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New Policy of Janata Government Industrial Policy, 1977
The incidents of industrial sickness has become widespread and some of the major industries are worst affected.


Postini Alternative

(i) Development of small Industries Sector-Main Thrust of New Policy. The Janata Industrial Policy aims at effective promotion of cottage an household industries, tiny sector and s mall scale industries to be widely dispersed in rural areas and small towns. It has been laid down in the new policy that whatever can be produced by small and cottage industries must be produced by them only. The cottage industries are expected to provide self-employment on a wide scale. The tiny sector would include Industrial units with an investment in machinery and equipment up to Rs. 1 lac and situated in towns with a population of less than 50,000 according to 1971 census figures, small-scale industries would comprise those industrial units which have an investment of Rs. 10 lacs and in the case of ancillaries with an investment in fixed capital up to Rs. 15 lacs. The list of industries which have been exclusively reserved for the small-scale sector has been increased form 180 items (as per earlier list) to 500 items. The Government proposes to give special assistance to tiny sector an cottage and household industries including finance. Under the new policy, the Government intends to give special place to Khadi in the programme of development of village industries. The khadi and Village Industries Commission will work out detailed plans for the development of these industries by adopting modern management footwear and soaps in the small sector so that their share in the total production of these items in the country improves progressively. Special arrangements will he made for developing appropriate technology for small and village industries. There is an emphasis on shift of industries from the big cities and State Capitals to the District Headquarters so that the small-scale and cottage industries can develop in the backward areas.

District Industries Centre(DIC). To implement the new scheme of developing small, village and cottage industries effectively, it has been decided that a person who is interested in setting up a small industry in rural area should be able to get all the assistance which he needs under one roof. For this, a new institutional mechanism named as District industries Centre has been devised. The DIC will be multi-functional agency and focal point of development of small, village and cottage industries.

The Central and Sate Governments in the past have taken up various schemes for the development of small and village industries but the achievements have been far below the expectations. One of the reasons for this tardy progress is that the benefits of the various schemes were not brought within the easy reach of the people in the rural areas. In the past, focus of development has been on large cities and State Capitals to the neglect of district areas. Besides, there were too many schemes being implemented by many agencies with the result that a complicated maze of officers, systems and procedures sprang up. This would only bewilder the small rural entrepreneur. It was, therefore, necessary to simplify, streamline and re-structure the organisation at the district level so that the assistance needed by the small rural entrepreneurs is available to them under one roof.

The scheme for establishment of District Industrial Sector was introduced in 1978 with the intention that under a single roof a rural entrepreneur should be able to get necessary benefits of and guidance about industries for which there is some scope for development in the district, the various assistance schemes of Central and State Governments, the scarce and controlled raw material, the term finance for setting up the industry, the technical guidance and the marketing assistance made available by the Government from time to time. The main benefit of the DIC scheme would go to that average person who is interested in setting up the industry in the rural area as he would be able to get at one place different types of assistance for meetings his business needs. The prospective small entrepreneur would get a tremendous practical and psychological advantage by visiting and getting help from District industries Centre. The DIC will be the focal point of rural industrial activities including the Tiny, Village, Cottage and Small Scale industries. The staff of the Centre will depend on the details of the type of industries that can be developed in each district However, as far as possible the uniformity will be maintained in the pattern of organisation which will be common at least up to the first two level in the Centre.

The head of District Industries Centre will be the General Manager who should be of the rank of Joint Director of industries if the has to perform the various duties and bring about an effective leadership and coordination that is expected of him. Under the General Manager there will be seven functional managers as follows:

(a) Manager (Economic Investigation)
(b) Manager (Machinery & Equipment)
(c) Manager (Research, Expansion and Training)
(d) Manager ( Raw Materials)
(e) Manager (Credit)
(f) Manager (Marketing)
(g) Manager (KVIC and RAP)

It is through the general Manager of the District Industries Centre that the various schemes and programmes for rural industries such as seed money programme, bank credit, backward area programme, RAP, etc. will be operated. General Manager will also be responsible along with his team of managers to draw up two or three-year programmes for the promotion of various types of rural industries and small-scale and tiny industries in the district. For this purpose the officials of the Centre will be work through the extension staff of development and blocks for rural and cottage industries and with specialised agencies like SISIs at the State level. The Stage-level Coordination Committee would be set up by the State Government and will be responsible for reviewing an approving the various schemes prepared by the Centre and thereafter asking the General Manager to implement them. The scheme is very useful for entrepreneurship development in rural areas and for the promotion and development of small scale, rural and village industries. However, the success of the programme of setting up the DIC depends largely upon the functioning of the General Manager of District industries Centre and his team of managers and other personnel. It is obvious that the people with sufficient drive, initiative and dynamism alone can ensure the desired success of the programme.

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