INDUSTRIAL INFRASTRUCTURE

Infrastructure is the pre-requisite of industrial development. Dharmapuri district has sound infrastructure base like transport, banking network, land for construction of industrial sheds etc.

Physical Infrastructure

Availability of Land

Dharmapuri district has got vast stretch of barren and fallow land. So there is no shortage of land suitable for setting up industrial units, which require wide workspace. In Dharmapuri district 42,846 hectares of land is identified as barren unculturable during 1999-00, which can be utilised for constructing industrial sheds and formation of industrial estates.

Factory Accommodation

Industrial Estates provide factory accommodation with the entire infrastructure required for running an industrial unit. This saves the valuable time and energy of an entrepreneur, which has to be spent, otherwise for securing them. In Dharmapuri district SIDCO has developed 5 Industrial estates for the SSI sector. DIC runs an industrial estate for electrical and electronic industries. SIPCOT has established Industrial complex for medium and large-scale units at Hosur. Following table shows the no. of sheds and developed plots established in the above estates.

Table No. 4.2
Existing Industrial Estates

S.No.	Name of the Indl. Estate	Area (in Acres)	No. of Sheds	No. of Plots
1 2 3 4 5 6 7	SIDCO Indl. Estate Dharmapuri SIDCO Indl. Estate Krishnagiri SIDCO Indl. Estate Hosur SIDCO Indl. Estate Bargur SIDCO Indl. Estate Uthangarai Elec.& Electronic Indl. Estate, Hosur SIPCOT Indl. Complex Phase-I, & Phase-II, Hosur	20.28 41.87 95.15 31.64 41.28 12.34 979.60 & 396.30	19 65 160 20 5 12 190	19 20 23 - - 31 144 -

Source : Branch Manager, SIDCO, Krishnagiri

Following sheds and plots are available for allotment in the existing industrial estates according to SIDCO.

Table No.4.3
Vacant Sheds and Plots available in the existing Industrial Estates

S.No.	Name of Industrial Estate	Vacant Land		Vacant Shed/ Undeveloped plots
		No of Plots	Total Extent (in acre)	No of Sheds	Shed size (in Sq. Ft.)
1	Indl. Estate, Bargur	N.A.	N.A.	19& undeveloped plots	2000 SF
2	Indl. Estate, Uthangarai	N.A.	N.A.	5& undeveloped plots	2000 SF

Aspiring entrepreneurs can approach SIDCO for land allotment and other details.

Power

There was no major power generation centers in Dharmapuri district. The entire power requirement was met from supply from the state grid. This has caused frequent power cuts and fluctuations affecting industrial activity. Of late, power generation through cogeneration project was established and electric power generated to the extent of 3.58 million units in 2000.

Two major rivers, which are flowing through the district namely, Cauvery and Thenpennar could not be used for power generation. While the Cauvery is not of much use even for irrigation, the later, across which the Krishnagiri dam is constructed, is used only for irrigation. The wind velocity is also not adequate to operate windmills. There is scope for solar power generation as part of the district has hot temperature for major part of the year.

Power consumption pattern

Consumption of electric power by various sectors in a district represents the level of activity in the sector. The following table shows the power consumption by various sectors in 1999-2000 in Dharmapuri district.

Table 4.4
Pattern of Electric Power Consumption in 1999-2000

S.No.	sector	Units consumed (in Million Units)		% to total consumption Sector-wise In D’puri		% Consumption sector-wise in the State
1 2 3 4 5	Domestic Industrial Agriculture Commercial Others	126.85 44.03 60.43 22.65 23.28		45.75 15.88 21.80 8.17 8.40		18 38 27 6 11
	Total	277.24		100		100

Source: Directorate of Economics & Statistics, Chennai.

The Domestic sector is the major power consumer in the district, which accounted for 45.75% of the power consumption followed by the agricultural sector, which accounted for 21.80 %.

The power consumption pattern itself indicates that the role of industrial sector in the district is marginal only. It is worth to note that against the State’s average power consumption of 38%, the district industrial power consumption is 15.88 % only, which shows the status of industrial activity in the district.

