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Industry in Uttar Pradesh
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Industry

Industry and Minerals
During the year 2006-07 there were 6, 12, 338 small-scale industrial units involving a total investment of Rs.7172 crore and employment opportunities for 2396 thousand persons. About 73.20 lakh tonnes of sugar was produced in the State during the year 2007-08. There were 68 textile units. Thirty-two automobile units with an investment of Rs.5,740 crore provided jobs to 20280 persons.

It is planned to develop 102 sectors of New Okhla Industrial Development Authority (NOIDA) by the year 2011. The Authority includes industrial sectors, housing sectors, group housing sectors, residential buildings, commercial assets and institutional sectors. Steps have been taken to develop other industrial areas in the state on the pattern of Noida and Greater Noida. A Software Technology Park has been set up in Kanpur while five more Software Parks are proposed to be set up.

Under the public sector, mining of limestone, magnetite, coal, rock phosphate, dolomite and silicon-sand is carried out. The bulk production of minor and some of the major minerals like limestone, silica-sand, magnetite, pyrophyllite and diaspore is mostly with the private sector. Important mineral based industries include large cement plants in Sonebhadra.

Large medium Industry

Uttar Pradesh forming part of the great indo-Genetic plain in India, has been a bedrock of India civilization in past millennia. Endowed with rich resource, temperate climate and fertile agro climate agro climate conditions and subsidies, U.P.is the ultimate culmination of human endeavors in cultural, socio economic and religious fields.

The largest populated Indian state encompassing 9 present of the total area of the nation and with 16% of its total population; it presents a unique and comfortable blending of tradition with modernity. After creating a niche for itself in agricultural production (Green revolution) through successful adoption of latest farm techniques the State is fast racing towards becoming an industrial juggernaut. U.P. is the largest producer of sugarcane & potatoes in the country. U.P. is fuelling the industrialization drive, with sound policies on industries, export, mineral, electronic, forest, road, energy Biotechnology etc. sectors, it has an ever expending market of more then 140 million people, excellent training and
R&D facilities and a large reservoir of skilled & semi-skilled and inexpensive workforce, a responsive and prompt public delivery system and above all an attractive package of incentives for promoting industrial growth. A part from the above, peaceful industrial relations climate empowered and experienced legal system is additionally a valuable attraction for the industry promoters. Indeed, U.P. is incomparable paradise for the enterprising.

U.P. Industrial and service sector policy 2004,has been introduced for promoting the small, medium and large industries and khdi and agro based industries under which all out efforts are being initiated for overall improvement of industrialization of the state. As per the proposed strategy envisaged in the new policy, following points deserve special mention :

to encourage private participation in industrial development.
to give attention for development of small village and cottage industries.
to promote exports.
to provide better law and order situation and secured industrial climate.
Creation of sensitive and responsive administrative machinery in the industries department for industrial growth.
To promote service sector.
Special incentive packages for industries.
Creation of conducive climate for industrial development.
IX stapes to be taken to attract new investment in the industrial sector Vis-à-vis converting sick and unproductive industrial unites in to profit generating ones.
Under the liberalization policy initiated since Aug 1991 by the govt. of India, U.P. registered highest number of IEMs (industrial entrepreneurial Memorandums) in the beginning. As. In SSI Sector, Noida and Gaziabad attracted more and more investment in heavy industries sector also and by March 2005, a total number 5584 proposals, with an investment of Rs. 109859.00 cr were recevide which were capable of providing employment to 13.42 lakh people. These proposal include 5221 IEMs and 358 LOIs having proposed investment of Rs. 100084.00 crs. and Rs. 9775.00crs. respectively.

In the agro sector, the State Government has established 4 agri report zones out which 2 for Mango, ONE for potato, and one for basmati rice has been approved by the Government of India. Some development. Zones for shahad, banana, awla and menthe hae also been notified. State Govt. is of the view that emphasis should be laid on diversification of agri based products and value added industries should be encouraged several scheme have been formulated for providing assistance to entrepreneurs for marketing these products.

