushree etc.

However, the growth of this sector is thwarted by problems such as shortage of working

capital fund, rising raw material cost, competition from semi-synthetic products, delay in

receiving payments from the marketing agencies, rising production cost, etc.

46

Problems faced by the existing industries:

The problems faced by the existing industries have already been stated earlier in this

chapter. However, the problems can be classified as under:-

1. Most of the units face acute marketing problems due to stiff competition from the large

and medium sector as well as lack of adequate knowledge about existing markets.

2. Tiny, Cottage and some MSE units also face the problem of shortage of working capital.

3. Almost of all MSE units market their products within the district. They are not in a

position to utilize their proximity to Kolkata and North Bengal due to their limited size and

capacity.

4. Power shortage is another hurdle, which stands in the way of expanding production.

5. Shortage of raw materials and rising production costs have forced many units shut down

or operate below their break-even point.

======= X=======

47

CHAPTER-VI

PLANNING FOR INDUSTRIAL DEVELOPMENT

Scope of new industries in the SSI sector has been suggested depending upon the

availability of physical and human resources, infrastructural facilities, present state of industries,

existence of large and medium scale industries, potential markets, demand of the local people

and industrial policy in respect of MSME sector for the district. The views and opinion of

different promotional agencies which are involved directly or indirectly with the development of

MSEs and the representatives of the trade and industry associations have also been given due

weightage for identifying potential areas and selecting new items which are viable and could be

manufactured in the MSME sector.

In the course of this exercise, the study team has identified the following resource based

and demand based industries in the district, which are considered to be viable and feasible for

development in the district.

The following is the list of the candidates industries in the district of Murshidabad.

A. Resource Based Industries.

Agro based Industries:

1. Rice Bran Oil

2. Jute Particle Board/Straw Board

3. Jute Diversified Products

4. Modern Rice Mills

5. Paddy Husking

6. Chira (Puffed rice)

7. Rice Mill

8. Silk Reeling

9. Chilli Powder

10. Fruits & Vegetables processing & preservation

11. Potato Chip (Local type)

12. Mango/mixed pickles

13. Ground Nut Oil Mill

14. Jute stick powder

15. Handmade paper

16. Fuel Briquettes from agricultural wastes

17. Industry on Green Jute Plant (coarse paper, masonished board, etc.)

18. Mini Jute Mill

19. Preservation of Vegetables/Multipurpose Cold Storage

20. Preservation of flowers

21. Rice Bran Oil Mill

22. Non-edible Oil Mill (Neem)

48

Mineral based Industries:

1. Bricks/Fly Ash Bricks

2. Tiles

Live stock based Industries:

1. Wet blue tannery/Raw hide processing/Bone meal

2. Meat processing

3. Milk products - paneer, ghee, butter, toned milk, etc.

4. Poultry & Cattle Feed

Forest based Industries:

1. Citronella Oil

B. Demand-based Industries

Food and Allied Industries:

1. Bakery (Semi- mechanized)

2. Biscuits

3. Oil Mills

4. Wheat Grinding

5. Mineral Water

6. Chanachur

7. Lozenge

8. Ice-candy & cream

9. Ice-block

Textile products including Hosiery:

1. Jute Bag for cold storage & agriculture

2. Readymade garments

3. Hosiery underwear

Wood Products:

1. Wooden furniture

2. Wooden doors & windows

3. Plough

4. Wooden board for electrical fittings.

Paper Products:

1. Exercise & book binding

2. Egg. Tray

49

3. Card board box

4. Paper envelope & packets

5. Paper Mill

Leather & Rexene Products:

1. Shoes & Chappal

2. Rexine bags.

3. Water proof/Rexine school bag.

Rubber Products:

1. Hawai Chappal

2. Rubber Gasket for automobiles.

Plastic Products:

1. PVC pipe

2. HDPE pipe

3. Plastic moulded utensils

4. Fibre glass products

5. Plastic toys

6. Granule from waste plastic

7. Polythene sheet

8. Polythene bag for cloth shop, etc.

9. Polythene pipe for agricultural pump set.

Chemical & Chemical products:

1. Flex printing

2. Distilled water

3. Pharmaceuticals/Herbal Medicines

4. Off set printing

5. Tyre Retreading

6. Ice block

7. Dot pen & Refill

8. Tooth powder

9. Detergent powder

10. Washing soap/Herbal soap/Medicated soap

11. Paint & varnish/grease & Lubricants

Glass & Ceramic Products:

1. R.C.C pipes & fittings

2. Ventilator & Zafri

3. Ophthalmic glass grinding

4. Coke Briquette

50

5 Sanitary Flash

6. Mosaic tiles

7. Mini Cement Plant

Mechanical:

1. Steel Furniture

2. Aluminium Utensils

3. Stone crushing

4. Steel Trunk

5. Agricultural Implements

6. General Engineering works

7. Rolling shutter

8. Wire Nail

9. Rickshaw Assembly

10. Gate & Grill

Electronic:

1. DTP/Software Units

2. Black & white T.V Assembly

3. Transistor & Tape recorder Assembly

4. Electronic Fan Regulator

5. Electronic voltage stabilizer

Electrical:

1. T.V Booster & Stabilizer

2. Tube light fittings

3. G.L.S Lamps

4. PVC cables

5. Decorating bulbs

Miscellaneous:

1. Cold storage

Small Service Establishments:

Servicing and Repairing Activities

1. Pump set repairing

2. Agricultural service centre

3. TV/Tape/Radio servicing & repairing/Mobile phone repairing & servicing

4. Auto-mobile repairing & painting

5. Cycle and rickshaw servicing & repairing

6. Watch servicing & repairing

51

7. Two wheeler servicing & repairing

8. X-ray

9. Photography

10. STD/ISD/PCO Booth

11. Transformer repairing and servicing

======= X=======

52

CHAPTER- VII

PLAN OF ACTION FOR INDUSTRIAL DEVELOPMENT

Before suggesting any plan of action for industrial development SWOT (strengths,

weaknesses, opportunities and threats) analysis is done for every district keeping in mind its

importance and peremptoriness since every place of an economy is not bestowed with unmixed

blessings. Hence, the SWOT analysis for the district of Murshidabad has become inevitable and

is depicted below.

Strengths:

i. There is a well-established network of electric power. More than 85% of the total mouzas

are electrified and power is available for SSI sector at concessional rate. Out of a total of 2210

mouzas, 1883 have been electrified till 2003-04.

ii. Growth centers have been set up at various areas like Berhampore, Beldanga, Jiaganj,

Azimganj, Farakka, Kandi, Domkal, Lalbag, etc.

iii. Almost all the blocks are served by a good network of banking system which makes it

easy for the entrepreneurs to avail the required financial assistance. There are 239 bank branches

serving the entire district.

iv. Road infrastructure is also being developed with various roads and bridges getting

connectivity with Highways and National Highways. NH-34 and a number of State Highways

pass through the district. The district is well connected to the neighboring districts by Rail

Communication.

v. The district is served with a good telecom network having 83 Telephone Exchanges with

a total capacity of both landline and mobile connectivity.

Weaknesses:

i. Agriculture being the main activity, people are somewhat reluctant to start a industrial

venture. A vast reserve of human resources thus remains unutilized.

ii. The district lacks a proper data bank. Hence, the budding rather prospective entrepreneurs

are not able to take investment decisions.

iii. Incidence of sickness in MSE sector if found to be very high, new entrepreneurs seen

apprehensive of pumping money into any industrial venture.

iv. Presence of traditional culture has failed to kindle industrial growth.

53

v. All primary raw materials and agricultural products are generally procured from outside.

