annual report of industries and commerce karnataka

8/14/2019 Annual Report of Industries and Commerce karnataka

1/29

Government of Karnataka

DEPARTMENT OF INDUSTRIES AND COMMERCE

ANNUAL REPORT 2012- 2013

INTRODUCTION

Karnataka is considered as one of the most desired industrial location for setting industries

in the country. State has been consistently pursuing progressive outlook to meet the changing

needs of the State's economy and industry. Karnataka is also considered one of the countries

Industrialists State comprising large public sector industrial undertakings, large privately owned

industries like steel sugar, textiles etc., in recent times, Karnataka has emerged as the leader in IT& BT and knowledge based industrial sector, making rapid strides in IT & computer related

industries and biotechnology with a strong research and development base. The State has a

number of traditional cottage, Handicrafts, Micro Enterprises like Handlooms, Power looms, silk

weavers, Khadi and village industries etc.,

With all these, the State also felt the urgency of providing stimulus measures for industries

and service sector to combat the ill effects of the financial crisis prevailing globally. The State is

committed to initiate certain measures to provide temporary relief to the industry and servicesector to overcome the present situation.

Karnataka Government with an objective of increasing GSDP, strengthening themanufacturing sector, generation of additional employment in different sectors, to promote

diversified Industrial base and to reduce regional imbalances and also to increase the share ofexports from Karnataka in the national exports, has taken up number of initiatives like New

Industrial Policy 2009-2014, State Special Economic Zone Policy 2009 and Suvarna Karnataka

Textile Policy, and Karnataka Mineral Policy.

The main mission of Industrial Policy 2009-14 is to:

1) To create environment for robust industrial growth

2) To ensure inclusive industrial development in the State.

3) To provide additional employment for about 10 lakhs persons by 2014.

4) To enhance the contribution of manufacturing sector to the States GDP from thecurrent level of 17% to 20% by the end of policy period.


2/29

b) Small, Medium and Large Projects (SLSWCC Clearance):

Hon ble Minister for Large & Medium Industries, Government of Karnataka is the

chairman of State Level Single Window Clearance Committee (SLSWCC). The said clears

projects with investments between Rs.3.00 crores to Rs.50.00 crores. SLSWCC during 2012-13

has approved 675Projectswith a total investment of Rs 9179.49crores. These projects are likely

to create employment to141854people.

c) Micro, Small & medium Enterprises (MSME) Part II Registration:

Micro, Small & Medium Enterprises( MSMEs) form an important and growing segment

of Karnatakas industrial sector. As per MSME Act 2006, MSMEnterprises have been categorizedbroadly into those engaged in Manufacturing and providing /Rendering Services, based on their

investment on plant and Machinery. MSMEs are defined as enterprises having investment inplant & Machinery up to Rs.10 crore for manufacturing enterprises, and investment on

equipments up to Rs. 5 crore for Service enterprises.

They represent largely the modern enterprises. MSMEs spread across both

registered/organized industrial sectors. Statistics on MSMEs are based on registration of

enterprises made with the Directorate of Industries and Commerce through District Industries

Centres.

In the current year 2012-13, 24208, MSME units have been registered in the Statewith an investment of Rs.216513 lakhs by providing employment to 155609 persons. When

compared to the same period of previous year 2011-12 there is 15.16% increase in No.of Units

registered, 35.62% increase in Investment and 21.20% increase in no.of persons employed. Underthis, 22185 Micro units, 1966 Small and 57 Medium industries have been registered with an

investment of Rs.66087 lakhs, Rs.115935 lakhs and Rs.34491 lakhs respectively by providingemployment to105220, 45778 and 4611 persons respectively.

District-wise Number of Entrepreneur Memorandum (Part-I) and (Part-II) issued to Micro,Small and Medium Enterprises is given in Annexure-1.

d) Investment Subsidy:


3/29

During the year 2012-13, Rs.96.27 crores has been released for 4072 industrial units as

Investment promotion subsidy. In the respect, releases for the units sanctioned in the Year 2008-09 has been completed and part subsidy amount has been released for the units sanctioned in the

year 2009-10 and 2010-11 and 50% of the sanctioned subsidy released towards SC , STEntrepreneurs units pertaining to the year 2011-12.

2. INDUSTRIAL INFRASTRUCTURE DEVELOPMENT INITIATIVES:

a) Karnataka Industrial Areas Development Board (KIADB):

Karnataka Industrial Areas Development Board (KIADB) is a statutory body, playing an

important role in development of industries in the state. Since inception, the KIADB has

developed 136 Industrial Areas in 28 districts of the state covering an area of about 41983.95acres. In all the industrial areas developed by KIADB, basic infrastructural facilities like internal

roads, water supply, power supply, street lights, common facilities centers buildings, housing and

offsite infrastructure like widening & improvement of approach roads and among others are

provided.

Financial and Physical Targets and Achievements (from 1.4.2012 to 31.03.2013)

a) Acquisition of land:i) Extent notified (Acres) - 6846.45 acres

ii) Extent acquired (acres) - 8853.16 acresiii) Compensation paid (Rs in crores) - Rs. 1826.00 crores

b) Development

i) Extent Developed (Acres) - 3600 acresii) No of Industrial Areas - 12 Nos

iii) Developmental expenditure

incurred (Rs in crores) - Rs. 225.00 crores

c) Allotment

i) Extent allotted (Acres) - 893 acres

ii) No of units - 235 Nos.

Details of funds received from Govt and expenditure details for the year 2012-13.

i) Grants received for land subsidy

under SCP/TCP Scheme - Rs. 100 lakhs


4/29

b) Karnataka Small Scale Industries Development Corporation (KSSIDC):

KSSIDC has been a catalyst in the development of small scale industries in the State.

Establishment of Industrial Estates, construction of Industrial sheds and formation of Industrialplots are the major functions of the Corporation. So far 171 Industrial Estates have been

established all over the State. In these Estates 6,163 sheds have been constructed and 6,073 sheds

have been allotted and 7,164 of different size plots have been developed and 6,370 plots have

been allotted.

In the current year, Industrial Estates are being developed at ShahabadGulbarga District,

Sindagi-Bijapur District, Bommasandra 2nd stage, Bykampady 1st stage and the developmental

works are completed. In respect of Industrial Estate Hospet-Bellary District development works

have been dropped.

