Small-Scale Industries

Small-Scale Industries (SSI) is an important segment of the economy, contributing substantially in the form of production, employment and exports. It has continued to play a vital role in the fulfillment of socio-economic objectives. The principal factor for defining small-scale Industries has always been based on the size of investment. Small-Scale Industries are those industries whose investment in fixed assets such as plants and machineries does not exceed Rs.100.00 lakhs (Rs.1 crore). This has been brought down from earlier limit of Rs.300.00 lakhs (Rs.3 crores) w.e.f. 24.12.99 in order to give a fillip to small units with low investments. The investment limit for tiny units continues to be Rs.25.00 lakhs. Investment in plant and machinery in respect of industry related Small-Scale Service and Business Enterprises (SSSBE) was increased to Rs.10.00 lakhs from Rs.5.00 lakhs. According to these new definitions, all the industrial units except those of cottage and village industries in Manipur belong to the category of small-scale industries.

For speedy growth of small- scale industries, the Government has already brought about simplifications in the SSI registration procedures. By the end of March, 2006 the number of registered permanent Small Scale Industries both SIDO (Small Industries Development Organisation ) and NON-SIDO stood at 10,264 with an investment of Rs.43.27 crores in plants and machineries and providing employment to 53,719 persons where annual production was estimated to be Rs.183.72 crores. The growth of Small-Scale Industries over the years is shown in the following table.

Growth of Registered Permanent (PMT) Industrial units Employment, investment and production (as on 31^st March):

Source: Economic Survey Manipur 2008-09

It is evident from the above table that average employment per unit of manufacturing enterprises in Manipur is around 5(five) only during the period from 1994-95 to 2005-06. There is positive correlations between the average per unit employment and investment in plants and machineries with r = 0.97. The average employment per unit is worked out to be 5.15 persons where average investment in plants and machineries is worked out to be Rs.34.37 crores. The average production per unit is found to be Rs.1.48 lakhs in 1994-95 which slowly increased from year to year. It stood at Rs.1.79 lakhs in 2005-06. Average return for every 1 (one) rupee is worked out to be only Rs.4.39 during the period from 1987-88 to 2003-04.

A total of 113 manufacturing units are found registered in Manipur during 2005-06 as against 158 (132 SIDO and 26 NON-SIDO) in 2004-05. Among the districts, Imphal East district has the highest number of registered industrial (SIDO & NON-SIDO) units with 34 (30.09 percent) followed by Imphal West with 24 (21.24 percent) units. The lowest was recorded in Chandel district having only 2 (0.77 percent). The district-wise SIDO & NON-SIDO break-up of industrial units, employment and production during 2005-06 are presented in table below.

Growth of Registered Industrial Units, employment, investment and production in Manipur during 2005-06:

Source: Economic Survey Manipur 2008-09

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Handloom:

Handloom industry is the largest cottage industry in the state. It is a traditional cottage industry providing avenues of employment opportunities to the people of Manipur. Basically, it is a labour-intensive family occupation in which all the members of a family can participate. Majority of the handloom weavers in the state are self-employed artisans who are carrying on their profession in their own homes with the assistance of their family members in pre-loom and post loom process. Manipur rank s the fourth position in terms of the number of looms in the country. It has more than 2.7 lakhs looms comprising of fly shuttle, throw shuttle and loin- looms with a weaver population of more than 2.8 lakhs of which about 1 lakh are full time weavers, according to National Handloom Census, 1987.

In artistic weaving also there are many accountable designs which are still famous such as Ningthou Phee, Lamthang Khulak, Khamen-Chatpa, Shamilanmi, Moirangphee, Lashing Phee, Leiroom, Hijamayek, Tindongbi, Leirong, Akoibi designs etc. Each design has its own history as to how and by whom they were invented. In the art of design and printing, Manipur can be proud of possessing good knowledge of dyeing of fast colour on various kinds of hard printing of cloths since time immemorial by using indigenous plant leaves etc.

A High Power Committee (HPC) was set up to look into the problems and to suggest measures for the growth of handlooms during the Ninth Five Year Plan Period. Most of the recommendations of this committee have been accepted by the Government and the schemes/programmes in the Ninth Plan are being formulated on the basis of these recommendations. For the provision of welfare measures and better working conditions to handloom weavers, a package of group insurance scheme, health package scheme, work shed cum-housing scheme, project package scheme, integrated handloom village development project etc. are being implemented in the handloom sector.