This has resulted in an increase in cost of production and has sometimes resulted in scarcity.

Opportunities:

Development of industrial sites will induce new investment and in the process accelerate

the pace of industrialization. WBSIDC has already set up an Industrial Estate at Berhampore,

which is expected to become operational soon.

i. Presence of major growth centres at Berhampore, Beldanga, Lalbagh, Jiaganj,

Azimganj,etc has encouraged setting up of MSE units, which has provided considerable

employment opportunities.

ii. The existence of a vast reserve of unemployed persons mitigates to a certain extent, the

problem of non-availability of skilled labour to entrepreneurs. Setting up of more industries will

provide relief to the local youths.

iii. The development of industrial sector will influence the overall development of the

region and thereby improve the standard of living of the local population.

Threats:

i. Erratic climate conditions, particularly with some part of the district being flood prone,

quite often discourages entrepreneurs to take investment decisions.

ii. Unorganized markets with price fluctuations create uncertainty about the availability of

prime raw materials.

iii. There is possibility of creating an ecological imbalance due to rapid deforestation,

changing topography of land and utilization of large quantities of ground water.

After developing this snap shot view of the district as a whole, an attempt has been made

in this chapter to suggest a few actions which could be undertaken by the promotional agencies

for development of small scale industries- an area where employment opportunities can be

created at a reasonably low capital investment.

To enhance the MSE growth rate and to put the industrial sector on the road to success,

the following programmes namely entrepreneurship development training programmes,

seminars, industrial exhibition, study tours etc. are suggested for execution by the governmental

and non-governmental agencies. It is expected that these programmes will serve as a catalyst to

accelerate the pace of industrial growth and extract the best of entrepreneurship from the local

people.

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54

CHAPTER- VIII

CENTRAL & STATE GOVT. SCHEMES INCENTIVES AND FACILITIES

(A) Public Procurement Policy for goods produced and services rendered by Micro

and Small Enterprises (MSEs) be procured by Central

Ministries/Departments/Public Sector Undertakings(PSUs).

The Cabinet has approved the Public Procurement Policy for goods produced and services

rendered by Micro and Small Enterprises(MSEs) be procured by the Central

Ministries/Departments/Public Sector Undertakings(PSUs) to be notified under Section 11 of the

Micro, Small and Medium Enterprises Development(MSMED) Act, 2006. The Policy is

applicable w.e.f. 1.4.2012.

The MSEs, including the khadi, village and coir industries, constitute an overwhelming

majority of this sector, contributing significantly to the gross domestic product, manufacturing

output and exports. In the overall production/value chains, however, MSEs are highly

susceptible to volatile market conditions. To address this inherent problem, many countries in

the advanced world have put in place public procurement policies to support MSEs and to ensure

a fair share of market to such entities. Under the existing dispensation in India, the Government

guidelines provide for support in marketing of MSE products through a variety of measures such

as price preference, reservation of products for exclusive purchase from MSEs, issue of tender

sets free of cost, exemption from payment of earnest money, etc. In practice, however, most of

these facilities are not being provided to the MSEs by the Government Departments/CPSUs, etc.

The main features of the Public Procurement Policy for MSEs are:

i) Every Central Ministry/Department/PSU shall set an annual goal for procurement

from the MSE sector at the beginning of the year, with the objective of achieving an

overall procurement goal of minimum 20 per cent of the total annual purchases of the

products or services produced or rendered by MSEs from the latter in a period of

three years.

ii) Out of 20% target of annual procurement from MSEs owned by SC/ST entrepreneurs.

However, in the event of failure of such MSEs to participate in the tender process or

meet the tender requirements and the L1 price, the 4% sub target for procurement

earmarked for MSEs owned by SC/ST entrepreneurs will be met from other MSEs.

iii) At the end of 3 years, the overall procurement goal of minimum 20% will be made

mandatory. Non-conforming Departments will be required to provide reasons for the

same to be Review Committee set up under the Policy

55

iv) The participating MSEs in a tender quoting price within the band of L1+15% may

also be allowed to supply a portion of the requirement by bringing down their price to

the L1 price, in a situation where L1 price is from someone other than an MSE. Such

MSEs may be allowed to supply up to 20% of the total tendered value. In case of

more than one such MSE, the supply will be shared equally.

v) Every Central Government Ministry/Department/PSU will report the goals set with

respect to procurement to be met from NSEs and the achievement made thereto in

their respective Annual Reports.

vi) The Central Ministry/Department/Public Sector Undertaking will continue to procure

358 items from MSEs, which have been reserved for exclusive purchase from them.

vii) For enhancing the participation of SCs/STs in the Government procurement the

Central Government Ministry/Department/PSUs will take necessary steps including

organizing special Vendor Development Programmes, Buyer-Seller Meets etc.

viii) Given their unique nature, defence armament imports will not be included in

computing the 20% goal for M/o Defence. In addition, Defence Equipments like

weapon systems, missiles, etc. will remain out of purview of such policy of

reservation.

ix) A Committee has been constituted under the chairmanship of Secretary(MSME),

inter alia, to review the list of 358 items reserved for exclusive purchase from NSEs

on a continuous basis and for monitoring and review of the Public Procurement

Policy for MSEs. In addition, a ‘Grievance Cell’ would be set up in the Ministry of

MSME for redressing the grievances of MSEs in Government procurement.

The policy will help to promote MSEs by improving their market access and

competitiveness through increased participation by MSEs in Government purchases and

encouraging linkages between MSEs and large enterprises.

(B) Central Govt. Incentives and subsidies:

Govt. of India is the authority to make acts, policies, various developmental schemes and

programs for overall development of MSME sectors. It rolled out the Micro, Small and Medium

Enterprises Development (MSMED) Act-2006 on 2nd

Oct., 2006 with a view to simplify the

previous act, providing better service and assistances to MSME sector, gathering up-to-date data

of the sector for immediate action and overall speedy development of MSMEs in the country.

The Govt. implements these acts, scheme and programs through a network of govt. and semi

56

govt. promotional agencies like MSME-DI, SIDBI, NSIC, KVIC, Coir Board, etc. However,

major incentives and subsidies are provided by DC, MSME and MSME-DI highlighted in brief

in following paragraphs:-

Office of Development Commissioner operates a number of schemes for the MSME

sector. At a glance these are:-

National Manufacturing Competitiveness Programme (NMCP) Schemes Under XI Plan

The Government has announced formulation of National Competitiveness Programme in

2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to

become competitive and adjust the competitive pressure caused by liberalization and moderation

of tariff rates. The components of the scheme are :

• Marketing support/assistance to MSMEs( Bar Code).

• Support for entrepreneurial and managerial development to SMEs through

Incubators.

• Enabling Manufacturing Sector to be competitive through Quality Management

Standards and Quality Technology Tools( QMS/QTT).

• Building awareness on Intellectual Property Rights for MSMEs(IPR).

• Lean Manufacturing Competitiveness Scheme for MSMEs(LMCS).

• Setting up of Mini Tool Room & Training Centers under PPP Model(MTR).

• Design Clinic for Design Expertise to MSME sector (Design Clinic).

• Scheme for Technology and Quality Upgradation Support to MSMSs(TEQUS).

• Marketing Assistance & Technology Upgradation scheme for MSMEs.

• Promotion of ICT in Indian Manufacturing Sector(ICT)

1) Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

DC(MSME) launched MSE-CDP for holistic development of selected MSEs clusters

through value chain and supply chain management on co-operative basis.