During 2012-13, the Industrial Estates are being developed at the following places:

1. Nelamangala, Bangalore Rural District.2. Kudumulakunte, Gauribidanur Taluk, Chikkaballapur Dist.3. Challakere, Chitradurga Dist.4. Bykampady-Mangalore, South Canara Dist (Existing-IE)II Phase.

5. Bijapur(Old) (Existing Indl.Estate)6. Ranebennur 2nd Stage, Haveri District.7. Humnabad 2nd Stage, Bidar District.

Details Of Funds Received From Govt. And Expenditure Details For The Year 2012-13.

Sl.

No

Name Of The

Project

Govt.Order No & Date Released

Rs.In Lakhs

Scheme Remarks

1 Humnabad No. I&C/ Msme /Adi/Sds/

07/2012-13, Dt. 21.03.2013

208.00 Spl Dev.

Scheme

Work Order Issued.

Work Is Under Progress

2 Kudumalakunte No. I&C/ Msme /Adi /Sds/

07/2012-13,Dt. 21.03.2013

314.00 Spl Dev.

Scheme

Work Order Issued.

Work Is Under Progress

c) Assistance to State for Development of Export Infrastructure and AlliedActivities (ASIDE)

Since 2002-03, Ministry of Commerce, Government of India introduced a scheme for

Assistance to States for Developing Export Infrastructure and other Allied Activities (ASIDE),

based on the export performance of each State and also its growth rate. The objective of the

scheme is to involve the States in the export effort by providing assistance to the State


5/29

Implementation of ASIDE:

During 2012-13, 13 projects have been sanctioned by SLEPC with a total project cost of

Rs.164.80 Crs and ASIDE share of Rs.71.50 Crs. 9 projects with a total project cost of Rs.142.82Crs and ASIDE share of Rs.76.73 Crs have been completed during the year.

An amount of Rs.45.77 Crs. has been released by Govt. of India for the year 2012-13 and

out of which Rs. 13.99 Crs has been released to various implementing agencies.

82 projects have been completed since 2002-03 in the State with a total project cost of

Rs.763.14 Crs and ASIDE share of Rs.327.68 Crs. 34 projects with project cost of Rs.448.67

Crs and ASIDE share of Rs.221.54 Crs are under various stages of implementation.

Evaluation of ASIDE projects:

a) M/s. IL & FS, New Delhi has conducted a evaluation of ASIDE projects on bestpractices and success stories in Karnataka. IL & FS has evaluated five projects in

Karnataka and recommended to Dept., of Commerce, Govt. of India for inclusion in

the success stories under ASIDE scheme.

b) TECSOK has been entrusted with evaluation of 76 nos. of ASIDE projects which are

completed and the report is awaited.

Export performance of the State is given in Annexure-2

d) Karnataka State Industrial and Infrastructure Development Corporation Limited(KSIIDC)

Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC) earlier

known as Karnataka State Industrial Investment and Development Corporation, was establishedin the year 1964, as a wholly owned undertaking of the Government of Karnataka. The

main objective of KSIIDC was promotion & development of medium and large scale industries in

Karnataka.

KSIIDC has assisted 135 start up ventures through equity participation and has extended

long term financial assistance to core sector industries like Steel, Cement, Mining and Textiles

and modern sector industries like Information Technology, Aviation, Tele-communication and

other infrastructure projects to the extent of Rs.3100 crores. KSIIDC has been instrumental in

establishing Jindal Vijayanagar Limited (presently JSW Steels Limited), Vikrant Tyres Limited,Karnataka Antibiotics and Pharmaceuticals Limited, etc.

At present, KSIIDC is aiming at infrastructure growth in the State based on theinfrastructure policy of the state and currently involved in the following activities:


6/29

The organization is steered by the Managing Director of I.A.S. cadre assisted by an

Executive Director and a General Manager. The Board of Directors have decision making role.

e) Food Karnataka Ltd., Food Processing Industries (Food Parks)

Under the 10th five year plan, the Ministry of Food Processing Industries, Govt. of India have

approved establishment of food parks in Malur, Kolar District, Hiriyur at Chithradurga DistrictBagalkot and Jewargi at Gulbarga District. The status of implementation of these food parks are

as detailed below:

M/S. Innova Agri Bio Tech Park Limited, Malur:

i) Physical Progress: Food Park is being developed in an area of 87 acres of land inMalur, Kolar District. Development of land including roads, drains etc, havebeen completed as well as common facilities like cold storage, ware house,

sorting, grading, dal processing, packaging and the gamma radiation plant havebeen developed. Refrigerated Van/LCVs have been procured for collection &

transporting of vegetables and fruits to transport processed produce to the market.

It has allotted 39.91 acres to 11 food processing industries. The balance land

available for allotment is 10.57 acres. The company has started the operations in asmall way

ii) Financial Progress:The total project cost is Rs.1800.00 lakhs. The Governmentof India and Government of Karnataka have sanctioned and disbursed grant of

Rs.400 lakhs each respectively. The implementing agency has mobilized the

balance amount including loan from bank.

M/S. Green Food Park Limited, Bagalkot:i) Physical Progress: Food Park is being developed in an area of 100 acres of land at

Navnagar Industrial Area, Bagalkot. It has completed the land development

including roads, drains, bore wells etc. as well as developed cold storage facilities.

The civil works for the buildings (ware house, administrative block and R&D

centre) are in advanced stage of progress.

The implementing agency has allotted 53 acres of land for 7 companies and the

balance land available for allotment is 1.75 acres

ii) Financial Progress: The total project cost is Rs.1859.00 lakhs. The Government of

Karnataka and Government of India have provided grants of Rs.300 lakhs and 200lakhs respectively as against the total sanctioned amount of Rs. 800 lakhs. The

implementing agency has mobilizes the balance amount including the loan fromthe bank. The project is under implementation.


7/29

processing, packaging and two lines of packaging machines for food-grains,

oilseeds and spices with a total capacity of 16 MTs per hour. A refrigeratedVan/LCVs have been procured for transporting the vegetables and fruits and to

transport processed produce to the market.