Constant efforts are being made to encourage entrepreneurs who have received IEMs/LOIs. Fields officials have been sensitized to motivate young entrepreneurs to promote industrial climate in the state.

SCHEMES /PROGRAMME FOR 2006-07

In the light of new industrial policy and strategy adopted by the industrial development department the following schemes / programmes have been proposed for the year 2006-07.

Uttar Pradesh Development Council

In pursuance of the state cabinet decision date 7/10/2003 the state of Government of Uttar Pradesh has constituted the Uttar Pradesh Development council under the Chairmanship of Sri Amar Sing, the honorable M.P. to Suggest and find out ways for overall and integrated development of the state in general and for industrial development in particular. Ever since, the inception the council held many meetings. As few of the major achievements made by U.P.D. Care given as under :

industrial Investment promotion scheme for attractive mega projects in the state has been launched by state Govt. on the recommendation of UPDC Energy policy, (Hi Tech) Housing policy. Industrial and service sector investment policy and Mineral policies have been declared by state Govt. on recommendation of U.P.D.C.

A power projects of reliance group with an investment of Rs.10000.00crs. having L500M.W. Capacity at Dadary in Ghaziabad District has also been taken up on the recommendation UPDC. It is hoped that the suggestions of the council will open a new vesta before the industrial scenario of the state. An outlay of Rs. 100.00lac is proposed for year 2005-06.

Agro Park Projects

Uttar Pradesh is an ideal place to reap rich harvests from the sunrise industry-Agro & Processed food industry. Uttar Pradesh, the largest producer of grains, mild an important producer of vegetable and other agri-produced in India, is endowed with fertile land of the gangetic plains,. the state is one of the leading vegetable and fruit producing states in India. UPSIDC has developed following two agro Parks :

Agro Park-Barabanki :

Estimated Project Cost Rs. 1543.00Lakhs
Total Area Approx 180.00acres
Agro Park Varanasi :

Estimated Project Cost Rs. 2250.00Lakhs
Total Area Approx 261.2 acres

BARABANKI

The projects is located on Lucknow-Kursi Road, about 12Kms. From the state capital Lucknow in district Barabanki. the area of Agro Park is about 180 acres and estimated cost is 1543.00lacs. the proposed common facilities of the Agro Park includes Multi Chamber Controlled atmosphere Cold Storage. Quality Testing and Certification Laboratory, common facility building. Training center, Power distribution network and water supply etc. Ministry of Food processing industries, GOI has approved in principal, a grant of Rs. 4.00 crores for setting up common facilities Such as modern cold storage, Quality control lab power distribution net work and water supply etc. in these Agro Park. An expenditure of Rs.1623.86Lakh has been incurred till Sept.,05. But due to paucity of fund, the development works are being suffered, Now Corpn. Need the budgetary support from state Govt. for the year 2006-07 which would be Rs. 1.00Cr.

VARANASI

The projects is located on Varanasi-Jaunpur Road at about 30 KM from Vranasi. The area of Agro Park is about 261 acres and the estimated cost of project is Rs2250.00 lacs. The proposed common Facilities of the agro of park includes Multi Chamber controlled atmosphere cold storage, Quality testing & certification laboratory, Common Facility building, Training Centers, Power distribution net work and water supply etc. in these Agro Park. An expenditure of Rs.1623.86Lakh has been incurred till Sept.,05. But due to paucity of fund, the development works are being suffered, Now Corpn. Need the budgetary support from state Govt. for the year 2006-07 which would be Rs. 1.00Cr.

Development of Growth Centers

Under the Growth centers Scheme of the G.O.I. the corporation is establishing the Growth centers in Jhansi, Shahjahanpur, Jainpur and Dibiapur. In Jhansi Growth Centers we have acquired 3085.04 acres and developed 230 Acres in Ist Phase. The expenditure incurred against Land, Power and development work Rs. 1087.49 lacs up to Sept. 05. in Shahjahanpur Growth center we have acquired and development 311.00Acres of land for Which Rs. 1059.36lacs has been incurred up to Sept. 05. in Jainpur Growth center we have acquired and developed 331.00 Acres for which Rs. 2193.40 lacs has been incurred up to Sept. 05 and for Dibiapur Growth center we have acquired 246 Acres of land and development work has been started for which we have incurred Rs. 774.39lacs up to Sept. 05 an outlay of Rs. 400.00 lacs is proposed for the year 2006-07 as a state share.