2) Credit Linked Capital Subsidy Scheme for Technology Upgradation

The Scheme was launched in October, 2000 and revised w.e.f. 29.09.2005. The revised

scheme aims at facilitating Technology Upgradation of Micro and Small Enterprises by

providing 15% capital subsidy (12% prior to 2005) on institutional finance availed by them for

induction of well established and improved technology in approved sub-sectors/products. The

admissible capital subsidy under the revised scheme is calculated with reference to purchase

price of Plant and Machinery. Maximum limit of eligible loan for calculation of subsidy under

the revised scheme is also been raised Rs. 40 lakhs to Rs. 100 lakh w.e.f. 29-09.2005.

3) Credit Guarantee Scheme

57

Collateral free loans upto a limit of Rs.50 lakhs - for individual MSEs.

4) ISO 9000/ISO 14001 Certification Reimbursement Scheme –

Incentive Scheme of Reimbursement of expenses for acquiring Quality Management

System (QMS) ISO 9000 certification/environment management (EMS) ISO 14001 certification

to the extent of 75% or Rs.75,000/- whichever is lower.

- For individual MSMEs/Ancillary/tiny/SSSBE units

- The scheme offers funding upto 75% in respect of to and fro air fare for participation by

MSME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding

for producing publicity material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs)

and for contesting anti-dumping cases (50% upto Rs. 1 lakh) - for individual MSMEs &

Associations.

5) NATIONAL AWARDS

These awards are given away to small scale entrepreneurs for encouraging and

motivating them for efficient management of their small scale units, their modernization with a

view to upgrading the quality of their produce, higher productivity, increasing their share both in

the domestic/export markets, innovation and bringing about technological improvements.

The awards are given on the basis of the recommendations by State/UT level Selection

Committee and the final selection by the National Level Selection Committee.

The scheme envisages three National Awards (first, second and third) and one special

recognition award to an entrepreneur. The national awards carry, besides a trophy and certificate,

a cash award of Rs. 25,000/-, Rs. 20,000/- and Rs. 15,000/- respectively. The special recognition

award given to an entrepreneur in each State/UT carries, besides a trophy and certificate, a cash

prize of Rs. 10,000/-. In 1993, a special prize at par with first National Award was introduced to

honour an outstanding women entrepreneur and also an outstanding SC/ST entrepreneur. The

awards are given for every calendar year.

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58

CHAPTER- IX

STATE GOVT.’S POLICIES & INCENTIVES

West Bengal MSME Policy 2013-18

Murshidabad District is under Group-C Zone

(1) Fiscal Incentives Capital Investment Subsidy.

• For new Micro & Small Enterprise in Zone C & D

– Micro enterprise Zone D – 40%

– Small enterprise in Zone D – 30%

1. Subject to a ceiling of Rs 50 Lakh for Small Enterprise.

2. 20% additional subsidy on admissible subsidy for all enterpriseswholly

owned by women, SC/ST and minority community entrepreneurs.

c) These entrepreneurs will also get incentive for setting up of units in Zone

A & B as follows :

- Micro Unit – 15%

- Small Unit – 10%

d) This incentive would be in addition to what the units get

from GoI under any other scheme.

(2) Interest Subsidy On Term Loan

Micro & Small Enterprise

• Subvention of 6% for all units and 7.5 % for units set up in the C and D Zone

districts for 5 years.

Medium Enterprise

• Zone D – 25% of total Term Loan Interest subject to ceiling ofRs. 175.00 Lakh per year for 7

years.

(3) Electricity Duty


• 50% waiver for 5 yrs for Zones A & B & 75% for Zones C & D.

• The units set up in any zone and wholly owned by women, SC/ST and minority

community entrepreneurs will be eligible for 100% waiver for 5 years.

Medium Enterprise

59

• Zone D – 100% waiver of electricity duty on the electricityconsumption for 5

years and 75% waiver from the sixth year upto tenth year subject to maximum

of Rs. 50.00 Lakh per year or Rs. 2.5 Crore in 5 years.

(4) Power Subsidy


• Subsidy of Rs. 1.50 / Kwh for units in Zone C & D

For 5 years; subject to a ceiling of Rs 20 Lakh per annum for small enterprises and Rs 30

Lakh for medium enterprises.

(5) Incentive For Energy Efficiency


• 50% re-imbursement of the cost of energy audit undertaken by an certified agency to be

available after implementation of the recommendations.

• 25% reimbursement of the cost of installations for energy conservation as per energy

audit subject to a ceiling of Rs 2 Lakh.

(6) Stamp Duty & Registration Fee


• 100% for units in Zone D,

Medium Enterprise

• B, C & D Zone refund @ 75% of Stamp Duty.

(7) Entry Tax

• Reimbursement of ET on plant and machinery available after beginning of commercial

production by the unit.

• Reimbursement of ET on procurement of raw materials for the initial 3 years.

VATMicro, Small & Medium Enterprises

• Zone D – 90% VAT refund paid for 8 years or 75% of fixed Capital Investment

whichever reached earlier.

(8) CST

Total refund for 3 years from the date of commencement of commercial production.

(9) Water Conservation / Environment Compliance


60

• Assistance upto 50% or Rs 2 Lakh maximum for water conservation/ pollution control

measures.

(10) Cluster Development

• Support upto Rs. 10 crore for common infrastructure such as road, power etc for each micro

and small industrial cluster in Zone D.

• Undertake measures in collaboration with the industry to provide 10 million skilled HR

over a period of 5 years.

(11) Standard Quality Compliance


• 50% of cost upto a maximum of Rs. 5 lakh for obtaining certification /

accreditation like ISO-9000, ISO-14000, ISO-18000, Social Accountability

Standards, OEKO-TEX etc.

(12) Work Force Welfare Assistance

• Reimbursement of 100% in 1st year & 75% in next remaining years expenditure incurred

towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) as follows:

Zone B-5 yrs., Zone C-7 yrs., Zone D-9 yrs.

(13) GI / Patent Registration

• State Government will provide consultancy and facilitation services for

identification and registration of Geographical Indicators (GI)of items.

• Reimbursement of 50% of expenditure for obtaining patent registration subject to a maximum

of Rs. 5 lakh.

(14) Graded Slabs of Incentives

The districts of the state have been divided into 4 Zones for differential treatment under this

Policy. Considering the needs of inclusive growth, the policy provides additional incentives for

investment in backward regions of the state.

Zone –A:

Kolkata Municipal Corporation area, all Municipal areas of North 24 Parganas, all municipal

areas of South 24 Parganas, all municipal areas of Howrah.

Zone – B:

District of Hooghly, North 24 Parganas (excluding municipalareas and Sunderban areas, South

24 Parganas (excluding municipal areas and Sunderban areas), Howrah (excluding municipal

61

areas), Siliguri Municipal Corporation,Municipal corporation/municipal areas of Paschim

Medinipur, Purba Medinipur, Burdwan & Nadia.

Zone –C:

District of Burdwan (excluding Municipal Corporation/municipal areas), Purba Medinipur

(excluding Municipal corporation/municipal areas), Nadia (excluding Municipal

Corporation/municipal areas), Murshidabad, Malda, Jalpaiguri and Darjeeling (excluding Siliguri

Municipal Corporation)

Zone –D:

District of Birbhum, Purulia, Bankura, Paschim Medinipur (excluding Municipal

corporation/municipal areas), Uttar Dinajpur, Dakshin Dinajpur, Cooch Behar and Sunderban

areas of South and North 24 Parganas districts. Conditions/eligibility of the units for availing

incentives /financial assistance under this policy.

• Modern /Hi-tech plant & Machinery to be installed that conform to the standard productivity.

• Unit will have to strictly observe requisite pollution control compliances.