Project Package Scheme:

The project package scheme, being implemented since 1992-93, is one of the major schemes to provide the requisite support to weavers in an integrated and coordinated manner. The scheme envisages formulation and implementation of specific need base projects for development by a particular handloom product or development of a particular area of weavers. Altogether 2194 weavers were assisted under this scheme involving a sum of Rs.92.95 lakhs as central share during the year 2001-2002.

During 2002-03, a sum of Rs.26.25 lakhs were released under the scheme as 2nd installment to the beneficiaries as state share in respect of the 12 projects sanctioned in 1994-95. The final installment of Rs.46.65 lakhs is yet to be released. The Govt. of India also released Rs.62.84 lakhs and Rs.81.48 lakh as grant and loan respectively to the beneficiaries in respect of the 30 projects sanctioned in 2000-2001. 173 weavers were assisted during 2003-2004 involving an amount of Rs.22.80 lakhs and Rs.65.29 lakhs as central share and state share respectively under the scheme.

Integrated Handloom Village Development project:

Integrated Handloom Village Development project (IHVDP) aims at providing a comprehensive support in all areas covering all types of facilities in terms of skilled upgradation, productivity infrastructure and to give fillip to the motivation level. Construction of common facility centre, workshed, supply of looms, imparting training programme and providing of infrastructure are the main components of the scheme. During the year 2001-2002, altogether a total of 2,647 weavers were assisted with margin money to the tune of Rs.68.22 lakhs as central share and a sum of Rs.2.26 lakhs were paid as stipend to 60 weavers for undergoing training.

Deen Dayal Hathkargha Protsahan Yojana:

Deen Dayal Hathkargha Protsahan (DDHP) Yojana was a newly introduced scheme for women belonging to the SC/ST/OBC as a promotional scheme of handloom sector. It is a centrally sponsored scheme which has come into force with effect from 01.04.2000. Product development, production support, institutional support, imparting training programme, providing of infrastructure, marketing support etc. both at macro & micro level in an integrated and co-ordinated manner for an overall development of the handloom sector are the main components of the scheme. The pattern of assistance between the central and the state is 90:10 unless specified for the component. The amount sanctioned by the central and state Government for the assistance of Cooperative Societies during 2005-06 to 2007-08 is shown in the table below.

Physical and Financial Performance under DDHP Yojana in Manipur by the State Government:

Source: Economic Survey Manipur 2008-09

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Handicrafts:

Handicrafts is another important industry in the state. It has its own unique identity amongst the various crafts of the country. Handicrafts industry of Manipur may be mentioned with special accounts for contributing to the economic structure and development of the state. The handicrafts of Manipur are treated in high class in themselves, drawing the main theme and subject matter from episode of Khamba Thoibi and latter Radha Krishna background of their religions belief and designs depiction of Pakhangba with simple processes of indigenous nature craftsman here produce handicrafts of excellence, the importance of them being cloths embroidery, cane and bamboo, ivory, stone and wood carving, metal crafts, deer horn decoratives and supari working sticks, dolls and toys etc. Various kouna products, artistic weaving, wood carving etc. have a distinct place of its own.

The state Government has made full efforts for overall development of handloom and handicrafts industries in the state. Manipur Handloom & Handicrafts Development Corporation and Manipur Development Society are the two agencies of the state government taking utmost efforts for production and marketing of handloom and handicrafts products. Manipur State Handloom Weavers Co-operative Society is apex co-operative society taking pivotal role in the co-operative sector for development of handloom & handicrafts in the state. There is also departmental raw- materials bank to meet the requirement of various types and quality of yarn of weavers at reasonable price. The Mechanised Dye House now run under the Deptt. is also making full efforts to make available quality dyed yarn for the weavers of the State. Although there are various schemes for the growth and development of handloom and handicrafts in the state, only few could be implemented due to want of fund. Among the North Eastern States, Manipur has got the highest number of handicrafts artisans. In order to provide financial assistance and also give due recognition to eminent craftspersons, the following schemes has been implemented during 2006-07.

(a) State Award to Master Craftsman,

(b) Modernisation of handicrafts and

(c) Development of Kouna product

Number of handicrafts artisans in the North Eastern States of India, 2004-05:

Source: Economic Survey Manipur 2008-09

District Industries Centre:

District industries Centre (DIC) came into limelight in pursuance of the Industrial Policy Resolutions of the Government of India adopted in 1977. Its emphasis is laid on dispersal of industries in the district headquarters, small towns and rural areas. The intention of the policy makers is to make the DICs to work as catalysts for promotion of cottage and small industries. It provides all the resources with its facilities required by the entrepreneurs including identification of suitable schemes, preparation of feasibility reports, arrangements for supply of machinery and equipments, provision of raw- materials and facilities for marketing and extension services. Various schemes like Seed/Margin Money, Self-Employment for Educated Unemployed Youths and Prime Minister’s Rozgar Yojana were instrumental in the growth of industries in the state.

