Udyog Bandhu – A Helping Hand For Entrepreneurs

Chikan industry of Lucknow - Pride of India

2012-02-15T22:27:00.000+05:30

The chikan work of Lucknow is one of the most popular embroidery works in India. It has a certain grace and elegance which ensures that it never goes out of style. It is said to have been originally introduced by Nur Jahan, the beautiful wife of Mughal emperor, Jahangir. The work became popular in a number of important cities of indo - gangtic plain.

The designs depend for its effect on the variety of stitches and different grades of threads used to form the patterns which include, the lace like jali, the opaque fillings and the delicacy or boldness of outline and details. Tiny raised flowers done in what seem to be French knots are balanced by the flat stem stitch and large areas of open work to prevent either a crowded or too scattered appearance. The stitches employed are back-stitch, chain stitch, and hemstitch forming an open work pattern.

Individual floral motifs may embellish the entire garment or just one corner. Among the floral motifs embroidered, the jasmine, rose, flowering stems, lotus and the paisley motif are the most popular. Chikan work has a very light, gossamer - like quality. This makes it very suitable for the seemingly hot climate.

Some of the popular motifs are Kairi; dhaniya patti; phanda; dhum patti; ghas, patti; murri; kangan; joda murri; maharaki; sadi-maharaki; daraz/ katub; pechani; tanire; gitti; phanda; keel; kangira.

A Chikan suit is a regal treasure in any fashion connoisseur's wardrobe. Really the great thing about this form of embroidery is that it never goes out of fashion and it suits women/ men of all ages. If you are going to invest in a few pairs of elegant wear, try adding chikan to your wardrobe. If you wear chikan you really are wearing a piece of history, as it is a form of embroidery that has been art part of India for centuries.

Chikan embroidery in Lucknow is the biggest artisan cluster of India. There are about 5 lakhs artisans of hand embroidery associated with this cluster. Apart from this, the artisans from other fields such as cutting, stitching , Hand Block Textile Printing, jali work and washer men are also a part of this cluster. The total number of artisans associated with Chikan Embroidery , Cluster, other than Chikankari artisans, is about 5000.

There are about 4000 manufacturing units in Lucknow having individual turnover of Rs.10 crore to 10 lacs. The total turnover of industry is about Rs.1000 crore including export out of

India

of about Rs.200 crore.

Access to Finance : Major Concern for MSMEs

2012-02-08T16:03:00.000+05:30

The crucial role and place of the MSME sector in the Indian economy is well established now. These enterprises not only provide employment to a large number of unskilled and semi-skilled people but also support bigger industries by supplying raw material, basic goods, finished parts and components, etc.

There are about 2.6 crore enterprises in this sector. The sector accounts for 45 % of the manufactured output and 8% of the GDP. MSMEs contributed close to 40 % of all exports from the country and employ nearly 6 crore people which is next only to the agricultural sector. MSME is the best vehicle for inclusive growth, to create local demand and consumption.

The Government of India had taken a right step by enacting the MSMED Act, 2006. Advances extended to the MSE sector are treated as priority sector advances and as per the RBI guidelines, banks are required to extend at least 60% of their advances to the MSE sector to Micro Enterprises.

However, the statistics available says different, as according to the Fourth Census of MSME sector (September 2009), only 5.18 percent of the units had availed of finance through institutional sources while 2.05 percent of them had finance from non-institutional sources and the majority of units (92.77 percent) had no finance or depended on self-finance. Considering this extent of financial exclusion in the sector, the problem of unavailability of finance is overshadowing the issue of high cost of credit. The state has a strong base of MSMEs of around 31lacs, but overall position is not different as at national level.

While lending to MSMEs, specially to MSEs, there is too much distrust in their relationship with the banks/Financial Institutions (FIs). There is need to change the role of banks/FIs from money lenders to business partners .They should start providing advisory and planning services actively, and their staff should be trained to help MSMEs in diverse areas including marketing, technology and market access.

The government should also focus on establishing mechanisms to improve the credit information infrastructure, strengthen creditors' rights, speed up payment by corporate, avail more alternative sources of capital, and ensure timely identification and prevention of sickness in MSMEs .

Such an approach will help not only the small firms seeking loans, but also the bankers/financial institutions in risk assessment and risk management. However, it is true that there shall be successes and failures, but despite the risk, financing of first time entrepreneurs is must for financial inclusion and growth of all.The state financial corporation’s/state level institutions may play a vital role and they may be given/ may share responsibilities in this regard jointly with banks.

The interest rate hike cycle has already taken a toll on the economy with high cost of credit intensifying the strains on the industry and needless to mention here, it's the MSEs who have suffered the most. In this scenario, the reduction of CRR by 0.5% by the RBI, after third quarter review of monetary policy-2011-12, is really something that has got the hopes up, as this will enable the banks to have excess fund of around Rs.32000 crores for lending.

However, only the availability of sufficient funds with banks is not the solution of the finance concern of the MSMEs. Unless the sector is arranged lower cost credit, finance availability only will not ease the sector. As such the government /RBI should now ensure availability of adequate finance for MSMEs and on other hand, move towards in the direction of reducing interest rates for industries, specially, for MSME sector.

R.B. Verma

UdyogBandhu

GLASS BEADS IMITATION JEWELLERY OF VARANASI

2012-01-29T12:14:00.000+05:30

Varanasi is situated at the bank of river Ganges, one of the oldest city and is prominent on the tourist map of the world. It is cultural and industrial Centre in U.P. Due to heavy influx of tourist, small industries based on hand skills developed during the course of time. Among others Glass Beads and imitation jewellery made in Varanasi became famous.

The glass beads have a history of around 100 years. Earlier few artisans used to import raw glass and tubes from Firozabad and other places and used to manufacture beads for catering the demand of the tourist visiting Varanasi. With the increased in demand manufacturing activities increased and reached the rural areas of Varanasi. Presently the activities have spread to 40-50 villages in Varanasi and areas around and presently around twenty thousand workers are engaged in these industries. Numbers of micro and artisan based, processing and medium/ small scale unit are working in Varanasi.

Following items manufactured by artisans at Varanasi.

Solid glass beads - these glass beads are largely used in preparation of artistic show pieces and ornaments

Fancy beads – these are mainly used in

India

and abroad for embroidery, ornaments and other artistic items.

Hollow beads used for ornaments, wall hanging, curtains and other items.

Glass beads manufactured are generally made by use of colour block glass, glass rod and tubes. The artisan’s units, engaged in production, comprise of hand tools, addas, burner and few other equipments costing 20,000 to 25,000 rupees. The dies which give shape to the beads are generally prepared as per design of the company placing orders for manufacturing of these items. The fuel used is kerosene oil which is generally taken by these artisans from open market. Block glass, rod and glass tubes are main raw material which are purchased form the open market or supplied by the firm placing orders to these artisans, who are the traders and have extended their operation to exports and entered in the field of manufacturing of raw material viz, glass rod, tubes in their own glass factories and have developed arrangements through contractors to ensure distribution of raw material among the artisans and recollections as finial product.

At present approx. 20,000 artisans are engaged in manufacturing of glass beads and some 35,000 to 45,000 people in other allied activities in Varanasi. Approximately 8,000 micro units are engaged in production of beads, with 50 small and 6 big units in this area, important among them is M/S Banaras Beads Ltd. The total production volume of the area in terms of rupee is around 105 crores out of which some 70 % is exported to various countries fetching a valuable foreign exchange worth Rs.70 to Rs.72 crores per annum. The perfect and natural mix of urban and rural artisans is the most important factor of this sector. Beside Varanasi Firozabad and Purdilnagar are the other centres where glass bead manufacturing is carried on.

The stress is now for quality up-gradation with improvement in technology, upgraded process and improved raw material. Varanasi is on proposed route of gas pipe line to be laid by ONGC. The availability of gas towards raw material will result in reduction of manufacturing cost. In spite of threats from china, the industry has witnessed growth rate of 10-12% in the last few years. Large number of artisans and SME has survived in this sector.

S.K. Singh

Udyog Bandhu

100% Foreign Direct Investment (FDI) in Single Brand Product Retail Trading

2012-01-17T14:17:00.000+05:30

Foreign Direct Investment (FDI) means investment by non-resident entity/person resident outside India in the capital of the Indian company. It is the policy of the Government of India (GOI) to attract and promote productive FDI in activities which significantly contribute to industrialization and socio-economic development. FDI supplements domestic capital and technology. Presently, 51% FDI was permitted in Single Brand Retail which was opened to Foreign Players almost 6 years ago. GOI has allowed 100% FDI in this segment of retailing paving the way for International Players vide notification dated 10-01-2012. The highlights of the notification of GOI is as under :

(1) Foreign Investment in Single Brand product retail trading is aimed at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.

(2) FDI in Single Brand product retail trading would be subject to the following conditions:

(a) Products to be sold should be of a 'Single Brand' only.

(b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.

(d) The foreign investor should be the owner of the brand.

(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30% of the value of products sold would have to be done from Indian 'small industries/ village and cottage industries, artisans and craftsmen'. 'Small industries' would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a 'small industry' for this purpose. The compliance of this condition will be ensured through self-certification by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts, which the company will be required to maintain.

(3) Application seeking permission of the Government for FDI in retail trade of 'Single Brand' products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The application would specifically indicate the product/ product categories which are proposed to be sold under a 'Single Brand'. Any addition to the product/ product categories to be sold under 'Single Brand' would require a fresh approval of the Government.

(4) Applications would be processed in the Department of Industrial Policy & Promotion, to determine whether the products proposed to be sold satisfy the notified guidelines, before being considered by the FIPB for Government approval.

Source : Press Note No.1 (2012 Series) of GoI , Ministry of Commerce & Industry,

Department of Industrial Policy & Promotion, (FC-I Section)

Shailendra Kumar Singh

Udyog Bandhu

Government to formulate Public Private Partnership (PPP) Rules 2011

2012-01-11T15:17:00.001+05:30

In the year the Department of Economic Affairs (DEA). Ministry of Finance, GoI had issued detailed guidelines for selection of consultants, developers for PPP projects and private Partners for disinvestment, in order to more transparency in the bidding process, these guidelines, in the year 2007 were adopted by GoUP with certain modifications. It was further clarified by DEA that financial support to PPP projects in infrastructure projects shall be granted under Viability Gap Funding (VGF) scheme subject to being in conformity to its guidelines.

Now DEA has issued a PPP (Preparation, Procurement and Management) Draft Rule 2011 for discussions to give more impetus on transparency and conformity defining duties and responsibilities at each stage of implementation of projects. These exhaustive rules on bidding process, monitoring of projects during and after implementation and on audit procedures, are proposed to be applicable on all projects undertaken by Government of India and projects of State Government or of its authorities or Corporations etc barring projects of few Ministries.

Some of the very important highlights of draft PPP rules are as under :

1. It involves qualitative and quantitative assessments to ascertain the Value for Money.

2. The Contracting Authority has been made responsible for ensuring the interests of land owners under the extant of laws.

3. In very complex PPP projects, a new stage known as Request for Technical Proposal between RFQ and RFP, and Competitive Dialogue system, have been incorporated for assessment technical qualification of developer and to establish project objectives.

4. A provision of appointment of an Independent Monitor is made to ensure the transparency in bidding process. However, it may not be practically possible as in some states exiting Bid Evaluation and Consultant Evaluation Committee are being headed by fairly senior government officers of the state.

5. It is proposed that bid security amount shall not be more than one percent of estimated project value.

6. One applicant can submit only one application either individually or as a member of consortium

7. Negotiations with the Bidder are strictly prohibited except in case of sole bid to get better terms.

8. Suitable provision for exit strategy for continued service delivery projects, are required to be made in concession agreement.

9. A data bank to deal with dissemination of information following in-principle approval, signing of the Concession Agreement, after Financial Close, during Construction and Operations Phase and following Termination of the Concession Agreement shall be created.

10. An Approach to audit has been formulated and provision of constitution of Contract Management Team (CMT) and Empowered Review Cell (ERC) to deal with the activities related to Post Award Project and Contract Management, has been made with clearly defining their duties.

11. A code of conduct for officers or employees of Contracting Authority shall be documented and implemented.

It is evident from the above, that implemented of these exhaustive rules would give new dimension to the PPP projects.