• Regular Energy Audit is to be conducted and standard energy efficiency to be ensured

wherever applicable.

• Unit will have to follow/maintain labour laws.

• Unit will have to commit to remain in production for at least 5years from the

date of commercial production.

• A unit defaulting in payment of any government dues / FI dues will not be eligible for

assistance under this policy

Negative List

The following manufacturing activity will not be considered for Subsidy

1) Sponge Iron Factory

2) Bricks (excluding Fly Ash/Sand Line/Refractory)

3) Bought Leaf Tea Processing Factory

62

ANNEXURE -

� MSME-DI, Kolkata - Training/Technical guidance/approval of schemes/ Testing

facilities at MSME-TC, Kolkata.

� (Lead Bank), Dakshin Dinajpur providing finance to the small scale entrepreneurs

� WBFC provides finance to MSEs/assistance to sick industries

� Zilla parishad, Dakshin Dinajpur is extending all sorts of help in promoting MSE units in

the district through various schemes

� WBSIC Ltd. Provides accommodation in industrial estates/marketing/raw materials

� NSIC Ltd. Provides marketing/higher purchase of machinery/single point

registration/equipment leasing

� Small Industries Development Agency provides single window service to SMEs

including approval of schemes.

� West Bengal Pollution Control Board provides regulatory NOC and consent

� Ministry of Food processing Industries (Fruit & Vegetable) provides FPO Licence to

Fruit and Vegetable processing unit.

� West Bengal State Electricity Distribution Company Limited (WBSEDC) provides

industrial connection.

Step by step procedure for setting up of small scale industry

• Selection of product after through market survey

• Selection of site

• Selection of name of the proposed SMEs, production process & machinery

• Purchase of land/arrangement of rented accommodation

• Partnership deed(if so)

• NOC, Trade License for office and factory from Municipal, Panchayat, Authority

• Inviting Quotation of machinery from reliable manufacturer/supplier of M/c.

• Scheme/Project report preparation and submission to DIC for approval

• Application for issuing EM & Application for power connection from WBSEB

• Obtaining recommendation for priority in power support from DIC

• Preparation for layout of plant and machinery in the work side

• Loan application to WBFC/Bank through DIC

• Application for No Objection Certificate/License to West Bengal Pollution Control Board

as may be applicable.

• Application to Sale Tax Authorities for provisional certificate on Sale tax concession

• Application for conversion of land to BLLRO if required

• Obtaining sanction of loan from WBFC/Bank

• Application for margin money to DIC

63

• Placement of order for machineries through financial institutions

• Construction of sheds

• Machinery installation, power connection and labour recruitments

• Market linkage

• Application for state incentive to DIC on machinery investment

• Application for permanent registration to DIC

• Production returns to be submitted on regular basis to DIC

Address of District Industries Centre, Dakshin Dinajpur

District Industries Centre,

Murshidabad,

20/1, C.R.Das Road,

P.O. Berhampore,

Dist. Murshidabad.

Phone : (STD-03482) 252-206/221/253-171

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64

CHAPTER- X

Sample Project Profile

(1)

Product: Industrial Hand Gloves

Production Capacity

(a) Industrial hand gloves : 75,000 pairs

(per annum)

(b) Value : Rs. 15,75,000

Pollution Control

This industry does not create any kind of pollution and as such there is no need to take

any preventive measures for pollution control.

FINANCIAL ASPECTS

A. Fixed Capital

(i) Covered are (100 sq. meters) - Rs. 3,000

rented @ Rs. 3,000 per month

(ii) Machinery and Equipments

Sl.No Description Qty

Rate

(Rs.)

Value

( Rs.)

1. Flat bed single needle industrial sewing

machine power operated ½ HP motor

5 7,000 35,000

2 Cyllinder bed single needle industrial

sewing machine power operated ½ HP

motor

2 10000 20,000

3 Cost of tools and fixture 5,000

4 Cost of office furniture and workshop

furniture

25,000

5 Electrification and installation of

machinery @10%

5,500

Total : 90,500

(iii) Preoperative Expenses Nil

Total Fixed Capital 90,500

B. Working Capital (per month)

(i) Personnel

Staff and Labour (per month)

65

Sl.No Designation

No Salary

(Rs.)

Total

( Rs.)

1 Production Manager

1

3,500

3,500

2 Accountant

1

2,500

2,500

3 Salesman

1

2,000

2,000

4 Clickers

2

2,000

2,000

5 Stitchers

7

2,000

14,000

6 Unskilled workers

4

1,500

6,000

7 Sweeper/watchman

1

1,500

1,500

Total

38,525

Say

38,500

(iii) Raw Materials Including packing requirements (per month)

Sl. Description Qty. Rate (Rs.) Value ( Rs.)

1 Chromel tanned split leather (3.5

pairs per kg.)

1786 Kg. 35/Kg. 62,510

2 Thread 6250 pairs 0.50 3,125

3 Cartons for packing (Carton

pack for 100 pairs)

63 Nos. 30 1,890

TOTAL: 67,525

(iii) Utilities

1. Power 1,200

2. Water 300

Total: 1,500

(iv) Other Contingent Expenses (per month) Rs.

1. Rent 3,000

2. Postage and Stationery 500

3. Telephone 500

66

4. Consumable stores 300

5. Repair and maintenance 500

6. Transport charges 300

7. Advertisement and publicity 500

8. Insurance 300

8. Misc. Expenses 500

Total: 6,400

(v)Total Recurring Expenditure (per month) Rs.

1. Raw Materials 67,525

2. Staff and Labour 38,500

3. Utilities 1,500

4. Other contingent exps. 6,400

Total : 1,13,925

(vi) Total working capital (for 3 months) = 1,13,925 x 3 = Rs. 3,41,775

Say 3,41,800

C. Total Capital Investment

(i) Fixed Capital Rs. 90,500

(ii) Working capital for (for 3 months) Rs. 3,41,800

Total: Rs. 4,32,300

FINANCIAL ANALYSIS

1. Cost of Production (per year ) Rs.

a. Total recurring cost 13,67,200

b. Depreciation on machinery and equipment @10% 5,500

c. Depreciation on tools @ 25% 1,250

d. Depreciation on furniture @20% 5,000

e. Interest on total investment @ 10% 64,845

Total: 14,43,795

Say 14,43,800

2. Turnover (per year)

1. Industrial hand gloves 75,000 pairs 21 per pair 15,75,000

Total : 15,75,000

3. Turnover - Cost of production = 15,75,000 - 14,43,800 = 1,31,200

4. Net Profit Ratio

67

= Net Profit per year x 100

--------------------

Turnover(per year )

= 1,31,200 x 100

--------------------

15,75,000

= 30.3%

5. Break even Point

(i) Fixed Cost Rs.

a) Depreciation 11,750

b) Rent for 1 one 36,000

c) Interest on total capital investment 64,845

d) 40% of salary and wages 1,84,800

e) 40% of other contingent expenses 23,520

Total : 4,40,710

Say : 4,40,700

(ii) Net Profit (per year )

B.E.P. Fixed cost x 100

= ---------------------

Fixed cost + Profit

= 4,40,700 x 100

----------------------

4,40,700 + 1,31,200

= 77%

Addresses of Machinery and Equipment suppliers :

1. M/s Singer Sewing Machine Co.,

Nehru Bazar,

Jaipur

2. M/s Industrial Sewing Machine Co.(P) Ltd.

Kakad Chamber, 5th

floor,

Dr. Annie Besant Road,

Mumbai-18.