The implementing agency has allotted 18.35 acres of land for 6 companies and thebalance land available for allotment is 38.65 acres.

ii) Financial Progress: The total project cost is Rs1639.00lakhs. The Government ofIndia and Government of Karnataka have sanctioned and disbursed grant of Rs.400lakhs each respectively. The implementing agency has mobilizes the balance

amount including the loan from the bank. The company has started the operations

in small way.

M/S. Jewargi Agro Food Park Limited, Jewargi:

i) Physical Progress: Food Park is being developed in an area 105 acres of land. It hascompleted land development including roads, drains and dug 2 bore wells. It has

completed the civil works for the site office Security block, weigh bridge room etc.

The ware house is under construction. The project is under implementation.

ii) Financial Progress: The total project cost is Rs.1972.25 lakhs. The Government ofKarnataka and Government of India have released grants of Rs.200 lakhs each as

against the sanctioned amount of Rs. 400 lakhs each. The balance amount has been

mobilized by the implementing agency.

Food Parks under the State Scheme:

The Government of Karnataka has approved for establishing the food parks in another six

districts ie., at Bangalore (Rural), Tumkur, Shimoga, Davanagere, Bijapur and Belgaum in its

budget 2008-09. These parks are in various stages of development.

i)Tumkur Food Park: M/s. Ramky Infrastructure Limited has been selected for thedevelopment of food Park at Tumkur. Allotment of land at Vasanthanarasapura industrial

area, Tumkur is in progress.

ii)Shimoga Food Park.M/s. LMJ International Limited is selected as the developer forestablishing the food park an area of 100 acres of land at Sogane Village in Nidhige

Hobli, Shimoga District. KIADB is forming a connecting road from Nidhige industrial

area to the food park site and the developer is to commence the development activities.

iii)Belgaum Food Park:M/s. LMJ International Limited is selected as the developer fort bli hi th f d k t B l KIADB i t ll t 100 f l d f th


8/29


9/29

Margin Money: An amount of Rs.1223.48 lakhs margin money was released to 468

beneficiaries, who were sanctioned PMEGP loan during previous years. During March 2013, 368units corresponding to margin money of Rs.719.57 Lakhs have been sanctioned by different

banks and the release of this margin money to the beneficiaries is in progress.

c) Special Development Programme (S.D.P):New Industrial Clusters

During the year 2012-13 an allocation of Rs.2000.00 lakhs provided and out of which a sum ofRs.1103.50 lakhs released to as approved by the planning department.

4. HUMAN RESOURCE DEVELOPMENT INITIATIVES:

a) Suvarna Kayaka Koushalya Abhivrudhi Yojane:

This scheme encourages institutions to set up Specialised Training Centres in the State

through Public Private Partnership (PPP) model. This scheme has twin objects of increasing the

employability of educated unemployed youth by providing required vocational training and at the

same time to provide ready to use manpower to the industrial and service sector.

D i 2012 13 ll ti f R 400 00 l kh h b id d d thi h A

Sl.No Agency Released Amt. Remarks

1 KSSIDC 208.00

314.00

Development of infrastructure to Humnabad Indl. EstateBidar Dist., Gulbarga Division

Development of infrastructure to Kudmalkunte Indl.Estate Gowribidnur Taluk, Chikkaballapur Dist.,

Bangalore Division

2 KIADB 403.00 Development of New Indl. Area at Nadur Kesaratagi,

Gulbarga3 KSCDC 133.50 Providing infrastructure to Coir production centre,

machineries & electrifications in the District ofRamanagar, Chitradurga, Mandya, Chamarajanagar &

Hassan

4 KVIB 45.00 Establishment of Cotton Khadi yarn Centre at Badnavalu

Khadi Composite Centre, Nanjangud Taluk, Mysore

District


10/29


11/29

c) Government Tool Room and Training Centre (GTTC):

The objectives of GTTC are:

To manufacture jigs, fixture cutting tools, gauges, press tools, plastic moulds, forgingdies and other tooling for Small Scale industries advanced tool making process using

CAD/CAM techniques are to be adopted.

To provide training facility in tool manufacturing and tool design to generate a workforce of skilled workers, supervisors, Engineers / designers etc.,

To work as a Nucleus Centre for providing Consultancy, information service,documentation etc; for solving the problems related to tooling of industries in the

region.

Top act as a common facility centre for small industries and to assist them in productand prototype development.

Training Activities:

The centre conducts specific long term AICTE recognized training courses such as

4 years Diploma in Tool and Die making,

4 years Diploma in Mechatronics, 4 years Diploma in Precision Manufacturing,

3 years Diploma in Electronics and Telecommunications,

1 year Post Diploma in Tool Design,

2 years M.Tech in Tool Engineering.

The centre conducts regular Short Term Training programmes with certification of itsown in the following areas for all courses;

CAD Drafting,

CAD Design

CNC Milling Machine Programming and Machine Operation

CNC Turning programming and Machine Operation

Computer Aided Machining

Metrology

GTTC has trained 6023 candidates in various employment oriented training programmesduring the year 2012-13 to provide skilled manpower to various industries.

Long-Term courses - 3251 CandidatesShort-Term courses - 1850 Candidates

Sponsored Skill Development


12/29

620 final year Diploma students are placed for In-Plant Training at following Industriesfor the academic year 2012-13

Toyota Kirloskar, Tyco Electronics, Electroplast, Stanzen Toyota, Ducom, AugenTechnology, Bangalore, Terminal Technology, Pune, Wellmade, Pune, Precious Products,

Pune, Prism Tools,Pune, Associated Tools,Pune, Denso Kirloskar-Bangalore, Interplex-Bangalore, Rajmane Electrix-Bangalore, Incite Cam-Bangalore, Able Designers-Hubli

Pune, Polymers-Pune etc,

Manufacturing and Supply of Solar Array Development Mechanism [SADM] componentsfor INSAT, GSAT, IRS-M/s Larsen & Toubro.

Design & Development of Fixtures for Primary Heat Exchanger, Secondary Heat

Exchanger for Intermediate Change units for Aeronautical Development Agency [ADA].

Manufacture and Assembly of OIL Testing Booster & Sustainer casing for BharatDynamics Limited

Manufacturing of LAP assembly for LEOS.