Prime Minister’s Rozgar Yojana:

A special scheme ‘Prime Minister’s Rozgar Yojana (PMRY)’ has been drawn up to be operated through the District Industries Centre for providing self employment opportunities to educated unemployed youths. The Scheme covered all educated unemployed youths who passed or failed matric or ITI passed or having undergone Government sponsored technical course for a minimum duration of six months and within the age group of 18 to 35 years (relaxed upto 40 years for the North Eastern States and 45 years for SC/ST, Ex-Serviceman, physically handicapped persons & women). Beneficiaries of the PMRY scheme were selected from the relatively less affluent sections of the society, whose annual family income does not exceed Rs.24,000 (relaxed upto Rs.40,000 per annum for North Eastern States.) PMRY scheme provided loans, financial assistance to educated unemployed persons who are willing to employ in any one of the trades viz., industry, service and business. The scheme was launched on 2nd Oct., 1993. The performance under the scheme during the period from 1999-2000 to 2007-08 is presented in Table which is given below.

Performance under PMRY scheme:

Source: Economic Survey Manipur 2008-09

The above table shows the overall performance of the scheme during the year from 1999-2000 to 2007-08.

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Khadi and Village Industries:

The Khadi and Village Industries Commission (KVIC) was established by the Govt. of India in the year 1957. The Khadi and Village Industries is not only providing employment to people in rural and semi- urban areas at low investment per job, but also utilises local skill resources and provides part-time as well as full time work to rural artisans, women and minorities. It was only in the year 1966 that the State Board for the development of Khadi and Village Industries was constituted by the Government of Manipur. The traditional sector of industries fall within the purview of organisations such as Khadi and Village Industries Commission. The KVIC include artisans in tiny industrial units and defines it as any industry located in a village or town inhabited by population not exceeding 10,000 which produces goods and renders services with or without the use of power in which the fixed capital per head does not exceed Rs.15,000. In the State, the KVIC has given special attention for economic upliftment of the Scheduled Castes/Scheduled Tribes and women in general.

The production of KVI sector was to the tune of Rs.49.47 crores in the year 2006-07 as against Rs.49.42 crores in 2005-06 showing an increase of 0.10 percent over the previous year. The total amount earned in the year 2006-07 was Rs.52.14 crores whereas the earning was Rs.52.09 crores in the year 2005-06. And the total number of employees in KVI sectors was 36 thousands in 2006-07. The following table shows the performance of KVI sector of Manipur during 2002-03 and 2003-04.

Performance of KVI of Manipur:

Source: Economic Survey Manipur 2008-09

During the year 2003-04 a sum of Rs.15.00 lakhs under plan and Rs.56.00 lakhs under non-plan were provided as grants- in-aid to meet the establishment charges of the Khadi and Village Industries Board.

Amount of Grants and Loans distributed to various Industries, Under R.E.G.P. (V.I.) in respect of Khadi and Village Industries Board, Manipur during 2005-06 to 2007-08:

Source: Economic Survey Manipur 2008-09

District-wise Number of Bee-Keepers, Outturn Price and value of Honey in Manipur for the year 2006-07:

Source: Economic Survey Manipur 2008-09

Indo-Myanmar Border Trade Promotion:

The opening of the Border Trade Between India and Myanmar was an important achievement during the Eighth plan period. The Indo-Myanmar Border Trade was inaugurated in 12th April 1995 by the then Union Minister of State for Commerce as a followup measure of the Trade Agreement signed between India and Myanmar on the 21st Jan., 1994 at New Delhi. Subsequently exchange of 22 items have been allowed by the residents across the border. The development has to boost up the export potential of India/Manipur by creating adequate infrastructure for promotion of export oriented industrial units. To facilitate the trade, trade centers are being constructed at Moreh and another at Imphal. The importance of setting up of trade centers for providing facilities to the trades and entrepreneurs of Manipur with the new avenue of opening up of regulated border trade between Myanmar and India was considered by Planning Commission, Government of India.