Special Economic Zones (SEZ)

Since 1999, Govt. of India has taken several steps to facilitate and boost exports and foreign direct investment in the country. Deptt. of commerce and industries of Govt. of India has announced a scheme to set up “Special Economic Zones (SEZ)” in the States under “Import and export policy” announced in year 2000-2001.

GOI has accorded in principal approval for establishing four SEZs in the state of U.P. at Kanpur, bhadohi, Gr. Noida and Moradabad. The acquisition of land for SEZ- Kanpur for 1217 acres and SEZ-Bhadophi for 546 acres are being done by UPSIDC. The acquisition of land for first phase is under process. M/s. firewood consultants Pvt. Ltd., New Delhi has submitted the techno economic feasibility report for Kanpur and bhadohi respectively. A sub committee has been formed for further necessary action based on instructions passed in the meeting under chief secretary on 20.07-05 and a time table has been framed for different works. An outlay of Rs.500.00 laces is proposed for the year 2006-07.

MORADABAD

GOI accorded formal approval for setting up SEZ Moradabad for handicrafts industries. UPSIDC has proposed to acquire around 470 acres of land in IST phase for growth centre/ SEZ out of which 419.338 acres of land has been acquired and possession has been taken. For IInd phase of SEZ the proposal for acquisition of 705 acres of land is in process. The provision of facilities like water, electricity, drainage, common facilities, container freight station, development commissioner/ custom/ banks/ post office, telephone exchange, police outpost, fire station, boundary wall, residential land, primary health center, restaurant, etc. are being made in the SEZ area. Custom deptt has notification after completion of development works in pocket-A of phase-I.

LUCKNOW INDUSTRIAL DEVELOPMENT AUTHORITY (LIDA)

Government of U.P. has constituted Lucknow industrial development Authority (LIDA) vide its notification no. 1193/77-4-2005 -193 Bha/04 TC dated 28th July 2005 comprising of 49 village of Distt. Unnao. The Authority has been constituted under the U.P. industrial Area development Act, 1976. The managing director of UPSIDC has been appointed as the chief Executive Officer of LIDA. In addition to it, an additional Chief executive Officer has been appointed by the Government. The present status is as under :

The Office of LIDA has been functional at HIG, 64/65, Sector D, LDA Colony Kanpur road Lucknow.
It is proposed to acquire about 24,000 Hectare of land under LIDA. It is proposed to acquire about 2000 Acres of land in the first phase near Lucknow at village Natkur, Banthra-Sikandarpur, Kurauni and Miranpur-Pinwet along both of the sides of Lucknow-Kanpur road for which proposals of land acquisitions are being prepared.
It is proposed to get prepared the Sub Regional Plan & Master Plan of LIDA Through reputed consultants like School of Planning and Architecture and get down the Remote Sensing Survey through reputed consultants for which offers are being received.
U.P. Govt. has sanctioned loan of Rs.50.00Laces for the base capital of LIDA During the financial year 2005-06. an outlay of Rs. 200.00laces is proposed for the year 2006-07.

Main Agencies Involved in Industrial Development U.P. INVESTMENT CENTER of U.P.

U.P. State Industrial Development Corporation (UPSIDC) was setup in the state with the objective to act as a catalyst for promoting industrial Development in the State. To fulfill this Task, the Corporation has since evolved and implemented several promotional and development schemes for gearing up Industrial activities in the state. Presently, the following activities are being performed for furtherance of industrialization.

Development of industrial areas Equipped with all the necessary industrial environment.
Identification and Promotion for infrastructure related projects in Joint/Assisted Sector.
Execution of Civil Construction work for Public and Semi-Public or Organization on deposit basis.
Acquisition of land on Demand for Bigger projects.
Consultancy service in architecture and town planning of works.
In earlier years, corporation was developing the general industrial areas, Now integrated industrial townships, Special economic Zones and special projects are being developed in view of present State’s industrial policies.