Manufacturing of X-Ray Polari-meter for Raman Research Institute.

Manufacturing of Star Sensor, Earth Sensor components for M/s. SLOECTRONCENTUM.

Manufacturing of critical/precision components for ISRO,ADA,VSSC etc.,

GTTC trained more than 100 Engineers from M/s. General Electric company [GE] inSkill Development Training programs.

MOU with Acharya Group of Institutions, Bangalore for Short-term Skill DevelopmentTraining programs.

d) Rural Development and Self Employment Training Institutes (RUDSETIs)

The Department has supported for the establishment of Rudseti in all the districts with the

support of banks. Training is given by the Rudsetis under different schemes of the different

department . Department is giving one time capital grant of Rs 20.00 lakhs per institution for

creation of infrastructure facilities. During 2012-13 Rs 25.00 lakhs was provided. Upto the endof March 2013 progress is as under.


13/29

5. ARTISAN INITIATIVES:

a) Special Component Plan (SCP) and Tribal Sub Plan(TSP) State Sector

During 2012-13 Govt. has allotted / released Rs.1035.31 lakhs under special componentplan and Rs.1331.00 lakhs under Tribal sub plan scheme. The details of programme under each

scheme and achievements are explained as below.(Rs. in laksh)

Sl.

No.

Name of the Scheme &

Head of A/c

Details of ProgrammeSpecial

Component PlanTribal

Sub PlanPhysical Financial Physical Financial

1 2 3 4 5 6 7

1 Modernisation/TechnologyTraining2851-00-102-0-69-

422

Modernisation / TechnologyTraining

3-6 months trainingprogramme by DICs/Board

and Corporations

1345 285.31 - -

2 Koushalyabhivridhi Yojane

2851-00-102-0-73-

423

Koushalyabhivridhi Training

3-6 months training

programme by DIC/Board andCorporatios

- - 237 50.00

3 Infrastructure Support and

Trade Promotion

2852-80-102-0-02-

422

2852-80-102-0-02-

423

1. Soft Seed Capital assistance

to Small/Tiny Industry2. Infrastructure assistance to

M/s. The Raibagh TalukGrape Growers Processing and

Exporters Co-operative

Society Kudachi, Raibagh(Tq),

Belgaum Dist.

- do -

225

-

500.00

-

-

115

-

300.00

4 Establishment of New

Industrial clusters

2852-80-003-0-12-

423

1) Living cum workshed

2) Shipping of Toolkits3) Rebate on land/shed alloted

by KIADB4) Separate Indl. Estate to ST

Industrialist by KSSIDC

5) Infrastructural assistance toM/s. The Raibagh Taluk

Grape Growers Processing

and Exporters Co-operativeSociety Kudachi, Raibagh(Tq),

Belgaum Dist.

-

-

-

-

-

-

-

-

-

-

460

974

15

20

284

414.00

48.70

100.00

91.30

250.00

5 Rebate on Khadi & Village

Industries Products2851-00-102-0-74- Living cum workshed to the

artisans from KVIB 166 150 00


14/29

(a) The Karnataka State Handicraft Development Corporation (KSHDC):

The Corporation is a nodal agency for handicrafts promotion programmes in the State.

KSHDC is implementing various programmes for the development, promotion and marketing ofhandicrafts, procuring directly from the artisans. The Corporation has 13 craft complexes and

1,222 living cum work sheds.

During 2012-13 a sum of Rs.20.00 lakhs was released to the Corporation towards 50%

subsidy rebate on raw materials distribution (Silver & Zinc) to 150 no. of Bidriware artisans,

20% rebate on sales of lesser known crafts (Physical achievement 702) and welfare schemes to

artisans (333).

b) Urban Haat:

Govt. of India envisages setting up of Urban Haats at prime locations in the country to

enable the artisans to sell Handicrafts/Handloom products directly to the customers by

craftpersons/weavers Ministry of Textiles, GOI provides 70% of the cost of project subject to

maximum of Rs.210 .00 lakhs and the remaining 30% of the project cost up to Rs.90.00 lakhs

shall be borne by the State Gov/S.P.V.

Establishment of Permanent Exhibition Centre at Hubli-Dharwad:

As announced in the Budget speech of 2007-08 infrastructure facilities to market the

essential micro and small industrial products of local artisans around hubli, Government hasgranted post-facto sanction for establishment of Hubli-Dharwad Permanent Exhibition Centre

with an expenditure of Rs.700.00 lakhs. The State Government share of 85% amounting to

Rs.595.00 lakhs and SPV share of 15% amounting to Rs.105.00 lakhs.

The State Government has released Rs.372.40 lakhs and Karnataka Chamber of

Commerce, Hubli (SPV) has contributed Rs.25.30 lakhs.

Honble Chief Minister has inaugurated the first stage of Exhibition centre on 09.12.2012.

c) Handicrafts Gurukula Training Institute Construction

Objectives:

To act as centre of excellence to impart training in traditional crafts. To enhance interest on craft amongst youth.


15/29

d) Khadi & Village Industries Board:

The main objective of the KVIB is to give priority for Khadi and Village Industries in

rural areas in developing and regulating Khadi sector and to provide assistance for the cottageIndustries to generate employment opportunities to improve upon the economic status of the rural

artisans.

160 Institutions are working under Khadi sector, providing employment for 29000 people,

achieving production of 39.59 crores and sales worth of Rs.57.45 crores at the end of March

2010.

The main activities of the organization are:

i) Implementation of Prime Minister employment generation programmeii) Product development, design intervention and packaging

iii) Khadi development

iv) Kaigarika Vikasa.

v) Rebate on retail sale of Khadi Products

vi) Bee-keeping

Rebate On Retail Sale Of Khadi Products:

In order to promote the production and sale of Khadi and thereby to create more and more

employment opportunities in Khadi sector, the Central as well as State Government hasannounced normal rebate of 10% by Central and 5% by State Government on retail sale of Khadi

products throughout the year and special rebate of 15% for the year 2010-11. During the selected

108 days. Apart from this Government has extended incentive wages on par with wages earned

by Spinning and Weaving Artisans.

During the year 2012-13 Rs 1271.64 lakhs was allotted in the budget under the Head of

Account 2851-00-102-0-74. The pending rebate claims of 160 KVIB / KVIC Institutions have

been cleared.