Kulbhushan Kapoor

Udyog Bandhu

The Architectural Heritage of Uttar Pradesh

2011-12-27T18:35:00.003+05:30

Sunrise on the Ganges Ghat

Our Culture-Our Tradition……

The State of Uttar Pradesh has seen the advent and fall of various empires in the course of its history. From the advent of Mugals till the departure of British, U.P. has seen it all. Nearly all the rulers who have ruled Uttar Pradesh in the course of history have left their marks in terms of architecture. Mugals, Nawabs of Oudh, Talukedars and British:- all of them have contributed to the architectural heritage of Uttar Pradesh. Due to their individual and collective contributions, Uttar Pradesh today boasts off some of the most marvelous monuments in entire world.

Although, the architectural inheritance is visible in all the cities of the State and it is not possible to cover all of them in this blog, we present the pearls of architectural ornaments, mainly situated in 4 cities- Agra, Lucknow, Varanasi and Kushinagar. Every stone tells its story ………

Talking of monuments we must start from the queen among all; The Taj Mahal. U.P. has one of the 7 wonders of the world, in its lap.

Taj Mahal - "the epitome of love", "a monument of immeasurable beauty". The beauty of this magnificent monument is such that it is beyond the scope of words. Mughal Emperor Shah Jahan got this monument constructed in the memory of his beloved wife Mumtaz Mahal.

The sublime aesthetics of buildings inside the Agra Fort that stands proudly even after 400 years from the date of its constructions.

The naqqashi works that has been done in the buildings like Dewan-e-Aam and Diwan-e-Khas are marvelous.

Fatehpur Sikri, situated 50 kilometers off Agra, has another cluster of monuments. Buland Darwaza, the highest gateway in Asia. Salim Chisti mausoleum and Panch Mahal stand proudly in its premises.

The tomb of Akbar the Great at Sikandara is another major attraction around Agra.

For more Information click here Agra

Lucknow, the capital of Uttar Pradesh and erstwhile Oudh, has many monuments worth appreciating. The most famous among the lot is Bada Imambada. This shrine has a special relevance for the Shiite Muslims in

India

. The chandeliers and other glassware that decorates the inner sanctum of this place are magnificent.

Bara Imambara

Hussainabad Clock Tower

The Hussainabad Clock Tower is truly the finest structure of British architecture in

India

Rumi Darwaza

The Rumi Darwaza that guards the entrance of old Hussainabad in Lucknow is another monument of magnificence.

Equally good are Chhota Imambada and Shah Najaf Imambara. These buildings were constructed under food for work programs initiated by the then Nawab of Oudh who wanted to help his subjects who were suffering from famine.

Chhota Imambada

Residency

Among the buildings of British era the most notable one is the Church complex of Sardhana that was constructed by Begum Shamru who was married to a British colonel. Equally important is 'The Residency' in Lucknow that used to be the residence cum office of the Resident General of Oudh.

La Martiniere College

La Martiniere College, Baradari, Turkish Gate and Dilkusha Khoti are some of the most famous monuments in Lucknow.

Baradari

Turkish Gate

Dilkusha Khoti

For more Information click here Lucknow

Monuments at Kushinagar - Buddhist Pilgrimage in Eastern Uttar Pradesh:

Buddha Stupa

Thai Temple

Japan Buddhist Temple

Japanese Temple

For more Information click here Kushinagar

Varanasi The land of Varanasi (Kashi) has been the ultimate pilgrimage spot for Hindus for ages. Often referred to as Benares, Varanasi is the oldest living city in the world. These few lines by Mark Twain say it all :

Vishwanath temple

"Benaras is older than history, older than tradition, older even than legend and looks twice as old as all of them put together". Ganges is said to have its origins in the tresses of Lord Shiva and in Varanasi. Some of the most important temples of Varanasi are Durga temple, Vishwanath temple, Sankat Mochan temple, Tulsi Manas temple and the Bharat Mata temple.

Monuments at Sarnath Varanasi

Dhamek Stupa

Chaukhandi Stupa

Mini stupas around Dhamekh Stu

Gautam Budh's Statue at Mulagandha Kuti

Sarnath Museum

For more Information click here Varanasi

These are some of the most famous monuments of Uttar Pradesh. Apart from these major historical monuments, UP also has a number of minor monuments that lay scattered in every nook and corner of the state.

Amazing Heritage - Grand Experiences ……

Sumita Kamthan

Udyog Bandhu

Recognition and Felicitation to discover talent in e- Governance in the State

2011-12-13T19:25:00.010+05:30

Information Technology has brought revolutionary changes in all spheres worldwide. The Government of Uttar Pradesh considers it as an immensely important growth accelerator. Thus aiming quick delivery of state services in transparent manner, alienation of middle men, and faster mode of payment of various services being provided by the State Government Departments, e-Governance has emerged as a vital tool in the hands of both government and Public. Recognizing the need and importance of e-Governance, Government of Uttar Pradesh has decided to promote by honoring the best service providers either in form of providing data base on their web sites or introducing innovative idea through e-Governance. In the modern era, internet has registered its existence even at village level and has made e-Governance more feasible.

GoUP has launched e-Governance scheme in the state. GIS mapping, revenue collection are the shining examples of e-Governance. To further boost e-Governance, and also to explore its potentials, Uttar Pradesh Government for the first time has taken a step in recognizing and felicitation of unearthed talents in e- Governance in the state by holding a prize distribution ceremony on 7^th December, 2011. The prizes were designed to give impetus to I.T Technology, e-Governance and web site. In this direction, three best services in the field of Excellence in Government Process Re-engineering, Innovative Technology usage and Best Government Web Site were categorized for the purpose of prize distribution.

Nagar Nigam, Kanpur was awarded in the category of "Excellence in Government Process Re-engineering" for implementation of "KMC Property Tax Management System using Geospatial Technology". Using Information and Communication (ICT) Technology, this GIS based application provides property tax assessment list, online calculation of property tax and online payment for the same in an easy and convenient manner. This has not only increased revenue realization but also brought transparency in the whole system. Mr. Raghvendra Vikram Singh, Commissioner and Ex-Commissioners Mr. P.K. Pandey and Mr. Rajeev Sharma of Kanpur Nagar Nigam and their team members were the main award recipients.

The initiative "Aarogyam - Doctor in Your Pocket" was jointly awarded to District Baghpat and J.P.Nagar in the category of "Innovative Technology Usage in e-Governance". Aarogyam, using latest IT and Communication Technology aims to provide healthcare services to citizens at their doorsteps, with special focus on mother and child, which has extremely benefitted the citizens. It was country's unique end to end community based digital health mapping covering target population i.e. children below 2 years and pregnant mothers in 2 U.P. districts utilizing phones (landline/mobile) as delivery mechanism. The major recipients of this award were Mr. Abhay, DM, J.P. Nagar and Mr. Prabhu Narain Singh, DM, Bagpat and Mr. Mayur Maheshwari and Mrs. Ritu Maheshwari, Ex. District Magistrate of Baghpat and J.P. Nagar districts.

In the "Best Government Website" category, Lucknow Development Authority was awarded for its website http://ldalucknow.co.in and the awards were given to Mr. Rajeev Agrawal, Vice Chairman, LDA and Ex-VC Mr. Mukesh Kumar Meshram along with his team members and their consultant. With the help of this web site, the allottees can get information on amount due and deposited possession status, registry and refund, etc. Broadly, information on new properties, lottery results for allotment, grievance management and redressal, tender publication and management, etc. are the other main information are also available on this website for the help of the citizen.

The award distribution ceremony was jointly organized by IT & Electronics department, Govt. of U.P. and Updesco and was presided over by Mr. V.N. Garg, Infrastructure and Industrial Development Commissioner (IIDC), Govt. of U.P. With an aim to encourage e-Governance in the State, Mr. V.N. Garg told that there is a tremendous scope of e-Governance not only in the state but in the country considering that India stands 119^th rank in the world as per UN Survey. He also emphasized the need of paperless office through e-Patravali under e-Governance. The prizes were given by Mr. Anoop Mishra, Chief Secretary of the state. On the occasion Mr. Anoop Mishra said that e-Governance is the good way of communication and prize distribution is an encouragement to all working in the area. The programme also witnessed knowledge exchange amongst the participants by the motivational speeches rendered by Mr. Jivesh Nandan, Secretary Infomation Technology and Mr. Sudhir Kumar, MD UPdesco and other prize winners.

The first such initiative will automatically generate confidence amongst the citizens of state and such recognition will certainly improve the working climate for delivering the best service mechanism. Thus, Uttar Pradesh has again proved its sound track record besides FI race, Yamuna Expressway, Power Sector Reform and Nivesh Mitra and so on.

Kulbhushan Kapoor Ravinder Singh
Udyog Bandhu UPDESCO

“Nivesh Mitra” now extended to 27 more districts of Uttar Pradesh

2011-12-09T19:08:00.003+05:30

Government of Uttar Pradesh has extended the outreach of “Nivesh Mitra”, its pioneering initiative of unique online platform for entrepreneurs, to 27 more districts of the state to facilitate entrepreneurs in setting up industries in the state.

Introduced in July, 2009, “Nivesh Mitra” was conceived as a simple, entrepreneur centric web application enabling prospective entrepreneurs to get online clearances/NOCs with ease and minimal ‘running around’ from various Government departments in 18 districts of the state. As an ongoing process, efforts were made to incorporate various new functionalities to make the application more and more user friendly. These new functionalities include online payment facility through which entrepreneurs can make payment towards fee online. The system is already operational with Punjab National Bank and State Bank of India shall follow suit soon. With all these additionalities, the refurbished Nivesh Mitra in its new avatar (https://udyogbandhu.com) was dedicated to public on 13^th October, 2011.

Considering that the journey of “Nivesh Mitra” does not get confined to only in 18 districts, Government has taken a plunge in taking more districts on its board with a view to broaden its territory. Now 27 districts have been added to its ambit (Government order). These districts are:

1	Allahabad	15	Mainpuri
2	Azamgarh	16	Mau
3	Badaun	17	Meerut
4	Bagpat	18	Mirzapur
5	Bahraich	19	Muzaffarnagar
6	Bareilly	20	Pilibhit
7	Bijnore	21	Pratapgarh
8	Bulandshahr	22	Raebareli
9	Ferozabad	23	Ramabai Nagar (Kanpur Dehat)
10	Gorakhpur	24	Saharanpur
11	Hamirpur	25	Shahjahanpur
12	Hardoi	26	Sonbhadra
13	Jhansi	27	Varanasi
14	Kaushambi

With the addition of these districts, Nivesh Mitra is now functional in 45 districts of the state.

Nivesh Mitra will ensure continued value addition in the services rendered with transparency, accountability and swift responsiveness with a friendly and courteous approach in interactions with the esteemed customers.

The success of “Nivesh Mitra” has vitalized the state to set new targets that include broadening of its domain by continuous addition of new functionalities as are available with the well developed countries of the globe and facilitate them with the same amenities available in those advanced countries. The Government has concrete plan to further expand Nivesh Mitra soon to cover the entire state to ensure removal of unwarranted human interface completely and to make it as a robust dedicated helpline system and to act as a catalyst for entrepreneurs as an information hub.

Nivesh Mitra as a project is a giant leap towards future. It is a continuous process of reaching out to the entrepreneurs and investors. It’s a first step towards a journey of thousand miles! True to its name, it shall not only be an interface but a guiding collaborator that facilitates entrepreneurs and investors to leap towards a rich and fertile future.

K.S. Prasad

Project Director

Glitter of Moradabad Brassware

2011-11-25T15:43:00.001+05:30

Uttar Pradesh has pride of being the largest Brassware center in India due to having many copper and brass making establishments in and around Moradabad. Brassware industry is a visible name on the world map. This city, being close to Delhi, has the distinct advantage of modern transportation facilities of IGI, New Delhi airport, Inland Container Depot (lCD), Moradabad and highways of 4 Lane, NH No. 24 as well as excellent railways connectivity.

Moradabad has a wide range of products from utensils to decorative items. These include 'Lotas', Tamrapatra (water pots), Panchapatra (ritual Plate), 'Simhasan' (seat for deity), Kanchanthal (Flower Plate) among others. These items are casted through an indigenous method called 'Para' that is precisely a mould casting without joints. Many other metal wares like brass, EPNS, iron, aluminum, etc., were introduced to the art industry of Moradabad. New technologies like electroplating, lacquering, powder coating, etc., have also found their way to the industry and set a new path to the brass industry.