Accordingly, the Centre is to provide infrastructural facilities such as telecommunication, export-import information cell, show room-cum-sales counters, conference hall, boarding and lodging facilities, guest-room and restaurants, bank and other relevant Govt. extension counters to facilitate the trades/businessmen/ entrepreneurs in creating a business like congenial atmosphere. However, the Director General of Foreign Trade has permitted the bilateral/border trade along with the Indo-Myanmar border as per the prevailing customary practices for the commodities namely, mustard/rape seed, pulses and beans, fresh vegetables, fruits, garlics, onion, chillies, spices (excluding nutmeg, maee, cloves, cassia & cinnamon), bamboo, minor forest products (excluding teak), betel nuts and leaves, food items for local consumption, tobacco, tomato, reed broom, sesame, resin, corriander seeds, soyabeans, roasted sunflower seeds, katha, ginger etc. During the period 2001-02, the volume of export and import was Rs.1.25 crores and Rs.8.30 crores respectively as per the report of the Land Customs Station, Moreh. During the year 2002-03, the value of export and import was Rs.3.66 crores and Rs.1.17 crores respectively. The main items of exports were wheat flour, bleaching powder, fenugreek seeds, Ani seeds, Cumin seeds, Soyabari, dry chillies, agarbati, suman rose powder, Pea, Garlic, Dry Buffallo Offal etc. while the import items were Betel nuts, Turmeric, Red Kidney bean (Rajma), Kuth roots, gram. Resin, reed-brooms, dry ginger etc.

In the year 2004-05, the value of export and import was Rs.6.15 crores and Rs.5.27 crores respectively.

With the objectives of promoting people to people contact for promotion of the bi-lateral trade, a team of Myanmar Delegation comprising 3 (three) officials and 28 other trade related bodies visited Manipur on 28th Feb., 2007 and also a One-Day interaction programme was held on 1th March, 2007 at the State Government House, Imphal by the traders and officials of both sides.

Industrial Growth Centres:

Growth Centres are large villages or small towns which have the potential to become the nuclei for the socio-economic development of the surrounding area. The Growth Centres can be identified by the different orders with respect to the quality and quantity of services and facilities, service area and population. A growth centre of lowest order should have services such as agricultural input centre, primary and middle school, maternity and child care centres and daily market. At highest level, it must have manufacturing industries, hospitals, colleges etc.

The pace of development of backward areas is a cause for concern. With the doing away of the system of licensing of industries and coming into play of market forces, the industries tend to gravitate towards already developed areas which provide better infrastructure, easier availability of skilled work force and forward and backward linkages in terms of availability of raw- materials and markets for products. Thus, the regional imbalances in industrial development may tend to increase. So it is imperative to take special measures to promote development of industries in backward areas.

For tackling the problem of regional imbalances in industrial development, to some extent at least, the Growth Centres Schemes was initiated in the Eighth Plan.

Under the Growth Centres Schemes, the central Govt. has approved the Industrial Growth Centre Project at Lamlai-Napet at a project cost of Rs.30.00 crores of which Rs.15.00 crores will be the Govt. of India contribution, Rs.5.00 crores as State Govt. contribution, Rs.4.00 crores as loan and equity contribution from the financial institutions and Rs.6.00 crores as loans and equity from other sources. A sum of Rs.1.50 crores was sanctioned and released by the Government of India. A proposal for shifting the site of the Centre is under examination.

Food Processing Industries (FPI):

During the year 2006-07, Rs. 65.00 lakh was provided for Food Processing Industries. A (fifteen)15 day training on Food Processing Training Centre, Porompat were also organized for SC/ST entrepreneur including women/SHGs and rural women entrepreneurs. The training involved Rs. 2.00 lakh covering 94 trainees.

For the further development of FPI, the following promotional Schemes have been taken up for which 50% grant-in-aid have been sought from the Central Government.

i) Food Fair cum workshop, 2007

ii) Two days workshop on Food safety, standard quality assurance in FPI in Manipur

iii) Three day workshop on total quality management (TQM) for FPI in Manipur.

Bamboo Processing Industries:

The State Government have taken up scheme for setting up bamboo processing units in the State by utilizing the fund of Rs. 50 lakh received from the North Eastern Council (NEC) during 2005-06. The schemes are :

i) Construction of Brick Kilns for Bamboo Charcoal production at Barak Bridge Point (Tamenglong-Haflong Road), Toilnom Village (Churachandpur), Khongkhang Village (Chandel), Wangoo Sabal (Bishnupur), Lukhamji Village (Tamenglong) and Churachandpur (Jiribam) ;

ii) Training of 45 weavers in handloom weaving of bamboo strips and

iii) Setting up of 3 (three) Common Facility Centres at Tamenglong, Churachandpur and Imphal.

Preparation have been made to set up a Bamboo Technology Park. The main object of the park is to set up entrepreneurial cluster based bamboo processing units on Public Private Partnership under Special Purpose Vehicle (SPV) model in association with the National Mission on Bamboo Application (NMBA), Government of India.

Source: Economic Survey Manipur 2008-09