Performance for the year 2012-13 under Khadi Sector:

Year Industry Production

Rs.in

Lakhs

Retail

Sales Rs.in

Lakhs

Employment

Generated Nos.

Wages Earned

Rs.in Lakhs


16/29

Construction of worksheds to Khadi artisans under SCP/TSP :-

During the year 2012-13 an amount Rs.200.00 lakhs has been released by the Government of

Karnataka for the construction of worksheds to Khadi artisans under Special Componentprogramme and Tribal Sub plan. Action is being taken to construct work sheds to artisans

belonging to SC & ST working in khadi institutions.

Interest Subsidy Scheme

The role of Khadi and Village Industries Board is to issue Eligibility Certificate to each unit as

per KVIC guidelines during the financial year. This scheme is applicable only to the unitsestablished under Pattern Scheme.

The KVIB Karnataka has renewed Interest Subsidy scheme certificates of 17 Khadi institutions

amounting Rs.920.46 lakhs during the year 2012-13.

Achievements under PMEGP scheme during the year 2012-13.

KVIB has established 477 units by utilizing Rs.1200.96 lakhs of Margin Money,

providing employment to 5720 artisans during the year 2012-13.

Market Assistance:

The Khadi institutions are being trained for the manufacture of garments as per the taste of

consumers. The institutions/Entrepreneurs are being motivated to improve their technology by

adopting latest technology to manufacture a variety of designed products and to make attractive

packing, in order to compete with liberalized, globalised and modernized competitive market.

Exhibitions:

The following Exhibitions were organized during the year 2012-13.

The Board has organized 04 State levels Exhibitions at Mysore (Dasara Exhibitions),

Shimoga, Raichur and Bangalore City, in addition to 02 Distirict level Exhibitions at Tumkur and

Mandya with the financial assistance of Rs.30.00 lakhs released by the State Government duringthe year 2012-13. Khadi and V.I. products worth of Rs.324.35 lakhs were sold in this exhibition.


17/29

e) Karnataka State Coir Development Corporation Ltd:

The Corporation was established with the main objective of developing Coir sector in the

State. The main functions of the Corporation are to:

1) Carry on the business of developing, promoting and stabilizing the coir and coir

based and coconut based industries in Karnataka

2) To support, protect maintain increase and promote the production and sale of coir,

coir products and coconut products

3) To implement scheme of the Government of Karnataka and the Government of

India for the development of coir and coconut based industries.

4) To generate rural employment to women (including SC/STs) by providing training

and engaging in production of coir products in the coir complexes

5) To undertake and promote research and development of coir and its products.

Financial & Physical targets and Achievements. (From 01.04.2012 to 31.03.2013)

(Rs. in Lakhs)

Sl.No.

Particulars Target Achievement

%

01 Sales 500.00 1002.03 200%

02 Production 400.00 798.08 199.5%

03 Employment 1150

Details of Activities, Programmes, etc conducted during the year 2012-13:

Training imparted for 50 beneficiaries under Modernization and Technology Training(Budget) in Yarn and Mat Making.

Training imparted for 350 beneficiaries under Special Component Plan/Tribal Sub Plan inYarn and Mat Making.

Upgradation of D.F. Units by installing new Beater and Burster machines for more fibreproductions at Navile Thimmalapura, Channarayapatna Taluk, Begur, Gundlupet Taluk,

Banavara Arasikere Taluk, Kenchaghatta Tiptur and Vokwadi, Kundapura Taluk.

Procurement of Dutch Mat Frames and pressing device for production of mats to NavileThimmalapura and Padubidri Production Centres.

Repairs and Maintenance of machineries and sheds of existing production centres. Participation in various State/ District Level Exhibitions, Melas etc.

Upgradation of Coir Veener Board Unit at Kunthurdoddi, Channapatna taluk by


18/29

Other achievements

The Corporation has established Coir Veener Board Centre at Kunthurdoddi inChannapatna Coir Cluster under SFURTI Scheme. During the year, the Corporation has procured

orders for supply of Coir Veneer Board Foldable Desks to residential schools run by KarnatakaRegional Educational Institution Society of Social Welfare Department. And also, supplied the

schools desks to the schools at Sandur Mining areas. Besides the Corporation has also takenaction for supply of Geo Textiles to Mining Industries, for stabilizing the mining dump yards. By

laying the geo textiles along with seeding of variety plants, mining areas can be converted in the

greenery as well as conservation of environment.

Further, the Corporation has been registered with DGS&D for supply of Rubberised CoirMattress and Pillows and obtained Rate Contract under DGS&D and executing orders as per Rate

Contract. During the year, the Corporation has supplied Mattresses and Pillows worth Rs.6.00

crores to Morarji Desai/Kittur Ranichennamma Residential Schools run by Karnataka Residential

Educational Institution Society (KREIS) of Social Welfare Department. With all the above

efforts, the Corporation has achieved a sales turnover of Rs.10.00 Crore during 2012-13.

Karnataka State Coir Co-Operative Federation Ltd.

The Karnataka State Coir Co-operative Federation was established in the year 1961. The

Federation is having share capital of Rs.329.22 lks (99% State Govt.Share) From the date of

establishment Federation is engaged in the manufacture of coir and its by-products and

developing coir sector in the State through Co-operative movement. It is imparting training to

poor women Artisans and providing permanent employment opportunities in the Coir Industry. It

also markets the products manufactured by the poor Artisans through its sales outlets and also to

the other countries.

The Federation is having 60 coir primary Co-operative Societies as its affiliated Members.

The Federation is also having 12 Sales outlets and 3 Mobile Sales Van. The Federation is also

running 17 Production units in different parts of the State with 2 Central coir godowns for storing

the coir products manufactured by the Federation.

The main objectives are as follows:-

1) To assist and support primary coir Co-op.Societies

2) To provide training & Technical guidance in the manufacturing of coir products

3) Supply of raw-materials to the Primary Coir Co-op.Societies

4) Marketing of coir products manufactured by the Primary Societies


19/29

As above, training programme has been commenced from 1st March, 2013 and training is

being imparted to 90 SC & 20 ST candidates and the same will be completed on May,2013 andthe remaining balance funds will be utilized during 2013-14.