Transport

Transport facilities play an important role in the economic development of a region. It facilitates industrial growth by ensuring easy movement of raw material and finished products. Dharmapuri district has a good transport system. It has direct link with the State capital and other major cities by rail and roadways. However, the district headquarters, i.e. Dharmapuri town, does not have direct link with state capital. One has to travel upto Morappur, which is situated 27 kms. away from the district headquarters, to catch a train to the state capital.

Surface transport

The district has a well-developed road transport network. It has good motorable road linking the district headquarters with the State capital and all major industrial cities. The N.H.7 connecting Kanyakumari & Kashmir passes through this district. Roads available in the district are classified as follows:

Table No.4.5
Road Length in Dharmapuri District

S.No.	Road Type	Road Length(kms)
1	National Highways	133.077
2	State Highways	77.415
3	Municipal Roads	98.740
4	Panchayat Roads	5534.313
	Total	5843.545

Motor Vehicles in Dharmapuri district

The following table shows the number of commercial and non-commercial vehicles in Dharmapuri district.

Table No.4.6
Availability of commercial & non-commercial vehicles

Year	Commercial vehicles		Non-commercial vehicles		Total Vehicle population
	Nos.	% share in State	Nos.	% share in State	Nos.	% share in State
1998-99	7879	2.1%	87614	2.3%	95493	2.3%

The district accounts for 2.3 % of the vehicle population of the State.

Rail transport

The district has 16 railway stations. It has a route length of 132 Kms. in broad gauge. The Salem-Bangalore Broad gauge line passes through the district headquarters i.e. Dharmapuri town. The Madras-Coimbatore Broad gauge line passes through Morappur, which is situated 27 km away from the district Headquarters.

Air transport

The district has no air transport. The nearest airport is the Bangalore international airport, which is situated around 25 kms from the district‘s northern border. Salem domestic airport is the nearest airport for the district headquarters. The main industrial town, namely Hosur, is situated just 40 km from the Bangalore international airport.

Water Transport

The district has no water transport. The nearest port is Chennai, which is 367 Kms. away from Dharmapuri town.

Social Infrastructure

Entrepreneurship

In general, there is lack of entrepreneurial initiative among the local people except at Hosur and some other pockets. The low literacy rate makes the people to concentrate more on agriculture than industry. So, entrepreneurial talent is confined to very few places like Hosur, Dharmapuri and Krishnagiri towns. In the rest of the places people are engaged in cultivation and allied activities.

The District Industries Centre, Dharmapuri takes efforts to impart entrepreneurship talent among rural masses through Entrepreneur Development Programmes (EDPs) in various places, thereby motivating people to start their own ventures. Some of the training programmes are conducted exclusively for women candidates.

Small Industries Service Institute, Chennai also conducts various Entrepreneur Development Programmes in the district.

The Rural Extension Training Centre functioning at Krishnagiri Dam also imparts skill among the youth in different trades.

PMRY Scheme

The PMRY scheme of the Government of India implemented through the DIC, Dharmapuri also helps, to some extent, in developing entrepreneurship among the people belonging to economically weaker sections by starting self-employment ventures with the financial assistance available under the scheme.

Following table shows the number of enterprises started under the PMRY Scheme in the district since 1993-94.

Table No 4.7
Performance under PMRY Scheme

Year	Average amt. disbursed	Target No of cases	No of Cases Sanctioned		No of cases disbursed		% achievement over targets
	(Rs. In thousand)		No.	Amount (Rs. In Lakhs)	No.	Amount (Rs. In Lakhs)
1993-94	56.20	160	91	60.74	70	39.34	43.75
1994-95	64.71	500	321	226.31	240	155.30	48.00
1995-96	57.48	700	463	289.85	287	164.96	41.00
1996-97	46.84	700	508	253.70	340	159.27	48.60
1997-98	47.96	610	428	189.58	342	164.04	56.10
1998-99	46.64	595	477	228.35	338	157.66	56.80
1999-00	61.39	480	509	302.59	465	285.48	96.90
2000-01	38.85	600	601	283.43	450	174.81	75.00

Source : G.M., DIC, Dharmapuri.