The metal known as "SILLY" and "GULLY" used as raw material, is the mixture of Copper, Zink, Lead, etc. All these metals in a particular ratio, are mixed in a big pot called "GHARIA" and heated in a furnace for preparing mould for the different brass utensils. Molten metal is poured into these moulds, the utensils is then taken out for repair and refurbished with utmost care. These brass utensils are then polished. If needed, exotic designs are made on these polished utensils. These utensils are then ready to be sold in the domestic market and International market as well.

The attractive brass wares are exported to countries like USA, Britain, Canada, Germany and Middle East Asia. There are about 600 export units and 5000 industries in the district. Almost all the major retail chains like Walmart, IKEA, Target, etc., purchase brass products from Moradabad itself.

Export of Art Metal ware

( Rs. in Crores)

Year	Export from India	Export from U.P.	Percentage
2008-09	1790.27	960.81	53.66
2009-10	1877.64	1041.15	58.60
20010-11	2199.92	1207.73	54.89

Source: Export Promotion Council for Handicraft

The Government has provided favorable environment with improved infrastructural facilities to promote the Industrial activities at Moradabad like 24 hours Un-interrupted power supply, construction of By-pass, 4 lane Delhi-Moradabad Road etc. About 421.56 Acres of land has been acquired to develop SEZ for Export Oriented Units at Pakbara to Dingarpur Road. Special Economic Zone is functional with 469 plots, Incentives in form of Relaxation in stamp duty under Section 35 of the Indian Stamp Act, 1899 have been offered subject to certain conditions.

Infrastructure facilities such as development of green-belt to keep the area pollution free, boundary wall, internal development, security system, etc. are already in place.

Moradabad has all along been a hub of commercial activities and there is excellent prospect for every entrepreneur to establish his dream projects here.

(S. K. Singh)

Udyog Bandhu

Nivesh Mitra – A Unique Online Platform For Entrepreneurs

2011-10-19T16:39:00.002+05:30

To maintain the momentum of industrial development and attracting investment, Govt. of Uttar Pradesh has taken various investment facilitation measures to provide assistance to entrepreneurs thereby contributing to overall socio-economic progress of Uttar Pradesh and India. However, setting up of an industry requires multifarious activities such as obtaining certain statutory approvals/ clearances/ NOCs, which are necessary for proper regulation and facilitation of industrial development everywhere. This process requires the entrepreneur to fill up various application forms manually with a number of enclosures, which requires running from pillar to post for getting clearances. However, most of the times there is very little information available, which makes this a cumbersome exercise, consuming a lot of time, money and energy.

It is in this direction that Industries Department, Government of Uttar Pradesh took a pioneering initiative “Nivesh Mitra, a web based online facility for entrepreneurs desirous of setting up their dream projects in U.P. Udyog Bandhu, the investment promotion agency of Govt. of U.P., is the nodal agency implementing this project.

Though the web portal was introduced some time back, based on the feedback received from the entrepreneurs, need was felt to redesign the application and make it more user friendly as a simple, user friendly, entrepreneur centric web application that enables prospective entrepreneurs to get online clearances/NOCs from concerned departments with ease and minimal ‘running around’. It is a many dimensional, multi faceted idea that has been conceptualized to reduce unwarranted human interface to create a conducive environment for industry to flourish. Nivesh Mitra is functional in 18 districts and caters to getting online clearances from 12 Government departments.

With all these additionalities, the refurbished Nivesh Mitra in its new avatar was dedicated to public in a special launching event organized by Industries Department of Govt. of U.P. and Udyog Bandhu on 13^th October, 2011. The event was presided over by Infrastructural & Industrial Development Commissioner, Govt. of U.P. and attended by galaxy of distinguished government officials including District Magistrate and Heads of the departments, representatives of Industrial Associations, entrepreneurs, senior officers from SBI & PNB and consultants.

Salient Features of Nivesh Mitra

Enables submission of applications online anytime from anywhere; be it home, office or internet cafe

Facilitates access, submission & processing of applications for setting up of industries

Saves time and money as repeated visits to different departments not required

Endows filling, saving, downloading and printing of applications online

Introduces transparency in granting approvals

Enables online payment of application fee

Reduces visits to departments, banks or treasury for payment of application fee

Confirms payment receipt instantly

Provides elegant layout laced with eye soothing color & design

Offers simple registration process

Brings all functionalities at one place for registered entrepreneurs

Furnishes two-way interaction on digital platform between entrepreneurs and departments

Facilitates efficient monitoring at all user levels

Empowers analysis of pendency scrutinized any time by senior departmental officers

Displays colour coding to track those exceeding the time limit

Enables entrepreneurs to view application status and respond to clarifications online

Illustrates process flow charts with pre-requisites, procedures and guidelines

Sorts required application forms automatically based on industry type

Assists entrepreneurs through Help Manuals for filling forms and for online payment

Generates SMS and E-mails automatically and sends to entrepreneurs at each stage for tracking application status

Provides effective Grievance Redressal Forum

Acts as a comprehensive Information Hub

Enables easy access to Government Schemes / Policies / GOs through Search facility

Furnishes digital interactive platform through feedback & monthly E-news Letters

Publishes Blog posts on U.P. specific significant issues at frequent intervals

Connects public through social networking sites

Assists entrepreneurs through ‘Help Desks’ at District Industries Centres

The entrepreneurs can now avail the facility of making payment towards fee online. The system is already operational with PNB and SBI shall follow suit soon. Nivesh Mitra can be accessed through the website of Udyog Bandhu. (https://udyogbandhu.com).

Considering that the journey of Nivesh Mitra does not get confined only in providing clearances to entrepreneurs, the project also aims to broaden its domain by continuous addition of new functionalities as are available with the well developed countries of the globe and facilitate them with the same amenities available in those advanced countries. It has, therefore, been envisioned that the project be expanded in the entire state, unwarranted human interface be removed completely, making it as a robust dedicated helpline system, making it act as an information hub to act as a catalyst for entrepreneurs.

Nivesh Mitra, true to its name, shall not only be an interface but a guiding collaborator that facilitates entrepreneurs and investors to leap towards a rich and fertile future.

K.S. Prasad

Project Director

Nivesh Mitra

Uttar Pradesh stands out in Jatropha Cultivation

2011-10-10T21:07:00.003+05:30

Both biodiesel and conventional diesel come from plant and animal sources, the difference is the resources that produce diesel existed millions of years ago and the one that make biodiesel are cultivated today. The National biofuel policy of India has put India in a different club than the rest of the world. Network programs of the Department of Biotechnology and Ministry of Agriculture, Government of India are striving to find best cultivars of Jatropha curcas, cultural practices to optimize yields, genetic enhancement to develop site specific cultivars and make good planting material available to farmers.

Uttar Pradesh has formulated a unique, farmer friendly and participatory model for Jatropha cultivation. It involves farmers, landless labor, Corporations, technical support from government agencies like Biotechnology Park and policy support through State government agencies.

The Government of Uttar Pradesh has earmarked 40% of its wasteland (15.83 lakh hectares) for cultivation of Jatropha in the state. The State Government since year 2006-07, has decided to encourage farmers to undertake cultivation of Jetropha in about 10 lakh hectares of wastelands in 30 districts of the State pertaining to Varanasi, Mirzapur, Allahabad, Chitrakoot, Jhansi, Kanpur, Lucknow and Agra Divisions. The Government of Uttar Pradesh had also made an arrangement of establishing Bio-Diesel Value Chain with M/s Bharat Petrolium Corporation Ltd. and its associate companies. Indian Oil Corporation in collaboration Ruchi Biofuel is concentrating in the wastelands of dry belt of Jhansi region; while Bharat Petroleum in collaboration with Nandan Biomatrix is operative in other 30 districts of the State. These corporations are working in a PPP model facilitated by State Jatropha Mission Cell. This model has inherent safeguards and benefits. The lands have not been allotted to corporations rather the farmers and Panchayats have ownership not only of the land but also of produce. Their involvement in true sense is the key to the success of the program. Procurement of the seeds will be ensured by the Corporations who are genuine stakeholders; and the State government will check any exploitation of the cultivators.

Uttar Pradesh may well become a success story in the Country and may be able to provide feed stock for its own biodiesel requirement as well as meet requirement of other States much like ethanol for petrol blending. It will have a potential to produce a minimum of 10 lakh tons of oil per year if the wasteland is put to Jatropha cultivation. This initiative would also help in reduction of Green House Gas emission by 3 Million Metric Tonnes (MMT) on an annual basis.

It therefore is just a matter of time when Uttar Pradesh will pave the way for rural entrepreneurship in augmentation of bio-diesel produce. Thus the people even at village level will also be able to contribute in Industrial Development of the State..

Hari M Behl,

Biotech Park, Lucknow

Crucial Issues of Silk Industry - Varanasi

2011-09-28T13:34:00.010+05:30

Varanasi Handloom Products, made from fine silk are in big demand in India as well as abroad. Specially, the famous Varanasi hand-woven saree, since the ancient (Vedic) times, is ranked among the finest traditional sarees of India. It is believed that the weaving of Varanasi saree gained prominence during the Mughal rule. The traditional Varanasi handloom is exclusively known for its handwork of traditional weavers who developed the Varanasi Saree brand which is much sought for its intricacies, art and aesthetics. The ancient and traditional art of making Varanasi saree has continued to be passed down from one generation to another.

Varanasi alone has more than half a million weavers involved in Silk/Handloom Industry. The majority of them are from socially and economically weaker section of society and extremely poor, spread out in and around 125 kms. of Varanasi. The Handloom/ silk industry is a source of livelihood of about 10 lac people in the region. Varanasi is famous all over the world for the quality of its products which could be maintained due to use of quality raw silk that is imported from China. In this way, Varanasi is one of the main consumers of imported Chinese raw silk in the country.

The Govt. of India acceded to long pending demand of Varanasi Weavers Fraternity and reduced Custom Duty on import of Chinese Raw Silk in the Budget 2011 from 30% to 5%. It corrected the anomaly of inverted duty structure which will go a long way in boosting and giving life to dying silk industry that was in turmoil due to this steep imbalance duty structure.

Earlier, Custom Duty on raw material (Raw Silk) was 30%, on finished product (Silk Fabrics) it was only 10%. At the same time, China kept on increasing price of raw silk from Rs.1750/- per Kg. in January 2010, it went on to over Rs.3000/-, a whopping increase of 70%. Simultaneously, China, taking advantage of low duty on silk fabrics, dumped it in Indian market at a price which did not cover even the cost of raw material consumed, what to speak of manufacturing cost & profit. China’s avowed aim was to capture world market of silk fabrics & it succeeded in this context to a large extent. Thousands of looms manufacturing silk fabrics in Varanasi & Bangaluru shut down & India was ousted from export market of silk fabrics.

The Govt. of India could not determine price of Chinese raw silk but it could mitigate the effect by reducing Custom Duty on it. This was ultimately done in Budget-2011. Price of Chinese raw silk came down to Rs.2300/- per Kg., due to appreciation in dollar price it has increased by another Rs.100/-. At Rs.2400/-, it is 37% higher than price of January 2010. All-round production of sarees & fabrics using raw silk restarted. Varanasi Textile Industry which was collapsing, not only survived, but also got a new lease of life. Simultaneously, hundreds of Twisting Units also resumed work.

At the same time, duty-reduction removed many anomalies as under:-

Fraudulent advance licenses: Earlier over 90% import was done through duty – free advance licenses which were issued against commitment of export of silk fabrics. This not only deprived the exchequer of duty, but was grossly abused also. These were fraudulently issued to persons, who sold these at premium in open market & never fulfilled export commitments. A through probe should be instituted. With duty reduced to 5% this abuse has stopped & exchequer is now having 100% realization of 5% Duty.
Under invoicing: Regular importers were forced to under invoicing for saving duty to compete with duty – free imports. This practice is now wiped out.
Switch – over to synthetic yarn : With abnormal increase in Raw Silk prices, not only exports vanished, but domestic market also slumped due to very high cost. To reduce cost, weavers started switching over to synthetic yarn which would have resulted in Varanasi loosing its identity. With duty –reduction, this tendency has been checked and hopefully Varanasi will retain its identity.