Production Details of the Federation

Year Production Employment

2012-13 96.28 300

6. INVESTMENT AND TRADE PROMOTION INITIATIVES:

(a) Karnataka Udyog Mitra:

Karnataka Udyog Mitra (KUM) is investment facilitation and promotion agency ofGovernment of Karnataka under department of Industries & Commerce. It has been designated as

the nodal agency at the State level to facilitate investments into State under Karnataka Industries

Facilitation Act.

It acts as Secretariat for State Level Single Window Clearance Committee and State High

Level Clearance Committee which approves the projects with investment between Rs.3.00 Crores

to Rs.50.00 crores and above Rs.50.00 Crores respectively. As a part of investment promotion

Karnataka Udyog Mitra participates in various exhibitions, seminars, trade fairs, etc. to

disseminate the investment potential of the State.

KUM also organizes various publicity propaganda programmes like Investor Meets, Road-shows to attract the Investors not only within the State but also from abroad.

Global Investors Meet-2012:

Encouraged by the response to Global Investors Meet 2010, it was decided to organize

Global Investors Meet once in two years. Accordingly, Global Investors Meet 2012 was held in

the month of June 2012 at Bangalore International Exhibition Centre, Tumkur Road, Bangalore.

Karnataka Udyog Mitra was the nodal agency for organizing GIM 2012.


20/29

As a part of GIM 2012, GIM Expo was also organized. In this expo about 500 companies

had put up stalls and an exhibition area of 20,000 sq. mtrs was created. One on one meetings withthe companies were organized in the Expo.

b) Visveswaraya Industrial Trade Centre:

VITC is a registered society set up in 1965 with the main function of trade and exportpromotion It is engaged in conducting programmes in export management/ export

awareness/export documentation and allied assistance for the community of exporters. Also trade

promotion activities are taken up in the form of participation in exhibitions and trade fairs both

within the State and outside the State and abroad.

VITC has organized the following programmes during the year 2012-13

Export Awareness Programmes

Eight export awareness programmes have been conducted in Gadag, Mysore, Yadgir,Bidar, Koppal, Haveri, Belgaum, Kumta, Davangere, Savanur & Raichur districts, wherein total

No. of 817 beneficiaries participated.

Export Training Programmes:

Export training programmes have been conducted in Bidar, Bangalore, Gulbarga, Bellary,

and Belgaum districts, wherein total No. of 415 beneficiaries participated.

Export Management Training Programmes:

VITC has conducted Export Management Training Programmes (EMTP) in Bangalore,

Dharwad and Mysore Districts, wherein total No. of 184 beneficiaries participated.

Seminars/ Workshops :

Place Date Physical

(No. of

Beneficiaries)

Workshop on supply chain managements Bangalore 27th April 2012 49

Workshop on Export and Import process and Bangalore 29th May 2012 40


21/29

Session on e-BRC and Interactive session onDuty drawback in association with FIEO

Bangalore 23rd Nov. 2012 57

Workshop on Strategic Management ofInternational Trade, Payments, terms etc.,

Bangalore 20th Dec. 2012 38

Doing Business in US in association with FIEO Bangalore 1st Feb. 2013 125

Bidri Craft workshop in association with Exim

bank

Bidar 4th to 16th

Feb.2013

37

Seminar on WTO- Implications for States &

Stakeholders in association with Centre forWTO Studies, IIFT, New Delhi

Bangalore 14th March 2013 31

Seminar on WTO- Implications for States &Stakeholders in association with Centre forWTO Studies, IIFT, New Delhi

Mysore 15th March 2013 83

Total 567

Interaction Meeting:

Programme Place Date Physical

(No. of

Beneficiaries)

1. Open House meeting with DGFT in

association with FIEO

Bangalore 23rd June 2012 120

2. Interaction meeting with exporters inassociation with KCC &I, Hubli

KCCI,

Hubli

18th July 2012 23

3. Interactive session on Export credit withSecretary Banking & Financial services in

association with FIEO

Bangalore 20th Nov.2012

45

4. Interaction meeting Foreign trade policy,Customs, Excise etc.,

Belgaum 17th Dec. 2012 42

5. Interactive session on E-BRC in associationwith FIEO

Bangalore 24th Jan 2013 60

6. Interactive session on E-BRC in associationwith FIEO

Mangalore 12th Feb. 2013 47

7 Interaction Meeting in association with Hubli 27th Feb 2013 40


22/29

Market Development Assistance:

Exhibitions:


(No. of

Beneficiaries)

Indiallia by World Trade

Centre

World Trade

Centre, Mumbai

23rd to 25th April 2012 1

GIM Expo 2012 Exhibition BIEC,

Bangalore

6th to 8th June 2012

India International Trade Fair

2012

New Delhi 14th to 27th November

2012

200

2nd India Asean Business Fair

& Business conclave 2012

New Delhi 18th to 20th December

2012

1


(No. of

Beneficiaries)

Simtos Exhibition by EEPC India South Korea 17th to 22nd April 2012 14

Expert Group meeting on South-

south collaboration for Technology

and Innovation

Geneva,

Switzerland

3rd July 2012 1

Big Seven Fair South Africa 15th to 17th July 2012 1

Taitronics 2012 and Hong KongElectronic Fair by Clik

Taiwan andHong Kong

9th to 16th October 2012 19

Anuga Fair by Raichur Chamberof Commerce & Industry

Germany 8th to 12th Oct. 2012 8

Delegation to Israel Israel 24th to 27th Feb. 2013 7

HKTDC Fashion Show Week by

FKCCI

Hong Kong 14th to 18th January 2013 20

India Engineering Sourcing Show

(IESS)

Mumbai 14th to 16th March 2013 24

Total 94


23/29

Export Promotion Meetings :

1. 22nd

Meeting of the Sub-Committee of SLEPC held on 10-7-2012, chaired by

Commissioner for ID.2. 82

nd GC Meeting of VITC held on 27-9-2012.

3. 23rd

Meeting of the Sub-Committee of SLEPC held on 8-11-2012, chaired byCommissioner for ID.

4. 15th

SLEPC meeting of SLEPC held on 30-1-2013, chaired by Chief Secretary,GOK.