Various scheme have been/are being administered in the manner which, along with giving a fillip to industrialization, is also conductive to attaining other important planks of the State industrial policy viz. orderly and balanced economic growth, broad basing of entrepreneurs and widening of industrial base, induction of high technology and repaid development of thrust/ priority industry segment etc. thus the corporation has been instrumental in advancing industrialization to a great deal is a readily evident from the spread of industrial area’s and phenomenally large no. of industries constituting a wide array of manufacturing sectors functioning in them. The major on going scheme are as follows :
Special economic zones (SEZ)
Agro Park
Development of Growth Centers
Textile & Hosiery Park Rooma, Kanpur
Apparel Park for export, Tronics City, Gaziabad
Export promotion industrial Park, Greater Noida (GNEPIP)
Export promotion industrial Park, Agra
Tronics City, Gaziabad
Power generation and distribution projects Tronics City, Gaziabad
Leather technology Park (LTP) Banthar Unnao
Software technology Park, Kanpur (STPK)
Xth Plan Achievements

Major Sources of funds for UPSIDC have been the internal generation (Recovery from Industrial. Area’s and disinvestment of shares), however there were limited budgetary support from the state Govt. and central Govt. also. Total resource availability including budgetary assistance is projected at Rs. 1585 laces during the 10th plan. After accounting of opening balance of Rs.9170 laces, total fund availability is at Rs. 100755laces as against expenditure of 99898 laces.

All the above schemes will give a new friendly environment and offer pollution free industrialization and would also helpful to provide mass employment opportunities with optimum use of available resources in the state and would be helpful to achieve Industrial Growth rate. All the targets are being formulated in the annual action plan of the corporation. Corporation would be able to achieve the remaining targets of the Xth plan under the broad long terms objectives and vigorous efforts.

U.P. Financial Corporation (UPFC) Kanpur

U.P. financial Corporation was corporation was established in the year 1954 under the SFC’s Act 1951.the main aim of the corporation is to help the industrialization of the state by extending term lone and working capital term loans to green filed ventures. Corporation also extends loans to established industrial concerns for the modernization and expansion. Since inception, the corporation has given loans to around 41000 units aggregating to Rs. 3070.00 cores. (Out of this, around 25688 units have totally repaid their loans to the corporation). Thus total outstanding of the Corporation is approx Rs. 916.87cr.

Although the general recession has also hit industrial sector of the country, the corporation has been making all-out efforts to enhance the pace of industrial growth by attracting good entrepreneurs and quality investors for setting up their units in the state. For expenditure sanction of term loans to these entrepreneurs, the corporation has delegate the power of registration of loan application to its Regional Managers placed in 19 R.Os. Spread all over U.P. & Uttranchal. Business promotion meetings, chaired by GM/MD and other senior officers of the corporation,, are being organized every month in each regional office to reach industry at its door step. Vigorous efforts are being made for conversion of registration in to quality sanctions by effective transparent appraisal system.

Similarly, the Corporation has ensured the effective monitoring of the disbursement of loans through its follow –up department. This not only helps in checking the delays in disbursement of loans but also in scheduled implementation of the projects, leading to some interest recovery during current financial year as well. For effective monitoring from the stage of registration to the disbursement of loan, weekly progress is being reviewed.

In present economic scenario where industrial sector is hit by recession and various industrial units in small scale sector are finding it difficult to survive for several reasons, leading to increase in NPAs, it was necessary for the corporation to review and streamline its existing procedure for recovery of dues to ensure effective and close monitoring of all the chronic accounts, particularly NPA accounts.

THE PRADESHIYA INDUSTRIAL AND INVESTMENT CORPORATION OF U.P. (PICUP)

The pradeshiya industrial & investment corporation of U.P. Ltd, which is known as “PICUP” was established in the year 1972 and registered under the company’s Act 1956. The objective of PICUP is to promote medium and large scale industries in Uttar Pradesh by way of extending wide ranging financial and technical assistance.