68

(2)

Manufacturing of solar photovoltaic Home lighting system

To manufacture or assemble a SPV/HLS there are some requirement.These are as follows:

a) Solar Photovoltaic Module ( 37 Wt.)

b) Battery ( 12V/40 AMP.H )

c) Luminary-9W

d) Charge controller

e) Wires & cables

The wires which comes from SPV Module is joined with charge controller.Two other

wires which comes from charge controller is joined with battery.Two other wires which comes

through charge controller is joined with switch board and it goes to luminaries.

STANDARD AND QUALITY CONTROL

The SPV/HLS will be produced as per customers requirement and satisfaction.

POLLUTION CONTROL ANR REQUIREMENT

There is no any health hazard during the manufacturing process of Solar Photovoltaic

Home Lighting System, because the product is assembled by components. However, NOC may

be obtained from component authority at the time of registration.

POWER REQUIREMENT

Power requirement is 1 KW.

ANNUAL MANUFACTURING TARGET

It is proposed to manufacture 20 pieces of Solar Photovoltaic Home Lighting System

per month. TECHNICAL

ASPECTS Fixed Capital:

Land & Building --- 2000 Sq.ft. (Rented) Rs. 2000/-

Plant & machinery :-

1. Tools & Tackles Rs. 21,500/-

2. Winding Machine Rs. 12,000/-

3. ElectricalOperation Drill Machine Rs. 2,376/-

4. Spray Painting with compression Rs. 10,435/-

5. Varying Volt Metre & Ammeter Rs. 10,612/-

6. Oscxiloscope(50 MHZ) Rs. 26,500/-

7. Lux Meter Rs. 1,950/-

8. Micro Meter(2) Rs. 3,600/-

9. Installation & Electrification Rs. 6,500/-

69

10. Transportation Rs. 1,500/-

11. Insurance Rs. 2,200/-

Total:-Rs. 99,173/-

OTHER FIXED ASSETS

Sl.No. Description Nos. Rate(Rs.) Value(Rs.)

1 Working Table 4 2,500 10,000

2 Wooden Rack 2 3,000 6,000

3 Steel Almirah 1 3,200 3,200

4 Wooden Tools 8 250 2,000

5 Preliminary & preparatory expenses - - 50,000

6 Telephone - - 2,000

Total : 73,200

TOTAL FIXED COST :- Rs. 99,173/- + Rs. 73,200/- = Rs. 1,72,373/-

WORKING CAPITAL PER MONTH:

Man power requirement-


A Manager- cum-

Accountant

1 2,000 2,000

B Supervisor 1 2,500 2,500

C Skilled Worker 2 1,500 3,000

D Unskilled Worker 2 1,400 2,800

E Halper 1 1,000 1,000

Perquisites15% - - 1,695

Total: 12,995

Raw material per month-


1 SPV Module(37Wt.) 20 6,250 1,24,000

2 Battery12V/40AmpH 20 2,200 44,000

3 Luminary-9W 20 1,550 31,000

4 Charge controller 20 900 18,000

5 Wires & cables 20 950 19,000

Total: 2,36,000

70

Utilities per month-

1. Electricity = Rs. 800/-

2. Water charge = Rs. 50/-

Total:-Rs. 850/-

MISCELLANEOUS EXPENSES PER MONTH

Sl.No Description Value(Rs.)

I Rent 2,000

Ii Maintenance 200

Iii Advertisement 500

Iv Tax & insurance 200

V Transportation 1,000

Vi Consumable stock 2,000

Vii Travelling expenses 1,500

vii Printing& Stationary 500

Total: 7,900

Total Working Capital Per Month:- Rs. 12,995/-

Rs. 2,36,000/-

Rs. 850/-

Rs. 7,900/-

Total:-Rs.2,57,745/-

Working Capital for 3 Months: Rs.2,57,745/- X 3=Rs. 7,73,235/-

Total Capital Investment:-

Fixed Capital = Rs. 1.72,373/-

Working Capital for 3 Months = Rs. 7,73,235/-

Total:-Rs. 9,45,608/-

FINANCIAL ANALYSIS

A. Cost of Production per annum:

Sl.No Description Value(Rs.)

I Total Working capital per Annum 30,92,940

Ii Depreciation on Plant & Machinery @ 10

%

9,917

Iii Depreciation on

Fixed Assets @ 20 %

4,640

71

Iv Interest on capital Investment

(75%) @ 12.5%

88,651

Total: 31,96,148

B. Total Sales:


A Solar Photovoltaic Home Lighting

System

240 14,200 34,08,000

C. Profit Per Annum:-

Total Sales – Cost of Production = Rs.34,08,000 /- - Rs. 31,96,148/-

= Rs.Rs. 2,11,852/-

D. Profit Ratio:-

Profit Per Annum X 100 Rs. 2,11,852 X 100

--------------------------- = ------------------------- = 6.2 %

Total Sales Rs. 34,08,000

E. Return on Capital Investment:-

Profit Per Annum X 100 Rs. 2,11,852 X 100

--------------------------- = ------------------------- = 22.4 %

Total Capital Investment Rs.9,45,608

F. Break Even Point:

Sl.no Description Value(Rs.)

I Total depreciation 14,557

Ii Total Interest 88,651

Iii 40% of Salary & wages 62,376

Iv 40% of Misc.Expenditures 37,920

Total:- 2,03,504

B.E.P :-

Fixed Cost X 100 Rs. 2,03,504 X 100

--------------------------- = ------------------------------

Fixed Cost + Profit Rs.2,03,504 + 2,11,852

= 49 %

72

(3)

Tyre Retreading

Introduction

Retreading of damaged tyres is done by conventional hot matrix curing in most cases.

But recently a new technology is developed called procured Tread Rubber Retreading Process

which is commonly known as ‘ cold process Retreading’. In this process the procured tread

rubber already has a tread pattern on it, climinating the need for a tread matrix at the vulcanizing

stage. Tread rubber is procured in the raw materials manufacture’s factory under controlled

condition and given a well-researched pattern ensuring that the transporter gets a reliable

perfectly finished product. Retread tyre by procured method gives 50% more mileage than the

tyre retreaded by conventional process.

Market

At present there are about 6 units in organized sector and 40 units in small scale sector

which are engaged in manufacturing tread rubber for tyre retreading by the procured process.

Market demand of tyre retreading by cold process is increasing day by day. There is a good

scope for setting up unit for tyre retreading by cold process using procured tread rubber.

Basis & presumption

The profile is draw on the basis of the following working hours/day – 8 hrs.

Working days - 300

Total No. of working hours - 2400hrs.

Working efficiency - 80%

Time period for achieving max.

3rd

year from the date on which production Capacity Utilisation will be started.

Labour charges - As per minimum wages act of State Govt.

Margin money - 25%of Cap. invest.

Rate of interest on fixed and working Capital - 18%

Operative period for the project - 10 years

Rent - Rs. 2.00/st.

Value of machinery and equipment is estimated on the basic of prevailing cost in the

market.