Now the whole scenario has changed. Due to bumper crops & slackening demand, domestic raw silk prices are Rs.500/- per Kg. lower than imported raw silk, instead of Rs.200/- earlier. The two markets are no more interdependent, but are running independent of each other. Any increase in custom duty will not only result in increase of price of domestic raw silk but will also discourage weavers from its use at all. Even, import from China has also declined significantly.

The Central Silk Board has not been fully able to fulfill its objective of promoting sericulture by providing proper guidance, as there is capacity gap of around 10000 M.T. which has made the import of silk a necessity for the silk industry. The following are the main reasons for import:-

Our demand is app. 28000 M.T. while production is app. 18000 M.T. Varanasi alone consumed app. 20% of this.
We produce Multivoltine cocoons (more than 2 Crop a year) which is weak in strength than Chinese Bivoltine (2 crops a year) Raw Silk. It can not be used without twisting. Varanasi uses Chinese raw silk without twisting producing fabrics like Organza, Supernet Moonga Check etc. There is no alternative.
Our Reeling Machines are outdated & obsolete reel, it reels raw silk which is not uniform in denier.

Instead of demand in hike of import duty, all out efforts should be made by Central Silk Board and Seri culturists to enhance the production and quality as well and if the same is improved, it will put to an end to import of silk at all. Thus, focus should be on the above issues, instead of asking for increase in duty which is detrimental not only to weavers interest but also for domestic sericulture, as it will force the weavers to switch over to synthetic man-made fibers like Polyester, putting an end to use of raw silk and traditional handloom/ silk industry, especially Varanasi may loose its identity, which has checked to some extent due to reduction of import duty.

R.B.Verma G.K. Kedia

Dy. Senior Manager, Convener

Udyog Bandhu Yarn Dev. Committee -
Varanasi Vastra Udyog Sangh

Khurja- The Bustling Centre of Earthenware Activities

2011-09-05T15:16:00.003+05:30

Khurja, a small town of Uttar Pradesh is situated in Distt. Bulandshahr about 100 km away from Delhi. It has direct rail link from Delhi and Howrah.

Blue pottery is a popular craft of the state since Mughal period. Khurja is important center of this craft. Excellent specimens of earthenware and terracotta are produced in addition to toys by using new production techniques and design. Thus, Khurja has formed a niche for its products viz. Pottery, Milk and Pure Ghee not only in the state of Uttar Pradesh but also in the whole country. The following pottery products are manufactured in Khurja City :

1. Stone Ware Pottery

2. Bone China Pottery

3. Earthen ware Pottery

4. Electrical Insulation Products

5. Terracotta

6. Refractory Products

7. Artistic ware Pottery

Stone Ware Pottery

Legend goes that potters of the origin of Seriayee, Turkey, Egyptian had come to India in large numbers along with the army of Taimur the Lame. His army went back but many of these Potters chose to stay in India and dispersed in Khurja, Delhi, Jaipur and Multan. They started manufacturing various pottery goods by using red clay.

Bone China Pottery

During the period of Second World War, State Government had set up a small pottery complex to meet the demand of white clay earthen pots in hospitals. Khurja played a vital role by fulfilling the demand of Hospitals. Later on, in the year 1952, Government had established a Pottery Centre on the model of Japan Pottery Complex.

Earthern Ware Pottery

There are about 500 units in small scale sector. Besides 200 units are engaged in manufacturing Pottery products which include 50 units run by women entrepreneurs since 1992. In cottage Industry sector, Khurja is famous for deploying 750 pottery units, which positioned it first in pottery industry in the whole continent of Asia. The income from pottery business is the main source of their livelihoods.

Electrical Insulation Products

Pottery manufacturing business in Khurja has generated direct and indirect employment for approximately 25, 000 personnel in manufacturing sector and for more than 1.00 lakh persons in trading sector. However, it remains the fact that Kurja does not have any raw material, fuel and chemicals to produce pottery products. The supplies of these items are fulfilled by importing from the neighboring states.

Terracotta

The other source of income of large number of families of Khurja town is handicraft business. In this sector, about 600 Handicraft units are engaged in manufacturing of Blue Art Pottery, Designed Crockery and Toys. All these units are in unorganized form and are not registered in MSME department. In addition to the above, about 30 units are engaged in manufacturing of Terracotta.

Refractory Products

Every citizen of the state may be proud that the example set by Khurja is being emulated by other states for developing their pottery business. Recently, Government of India, under Prime Minister National Innovation Council, has approved 25 clusters all over the country for introducing innovation. It is a matter of pride that 'Khurja Pottery Cluster' has been identified one among them.

Artistic ware pottery

Thus, Khurja is a bustling centre of ceramic activities in true sense and a trip to this small city of Uttar Pradesh is a must for entrepreneurs and every pottery lover.

Vijay Seth

General Secretary,

Kutir Chini Patra Utpadak Sangthan, Khurja

The Magic Touch of Golden Hands - Handicrafts of Uttar Pradesh

2011-08-18T15:59:00.000+05:30

Uttar Pradesh is a state where the skills of art and craft is worshiped as gods and passed on from one generation to another. It is the land of art and artisans. The state has patronized art forms since the days of Moguls. Nawabs of Awadh and other nobles later carried the tradition forward. This is the primary reason why from Varanasi to Agra, every small or big town is famous for some or other craft in Uttar Pradesh.

The arts and crafts of Uttar Pradesh are not famous only in

India

but all over the world. Right from the silken saris to the earthen pottery, carpets weaving to chikankari embroidery, the hands of the legendary artisans and the master craftsmen have the magic to turn the ravage into gold. The silken touch with the masterly style produces the best sketches, designs, patterns and structure that are unique in their own nature captivating the hearts of every one who looks at them. Each region of U.P. deals with some specific art or craft.

Art Metal Brass Ware

Moradabad produces large quantities of art metal ware. It is especially famous for its colour enameling and intricate engraving. There are two types of engravings one is called nakshi that is done on the tinned surface while other is known as khudai and is done on lac coated unpolished brass. The pointed steel pencil is used to make design in khudai type. The metal brass ware consists of the traditional vases, Ganeshas, laughing Buddhas, stools, trays and contemporary beautiful bowls. The Natraja is the most beautiful article in the brass ware to be gifted and kept as a decorative item.

Glass Ware

Firozbad has become synonymous with glassware. Earlier only glass bangles where produced but with the help of sophisticated machines now various glassware articles are produced. The entire population is involved in this industry. Varanasi specializes in making glass beads and exports most of these.

Similarly, thin glass plates are produced, which, after cutting into pieces called Tikklu are used by women to decorate their fabrics. In Saharanpur, intriguing glass toys filled with coloured liquid called Rachkora and the mouth piece of hukka are produced. The glass bangles with multitude of colours matching with every dress is a most used ornament in the state.

Pottery

Khurja has evolved its own style in the earthenware. By adding colour to the dull and unattractive pottery khurja gave a lease of life to it. The shades and the designs in contrast to its background can attract the attention of any person having aesthetic sense. Apart from Khurja , Rampur Surahis along with the water containers from Meerut and Hapur are famous all around the nation for their shapes , designs, colours and their ability to keep the water cold even during the harsh summer days. Its attractiveness calls every one.

Embroidery- Chikankari

The delicate art of embroidery has its origin in the city of Nawabs. Its name has been derived from the Persian word 'chikan' meaning cloth wrought by needlework. Chikankari is done on fabrics like chiffon, organza, doruya, organdie, muslin, and silk to produce beautiful sarees and salwar kameez. The chikan sarees and salwar kameez are not only fascinating to look at, but are comfortable to wear during the summer months.

Embroidery-Zardozi

The craft of zardozi or silver and gold embroidery was brought into India by Delhi's Turko-Afghan sultans in the 12th century. Down the ages, the craft became equally popular with the wealthy Hindu, Muslim, and European classes. Today several families in Varanasi, Agra, Lucknow, Rampur, Bareilly, and Farrukhabad, in the state of Uttar Pradesh, have revived this old craft to supply exquisite zari embroidered bridal outfits and salwar kameezes to boutiques round the country and abroad.

Marble and Soft Stone craft

The hub of the stone craft in india is Agra and the best example of which is Taj Mahal. The art of carving the thin marble slabs to make the fine lattice windows is the most difficult for the craftsmen. The other marble products available in agra are mirror frames with lace like fringes, fretwork balustrades, bowls, garden furniture, etc. The another specialty of the Agra is the inlay work on marble with the colorful and precious stones to form a multitude of mosaics.

Carpets

The carpets manufactured at Bhadoi, Shahjahanpur and Mirzapur comes after the Persian and Arabian carpets The majority of population in these areas are affiliated with the profession of carpet weaving. With the exotic designs of flora and fauna, the industry has succeeded in attracting not only the national market but international market as well.

Other Handicrafts

There are various other Handicrafts items for which Uttar Pradesh is known all over India as well as abroad such as wooden furniture and decoratives which have given a new dimension to home furnishing. Saharanpur and Nagina are two important centres. Kanpur and Agra are internationally known for its leather crafts, shoes and other items. The hand printed items of Farrukhabad are also famous and a craze among the Europeans .The printings are mostly done in two patterns namely Polka Dots and Tree of Wisdom.

Export of handicrafts

India is one of the important suppliers of handicrafts to the world market which is largely due to handicrafts of Uttar Pradesh. The state has 45% share in total exports.

<> (Rs. in crores)<><>

Year

Handicrafts export of India

Handicrafts export of U. P.

% Share of UP in total export

2008-09

8183.12

3630.00

44.90

2009-10

8718.94

3923.00

45.00

2010-11

10533.96

4723.00

44.84

(Source : Export Promotion Council for Handicrafts)

Handicrafts is a labour intensive industry with high potential of employment for poorer section of the society in rural areas. Its is economically important because of low capital investment, high value addition and negligible import content and high potential for export earnings, as such, the Govt. is providing a lot of Institutional support for promotion of sales/export of Handicrafts.

R. B. Verma,

Dy. Sr. Manager

Udyog Bandhu

Mou between govt. of U.P and L.I.C. : A Positive Step for providing sustainable income through annuity payment for 33 years / one-time-payment to land-owners whose land has been acquired for the Developmental Projects in Uttar Pradesh

2011-08-10T14:24:00.000+05:30

With a view to adequately compensate the land-owners, whose land is acquired for various developmental projects and to ensure sustained income for the farmers/ landowners and their families, GoUP has come up with Rehabilitation and Resettlement Policy, as contained in G.O.(s) No.: 1307/1-13-10-20(29)/ 2004, Dated 03.09.2010 and 632/ek-13-11-20(29)/ 2004, Dated 02.06.2011. The policy provides for annuity payment for a period of 33 years or consolidated Rehabilitation Grant Payment in one go to affected farmers/land-owners. The policy aims to spread the feeling amongst the land-owners whose land has been acquired that they are also a part of the project.

This policy is therefore, a positive step taken by the State Govt to protect the interests of the land-owners and to provide them the other facilities. The policy empowers the land-owner to seek a better price and gives a choice to him to decide how he wishes to accept compensation.

In its bid to ensure fulfilment of commitments made through its Land Acquisition Policy, the Govt. of U.P. has gone a step further and signed an MoU with the LIC of India on 15th July, 2011.

The salient features of the MoU are enunciated hereunder:

i. The Government of U.P. normally acquires around 5,000 hectares land per year for the developmental projects under Land Acquisition Act, 1894.

ii. It will ensure the continuity of payment of 'Varshiki' (Annuity) to the affected farmers/land-holders under the policy.

iii. Under the policy, the Government shall make the following payments to the affected farmers/landholders:

DETAILS OF G.O.(s)	PAYMENTS PER ACRE (IN RS.)
	ANNUITY			One time Payment in lieu of Annuity, hereinafter referred to as Consolidated Rehabilitation Grant Payment
	Annual payment	Increment, per annum	Tenure
G.O. No.: 1307/1-13-10-20(29)/ 2004, Dated 03.09.2010	20,000/-	600/=	33 years	2,40,000 /-
G.O. No.: 632/ek-13-11-20(29)/ 2004, Dated 02.06.2011	23,000/-	800/=	33 years	2,76,000/-

Iv. For avoidance of doubt, it has been made clear that :

· Land-owners whose land is acquired on or after 03.09.2010 and upto 01.06.2011 shall be eligible for payment of annuity or Consolidated Rehabilitation Grant Payment as per provisions of G.O. dated 03.09.2010

· Land-owners whose land is acquired on or after 02.06.2011 shall be eligible for payment of annuity or Consolidated Rehabilitation Grant Payment as per provisions of G.O. dated 02.06.2011

v Under the MOU, Government makes payment of the premium based on the assumption of average age of beneficiaries to be 45 years, in lieu of the services provided by LIC.

vi LIC offers to provide the services of making annuity or Consolidated Rehabilitation Grant Payment after having obtained the product specific approval known as Group Flexible Income Plan from Insurance Regulatory Development Authority (IRDA)

vii. The concerned District Magistrate/Collector implements the Scheme and discharge the role and responsibilities for and on behalf of the Government.

