5.33. The generation schemes which have been or are expected to be commissioned in Fifth Plan period are shown in Annexure 28. The regionwise break up of installed capacity is expected to be as in Annexure 29.
4.Industry and Minerals 5.34. The stresses and strains in the economy kept the industrial growth low 2.5% during 1974-75 and 5.7% during 1975-76. Even so, significant increase in production have been achieved in some of the basic industries like steel, coal, cement, non-ferrous metals and power generation. Decline was particularly noticed in industries like passenger cars, consumer durables and cotton textiles.
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5.35. Some of the steps taken to correct this situation can be mentioned, 21 industries including cotton spinning, basic drugs, and industrial machinery, have been delicensed. In respect of 29 selected industries, the existing units including foreign and MRTP companies have been permitted to utilise their installed capacity without limit. In order to promote exports of engineering goods, 15 engineering industries have been allowed the facility of automatic growth of capacity --5% per annum or up to a ceiling of 25% in a Plan period in physical terms. Various facilities have been extended to non-resident Indians for the establishment of industrial undertakings and for investing their earnings in selected industries. The resources of IDBI and other term lending institutions are also proposed to be augmented. Conditions are now favourable for maintaining the tempo of growth in industrial production and investment, achieved during the last quarter of 1975-76.
5.36. In making revised allocations, speedy completion of projects and appropriate action for starting new projects with long gestation periods have been kept in mind. As against an outlay of Rs. 13,528 crores envisaged in the draft Fifth Plan, the revised figure is placed at Rs. 16,660 crores : Rs. 9660 crores in the Central and States Public Sectors and Rs. 7000 crores in private and cooperative sectors.
Central Public Sector 5.37. A detailed list of projects and programmes included in the Central sector of the plan is given in Annexure 30. The broad break up of certain important groups of industries in the public sector is as follows
Outlays for important groups of industries
(Rs. crores)
Industry Outlay Industry Outlay
1. Steel 1675 7. Nonferrous metals 468
2. Fertilisers 1533 8. Iron are (including 513
Kudremukh Project)
3. Coal (including 1147 9. Paper and newsprint 203
lignits)
4. Oil exploration, 1575 10. Cement 102
refining and
distributio 11. Textiles 104
5. Petro chemicals 349 12. Ship Building 147
6. Machinery and
engineering
industries 365
5.38. The targets of production visualised in the Plan for selected industries is given in Annexure 31. The average rate of industrial growth during the Fifth Plan is reckoned to be around 7% per annum. In view of the relatively
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lower rate of growth in the first 2 years of the plan, the growth rate in industrial production in the remaining 3 years of the Plan will have to be maintained around 9 to 10%.
Steel 5.39. The domestic demand for finished mild steel is estimated at about 7.75 MT by 1978-79, while the production is expected to be 8.8 MT including a production of 1.06 NAT from the mini steel plants and re-rollers. Though a few special categories of steel will still need to be imported, on the whole the country ha's now emerged as a net exporter of steel.
5.40. The 1.7 MT stage of Bokaro is expected to be completed by the end of 1976. This plant, except the cold-rolling mill, is expected to expand to 4.0 MT by June 1979. The work on the expansion of Bhilai steel plant to 4.0 MT is expected to be completed by December 1981. Plans have also been drawn up for rehabilitation and modernisation of the IISCO plant.
5.41. Considering the longer gestation period in the steel industry, various alternatives for expansion and development are under consideration.
Non-Ferrous Metals 5.42. The Korba plant is expected to achieve its full capacity of 100,000 tones of aluminium along with associated fabricating facilities, before the end of the Fifth Plan. Along with the capacity existing in the private sector, this will contribute to the total capacity of 325,000 tones and will be adequate to meet the domestic requirements.
5.43. With the commissioning of the Khetri copper complex, the current smelling capacity is 57,000 tones per annum. Provision has been made for the development of mining projects at Malanjkhand and Rakha and expansion of copper mines in the Bihar belt. The Plan envisages a production target of 37,000 tones of copper from domestic ore by 1978-79.
5.44. The capacity for zinc production is expected to increase to 95,000 tones by 1978-79 with the completion of the expansion of Debari smelter (45,000 tones) and installation of a new smelter at Vizag (30,000 tones).
5.45. A provision of Rs. 468 crores has been made in the Plan towards the various schemes included for the development of non- ferrous metal and associated facilities.