Implementation schedule

Project implementation will take a period of 8 months from the date of approval of the

scheme. Break up of activities with relative time for each activity is shown below:

73

Name of activities Time period of month (estimated)

1. Scheme preparationn & approval 0-1

2. SSI Provisional Registration 1-2

3. Sanction of loan 2-5

4. Clearance from pollution control board 3-4

5. Placement of order for delivery of M/c. 4-5

6. Installation of machines 6-7

7. Power connection 6-7

8. Trial lrun 7-8

9. Commencement of production 9 onwards.

TECHNICAL ASPECTS:

Production details & process of manufacturer:

a) Inspection:

The type that comes from the cumstomer is cleaned well. Dust and mud is removed. The

casing is inspected for cuts, ply separation, condition of beads etc. and based on the condition of

the easing, the tyre is selected or rejected.

b) Buffing:

Under inflated condition, the selected tyre’s crown area is buffed to the required texture

and contour. This is done for better bonding of procured rubber to the casing.

c) Tread Building:

The buffed casing is mounted on to the tread building machine, Cushion compound is

applied on the buffed tread area and over it the procured Tread Rubber is applied and sticked

using rollers. The Joint portion of the procured treads rubber is then stapled to avoild possiole

opening during curing of the tyre.

d) Bonding:

The build up tyre is convered by a rubber envelope and placed in the ‘Bonder’. In the

bonder, stream at a specific temperature is circulated which cures the cusion compound to

complete the bonding of the tread on to the

Quality Specification

The retreading will be done as per standard specification fixed by the tyre manufacturers.

Production Capacity

1.Truch Tyre retreading size 900-20 - 2400 Nos. per annum

2.LCV Tyre size – 700-15 - 1800 Nos. per annum

74

3.Passenger Car Tyre size 590-15 - 2700 Nos. per annum

Energy Conservation

Proper maintenance of power operated machine and fuel operated boiler and judicial use

of them will conserve energy.

Financial Aspects

1.Fixed Capital:

Covered shed 2000 sft. – Rented Rs.8,000.00 per month

2.Machinery & equipment: Production unit

1.Main Equipment: Buffer with Dust collector, builder Rs. 10,00,000.00

Two tyre truck bonder, three tyre LCV/Passenger bonder with curing

Rims and electro Hoist.

2.Supporting equipment: Working bench envelope/tyre stand Gantry cost. Rs.50,000,00.00

3.Auxillary items: Piping erection, electrical fittings, Retreading, Rs. 2,00,000.00

tools, mechanical hoist with trolley

4.Utility Items: 300 kg/hr. Boilder and 5 HP Air Rs. 6,00,000.00

Compressor ( 2 Nos.) (Oil Fired)

5.Additional Support Item: a.Air Conditioner 1.5 ton 4 Nos. Rs. 80,000.00

b.Electrification & Installation Charges @ 10% of Rs. 1,90,000.00

cost ofMachines & equipment Equipment

Total cost of machinery & Rs.21,20,000.00

c.Cost of office equipment Rs. 1,00.000.00

3.Pre-operative expensies: Rs.1,00,000.00

Total fixed capital Rs.23,20,000.00

4.Working Capital Per Month:

i)Personnel

a)Administrative & Supervisors

__________________________________________________________

75

Designation Nos. Salary/MP Total(Rs.)

__________________________________________________________________

Manage 1 5000 5000

Supervisor 1 3000 3000

Clerk 1 2000 2000

Typist 1 2000 2000

Salesman 2 3000 3000

15000

Add 15% benefit 2250

24150

ii.)Raw material

a) For Retreading 200 Nos. of Truck Tyres in procured system:

Particulars Qty. Rate(Rs) Value (Rs.)

1. Precured Tread rubber 1900 kgs. @ 100/- kg. 190000/-

2. Cushion Compound 260 Kgs. @ 100/0 kg. 26000/-

3. Vulcanising 150 ltrs. @ 60/- ltr. 9000/-

4. Envelope 200 Nos. @ 20/- pc. 4000/-

5. Curing bag. 200 Nos. @ 20/- pc. 4000/-

6. Misc. consumables like- @ 20/-tyre 4000/-

tyre paints, etc. 237000/-

Cost of raw materials for one No. of procured Retreated Truck Tax @ 10% 23700/-

Tyre Rs. 1303.50 260700/-

Cost of materials for one No. of procured Passenger tyre = Rs. 412.50

Hence total cost of raw materials:

= Rs. 260700 + 100485 + 92812= Rs.453997/-

iii) Utilities ( per month):

Power 3600 KWH @ Rs. 4.00 Rs. 14000/-Fuel (Furnace oil) Rs. 30000/-

Rs. 44000/-

iv) Other Contingent Expenses(Per month)

Rent Rs. 8000/-

Postage & Stationery Rs. 2000/-

Telephone Rs. 5000/-

Repair & Maintenance Rs. 5000/-

Transport Charges Rs. 10000/-

76

Advertisement & Publicity Rs. 5000/-

Insurance/Taxes Rs. 2000/-

Sales/expenses Rs. 3000/-

Misc. expenses Rs. 1000/-

Rs. 65000/-

v) Total Recurring Expenditure per month

a) Raw Materials Rs. 453997/-

b) Salary & Wages Rs. 41400/-

c) Utilities Rs. 44000/-

d) Other contingent expenses Rs. 65000/-

Rs. 604397/-

vi) Total Capital Investment

i) Fixed Capital Rs. 2320000/-

ii) Working Capital for for 3 months Rs. 1813191/-

(b) For retreading 150 Nos. LCV Tyres in procured system

i) Precured Tread rubber750perkg @100/- 75000/-

ii) Cushion compound 75per Kg.@ 100/- 7500/-

iii) Vulcanising Solution 52.5 perLtrs.@ 60/- 3150/-

iv) Envelope 150Nos.@1000/- per 100 nos. 1500/-

v) Curing bag 150 Nos.@800/-per100 nos. 1200/-

vi) Misc. consumables line paints etc. @ 20/- 3000/- per tyre 91350/-

9135/-

Rs. 100485/-

Cost of raw materials for one no. of procured

Retreated LCV tyre = Rs. 670/-

©For retreading 225 Nos. of passenger tyres in procured system

i) Precured Tread rubber675 kg.@100/- 67500/-

ii) Cushison compound 78.75 kg.@ 100/- 7875/-

iii) Vulcanising 56.25 Ltr.@ 60/- 3375/-

iv) Envelope 225 Nos.@ 500/- per 100 1125/-

v) Curing bag 225 Nos.@ 500/- per 100 nos. 1125/-

vi) Misc. consumables like tyre paints etc. @ 12.5/- 3375/-

84375/-

Tax @ 10% 8437/-

92812/-

Machinery Utilisation - 80% of installed capacity.

Financial Analysis

Cost Production ( per year )

77

Total Recurring cost Rs. 7252764/-

Depreciation on machinery & equipment @ 10% p.a. Rs. 212000/-

Depreciation on office equipment @ 20% Rs. 20000/-

Interest on total investment @ 18% p.a. Rs. 537315/-

Rs.8022079/-

Turnover ( per year ) :

Item Qty Rate(Rs.) Value(Rs.)

Precured Retreading Charges for

(1)Truck Tyre size 900-20 2400 Nos. 2000 4820000

(2)LCV Tyre size 700-15 1800 Nos. 1200 2160000

(3)Passenger car tyre 2700 Nos. 800 2160000

9140000

Net profit per year before taxation = Rs. 1117921/-

Net profit Ratio = Net profit per year x 100

------------------------------

Turnover per year

= 1117921 x 100

------------------

9140000

= 12.2%

Net profit x 100 1117921 x 100

Return on investment = ------------------- = ----------------- = 27%

Total Capital Investment 4133191

Break Even Point :

i) Fixed cost

a)Depreciation Rs.232000/-

b)Rent Rs. 96000/-

c)Interest Rs.537315/-

d)Insurance Rs. 24000/-

e)40% of salary 7 wages Rs. 198720/-

f)40%of other contingent expenses exclusing selling Rs. 139200/-

expenses, Transport but including electricity Rs. 1227235/-

(ii) Net profit per year Rs. 1117921/-

78

F.C. X 100 1227235 x 100

BEP= ---------------- = -------------------

F.C. + Profit 1227235 + 1117921

122723500

= -------------- = 52.3%

2345156

(4)

Cotton Knitted Fabrics

Production Capacity (per month) Plain Knitted Cloth

Quantity (Kgs.) Amount ( in Rs.)