There has been a fluctuation in achievement under the PMRY Scheme both in the no. of cases as well as amount financed. In terms of no. of cases, the achievement was far below the target in many years. Moreover, the very low average amount disbursed for projects under the scheme may make the units unviable in the long run.

A sum of Rs. 102.49 lakhs has been earmarked during 2001-02 for the PMRY Schemes, under which any ventures like manufacturing, servicing or trading enterprises can be started.

Swarnjayanthi Gram Swarozgar Yojana (SGSY)

The Swarnjayanthi Gram Swarozgar Yojana (SGSY) Scheme intends to promote entrepreneurship at rural level. It focuses on Group approach. The groups are called "Self Help Groups". It is a credit cum subsidy scheme. Under the scheme the individual Swarozgaris (beneficiaries) will be given 30 % of the project cost subject to the maximum of Rs. 7,500 as subsidy and the remaining amount as loan. In case of SC/ST Groups 50 % of the project cost subject to the maximum of Rs.10,000 will be sanctioned as subsidy and the remaining amount as loan. For group of Swarozgaris the subsidy would be 50% of the cost of the scheme subject to a ceiling of Rs. 1.25 lakhs. Initially the groups will be given revolving fund assistance of Rs. 25000 in the form of cash credit facility and based on their performance they will be given economic assistance. 157 Self Help groups were assisted during the year 2000-01 with a sum of Rs.338.57 lakhs as loan and Rs. 157.72 lakhs as subsidy under economic assistance programme besides revolving fund assistance of Rs. 48.30 lakhs to 483 groups.

Lending Institutions and availability of Finance

Indian Bank is the Lead Bank in Dharmapuri district. The district has a sound banking net work. There are 203 branches including commercial and co-operative banks as on 31.3.2001. Their break-up is given below:

The deposit mobilisation by the banking sector increased by 22.41 % in 1999-2000 and 20.64 % during 2000-01. Advances grown by 21.9 % in 1999-2000 and 18.89 % during 2001-02. However, the credit-deposit ratio had come down marginally from 113 % in 1998-99 to 112 % in 1999-2000 to 111 % in 2000-01.

The following table shows the performance of lending institutions in terms of target achievement.

Table No.4.8
Target -Achievement in the Annual Credit Plan in Dharmapuri
( Rs. in Crores)

Year	Dharmapuri			Tamilnadu
	Target	Achievement	Percentage	Target	Achievement	Percentage
1997-98	181.49	202.05	111%	6277.75	6393.76	102
1998-99	233.10	221.56	95%	7404.38	7135.31	96
1999-00	260.85	315.59	121%	8454.71/td>	8744.66	103
2000-01	336.48	330.92	98%	9741.16/td>	9877.93	101

Source: Annual Credit Plan, Indian Bank, Dharmapuri District.

The Annual Credit Plan (ACP) for 2001-02 for the district envisages a total outlay of Rs. 436.68 crore, of which the share of the Small industries sector is Rs. 39.43 Crore.

Commercial Banks

Few key indicators on the performance of the Commercial Banks in Dharmapuri district vis-à-vis the State are given below:

Table No.4.9
Commercial Bank Sector - few indicators in Dharmapuri
(as on March 2000)

	Dharmapuri	Tamilnadu *
No. of Commercial bank branches Aggregate deposit (Rs. in crore) Aggregate advances (Rs. In crore) Credit deposit ratio Deposit per branch (Rs. in Crore) Advances per branch (Rs. in Crore)	157 657.68 454.43 69 % 4.19 2.89	4738 53195.63 41561.43 78 % 11.23 8.77

* Excluding Foreign Bank branches.

• The activities of commercial banks in terms of average deposits and advances per branch amounts to just one third of the volume in the state.



• The commercial banks in the district accounted for 3.3 % in terms of number of branches but only for 1.2 % in terms of deposits and 1.1 % of advances.



• The Credit-deposit ratio in the district is far below the state average, which has restricted the availability of credit.