ROLE OF THE GOVERNMENT

The Government makes the payment through concerned DM(s)/Collector(s) to LIC based on the land acquired under the Act within three months of passing of award under the Act.

The payment of premium to the LIC is to be made in respect of each award in single instalment together with list of beneficiaries.

Provide database of the Beneficiaries alongwith their successors/nominee details, the due dates of annuity payment to them and consent for accepting Annuity or consolidated Rehabilitation Grant Payment to the LIC.

For avoidance of doubt, it is made clear that the payment of amount towards premium shall be made by the concerned land acquiring body to the concerned District Magistrate/Collector who shall pay the said premium amount to LIC on behalf of Government.

PAYMENTS OF PREMIUM TO LIC

The concerned District Magistrate/Collector for the land acquired in his District shall make the following payments of premiums to LIC for payments to Beneficiaries under the Scheme as per consent of Beneficiaries:

DETAILS OF G.O.	PAYMENTS PER ACRE (IN RS.)
DETAILS OF G.O.	Towards Annuity	Towards Consolidated Rehabilitation Grant Payment
G.O. No.: 1307/1-13-10-20(29)/2004, Dated 03.9.2010	Rs. 3,42,023/= as per the quote of LIC	Rs. 2,40,000 /=
G.O.: 632/ek-13-11-20(29)/2004, Dated 02.6.2011	Rs.4,07,679/= as per the quote of LIC	Rs. 2,76,000/=

The Government, through District Magistrate/Collector makes the first payment of premium to LIC within 15 days, for atleast 50 Beneficiaries alongwith the consent of Beneficiaries & their other details.

ROLE OF LIC

· LIC makes the Annuity payment under the Scheme to each Beneficiary, irrespective of their age.

· The First payout of Annuity to the Beneficiary is to be paid by the LIC to the Beneficiary opting for annuity payment within three months of receiving the premium, and thereafter, the payments under the Scheme shall be made annually.

· The Consolidated Rehabilitation Grant to the Beneficiary opting for one time payment under the Scheme is to be paid by the LIC within three months of receiving the payment from Government.

· The date of making first Annuity payment to the Beneficiary by the LIC is the Due Date for making payments in the subsequent years also.

COMMITMENTS OF LIC

· LIC issues individual Certificates with distinctive numbers to all the Beneficiaries and their successors enrolled and finalized by the concerned District Magistrate/ Collector.

· A Toll Free No.18001805080 has recently been established by LIC to facilitate communication in Hindi during office-hours of all working days.

· LIC has fully equipped and operational offices at all District Headquarters of Uttar Pradesh to operate the Scheme.

MANAGEMENT INFORMATION SYSTEMS SERVICE

LIC provides district-wise MIS Reports to the Government on regular intervals.

PROJECT MONITORING MECHANISM

Government to constitute a Project Monitoring Committee which would meet once in every three months, to be chaired by Chief Secretary–GoUP with Infrastructure & Industrial Development Commissioner, and Principal Secretaries 0f Industries, Finance, Law & Revenue (as Convenor) & as members; to review & monitor the progress of the Scheme. A representative of LIC shall also be present, and provide all information for meetings.

OTHER TERMS AND CONDITIONS

Government is also entitled to include Beneficiaries of the Scheme with effect from 03.09.2010 to the Policy issued under the Group Income Flexible Plan of LIC for making payments.
In the event the Government revises its Annuity rates under the Scheme during the period of MOU, then LIC shall accordingly on a proportionate basis revise its quotes for Annuity payments.

With every care taken by the Government, this MOU will prove to be a stepping stone to safeguard the rights and benefits of land-owners. It is envisaged that with the involvement of a service provider like LIC in Annuity payment scheme, hassle free and smooth payments will be made to the beneficiaries or their nominees throughout the stipulated period of 33 Years. This will go a long way in providing project affected people with a sustained income and sense of financial security and contribute to over all socio-economic development of the state.

R.C. Bhatt

Udyog Bandhu

Get Digitally Signed Khatauni Easily in Uttar Pradesh

2011-08-04T13:39:00.003+05:30

Citizens spend their enormous time and energy to access Government information and services; whether they require services related to land, housing or health. As a forerunner in implementation of e-Governance and IT Enabled Services for its citizens, Government of Uttar Pradesh has initiated diverse measures by introducing information technology concepts in service delivery to citizens.

The need for land related records is an inevitable requirement of each and every citizen. The Department of Revenue is burdened with millions of such records scattered in all parts of the districts from Tehsil to State level in manual forms in numerous files. It became imperative to digitize such records for enabling easy access to all concerned. Keeping this in mind, the department of Information Technology of the State Government had initiated digitizing revenue records. An e-governance application specially for farmers in which a software (‘Bhulekh’) for computerization of land records of all the tehsils of Uttar Pradesh has been rolled-out across the State.

The State Government has recently taken another step forward by introducing a people friendly measure by which any citizen may be able to obtain the digitally signed computerized khatauni through the nearest Common Service Centre. This is being done after analyzing the difficulties being faced by the common man in collecting their revenue records by visiting the tehsil, which may be far away from his home, thereby involving enormous time, money and energy.

The procedure for obtaining digitally signed khatauni through Common Service Centre is depicted hereunder :

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The applicant shall visit the nearest Common Service Centre (CSC) and submit an application on a prescribed format, which is available at the centre.

Certain details of the land viz. gata number, account number etc. need to be provided in the application form. In case he does not have these particulars, the operator can obtain the same from the departmental website. These can be verified by the applicant on the spot and in case of deviations, the operator assists the applicant by informing the procedure for getting the deviations rectified.

The applicant needs to deposit a prescribed fee of Rs. 25/- for which a computerized acknowledgement shall be given. This will contain a unique reference number, which can be used for future references.

The format shall then be digitized through the software by the operator, after which a printout of the application shall be provided to the applicant for verification by way of signature/thumb impression.

The operator shall forward the application on the same day through the software electronically to the concerned registrar kanungos of that particular tehsil for disposal

The concerned registrar kanungo shall examine the application and upload the status on the web portal. The details shall be updated from time to time. The applicant can obtain the status at any time through any CSC.

The competent authority shall electronically forward the digitally signed khatauni to the CSC. In case of objections/rejections, the same shall also be sent electronically.

The prescribed time limit for the entire procedure has been kept as a maximum of 3 days from the date of application.

The applicant can collect the printout of digitally signed khatauni by approaching the CSC.

The earlier procedure of obtaining khatauni by visiting concerned tehsil shall remain in force.

A Government Order has been issued recently by the State Government for implementation of this service.

Some highlights …..

Services to citizens at their doorsteps for which otherwise they have to go to block, tehsil and district level offices

Saving of travelling and other expenses for the citizen

Can avail Government services in a transparent and time bound manner

Reduced interactions with Government officials in a hassle free manner

Better monitoring system for officers to track progress of disposal of applications

By introducing this service, the Government proves its intention of reforming the governance to provide efficient, convenient and transparent services to the citizens through Information & Communication Technologies. It is expected that would certainly pave the way for a continuous optimization of government service delivery and governance.

This service would be available to the citizens of the state soon.

K.S. Prasad

Udyog Bandhu

Power Sector Reforms in Uttar Pradesh

2011-06-29T14:32:00.002+05:30

Electricity has become the lifeblood of the modern world, without which the world will come to a virtual standstill. Any sluggishness in the growth of the power sector can throw the region far behind other regions in industrial, economic and social growth. Thus, power has been recognized as one of the key components of infrastructure for a sustained growth of the state economy. Full utilization of other input factors, such as manpower, land including irrigation and capital-related resources heavily depends upon the uninterrupted availability of electricity. Electricity has therefore, become the most essential factor in improving the social conditions and welfare of people.

Over a period of time, energy supply could not have matched with the need of industrial requirement. The major problems faced worldwide are fast depletion of non-renewable energy sources, increasing costs for energy, and inability to create sufficient returns for investment for growth. These problems have created a shortage of power in both quantity and quality. Power sector was mainly treated as a Government business worldwide, considering its importance as a vital infrastructure for the growth of the state. But growth in this sector, however impressive it was, looked insufficient to cope with the impulsive growth in industrial and other sectors.

In UP’s perspective, there had been no substantial augmentation in the state power generation capacity till the 1990s. Power has been the bane of UP’s industry, with the current demand-supply gap widening to almost 3,000 MW. The current demand in the state is estimated at 10,000 MW.

Taking it as a cue, the Government of UP has formulated UP Power Energy Policy 2009 for increasing the role of public private partnership in generation, transmission and distribution, in addition to the work already being carried out under State sector. The Government is slowly but surely inching ahead towards the development of Power sector with the help of private sector through Public Private Partnerships (PPPs), joint ventures, memoranda of understanding and co-generation by sugar mills.

The Government has envisioned to meet out the power demand across the state by the year 2014, and to increase the annual per capita consumption power up to 1000 units, by 2017. The Government has taken many pro-active measures in Generation, Transmission and Distribution sectors.

GENERATION

During 11th Five year plan, many initiatives have been taken, which include:

Power plants of 600 MW in Rosa and 600 MW in Anpara 'C' (Unit-I) have already been commissioned
Several other Power plants of the aggregate of 2430 MW are scheduled to be commissioned by March 2012 which include

2 x 250 MW Harduaganj Extension under state sector
2 x 250 MW Parichha Extension under state sector
First 500 MW unit of Anpara ‘D” under state sector
1 x 600 MW Anapara ‘C’ Thermal Extension (Unit-II) under private sector
4 x 82.5 MW Shri Nagar Hydro under private sector

Power plant of 450 MW co-generation in sugar mills is being commissioned under private sector.

The work for 3x660 MW Bara Thermal Power Project and 2x660 MW Karchhana Thermal Power Project have been entrusted to private developers under case-2 competitive bidding guidelines of GOI. Work is under progress in Bara Thermal Power Project. Work for Karchhana Thermal Power Project is yet to be started.
The work for 2x660 MW Meja Thermal Power Project (Allahabad) is also underway in Joint Sector with NTPC and UP Rajya Vidyut Utpadan Nigam Ltd

By the end of 11th Five Year Plan, it is hoped that the state would get 1500 MW from the state-run projects, 2130 MW from the private sector, 450 MW from MOU route projects and 1242 MW from various projects being implemented by the central agencies.

Under 12th Five year plan (April 2012 - March 2017), the Government of U.P. has planned more than 25000 MW capacity additions. This envisages capacity addition of 6870 MW under State/Joint sector, 5300 MW under Case-2 Projects, 13580 MW under MOU Route, 2756 MW under Case-1, where LOA has been issued and 2000 MW under Case-1, where competitive bidding process is in progress, by which power can be supplied from any power project located in any State of the country.

As on date, bid process for 2x660 MW Jawaharpur Thermal Power Project has already been initiated and RFP has been issued to 17 qualified bidders. RFQ process for 3x660 MW Dopaha Thermal Power Project has also been started. The selection of Technical Consultant for 2000 MW Yamuna Expressway Thermal Power is also under process. Department will provide land, coal linkage, water linkage and environmental clearance to the developer and power will be purchased on levelised tariff through competitive bidding.

Further, Government of U.P. has signed 13 nos. of MOU(s) for 14030 MW for different projects with the developers mainly M/s Bajaj Hindustan Ltd., M/s Himawat Power Pvt. Ltd., M/s Lanco Anpara Power Ltd., M/s NTPC & with M/s THDC.