Corporation has been decided to postpone new loan sanction up to the strengthening of financial position of the corporation. No loan has been sanctioned during the financial year 2003-04 against of Rs.1000.00 laces while in the same period, loans of Rs. 362.00 laces have been disbursed against a target of Rs. 3000.00laces.

Rs. 5447.88laces have been recovered during the financial year 2003-04 against a target of Rs.8800.00laces in the same period Rs. 2207.09 laces have been recovered as interest against a target of Rs. 3305.00laces.

No loan has been sanction and disbursed during the financial year 2004-05 &2005-06 but Rs. 3698.91laces have been recovered as a principal amount and Rs. 1674.90 laces has been recovered as an interest amount up to 31st March 2005. and Total amount Rs.622.00laces have been recovered up to sept. 2002 in the running period.

SATHARIYA INDUSTRIAL DEVELOPMENT AUTHORITY (SIDA)

Satharia Industrial Development Authority (SIDA) is located at the distance of 47 km. for Jaunpur-Allahabad road at Machchalishahan tehsil of distt Jaunpur. It is one of the approved growth centers of Govt. of India; now functioning under the control of industrial development deptt of Govt. of U.P. this area is spread over in 508 acres of land, out of which 465 industrial plots have been developed over out of which 341 plots are allotted and 124 plots are vacant. 86 industrial units are in production and 80 units under construction.

GORAKPUR INDUSTRIAL DEVELOPMENT AUTHORITR (GIDA)

GIDA has been established for the integrated and planned development of eastern region, 76 villages have been notified as a regulated area by the U.P. Govt. under the U.P. industrial area development Act 1976.

According to development plan, 10,000 Acres of land of growth center and GIDA covering 76 notified revenue villages have been proposed to be developed in four stages. Earlier to GIDA covering 15 villages have been included in 76 villages of GIDA. GIDA has been authorized to develop sahajanawan growth center. A project report of Rs. 3491 laces has been approved by the central Govt. for this scheme.

NOIDA (New Okhla Industrial Development Authority)

Noida, the industrial citadel of Uttar Pradesh was established under the U.P. industrial Area Development Act. In 1976. It has been carefully developed to render the ‘one stop shop’ concept in its true sense which makes it perhaps the only integrated industrial Township of its kind in the country. It is set-up with a strong industrial base with a comprehensive development of all infrastructure viz.\Residential, Commercial, Institutional, Recreational and public amenities.

GREATER NOIDA

GNIDA is developing an area of about 12000 hectares into a modern integrated township and has completed its first phase of development. For the first phase planning has been done for 5000 hectares of land and for a population of 3 lakes in which laying down of infrastructure like roads, drinking water, power, drainage sewerage has been successfully completed.

GNIDA has chartered a master plan till 2021, approved by GNIDA board, which is awaiting clearance from the national capital region planning board. In phase-II during 2002-11, the area will extended to 12,000 hectares for a population of 6.5lakhs. by the time, third phase begins in 2021, the planned area will increase to 2000 hectares to house around 12 lakhs people.

Under the master plan for the year 2021, out of an area of 40,000 hectares, the authority has earmarked 25% for residential usage, 25% for green/ recreational activities,19% for industrial use and 6% for commercial usage.

Major achievements of 2005-06 and proposed targets for year 2006-07

Industrial :

For the year 2005-06 against the target of 280 acres of land, 267.50 acres of has been allotted with probable receiving of 438 cores.
For the year 2006-07 against the target of 83.97 ha. of land there will be receipt of Rs. 89.68 cores.

Commercial :

For the year 2005-06 against the target of 43 acres of land, we have received Rs.4.41 cores till date.
For the year 2006-07 against the target of 37.68 ha. of land there will be receipt of Rs. 284.85 cores.