Table No 4.10
Sector-wise Recovery percentage of bank advances over the years

Year	Agricultural Sector	Industrial Sector	services Sector
1998 1999 2000	40% 58% 90%	90% 84% 81%	45% 39% 18%

The Table indicates:

• The agricultural sector had a positive growth throughout as reflected by the recovery performance. The services sector had performed well in 1998 but slowed down in 1999.



• There has been a continuous down trend in the recovery from the industrial sector, indicating the slackness in the performance of the industrial sector over the years in this district.



• The performance of the industries sector was for better than the other two sectors. Yet, the recovery percentage of the industrial sector is slowly decreasing continuously.

Table No 4.11
Credit flow to the SSI Sector.

Year	Target	Amount Disbursed	% achieved	% share of SSI sector in the total credit
1997-98	23.03	10.76	47%	5.33
1998-99	36.35	9.41	26%	4.25
1999-00	37.23	29.83	80%	9.45
2000-01	39.23	28.42	72%	8.59
2001-02	39.23	X	X	X

Against the state average of around 35 %, the SSI sector in Dharmapuri district accounted for less than 10 % share of the annual credit plan.

Following table shows the overall allocation of funds under ACP 2000-01 in Dharmapuri district and in the state.

Table No 4.12
Sector-wise allocation of funds under ACP -2000-01.
(Priority sector allocation)

Sector	Amount disbursed During 2000-01	Percentage share (%) in Dharmapuri	Percentage share (%) in Tamilnadu During 2000-01	Amount allotted during 2001-02 in Dharmapuri
Agriculture	237.78	71.85%	47.04%	294.51
Industry	28.42	8.59%	34.65%	39.43
Other Priority Sectors	64.72	19.56 %	18.31 %	62.23
Total	330.92	100.00 %	100.00 %	396.17

Source: Annual Credit Plan, Indian Bank, Dharmapuri District.

The table shows that agriculture sector corners the major share of the funds, as it is the main activity in the district. The industrial sector plays a marginal role only. The industries sector in the district accounted for 8.59 % of the credit allocation against the state average of 34.67 %.

This constituted just 1.97 % of the amount extended to this sector in Tamilnadu against the district's share of 3.8 % of total bank deposits and 2.3 % of total credit in the state.

The annual credit plan for the year 2001-02 has envisaged a total outlay of Rs. 436.68 crores. Out of this, the priority sector accounted for 396.17 crores. The industrial sector’s share will be Rs.39.43 crores accounting for 10% of the priority sector allocation representing a growth of 13.8% over the previous year. The agriculture sector earns the major share of 74% and the services sector accounts for 16 % of the outlay.

Block-wise allocation of funds under ACP 2001-02

Fund allotment under the Annual Credit Plan (ACP) throws light on the developmental activities in the blocks. The table No.4.14 shows the details of funds allotted to the SSI sector block-wise in the district.

Table No.4.14
Block-wise allocation of funds allotted under ACP 2001-02
For the Small Industries sector.

S.No.	Name of the block	Funds allotted to SSI Sector (Rs.in Lakhs)	Percentage share (%) in Tamilnadu During 2000-01
1	Bargur	30.20	0.77
2	Dharmapuri	917.80	23.28
3	Harur	46.40	1.18
4	Hosur	1904.60	48.31
5	Karimangalam	47.10	1.19
6	Kaveripattinam	179.90	4.56
7	Kelamangalam	34.70	0.88
8	Krishnagiri	317.50	8.05
9	Mathur	16.70	0.4
10	Morappur	34.70	0.88
11	Nallampalli	93.40	2.37
12	Palacode	38.35	0.97
13	Pappireddipatti	87,95	2.23
14	Pennagaram	60.65	1.54
15	Shoolagiri	73.60	1.87
16	Thally	9.20	0.23
17	Uthangarai	30.60	0.78
18	Veppanapalli	19.50	0.49
	Total	3942.85	X

Above table highlights the existence of high degree of imbalance in the industrial activity in the district.

It is worth to note that while the Hosur block accounts for 48 % of the funds allotted to the SSI sector, followed by Dharmapuri with 23.28 %.

Hosur, Dharmapuri & Krishnagiri blocks together account for nearly 80 % of the funds allotted to the SSI sector under ACP 2001-02.