TRANSMISSION

At present UP has a transmission network to cater more than 10000 MW of power. To cater the enhanced generation by the end of 11th plan, UP transmission system is being augmented to evacuate 15000 MW of power. Accordingly, transmission development programme has been worked out and number of 765 KV/ 400 KV/ 220 KV/ 132 KV sub-stations and associated transmission lines are under construction.

These include sub-stations of 765 KV (3 in numbers), 400 KV (9 in numbers) along with associated transmission lines under public private partnership model for evacuation of power from 3x660 MW Bara, 2x660 MW Karchhana and 3x660 MW Meja Thermal Power Projects. In this backdrop, developers have already been selected viz. M/s. Isolux Corsan for package-1 and M/s. Cobra Instalaciones for package-2. Letter of Intent has been issued for package-2, whereas the same is being issued for package-1. Both the packages would involve investment of approximately Rs.10,000 crores.

Apart from above, sub-stations of 765 KV (2 in numbers), 400 KV (3 in numbers), 220 KV (25 in numbers) and 132 KV (70 in numbers) are to be constructed under State sector.

DISTRIBUTION

In order to improve the performance of the power sector, and for bringing financial and operational independence, besides creating conditions for competitive and self sustainable developments of the power sector, Government of India has enacted “Electricity Act 2003” with effect from June 2003. Govt. of UP has had undertaken an input-based franchisee distribution model in cities like Agra and Kanpur for economizing on power. While the distribution system in Agra has already been handed over to a private partner M/s Torrent Power Ltd. with effect from 01.04.2010, things are moving in a similar direction for Kanpur. The process would soon be rolled out in nine other towns. This will ensure more power supply in quality as well as in quantity.

With an aim to attract more and more companies to participate in open bid for the selection of input based franchisee, UPPCL will provide the following facilities to the prospective distribution franchisee :-

Distribution franchisee can use utilities distribution assets
Distribution franchisee can utilize other services of utilities such as testing facility of HT/LT between switching / sub-stations and distribution transformer and/or other technical assets.
Utility shall provide inventory of first three months
Utility shall ensure the supply of power to the distribution franchisee
Utility shall allow distribution franchise to purchase power through open access.

To augment distribution system, 360 numbers of new 33/11 KV sub-station are under construction and 150 numbers are under sanction process.

It is certainly not the end here, the Government is mulling all available options and relentlessly striving hard in making U.P. a power surplus state, to create an industry friendly ambience so as to compete in true sense with all the peer states across the country and also enshrine U.P. among the most developed states within the country and globally as well. The mission may seem difficult but is surely not impossible once the people of the state from all walks of life shall also be determined and join their hands to bolster every initiative taken by the Government for the better future prospects of the state so that the benefits of development may reach the doorsteps of every citizen of U.P.

N.C. Gupta

Dy. Manager (Fin.)

Udyog bandhu

New Land Acquisition Policy of Govt. of U.P. – A step forward in socio-economic development in the state

2011-06-20T18:45:00.090+05:30

With an aim to protect the interest of land-owners and to provide them adequate compensation and other facilities in the event of acquisition of their land for the use of social and economic development projects across the state, the Govt. of U.P. has come out with a new land acquisition policy, after having threadbare discussions with the farmers and their agreement during the Kisan Panchayat held recently. The new policy has come into effect on 2^nd June, 2011. A G.O. no. 632/1-13-11-20(29)2004 dated 02.06.2011 has been issued.

The new policy offers a much better compensation package than what was proposed in the earlier acquisition policy. The policy establishes final say to remain with the land-owners. Not only has the land-owner been empowered to seek a better price for his land through negotiations, he has also been given a choice to decide how he wishes to accept compensation, depending on his needs, his holding capacity and nature of project.

The salient features of the new policy are enunciated hereunder:

In acquisition of land for all purposes, the land shall be purchased directly from the land-owners at mutually agreed terms between the land-owners and the acquisition bodies in consonance with relevant rules/orders relating to the purchase of land.
Under the policy, the land acquisition has been divided into three parts;

For infrastructure projects in public sector such as highways, canal and power etc.
For planned industrial/urban development projects in public sector such as developed land, for residential needs of general public, for units in service sector or for small industrial units and other public utilities.
For planned industrial/urban development projects in private sector, outside the master plan area for public use such as housing, commercial-medium or heavy industry, service sector and infrastructure or for allotment of land in bulk to public sector.

The land acquisition, for infrastructure projects in public sector, shall be made under the provisions and process of Land Acquisition Act, 1894 but the compensation of land would be determined as per Karar Niyamawali, 1997. Affected land-owners would be given all the benefits admissible under Rehabilitation & Resettlement Policy 2010 (as amended) of the State Government.
The land acquisition, for planned industrial/urban development projects in public sector, shall be made under the provisions and process of Land Acquisition Act, 1894 and after issue of notification under section-4, the following options would be available to the land- owners :

Compensation amount would be determined by the acquiring authority. The affected land-owners would also be given all the benefits admissible under Rehabilitation & Resettlement Policy 2010 (as amended) of the Government.

16% of the total acquired land in developed form, free of cost. This land would be transferable. Out of this, 50% shall be for residential use and 50% for non-residential use, such as industrial, institutional, commercial or mixed use. The policy determining corresponding percentage of non-residential use of land shall be framed by the acquiring authority itself. Further, the land will be exempted from development charge or land use change charges.
The affected land-owner can choose to retain some portion of developed land and part with balance portion of land by receiving compensation at the rate declared by the acquiring authority before the commencement of the project on mutually agreed terms.
Affected land-owner becoming landless shall be provided a developed residential land of the size of 40 sq. mtr. free of cost.
Besides, the following benefits shall also be admissible to the land-owners:

Annual annuity of Rs.23,000/- per acre for 33 years, which would be increased annually at a fixed rate of Rs.800/- per acre.
If a land-owner does not want to avail annuity on an annual basis, he will be provided a one-time rehabilitation grant at the rate of Rs.2.76 lakhs per acre.
In the event of land acquisition for the use of company, the affected land- owner shall have an option to buy shares of the company of the value equivalent to 25% of one-time amount of rehabilitation grant. Such shares shall be allotted at the market value prevailing on the date of publication of notification under section-6 of the Land Acquisition Act or date of agreement, whichever is later. If the company issues Initial Public Offer of shares after the date of land acquisition, the allotment of shares to opting land-owner shall be made at face value of the share equivalent to 25% of one-time amount of rehabilitation grant.
The affected land-owners, who have agricultural land and whose entire land has been acquired, will be compensated for their livelihood with one-time financial assistance of the amount equivalent to minimum agricultural wages of 5 years.
The affected-land owners, who have agricultural land and whose entire land has not been acquired but have become marginal farmers, will be provided one-time financial assistance of the amount equivalent to minimum agricultural wages of 500 days.
The affected land-owners, who have agricultural land and eventually have become small farmers, will be provided one-time financial assistance of the amount equivalent to minimum agricultural wages of 375 days.
Each of the agriculture or non-agriculture labour families, in the project affected area, will be provided one-time financial assistance of the amount equivalent to minimum agricultural wages of 625 days.
Each of the displaced families, in the project affected area, will additionally be compensated for their livelihood with one-time financial assistance of the amount equivalent to minimum agricultural wages of 250 days.
Owners of the hereditary land in the record of Industrial Development Authorities shall continue to get additional facilities in accordance with prevailing practice.

The land acquisition, for planned industrial/urban development projects in private sector, shall be made under the following process;

After due examination of the project, the notification shall be issued for entire land of the project under section-4 of Land Acquisition Act, 1894.
The compensation package shall be prepared by the developer on mutually agreed terms with the land-owners at the village level itself, where the concerned District Magistrate shall play the role of facilitator and in place of acquisition, the land shall be transferred to project developer directly from land-owner.
This package shall be finalized only after obtaining the consent of at-least 80% of the land-owners.
The following options would be available to the land-owners:

16% of the total acquired land in developed form, free of cost. Such land would be transferable. Out of such developed land to be given to the land-owner, 50% shall be for residential use and 50% for non-residential use, such as industrial, institutional, commercial or mixed use. The policy determining corresponding percentage of non-residential use of land shall be framed by the acquiring authority itself.

Out of the 16% of the developed land, the affected land-owner can choose to retain some portion of developed land and part with balance portion of land by receiving compensation at the rate declared by the acquiring authority before the commencement of the project on mutually agreed terms. In the absence of authority in the project affected area, the rates of compensation for infrastructure projects shall be declared by District Magistrate. Out of such developed land to be given to the land-owner, 50% shall be for residential use and 50% for non-residential use, such as industrial, institutional, commercial or mixed use. The policy determining corresponding percentage of non-residential use of land shall be framed by the acquiring authority itself. Further, the land will be exempted from development charge or land use change charges.
One member of each of the families becoming landless shall be provided a job according to his qualification in the developer company.
Besides, the land-owners will also be entitled to avail the benefits as explained above at point no. 1 to 9 in case of acquisition of land for planned industrial/ urban development projects in public sector.
The land of the remaining farmers, who do not agree for the above package, shall be acquired under the process of Land Acquisition Act, 1894.
If less than 80% land-owners of the project affected area give their consent, then the project will be reconsidered.

Developer of the project will also construct a Kisan Community Centre and a Model School up to class 8 for providing educational opportunity to the wards of BPL families in every project affected village.
The developed land to be given to the land-owners as compensation shall be free from stamp duty on registration and registration fee.
If a land-owner buys land anywhere in the state from the land compensation amount so awarded within one year, he will be exempted to make payments towards stamp duty and registration fee.

Thus, the ultimate goal of this policy is to enable land owners to share the prosperity ushered in the state on account of implementation of development projects.

N.C. Gupta

Dy. Manager (Fin.)

Udyog Bandhu

Investment Scenario of U.P.

2011-06-08T19:15:00.007+05:30

Uttar Pradesh has been in the forefront of industrial development. The State has registered a growth rate of 5.5 percent in GSDP, while industrial sector has growth rate of 6.6% during the Tenth Plan. In first three years of the eleventh plan viz. 2007-08, 2008-09 & 2009-10, the state economy as well as industrial sector has registered the following growth rate at constant (2004-05) prices :

Source - Planning Department, Uttar Pradesh

GoUP is committed to the industrial growth of state and has therefore offered various incentives & concessions at each stage for encompassing all around development of the state. Incentives and concessions, being offered by the state for attracting investment in manufacturing sector, are summarized here under :

1. Grant of Interest Free loan for 10 years repayable after 7 years to new units whose first date of sale falls on or after 11.3.2003 and which have made fixed capital investment of Rs.5.00 crore or more in Food Processing Sector, Rs.10.00 crore or more in Eastern U.P. & Bundelkhand Region and Rs.25.00 crore or more in other districts. Amount of loan shall not exceed 10% of turnover or sum of the Trade Tax/ VAT and Central Sales Tax Paid by the units during the year.

2. 100% Exemption from stamp duty on transfer of land to : -
i. Projects making investment of Rs.750.00 crore or more

ii. All micro and small new units in Notified districts of Eastern UP and Bundelkhand Region
iii.Agro Processing, Information-Technology / Bio-Technology and specified Infrastructure units.
iv. Notified Service Sector - Multi-facility Hospitals, Medical or Dental College, Other Educational Institutions, Multiplex Cinema Halls, Shopping Malls and Entertainment Centers with an investment in plant and machinery not less than Rs. 10 crore
5. 50% Exemption from stamp duty on transfer of land to all other new units.

6. Reduction of stamp duty to rupees two per thousand on mortgage of title deeds, transfer of movable property, mortgage of property without possession, collateral security and bank guarantee (max. Rs.10,000/-).

7. Exemption from Electricity duty for 15 years to pioneer units and 10 years to all other new units.

8. Exemption from VAT on direct purchase of raw material, consumables, lubricants, parts and fuel other than diesel and petrol for use in manufacture of goods for export or for use in packing of such goods.

9. Exemption from Mandi fee for five years to new food processing units having investment of Rs.10.00 crore or more in plant and machinery on purchase of raw material for use in manufacture of agricultural produce.

The above incentives have witnessed the substantial increase in industrial investment, number of units set-up and employment generated in the state, which is evident from the table given below. During the year 2009-10, the investment reached an all-time high of Rs 11,952 crores by way of setting up of 37,435 number of units with employment generation of 2,96,669 number persons.