8) TECHNOLOGY UPGRADATION INTIATIVES:

Karnataka Council for Technology Upgradation:

Technology upgradation initiatives are implemented through the Karnataka Council for

Technology Upgradation. Karnataka Council for Technological upgradation has commenced

functioning from 1996. KCTU is a joint venture of Government of India, Government of

Karnataka and Industries Associations. It functions as a Nodal Agency for Technology Transfer to

MSEs. The Council functions under the Chairmanship of the Commissioner for IndustrialDevelopment and Director of Industries and Commerce, Government of Karnataka.

The main objectives of the KCTU are to enhance competitive status of SMEs, catalyse

technology upgradation through acquisition, adoption and modernization and to reduce cost ofproductivity, quality improvement to make the SMEs products more competitive both nationally

and internationally. It assists the SMEs to obtain ISO 9001/14000 or any other Nationally andInternationally recognized Certification. The Council is a Nodal Agency for creating awareness

and provides assistance for registration of Intellectual Property Rights, guidance in Plant Layout,

diversification, modernization and expansion.

Progress of KCTU during the year 2012-13

KCTU has sanctioned Incentive to ISO/BIS 36 units, 7 units are sanctioned interest

subsidy for technology Upgradation.

18 Patents has been sanctioned incentive amounting Rs. 9,35,590/-.

42 Seminar/ Workshop/ Awareness Programmes, 6 NID Design Programme and 1 - IMS

Manthan Programme conducted. An amount of Rs. 20.00 lakhs is utilised.

KCTU has recommended 31 proposals to Government of India for DSR, out of which 9


24/29

Technology Up-gradation Programme for Small Scale Industries

During the year 2012-13, subsidy has been sanctioned amount to Rs.20.00 lakhs to 29

units who have obtained ISO & other international Quality accreditation certificates.

9. ENTREPRENEUR DEVELOPMENT PROGRAMME INSTITUTIONS

a) Centre for Entrepreneurship Development of Karnataka, Dharwad (CEDOK)

CEDOK was established by Government of Karnataka with an objective to contribute for

the development and disbursal of Entrepreneurship by conducting various EDPs, SkillDevelopment programmes to expand the social and economic base of entrepreneurial class.

Main functions of CEDOK:

To augment the number of entrepreneurs through entrepreneurship, training andresearch

To Produce multiplier effect on opportunities for self-employment

To improve the managerial capabilities of small entrepreneurs

To contribute to the dispersal of entrepreneurship and thus expand the social baseof the entrepreneurial class in urban/ rural areas

To be centre of learning for trainer-motivation on entrepreneurship development.

To contribute to growth of entrepreneurship cultures, spirit and entrepreneurshipdeveloping countries.

CEDOK is organizing the following Activities and Programmes.

One day Entrepreneurship Awareness Programmes Two days Entrepreneurship Awareness Camps (EAC) for students. 2/4/8 Weeks Skill based EDP. EDP for PMEGP beneficiaries.

Highlights of 2012-13:

During 2012-13, CEDOK has conducted 213 programmes in which 12,423 candidates

participated under various programmes viz., Entrepreneurship Development Programmes,

Entrepreneurship Awareness Programmes, Udyami Aagu Udyoga Needu,

Skilled Development Programmes, Management Development Programmes, Workshops, FacultyDevelopment Programmes, Trainers Training Programmes etc.,


25/29

MDP on Technology for Effective Office Management" programme was conducted forthe Officers and Staff of I&C Dept., (124 participants) Bangalore for 3 days that is 4No.of programmes in CEDOK Campus, Dharwad & Yellapur.

b) Technical Consultancy Services Organisation of Karnataka (TECSOK)

TECSOK is a multi disciplinary consultancy organization engaged in providing

consultancy services for entrepreneurs who wish to set up industries or service ventures in

Karnataka. TECSOK provides basic information on potential products, suitable location, policyand procedures of the Government and other related organizations, incentives and facilities

offered by the Government to the entrepreneurs.

TECSOK focuses more on promotion of entrepreneurship amongst rural entrepreneurs andentrepreneurs belong to SC/ST/Backward Community and other under privileged classes utilizing

various special schemes available for such entrepreneurs.

In addition to the services to entrepreneurs, TECSOK is also providing professional

services to various institutions and departments of State and Central Government. TECSOK

offers technical assistance on various aspects to the Department of Commerce & Industries on

regular basis, in addition to participating in the meetings of various committees of the

Government.

Details of activities / programmes conducted during 2012-13:

TECSOK has counseled and assisted over 450 prospective entrepreneurs. Officers of

TECSOK participated in various awareness programmes, seminars and other training programmes

conducted by various agencies at different places to motivate the entrepreneurs.

During the year, 225 project reports / appraisals / valuation reports / profiles have been

prepared.

TECSOK participated in the meetings of State High Level Clearance Committee and StateLevel Single Window Clearance Committee and facilitates the Committee in the approval process

of project proposals. TECSOK is a member of the Land Audit Committee constituted for takingappropriate decision on requirement of land for the project proponents. TECSOK has also

prepared water assessment reports for 75 projects cleared by the SHLCC.

Ministry of New & Renewable Energy (MNRE) has engaged TECSOK for third party

inspection of solar installations made by seven channel partners under promotional scheme of

MNRE. During the year, inspection of about 2,100 installation have been carried out and reports

submitted to the Ministry.


26/29

KHB has engaged TECSOK to scrutinise PQC documents submitted by the contractor, on

regular basis. During the year, 25 such documents were scrutinised and submitted to KHB.

TECSOK is co-ordinating the publication of Kaigarika Varthe, a bilingual magazine of theDepartment of C&I.

TECSOK has undertaken and completed 110 assignments sponsored by different agencies

and Government departments. Following are some of the major assignments:

1 Socio economic Mapping of Project Influence Area of Integrated Steel Plant in

Kuduthini (For Arcelor Mittal India Ltd.)