Institutional :

For the year 2005-06 against the target of 380 acres of land, we have received Rs.73.21 cores till date.
For the year 2006-07 against the target of 52.11 ha. of land there will be receipt of Rs. 78.48 cores.
Residential :

For the year 2005-06 against the target of 885 acres of land, we have received Rs.173.26 cores till date.
For the year 2006-07 against the target of 189.92 ha. of land there will be receipt of Rs. 663.93 cores.
It is, thus, expected that with the help of the above efforts there would be qualitative increase in industrial growth which would ultimately contribute to the strengthening of the economic health of the state.

Externally Aided Projects

The process of development in Uttar Pradesh has not gained the expected momentum mainly due to lack of resources. In a situation like this, externally aided projects are of vital importance towards increasing the state resources for development. Finance from external agencies is an important means, not only to raise urgently need of resources for targeted areas, but also to introduce enhanced level of professionalism and rigour in programmes management.

External aid constitutes an important source for financing sect oral and regional development programmes. Uttar Pradesh receives foreign aid in the shape of additional central assistance, through Govt. of India under bilateral assistance and assistance from multilateral donor agencies such as world bank, ADB, JBIC, OPEC and EEC etc. technical assistance provided by certain countries and organizations like WB, WHO,JICA and USAID for training of personnel, import of equipments for research projects, for project preparation etc. provide important input in conception and implementation of development projects.

Major Advantages of EAPs

In the center- state relation, transfer of funds to state consists of four component viz :
transfer of funds as per finance commission’s recommendation, which are fixed for five years;
central assistance, which is fixed as per Gadgil formula;
small saving lone, which is fixed at 75% of the amount deposited by the state;
additional central assistance, which is fixed for EAPs.
It shows that flexibility exits only in the area of ACA in augmenting the state resources. It may be noted that prior to acceptance of the recommendations of the twelfth finance commission by govt. of India, one major advantage with additional central assistance was that of total amount received, only 70% was to be paid back, rest 30% was grant better performance in EAPs meant more disbursement by the donor, resulting in more ACA to the state . thus the state could take the advantage of having externally aided projects which would augment the State resource for financing its annul plan.

However, from the current financial year, it has been decided by Govt. of India that funds received under EAP would be transferred to the states by the central Govt. on the same terms and condition as that made available by the donor. Thus, while States stand to gain if they receive soft loans like IDA from the world Bank, they stand to lose if they go in for the costlier IBRD loans which carry a higher interest rate and a shorter repayment period.

Annual Plan 2006-2007

During recently held meeting with Yojna Ayog in New Delhi, an outlay of Rs. 1054.85 crore with a reimbursable portion of Rs. 854.00 crore has been earmarked for the state for the year 2006-07 for projects of Irrigation, Road, Agriculture and health etc. a strategy has been prepared by the concerned departments for timely achievement of targets.

Main Ongoing Projects

Uttar Pradesh Sodic Land Reclamation Project-II

Uttar Pradesh sodic Land reclamation Projects-II seeks to increase agriculture productivity by reclaiming sodic land. The main components of the projects are :

The on-farm development and land reclamation component address the need for beneficiary-lead on farm reclamation in sodic soil areas of the state. Active community participation and well coordinated Government intervention are critical elements in the project.
The rehabilitation and maintenance of main drain components will improve the drain network, which will have positive environmental impact.
Technology dissemination will establish a community based demand driven system for technology Dissemination in the projects area.
Up gradation of to & from to market roads will take up the rural contribution in areas where sodic land is being reclaimed.
Human resource development and institutional capacity building of support services will have focus on staff training and institutional strengthening in the Panchyaats, NGO’s and existing Government agencies.
Adaptive research will verify and refine the available technologies to suit the specific needs of local farmers and boring about sustainable increase in productivity.

UP Bhumi Sudhar Nigam is Implementing the WB aided sodic-II project from the year 1999-2000. the total cost of the project is Rs.1469.46 crore in which Go UP share is Rs. 230.19 crore beneficiary share is Rs. 250.13 crore and IDA share is Rs. 989.14 crore. Against the target of 1.50 Laces ha of sodic land Reclamation, work has been completed in 1.56 laces ha area by the end of year 2004-05. the year wise work plan proposed for extension phase