Details of Investment Generated in the State Manufacturing Sector¹

Financial Year	Investment (in Rs. crores)	Units set up (in Nos.)	Employment Generated (in Nos.)
2007-08	4,918.26	32,837	2,07,809
2008-09	5,176.63	33,771	2,12,573
2009-10	11,951.93	37,435	2,96,669
2010-11	10,446.03	35,861	2,53,078

Service sector in the state²

(Rs. in Crores)

Financial Year	Service Sector other than I.T Sector		I.T Sector		Total
Financial Year	Nos.	Investment	Nos.	Investment	Nos.	Investment
2007-08	28	2,504.55	4	89.45	32	2,594.00
2008-09	19	2,911.37	3	325.00	22	3,236.37
2009-10	20	2,537.11	4	31.10	24	2,568.21
2010-11	15	1,858.29	3	1,000.00	18	2,858.29

Break-up of Investment in Service Sector³

(Rs. in Crores)

Particulars	2007-08	2008-09	2009-10	2010-11	Total
Hotel & Restaurant Services	30.00	10.00	176.86	-	216.86
Recreation Services	1,215.00	-	6.00	220.24	1,441.24
Transport services	846.58	2,523.46	2,169.53	1,516.05	7,055.62
Communication services	104.94	-	168.72	-	273.66
Health Services	-	250.00	-	2.00	252.00
Wholesale & Retail Services	50.00	30.91	16.00	120.00	216.91
IT Services	89.45	325.00	31.10	1,000.00	1,445.55
Misc. Services	258.03	97.00	-	-	355.03
Total	2,594.00	3,236.37	2,568.21	2,858.29	11,256.87

Investment in Infrastructure Sector⁴

To further strengthen the growth and the overall development of the state to next level, the state is building a world class infrastructure in expressways, highways, power, urban amenities, health and education. Government has consciously adopted the policy of involving private sector participation in this effort so as to fully utilize their efficiency in delivery of public services. A transparent procedure based on the guiding principles of the Government of India has been formulated for the selection of private project developers and concessionaires in the development of infrastructure facilities, which has translated the investment in various sectors under private and public, of which the prominent sectors are detailed here under :

(Rs. in crores)

SNo	Name of the Sectors	2007-08	2008-09	2009-10	2010-11
	Expressways	942.00	1,938.00	2,948.00	2,273.00
	Urban & Housing	648.26	845.06	4,058.38	3,191.06
	Energy	5,007.63	10,325.08	11,323.71	10,409.79
	Water Supply & Sewerage Treatment Plant	141.40	141.16	140.91	278.90
	Solid Waste Management Projects	-	-	11.94	262.06
	Total	6,739.29	13,249.30	18,482.94	16,414.81

Total Investment generated

(Rs. in crores)

SNo.	Name of the Sectors	2007-08	2008-09	2009-10	2010-11
	Manufacturing Sector	4,918.26	5,176.63	11,951.93	10,446.03
	Miscellaneous & Service Sector	2,594.00	3,236.37	2,568.21	2,858.29
	Infrastructure Sector⁴	6,739.29	13,249.30	18,482.94	16,414.81
	Total	14,251.55	21,662.30	33,003.08	29,719.13

Uttar Pradesh has played a vital role to boost the speed of economy of the country by emphasizing the export, which could earn a good amount of foreign currency. Same is evident from the details given here as under:

Export figures

(Rs. in Crores)

Financial year	Software⁵	Export from the state other than software⁶	Total Export
2006-07	8,453.00	16,433.65	24,886.65
2007-08	10,695.21	17,291.91	27,987.12
2008-09	10,264.36	34,818.91	45,083.27
2009-10	13,832.10	26,204.07	40,036.17
2010-11	11,768.33 (Approx.)	*22,804.09	34,572.42

* (Provisional figure from April, 2010 to Nov. 2010)

The efforts, as explained above, have started yielding results. Now the time is not far away, when Uttar Pradesh shall be placed ultimate destination for investment not only in the country but across the globe.

Anamika Singh

Jt. Executive Director

Udyog Bandhu

[1] Directorate of Industries, UP
[2 & 3] As per CMIE data base.
[4] These figures have been obtained from the department concerned.

[5] Software Technology Parks of India, Lucknow.

[6] DGCI&S Kolkata

Encouraging UP's Small and Medium Enterprises

2011-06-02T13:32:00.002+05:30

I remember visiting a garments exhibition at hotels in Kanpur and Lucknow a few years ago. The produces were men's wear such as shirts, trousers. They were of good quality, attractive in appearance and more importantly very competitively priced. However, they had the tag "Made in Bombay". When I asked some of the manufacturers whom I knew were local why they had put the "Made in Bombay" tag, they stated embarrassedly that the "Made in UP" tag would downgrade their products in the eyes of the customers.

This is regrettable. We know that there are many companies specially in the SME sector who manufacture excellent products and compete with large all India companies price-wise and quality-wise. One such company is Rohit Surfactants Pvt. Ltd., more popular known as Ghari in the field of detergents. This Kanpur based company owned by the Gyanchandani family was started in 1987 as a small scale unit on the lines of Nirma. Its turnover now is Rs. 2000 Crore and it is posing a challenge to Hindustan Unilever Limited products such as Wheel. It is also competing in turnover with other top Home and Personal Care Brands like Lifebuoy, Lux, Surf and Colgate.

There would be many other such companies but unsung. I suggest that Udyog Bandhu draw up a plan to encourage such companies. Perhaps Udyog Bandhu should consider publishing a catalog of such companies after careful vetting with the help of the Indian Industries Association.

V.N. Channa

I.A.S (Retd.)

Leather Industry - A Prominent Contributor in State's Economy

2011-05-16T17:18:00.009+05:30

Leather Industry traditionally occupies a place of prominence in the State's economy, in view of its massive potential for employment, growth and exports. The state has one of the largest livestock populations in the country, which provides a strong raw material base required for the industry. Leather & Leather goods industry has performed exceptionally well as compared to all India figures and of other regions.

The number of leather and leather products industries in the state are to the tune of 11,500 of which Kanpur and Agra are the two famous production centres. The footwear sector is a very significant segment of the leather industry in Uttar Pradesh.

Leather Industries in UP have got maximum account of SMEs & MSMEs employing nearly 3,00,000 workers mostly belonging to the weaker section of the society and coming from rural areas.

U.P. is now the second largest producer of footwear after Tamil Nadu. Agra is the biggest centre for shoe manufacturing in the country. Kanpur is the main producer of saddlery products. It is a prominent centre for leather processing. Kanpur tanneries specialize in processing of raw hides into heavy leather (sole, harness and industrial leather). The prominent leather products manufactured in Kanpur include footwear components (including shoes and sandals), leather garments, industrial gloves, saddlery, belts and bags. The prominent leather shoe brands of Kanpur and Agra are Red Tape, Red Chief, Allen Cooper, Mardigrass, Zara, Topshop, Metro, and Kickers. More than two lakh people are either directly or indirectly involved in the manufacturing of leather products in the city.

Noida has also emerged as a major centre especially for leather footwear and leather garments. The State Footwear Industry is provided with institutional infrastructure support through premier institution of Footwear Design & Development Institute, Noida in the areas of technological and Human Resource Development. The main production centres for leather and leather products are Kanpur, Unnao, Agra and Noida.

The state has already developed a Leather Technological Park at Banther, Kanpur for setting up tanneries and leather goods units. The Central Government also proposes to establish one mega leather cluster near Kanpur.

The availability of abundant raw material, large market size and the opportunity to cater to domestic/ global markets makes Uttar Pradesh an attractive destination for investment in the sector.

Export Figures

Sl.No.	Year	Export value (Rs. in crores)
1.	2006-07	3205.68
2.	2007-08	4374.33
3.	2008-09	4561.61
4.	2009-10	4619.22
5.	2010-11	5300.00

Source: Council of Leather Export Kanpur

Export from U.P. is around 28% of All India Export of Leather and Leather Products. The product wise export of leather and leather goods shown as per following chart:

Export Award Winners from U.P. during 2008-09 and 2009-10

(Source: Council of Leather Export, Kanpur)

Kanpur

1. Super House Ltd. 2. Mirza International Ltd.

3. Model Tanners India Pvt. Ltd. 4. Everest Tannery Pvt. Ltd.

5. Global Export 6. Lex International Pvt. Ltd.

7. Eastern Exports 8. Aravind Footwear Pvt. Ltd.

9. Kings International Ltd. 10. Crescent Tanners Pvt. Ltd.

11. Inyati Footwear Ltd. 12. Grand International

13. Samson's International 14. Pacific Leather

15. Allied Exims 16. Mariya Exports International

17. Rahman Industries Ltd

Agra

1. KAF Footwear Industries

2. Sheetal Footwear Exports

Noida

1. Unisol India Pvt. Ltd

2. Tryshoera India Pvt. Ltd

Irshad Mirza, Padam Shree-2010

A.K. Pandey, Sr. Manager (Tech.)

Central Institute for Subtropical Horticulture, Lucknow

2011-05-04T22:58:00.003+05:30

The Central Institute for Subtropical Horticulture (CISH) under the aegis of ICAR is serving the nation by undertaking basic and strategic research to enhance productivity and develop value chain for major and minor subtropical fruits. Institute is also a national germplasm repository of subtropical fruit crops. The Institute has two experimental farms, one at Rehmankhera approximately 25 km away from the city and the other at Raebareli (R.B.) Road, in the city of Lucknow. To meet the challenges in emerging areas on subtropical fruits, Institute has modern nursery facilities, well-established orchards and fully equipped laboratories. A hostel-cum-guest house is situated at R.B. Road Campus for accommodating farmers, trainees and experts. The institute is maintaining linkages with various national and international organizations in areas of research, development, education, training and germplasm exchange and the Institute has MoU with universities and other Institutes also. Institute has also been recognized by IGNOU, New Delhi as study centre for offering one year Diploma Course on value added products of fruits and vegetables and organic farming.

Institute has world’s richest field gene bank collection of mango (727). Besides, it has germplasm collection of guava (114), papaya (32) and other minor and underutilized fruits. Ambika and Arunika are two mango hybrids released by the Institute possessing attractive peel colour, regular bearing with potential for domestic and export markets. Lalit and Shweta are selections of guava with good processing potential and high yields. Lalit variety is particularly famous for pink pulp yielding pink coloured nectar. In bael superior selections B1 and B2 are important varieties with higher yields coupled with low seed and fibre content. Recently CISH has identified a seedless Jamun selection which has immense table and processing value.

Technologies developed

Institute has demonstrated application of rejuvenation technology for reviving the production for senile and old mango orchards. This technology has made impressive inroads amongst the orchardist of Bihar, Jharkhand and has also been identified by National Horticulture Mission for its promotion amongst orchardists. Yield enhancement in range of 70 to 90 per cent over the un-pruned trees is recorded after second year of rejuvenation in case of senile orchards of guava and aonla. The institute has developed the concept of meadow orcharding in guava wherein 5000 plants ha^-1 (1.0m x 2.0m) are accommodated and managed judiciously with regular topping and hedging yielding massive productivity. Year round production of guava plants is feasible now due to wedge grafting technique perfected at CISH. Round the year production of elite planting material of mandate crops is feasible with modern nursery facilities at CISH. Integrated pest management of mealy bug and hoppers on mango for pest control and Methyl eugenol based ecofriendly management of fruit fly in mango and guava orchards is being promoted. Forecasting model for the prediction of powdery mildew and hot water treatment for control of post harvest diseases of mango are plant protection technologies offered to orchardists. Protocol for post harvest management of mango along with uniform ripening of mango with ethrel is being routinely followed, which has immediate financial benefits for the growers and traders. Composting of mango peel and utilization of mango peel for pectinase production are new endevours. Amylase production from mango kernel and production of baker’s yeast from mango stone has immense potential.

Products developed

Institute has developed technology for many fruit based products such as beverages from blends of mango-pineapple (1:1), mango-pear (any ratio) and mango-papaya (2:1), raw mango squash (Panna concentrate).Oil less pickle of mango, Sweet papaya chutney, good quality vinegar from mango peel, guava slices from cv. Lalit, Sweetened and brined (salted) aonla segments, aonla and mango dietary fibre enriched biscuits, fermented beverages viz. aonla cider, guava cider, raw mango cider, mahua wine, bael wine, mango wine and mango peel vinegar.