Specialised SSI Branches

There are two Specialised Small Scale Industry Bank Branches in Dharmapuri district exclusively meant for financing SSI Units. They are:

1. Central Bank of India, Hosur.


2. Bank of Baroda, Hosur.

Table No. 4.15
Funds advanced by TIIC in Dharmapuri district

Year	Target (Rs. In lakhs)	Actual Advances (Rs. In lakhs)	% of Performance
1998-99	1385.00	121.40	9%
1999-00	1437.48	629.79	44%
2000-01 (Upto Dec.2000	190.36	295.91	155 %

Source : Annual credit plan 2001-02, Indian Bank.

The performance of TIIC in terms of amount advanced as shown in the above table does not show a healthy trend.

Following schemes are being implemented by TIIC for promotion of small-scale industries and industry related services.

1. General Scheme



2. Transport Scheme



3. Hotel Scheme



4. Single Window Scheme



5. National Equity Fund Scheme



6. Mahila Udayam Nidhi Scheme



7. Generator Scheme



8. Scheme for Storage Godown



9. Scheme for Technology Development and Modernisation



10. Scheme for Computer Training Centres



11. Ex-serviceman Scheme

• Credit Linked Capital Subsidy Scheme for Technology Upgradation.



• Credit Guarantee Scheme.



• ISO 9000 Certification Reimbursement Scheme.



• Participation in International Fairs.



• Purchase and Price preference Policy.



• Prime Minister’s Rozgar Yojana Scheme.



• Small Industry Cluster Development Program Scheme.



• Integrated Infrastructure Development (IIP) Scheme.



• Mini Tool Rooms.



• Testing Centres.
• Subcontracting Exchanges.



• Assistance to Entrepreneur Development Institutions.



• SSI - MDA. (Market Development Assistance)

• Backward and Most Backward area capital subsidy on plant and machinery



• Special investment subsidy for thrust industries



• First Generation Women Entrepreneur Margin money Subsidy



• Concessional power tariff



• Generator subsidy



• Creation of venture capital fund



• Creation of Technology development fund



• Effluent treatment plant subsidy

1. Integrated Spices Development Scheme.



2. Integrated Tropical & Arid Zone Development Scheme.



3. Development of Commercial Floriculture.



4. Development of Root and Tuber Crops.



5. Development of Medicinal Plants.



6. Mushroom Training.

1. Integrated Horticulture Development Scheme.



2. Integrated Tribal Development Scheme.



3. Eradication of Root-rot Disease in Betelvine.



4. Cultivation of Fruits and Vegetables under Shade-net.



5. Wasteland Development Scheme.

1. Composite agriculture development scheme



1. Incentive for propagation of improved mulberry varieties - 25% incentive Rs.500/ acre.



2. Training to the new sericulturists - for a period of 2 days.



3. Supply of Basic Rearing Appliances like bamboo trays, shelves / mountages etc - Rs.2750/- per farmer. Stipend Rs.50/- per day.



2. Promotion of resources conservation technologies through drip irrigation.



1. Subsidy allowable without optional items at 90% for SC / ST / women varies from Rs.9000 for 0.2 hectare to Rs.50,000 for 2 Hectares



2. Subsidy allowable at 70% for others varies from Rs.7000 for 0.2 hectare to Rs.50,000 for 2 hectares.



3. Construction of separate rearing house for increased cocoon productivity. 50% subsidy - Rs.10000/- per farmer against the estimated cost of the separate rearing seed Rs.20,000/-.



4. Support for pre reeling productivity improved measures of a demonstrative kind adopted by states. (Assistance for Bivoltine Cocoon Production).



5. Scheme for working capital assistance to small reelers under post cocoon enterprise promotion and access to finance to the silk industry.



6. Scheme for increasing quality raw silk production by promoting use of multi end reeling machines 30% subsidy on the cost of machinery.



7. Seri 2000 Project:
   Scheme with the financial assistance from Swiss Development Corporation for sericulture development.



1. Formation of sericulture quality club



2. Silk Reeling Entrepreneurs and workers Training Programme.