1,60,400 2,32,58,000

Motive Power

Totally 30 HP power is required to run the industry at full capacity, this is proposed to be

obtained from State Electricity Board.

Pollution Control

The process of manufacture does not involve any pollution

Energy Conservation

Wastage of energy can be minimized by proper housekeeping.

FINANCIAL ASPECTS

A. Fixed Capital

(i) Land and Building :

Covered area 350 sq. mt.

Uncovered Area Nil

Rent per month @ Rs. 7,000Rs. 20/-sq.mt.

(ii) Machinery and Equipments

Sl.

No

Description No. Rate

(in Rs.)

Amount

(in Rs.)

1. Sinker body knitting machine 22 gauge 17”

dia with needles and all accessories

8 58,000 464000

79



8 60000 480000



8 55000 440000

4. Electrical motor for knitting machines 24 5000 120000

5. Electronic weighing balance 1 45000 45000

6. Miscellaneous assets LS 15000 15000

Total 15,64,000

(iii) Other Fixed Assets

(a) Erection and installation 1,38,400

(b) Office furniture 18,000

© Pre-operative expenses 20,000

Total: 1,76,400

Total Fixed Capital : 17,40,400

B. Working Capital (per month)

(i) Staff and Labour Wages

Sl.

No.


(in Rs.)

Amount

(in Rs.)

1. Manager 1 8000 8000

2. Clerk/Store-keeper 1 3000 3000

3. Watchman 1 2500 2500

4. Peon 1 2500 2500

Total : 16000

Production Staff :

Sl.

No.


(in Rs.)

Amount

(in Rs.)

1. Machine Operators 12 3600 43200

2. Unskilled workers 3 2500 7500

Total : 50,700

S. Total 66,700

Perquisites @20% 13,340

G. Total : 80,040

(ii) Raw Material

Sl.

No.

Description Qty.

(Ks.)

Rate (Rs.) Amount

1. 40 S Cotton yarn 13600 120 1632000

2. Total : 1632000

80

(iii) Utilities (per month) Rs.

Electricity bill 14,500

Water charges 500

15,000

(iv) Other Continent Expenses (per month (Rs. )

(a) Rent 7000

(b) Postage/stationery 500

© Repair and

maintenance

500

(d) Transport/traveling

charges

1000

(e) Insurance 500

(f) Telephone bills 1000

Total: 15,767

(v) Total Recurring Expenses(per month)=17,42,807

(vi) Total working capital for 3 months Rs. 52,28,420

C. Total Capital Investment

(a) Machinery and equipment Rs. 17,40,400

(b) Working capital for 3 moths Rs. 52,28,420

Total: Rs. 69,68,820

MACHINERY UTILISATION

Machinery utilization is considered as 75% of installed capacity.

FINANCIAL ANALYSIS

(1) Cost of Production ( per year ) Amount

Recurring expenses 20913680

Depreciation on machinery @ 10% 138400

Depreciation on office furniture and

equipment @ 20%

13600

Interest on total investment @ 14% 975635

Total: 2,20,41,315

(2) Turnover ( per year ) (Sales)

81

Sl.

No.

Product Qty.

(Ks.)

Rate

(Kg.)

Amount

(Rs)

1 Cotton knitted fabric 160400 145 23258000

Total 23258000

(3) Net Profit ( per year ) Rs. 12,16,685

(4) Net Profit Ratio(Net Profit/ 5.23% Turnover (per year )

(5) Rate of Return on Investment 17.45% (Net Profit/Total Capital Investment )

(6) Break-even Point

Fixed Cost (Rs.)

Depreciation 1,52,350

Rent 84,000

Interest on capital investment 9,75,635

40% of wages of staff and labour 3,84,192

40% of other contingent expenses 1,11,680

Insurance 6,000

Total 17,13,507

B.E.F. FC X 100

= -------------

FC+ Profit

= 58.4

Address of Machinery and Equipment Suppliers :

1. M/s. Bharat Machinery Works

44, Industrial Area – A

Ludhiana.

2. M/s. Moonlight Knitting Machinery Works

Vishvakarma Colony

Ludhiana.

3. M/s. S.T.M. Knitting Machinery Works.

Near Savitry Complex

Ludhiana.

4. M/s. T.S. Mechanical Works,

Janta Nagar,

Ludhiana.

Raw Material Suppliers.

1. M/s. Mahavir Spinning and General Mills,

Hoshiarpur.

82

2. M/s. Abohar Co-operative Spinning Mills.

Abohar.

3. M/s. Adinath Textiles Ltd.Registered Office,

Village Bholapur,

P.O. Saghibana,Chandigarh Road,

Ludhiana.

4. M/s. Vardhman Spinning General Mills.

Samarala Road,Ludhiana

(5)

PRODUCT: Modern Rice Mill

CAPITAL INVESTMENT: Rs 35,49,000 /-

INTRODUCTION

Paddy is being processed by various methods. Major quantity of paddy is processed

through Rice hullers. In these hullers both shelling and polishing operations are carried out

simultaneously as a result there is no proper control on polishing of rice. In this case, bran is

obtained admixed with husk and higher breakage of rice occurs. The yield of rice is 2-5% less

than that obtained in modern mills. Today some advanced techniques are being used for

processing of paddy to get better yield and white quality of rice. These types of rice milling plant

are known as modern rice milling plant. Advantage of modern rice mill is viz.

- gives high yield and quality of white rice;

- suitable for any kind of rice variety;

- Easy operation and maintenance.

This scheme is prepared on the basis of modern rice mill and designed to meet the needs

of villages and substitute for a huller mill to get polished rice, parboiled rice,rice bran and paddy

husk.

In this scheme, emphasis is being given for proper marketing techniques and it is

proposed that besides bulk sales, unit will also market rice in small pack size of 2 kg., 5 kg., 10

kg., etc. With proper packaging material selection and opportunities will also be looked for its

export potential. Marketing in small pack size will also attract new segment of customers.

Keeping in view of above fact, it is hoped that the unit will have a very good scope in the state to

meet the various customer needs.

BASIS OF PRESUMPTION

(1) The scheme is based on 300 working days in a year and 8 hours per day on single shift

basis.

83

(2) The scheme is based on mini rice milling using rubber rice seller for polishing.

(3) Rice production will be 70% of the total input paddy. 5% of bran and 5% of husk will be

collected.

(4) 60% of max. Capacity utilization has been considered.

(5) Minimum wages have been taken into consideration while preparing the scheme.

(6) The rate of interest both for working and fixed capital is taken @ 13% per annum.

IMPLEMENTATION SCHEDULE

1. Preparation of project report 2 months.

2. Selection of site ½ month

1. Registration and obtaining of permission 2 months

from Deptt. of Food & Civil Supplies,

and NOC from State Pollution Control

Board, Bhubaneswar.

4. Arrangement of Loan 3 months

5. Construction of building or shed 5 months

6. Procurement and installation of 2 months

Plant and machinery

7. Trial production ½ month

Total: 15 months.

TECHNICAL ASPECTS

Process of Manufacture:

Rice milling consists of a Paddy cleaner, sheller, separator and polisher. The total process

can be summarized as below:

1. A bucket elevator conveys the paddy brought in to the Paddy cleaner. The cleaner is

designed to remove straw dust, stones, pebbles, etc. for the enhancement of value of rice

as well as to prevent malfunction of following process due to mixing of dust.