Tools and machineries developed

Many tools and machinery has been developed by the institute such as a prototype of bund former, a simple low cost mango harvester, web removing device (hand fork type), aonla de-stoning machine, cabinet type solar de-hydrator, sprayer, automatic packaging unit, CFB boxes of 2 kg capacity for packaging of mango and guava fruits.

Services offered

Institute is offering various services like scientific literature on different technologies of subtropical fruits.

Soil and leaf analysis, on the spot inspection and advisory service for the problems of subtropical fruit production, front line demonstration of Institute technologies, consultancy services to govt. and non-govt. organizations, evaluation of chemicals/ fungicides / insecticides etc, production and sale of healthy and genuine planting materials of different varieties of mango, guava, aonla and bael, production and sale of fruit products. Institute organizes gosthies, demonstrations, exhibitions, scientists-farmers interaction, radio and TV talks etc. for the benefit of end users.

H. Ravishankar, Director

Central Institute for Subtropical Horticulture

State Finances: From Crisis to Comfort

2011-04-19T13:16:00.000+05:30

At the end of the last century the state faced a “fiscal crisis of unprecedented proportions”. In 1998 total tax revenue collection (Own Taxes) was around Rs 7000 crore and the salary expenditure, for around Sixteen Lac employees, was Rs 11000 Crore. In other words state’s own revenues were not even enough for paying salaries to state employees. However the decade that followed saw a committed effort by the state and the results are there for every one to see. Today Uttar Pradesh paints an exceptional story of fiscal transformation. The performance is so exceptional that in recent years UP emerges as one of the front runners on a number of indicators. This naturally calls for an objective assessment of UP’s Budgetary scenario.

It will be most appropriate to analyze state’s budgetary performance in the backdrop of Twelfth Finance Commission targets on six indicators, which all states are required to achieve. These indicators include Fiscal Deficit to be brought down to 3% of GSDP; Revenue deficit to be eliminated; Own tax revenues higher than 6% of GSDP; Non tax Revenues higher than 1.4% of GSDP; and Debt burden lower than 30% of GSDP. Interestingly on five of the six indicators, in 2008-09 i.e. much before the targeted timeframe, UP outperformed the targets laid down by the Twelfth Finance Commission (TFC). Debt was the only indicator where UP lagged behind the targets.

Figures ‘A1’ & ‘A2’ present a revealing interstate comparison on Revenue Deficit performance across seventeen major states. During 2004-07 (average) UP had a revenue deficit of 0.6% against the TFC target of 0%. During 2007-08, however, UP records a Revenue Deficit of (-) 2.6% (or Revenue Surplus of 2.6%). Interestingly UP ranked tenth during 2004-07, however by 2007-08 UP bettered seven major states and emerged as the third best performer in the country.

Fig ‘A1’ Revenue Deficit/ Surplus in 17 Major States in 2004-07 & 2007-08

Fig ‘A2’ Revenue Deficit/ Surplus in 17 Major States in 2008-09

On the Fiscal Deficit front too UP records a deficit of 4% during 2004-07 (average). This was 1% short of TFC target. However, in 2007-08 UP recorded Fiscal Deficit of 3% which was in conformity with the TFC targets. Figure ‘B’ presents a comparative picture of 17 Major States in the country. It is obvious that during 2004-07 UP ranked 12^th and moved to 8^th rank in 2008-09.

Fig ‘B’ Fiscal Deficit of 17 Major States

The impact of the implementation of Sixth Pay Commission recommendations along with the global meltdown compromised UP’s Fiscal Deficit which slipped to over 6% of GSDP, revenue surplus also came down significantly. However, in 2010-11 Fiscal deficit has been brought down to 3.9% and was expected to go down to around 2.9% in 2011-12. Revenue surplus was never allowed to get converted into revenue deficit irrespective of the pressures involved. And in 2011-12 it rises to over 5000 crore. This certainly is an indicator of increased fiscal consolidation and an expression of fiscal responsibility.

Equally significant is the rise in capital expenditure. In 1998, the year of fiscal crisis in UP, Capital expenditure shrank to around 8%. In other words state was left with no capacity to initiate development. By 2009-10 it rose to 18% and now in 2011-12 budget it rises to 25.7% of the total expenditure. This is a critical indicator of state’s capacity to initiate development, and suggests towards the potential of the state to move into fast growth path. The rise in social expenditure is equally significant. Education alone records a rise of 19.6% in the current budget. This ‘development space’ is substantially the outcome of responsible fiscal management. Revenue buoyancy in state taxes has been a major contributor to this fiscal performance. It need be highlighted that in 2009 revenues of government of

India

fell by around Rs 60000 crore but UP’s revenues rose by 17% in the same year. The story seems to continue in this budget too. State’s own revenue rises to around Rs 50000 crore which is higher than the projections made in 2008-09 by some of the international agencies.

It may be noted that after introduction of VAT tax, collections have declined in the first year after such introduction. However, in UP taxes seem to show significant buoyancy in 2008/09 and thereafter. Interestingly, Uttar Pradesh has become the first state in the country to register growth in tax collection in the first year after introduction of VAT. These are encouraging signs and augur well for the possibility of further fiscal consolidation, at least in the medium term.

Fiscal space is the pedestal on which the state weaves its effort towards development and social change. It need be noted that during the 1990s UP’s rate of growth was only 4%. In last three years the state has grown at over 7%. Rising fiscal space and increased capital expenditure have hugely contributed to this changing story. The budget indicates towards stabilising state finances, rising capital expenditures and falling deficits. This year is also significant because Government of India’s revenues, which have taken a beating, have begun to rise implying that state’s share in central taxes will also rise; The arrears burden of the sixth pay commission has also been taken care of and will not burden future state budgets. This will only improve the fiscal space further. In other words the state is development ready, and an appropriate marshalling of resources can take the state into the higher trajectory of development and social change.

Dr Arvind Mohan

· Arvind Mohan is an eminent economist, he teaches at Lucknow University and is Associated with a number of National and International Organizations.

If Noida is E-City, Lucknow is B-City

2011-04-13T12:37:00.000+05:30

When India’s largest producers of gram -- Punjab and Haryana -- could no longer cultivate the crop due to degradation of soil because of excessive use of chemicals, Uttar Pradesh’s state capital came to the country’s rescue. Bio- inoculants, a patented technology produced within the laboratories of National Botanical Research Institute (NBRI) produced dramatic results both for the growth of the plants and soil. Today, NBRI (www.nbri.res.in) has not only offered path breaking technological support for growing gram, but it is also a leader in transgenic cotton, enriched microbes for ushering organic cultivation, conserving biodiversity, biofuel crops and managing wastelands for optimizing crops.

Uttar Pradesh’s biotechnological achievements are not limited to the research work done by NBRI. For decades, the state has been an important centre of education, with well-respected universities like Aligarh Muslim University and Banaras Hindu University (BHU) in its midst. Both institutions are well-known for teaching medicine and engineering; BHU, to this day, continues to be ranked among the best universities in India (according to a recent survey of India Today magazine). The tradition of excellence continues well beyond these universities. Lucknow, for instance, is regarded as a B-class town in terms of urbanization. On the biotechnology front, though, the city is next only to Bangalore and Hyderabad. After all, which other city can boast of being home to centers-of-excellence like Central Drug Research Institute (CDRI), National Botanical Research Institute (NBRI), Indian Institute of Toxicology Research (IITR), Central Institute of Medicinal and Aromatic Plants (CIMAP) and Indian Institute of Sugarcane Research (IISR), National Bureau of Fish Genetic Resources (NBFGR) and Central Institute of Subtropical Horticulture (CISH), to name just a few.

Many drugs that India calls its own have been produced, right here on UP soil, at CDRI’s (www.cdriindia.org) own laboratories. Some examples are Centchroman (a contraceptive), Centbucridine (a new anaesthetic), Arteether and Bulaquin (both anti-malarial drugs) and so on. That’s not all. CDRI’s Gugulipid (a drug that keeps cholesterol levels under control) and Memory Sure have changed the paradigm of how Ayurvedic recipes can find place in modern medicine. There is no institute that can match CDRI’s fundamental research, while developing products that have done the nation proud.

Giant strides have been made not only in the area of drug research, but also in other areas. CIMAP has made India a Mentha country with its new varieties, aggressive technology translation and proactive rural participation to bring acres-on-acres under Mentha cultivation. That’s not all that CIMAP has given India; with Artemsin (from Artemisia annua) it will also help wipe off malaria from developing countries. In this, CDRI and CIMAP have worked together to develop the anti-malarial drug.

UP is a leader in the areas of toxicology to sugarcane research as well. IITR (earlier ITRC) (www.iitrindia.org), the only institute of Toxicology in the country had always shouldered the responsibility when India has been faced with environmental health challenges. Be it the Bhopal Gas tragedy, shortage of drinking water after floods in Orissa or outbreak of dropsy due to consumption of mustard oil adulterated with argemone oil in Delhi; through its research, IITR developed techniques for monitoring of water quality and its disinfection. With it’s path-breaking research, IITR continues to be an institute of repute in the field of toxicology research, training and testing.

Likewise, Indian Institute of Sugarcane Research (www.iisr.nic.in) has played an important role in the development of new varieties of sugarcane and their propagation. The Central Institute of Subtropical Horticulture (CISH) (www.cishlko.org) is well known for its mango research and introduction of new varieties of mango. SGPGI. (www.sgpgi.ac.in) a super specialty hospital and CSSMU (www.kgmcindia.edu) (earlier KGMC) are centres of excellence in biomedical sciences and healthcare. In a similar vein, the famous Lucknow University has been a seat of learning and human resource.

Biotech Park, Lucknow (http://www.biotechpark.org.in) was set up in a small area with the objectives of providing common facilities to start-up Biotech industries. It sought to provide support to industries for undertaking research and developmental work, apart from scaling up technologies and accelerating their commercialization. It gave an impetus to technologies developed by the research institutions in the city and state, provided critical support in human resource development, in effect, adding to Biotech-city armamentarium. The Biotech park is an archetype and exemplification of bridging the gap between science and technology and learning and entrepreneurship. The park will soon have a WHO-GMP compliant facility being setup by M/s Lifecare Innovations Pvt. Ltd, a R&D based Biotech Company, producer of fungisome for the treatment of fungal infections and Kalazaar.

In view of the above, the city was rightly declared as “Biotechnology City” on January 3, 2002 during the 89^th Annual Session of the Indian Science Congress held at Lucknow. With rapid infrastructure development, Lucknow is fast growing into a metro city. With several universities and colleges coming up in the private sector, the City is bound to become an important biotechnology hub in the Northern parts.

Prof. P.K.Seth

CEO,Biotech Park

Taj Mahal web site - The Most Innovative Use of Information Technology

2011-03-31T18:55:00.000+05:30

The U.P. Tourism Website on the Taj Mahal has been awarded by the Government of India, Ministry of Tourism as the most innovative use of information technology (http://tajmahal.gov.in/).

Taj Mahal located at Agra-Uttar Pradesh, the symbol of grandeur, beauty and love is undoubtedly one of the finest examples of Mughal architecture in India. One of the Seven Wonders of the Modern World and a UNESCO heritage site it attracts almost 30% of all foreign tourists to India.

In view of the immense importance of the Taj Mahal, the Department of Tourism, Government of Uttar Pradesh decided to commission an exclusive detailed website of the Taj Mahal.

Since its launch the website has been visited approximately by 150,000 visitors till March, 2011, which proves that a large number of tourists, historians, research scholars and people from all over the world are using the website.

The website includes many useful features, such as a photo gallery of the 'Taj' in its various moods, exclusive video clips of the monument, its history and other details.

The website is also interactive and one can upload his/her comments. Information of other monuments of Agra, details of accommodation, certified guides, along with contact details of U.P. Tourism offices in Lucknow & Agra are also provided. The website has now been recognized by UNESCO as one of the three recognized websites of the Taj Mahal.

Avnish Awasthi

Secretary, Tourism, U.P.

Year	Handicrafts export of India	Handicrafts export of U. P.	% Share of UP in total export
2008-09	8183.12	3630.00	44.90
2009-10	8718.94	3923.00	45.00
2010-11	10533.96	4723.00	44.84