2 Apprasial Report of Sridevi Medical Institute (For District Registrar)

3 Evaluation of 11th Plan Scheme for PESO (For PESO, GoI)

4 Formulation of Karnataka Pharma Policy 2013 (For Drugs Control Department)

5 Formulation of Karnataka Aerospace Policy 2013-2023 (For Dept. of I&C)

6 Project Report on Warehousing & Logistic Services (For Bharani Hospitality

7 Facilitation Services for Selection of TA for developing projects in PPP model atSuryanagar I Phase, Kengeri & Gulbarga (For KHB)

8 Valuation of Property at Gandhinagar and Feasibility of Construction of office

premises (For KIADB)

9 DPR for establishment of permanent exhibition complex at Hassan Growth Centre(For KIADB)

10 Feasibility Study of CETP at Bommasandra IV Phase (For KIADB)

11 Facilitation services for Selection of Agencies for Empanelment to providehandholding support for clusters (For KCTU)

12 Demand Survey for Establishment of Maize Technology Park (For APMC,Ranebennur)

13 Report on Strategies for Promotion of Exports (For VITC)

14 Facilitation services for selection of turn-key contractor for construction of Faadeof Karnataka Pavilion (For VITC)

15 Status Report on Implementation of Raisin Project of Raibagh Grape Growers'

Co-op. Society (ASIDE Funding) (For VITC)

16 Market assessment for Trade Point in Bangalore (For VITC)

17 Selection of contractors for interior designing of Dr.Ambedkar Museum (For

Ambedkar Research Institute)

18 Benchmarking of MML with similar organisations (For MML)

19 Feasibility Study for Establishment of Commercial complex at Bagalkot (ForMML)

20 Feasibility of Revival of Mysore Lamps (For MLW)

21 Project Report for CFS at Mangalore for ASIDE Grant assistance (For CWC)

22 Evaluation of XI Plan projects of CMTI (For CMTI)


27/29

29 Evaluation of scheme - Bonus to cocoon of Mysore Seed Area (For SericultureDepartment)

30 Facilitation services for selection of agencies to maintain HVDTIs in Bangalore &Dharwad (For Transport Department)

31 Marginal Costing of High Security Registration Plates (HSRP) (For Transport

Department)

32 Evaluation of Pension Scheme for Artists and Financial Assistance for Culturalorganisations / associations (For Dept. of Kannada & Culture)

A budgetary support of Rs.30.00 lakhs has been sanctioned and released to TECSOK for

the year 2012-13 for implementation of ongoing promotional schemes and publication of

Kaigarika Varthe issues.

10. MODERNISATION TECHNOLOGY TRAINING

a) Seminars, Training, Tours of Officers:

A sum of Rs.60.00 lakhs has been released under this programme, out of which Rs.30.00

lakhs has been released to DICs to undertake Study, Seminar and Training, Rs.14.40 lakhsreleased to CEDOK to provide training to the Departmental Officers/Officials. A sum ofRs.15.60 lakhs has been released to Karnataka Udyoga Mitra for conducting Balanced score card

training programme.

b) Modernisation & Computerisation of Dept.

A sum of Rs.51.15 lakhs has been released under this programme. The details are as

follows: Rs.11.00 lakhs has been utilized for annual maintenance/ repairs of existing computer

systems, UPS, Printers, firewall, antivirus application, other office equipments, Stationery and

computer consumables of Directorate, Rs.9.82 lakhs has been utilized by 30 district Industries

Centre towards annual maintenance/ repairs of existing computer systems, UPS, Printers and

other office equipments like Projector, Audio system and computer consumables and sum of

Rs.30.33 lakhs has been utilized for procurement of Laptops, Xerox machines and Scanners

Directorate and District Offices, relaying Network cable and renovation of existing Meeting hall

of the Directorate .

*******


28/29

28

ANNEXURE-I

District-wise Number of Enterpreneur Memorandum (Part-1) & (Part-II) issued to Micro, Small and MediumEnterprises for the Month of March-2013

State/U.T: Karnataka Code:29MANUFACTURE SERVICE

Micro Small Medium Micro Small Medium Total

Sl.No

Dist

CodeName

of the District

EMPart

I

EMPartII

EM

PartI

EM

PartII

EM

PartI

EM

PartII

EM

PartI

EM

PartII

EM

PartI

EM

PartII

EM

PartI

EM

PartII

EMPart

I

EMPartII

1 2 Bagalkot 26 17 15 2 5 46 46 652 20 Bangalore 143 347 31 91 2 93 162 24 37 2 3 293 642

3 21Bangalore Rural

15 17 8 13 1 1 4 3 1 27 364 1 Belgaum 79 88 4 4 24 8 1 108 100

5 12 Bellary 32 88 6 3 2 1 1 40 936 5 Bidar 27 15 1 1 8 4 3 39 20

7 3 Bijapur 18 86 5 64 5 1 28 1518 27 Chamarajanagar 8 11 2 6 12 16 23

9 Chikkaballapura 25 10 4 1 1 31 1010 17 Chikmagalur 29 15 1 5 30 20

11 13 Chitradurga 35 14 2 17 36 54 5012 24 D.Kannada 57 64 12 2 12 42 3 84 10813 14 Davanagere 37 52 3 1 71 2 43 123

14 9 Dharwad 50 108 18 5 22 12 6 2 96 12715 8 Gadag 12 54 1 1 1 14 55

16 4 Gulbarga 29 58 7 7 1 48 1 37 11417 23 Hassan 29 40 1 1 36 31 7618 11 Haveri 17 1 11 42 1 28 4419 25 Kodagu 9 8 5 6 2 2 16 1620 19 Kolar 29 6 12 4 2 43 1021 7 Koppal 9 12 2 9 1 5 20 16 4222 22 Mandya 26 28 5 1 4 62 1 35 9223 26 Mysore 62 21 15 5 1 13 27 5 1 96 54

24 6 Raichur 13 2 14 2 6 27 1025 Ramanagara 18 21 10 2 2 2 37 1 31 6226 15 Shimoga 64 161 3 1 1 10 41 2 77 20627 18 Tumkur 67 151 21 6 4 15 1 93 17228 16 Udupi 100 39 3 3 6 39 1 110 8129 10 Uttara Kannada 20 51 2 8 21 30 7230 Yadgir 6 5 1 11 7 16

Total 1091 1589 199 163 5 8 268 878 60 49 3 3 1626 2690


29/29

annual report of industries and commerce karnataka

Documents