2. Clean paddy is thus obtained is then carried to a paddy husker. The paddy husker consists

of a husking chamber and an aspirator to separate husked rice and husk. In the husking

chamber, there are two rubber rollers which revolve at different speeds and in opposite

directions. The paddy passes between the roller in a gap. The husking rate of paddy

husker though dependent upon the quality of paddy, attains generally 85-95%. Means the

husked rice discharged from paddy husker contains about 5 to 15% of unhusked rice

(Paddy).

3. The separated paddy is again returned into the paddy husker for the rehusking.

Meanwhile husked rice is moved in to the next whitening machine made up of a

84

combination of 3 or 5 units of abrasive roller type and fraction type. Further refining is

done by the removal of bran. The help of cone polishing does polishing.

4. Polished rice and bran are got separated and collected separately. For milling of

parboiled paddy, boiling of paddy with hot water takes place after cleaning then it is dried

and dehusked. The additional equipment required for parboiling unit is mechanical drier

and soaking tank for paddy.

Approx. Motive Power: 80 H.P.

Pollution control:

Rice milling causes air pollution by exhausting husk particles during dehusking and

polishing. Besides air pollution it also creates noise. So such unit should be located far from

human habilitation. Proper care should be taken in dumping the husk and bran. Workers should

be provided with masks and noise protective implements. Unit should obtain NOC from State

Pollution Control Board.

Energy Conservation:

Management should take special measures in ensuring higher productivity by the best

utilization of man and machine. Periodic checks of working stages, functioning of machinery and

their preventive maintenance, timely repair, etc. will help in energy conservation.

FINANCIAL ASPECTS:

Fixed Capital

LAND AND BUILDING

i) Land : ½ Acre own

ii) Work Shed : 2000 sq.ft.@ 400/sq.ft . Rs.8,00,000/-

iii) Water boring & other civil works Rs. 2,00,000/-

Rs.10,00,000/-

PLANT AND MACHINERY

Sl.no. Description Qty. Total Price

1. Paddy cleaner with Dust Blower 1 1,10,000

2. F2 Type rubber Sheller 10”

( Husker )

1 1,17,000

3. Husk Aspirator 1 65,000

4. Paddy separator ( 7 tray ) 1 1,10,000

5. Super whitener 1 1,50,000

6. Cone polisher ( 800 mm ) 24” 1 1,06,000

7. Bran Blower 8” & 10” with Cyclone and

pipes

1 65,000

85

8. Rice Sieve with Aspirator 1 80,000

9. Elevator ( 8”) 1 73,000

10. Elevator ( 6”) double 1 90,000

11. Elevator ( 6”) Single 1 50,000

12. Rice grading chalana with blower 1 70,000

Total 10,86,000

PRE-OPERATIVE EXPENSES

1. Preparation of Project report 500

2. Electric Connection Transformer 63 KVA 2,00,000

3. Preparation of packing material 9,800

Rs 2,10,300/-

TOTAL FIXED COST

= 10,00,000/-+12,04,600+ 2,10,300 = 24,14,900/-

WORKING CAPITAL:

Personnel(P.M)

S.no. Designation No. Salary Total

1. Supervisor 1 8,000/- 8,000/-

2. Semi skilled labour 8 5,000/- 40,000/-

1. Unskilled workers 10 3,000/- 30,000/-

2. Sales man ( part time) 2 3,000/- 6,000/-

3. Technician ( part time ) 1 3,000/- 3,000/-

4. Peon/watchman 2 3,500/- 7,000/-

94,000/-

Raw Material (Per Month):68 MT paddy is procured P.M.

S.no. Item Quantity Rate Total

1. Paddy 80 MT Rs.12000 Rs 9,60,000

2. Gunny bags/other packaging material

For small pack size

Rs. 40,000

Rs.10,00,000

Utilities:

Electricity for milling & water pumping

2500 unit @ 6/unit Rs. 15,000/-

Other continental Expenses:

86

1. Postage and stationery 500

1. Telephone 600

3. Repair and maintenance 5,000

4. Transport 15,000

5. Miscellaneous 3,000

6. Insurance 1,000

25,100/-

Working capital Per Month:

Salary 94,000

Raw material 10,00,000

Utilities 15,000

Other expenses 25,100

Rs. 11,34,100

Total Capital Investment:

1. Fixed capital 24,14,900

2. Working capital (for one month) 11,34,100

35,49,000

Cost of Production (Per annum):

1 Recurring expenses 1,36,09,200

2. Depreciation on plant and machinery @ 10% 1,18,600

3. Depreciation on shed @ 5% 50,000

4. Depreciation on office furniture @ 20% 2,000

4. Interest on bank loan @ 13% 4,61,370

1,42,41,170 Turnover

(P.A.):

S.no. Item Quantity Rate Total value

1. Fine/polished rice 816 MT 18.70/kg 1,52,59,200

2. Husk 96 MT 4/kg 3,84,000

Total 1.56,43,200

Profit Analysis:

1. Net profit = Turnover – cost of production = Rs 14,02,030/-

2. Net profit Ratio = Profit x 100 = 9%

Turnover

87

3. Rate of Return = Profit x 100 = 39.5%

Total Investment

Break Even Analysis:

Fixed cost:

1. Depreciation on plant and machinery @ 10% 1,18,600

2. Depreciation on shed @ 5% 50,000

3. Depreciation on office furniture @ 20% 2,000

4. Interest on bank loan @ 13% 4,61,370

5. 40% annual salary 3,12,000

6. 40% other contingental exp.(excluding

Insurance) 1,15,680

7. Annual insurance 12,000

Total fixed cost: Rs. 10,71,650

B.E.P. = FC x 100 = 43.3%

ADDRESSES OF PLANT AND MACHINERY SUPPLIERS

1. M/s.Devraj Hitech Machine Ltd., Industrial Area, Firozpur City-152002 (Punjab). TEL-

01632-220467,221467,222667, Fax-01632-220567 ,Visit us at www.deverajgroup.com

,email:[email protected]

2. M/s.Damodar Engineers, 12, North Road, Calcutta-700032.

3. M/s.Mysore Industries, No.233 96th

Cross Basaveshwar Road, Mysore.

4. M/s.Shreeram Enterprisers, Chandi Road, Near Chandi Mandir,Cuttack (Dealer of

Mahindra) Ph.640137/Shreeram complex, Madhupatna, Cuttack.

5. M/s.Mysore Precision Engineers, C-123/124 Ind.Estate, Yadavagiri, Mysore-570020.

6. M/s.Sree Siddavinayak Machinery & Equipments, Site No.10, 3rd

stage, Ind. Suburb,

Mysore-570008.

7. M/s.Binny Engg.Works, Tarapat, Vijayawada, Andhra Pradesh.

8. M/s.G.G.Dandekar Machine Works Ltd., Bhiwani, Thane, Maharashtra.

9. M/s.Kisan Krishi Yantra Udyog, Collector Ganj, 64 Moti Bhavan, Kanpur-1.

10. M/s.GeeKay Engg.Industries, Kashmir Road, Batala, Punjab.

11. Diamond Agro Implements, 299,Naubasta,Hamirpur road,Kanpur

88

Local contract:-Pravat Biswal, 9437717374,

Motor/spare parts:

1. M/s.P.K.Technocrats Pvt.Ltd., Matru Bhavan, Badambadi, Cuttack-753012. Ph.0671-

612217.

2. in other states locally available dealers of Crompton Greaves, Kirloskar, Polar, Sharp,

etc.

Raw Material:

Available locally however, in case of export variety unit may procure rice from other

states and sell it after repacking in small sizes as per convenience of the customers.

======= X=======

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