Engineering Industries 5.46. The bulk of the investments is for completing the programme for the production of electric generation equipment and supporting facilities in Bharat
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Heavy Electricals Limited and for diversification of the production programme of Hindustan Machine Tools for the manufacture of lamp machinery, printing machinery, tractors and watches. Provision has also been made for balancing facilities at Heavy Engineering Corporation and for rehabilitation and diversification programmes of engineering undertakings taken over by the Government.
5.47. A large step up in scooter production is envisaged. The concept of a mother unit supplying components for assembly to a number of subsidiary units has been introduced in the public sector.
5.48. Provision has been made for the Hindustan Shipyard to achieve a production of three ships per annum of 21,600 DWT size. Cochin shipyard will have a capacity of two ships per annum of 75,000 DWT size by 1977-78. The further expansion to four ships per annum will also be started before the end of the Plan. The establishment of one or more new shipyards is currently under consideration.
5.49. A detailed plan for the development of electronic industry on a scientific basis has been drawn up. Provision has been made for testing facilities and R & D support for the growth of the electronic industry.
Fertilisers 5.50. The installed capacity for nitrogenous fertilisers is expected to reach 4.7 million tones by 1978-79. Since a part of this capacity will be realised only in the last year of the Plan, the production target is placed at 2.9 million tones.
5.51. The demand for phosphatic fertilisers has not increased to the extent envisaged. Measures have been initiated to stimulate consumption of phosphatic fertilisers. Further expansion of phosphatic fertiliser capacity is being planned.
5.52. Apart from the new plants envisaged in the public sector, it is expected that additional capacity will be promoted in the private sector.
5.53. A total provision of Rs. 1533 crores has been made in the Fifth Plan for fertilser projects as compared ro Rs. 1093.28 crores in the draft Plan. This includes a lumpsum provision for new fertiliser projects and also fertiliser projects in the cooperative sector.
Oil and Natural Gas 5.54. Programme for the exploration and exploitation is being stepped up to intensify activities in the most promising oil bearing areas where the payback is likely to be quicker. Resources are, therefore, mainly being canalised to the development and production of oil from off-shore and selected on-shore areas.
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5.55. A time-bound programme has been drawn to develop production of oil from Bombay High to a rated capacity of 10 million tones per annum by 1980-81. Studies for optimal exploitation of resources, transportation, processing and utilisation of the oil and associated natural gas are being currently carried out.
5.56. The draft Plan envisaged a step up of crude oil production from 7.2 million tones in 1973-74 to 12.0 million tones in 1978-79. The production target for crude oil is now placed at 14.18 million tones.
5.57. Taking into account the enlarged programme, the outlays for ONGC during the Fifth Plan, have now been revised to Rs. 1056 crores as compared to Rs. 420 crores in the Draft Fifth Plan.
Oil Refining 5.58. The refinery programme included in the Plan cover the completion of the Haldia refinery, the expansion of Koyali and the establishment of refineries at Mathura and Bongaigaon. All these projects are expected to be completed in the Fifth Plan excepting Mathura refinery which is scheduled to be commissioned by 1980. By the end of the Fifth Plan, refining capacity will be stepped upto 31.5 million tones. Provision has been made in the Plan for these schemes.
Petrochemicals 5.59. The first major petrochemicals complex at Baroda will be completed during the Fifth Plan period. The Aromatic Project of the complex has already been commissioned. The Olefines and the downstream units are expected to be commissioned between August, 1977 and April, 1978. The polyester filament yarn project of Petrofils Cooperative Ltd. is also expected to be commissioned in phases between March and July, 1977. A provision of Rs. 349 crores has been made for the above mentioned schemes. A Refinery-cum-Petrochernical unit at Bongaigaon has been included in the Plan.
Coal 5.60 In consonance with the broad policy frame for the Energy sector drawn up by the Fuel Policy Committee, the Draft Fifth Plan envisaged a production target of 135 million tones by 1978-79.
5.61. A comprehensive programme of advance action involving bulk purchase of standardised plant and equipment and various technical, managerial and administrative improvement together with a favourable industrial climate has resulted in higher production of coal.
5.62. The demand for coal, however, has not kept peace with production.
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After keeping in view the outlook for coal consuming industries and a review of the current energy situation, the likely demand of coal at the end of the Fifth Plan period has now been projected at 124 million tones. Provision has been kept for an export of 2.5 million tones of coal in 1978-79 as compared with 1.5 million tones envisaged earlier. Consistent with the revised outlook in demand, the production programmes are being rephased, in a way which would not hamper the future growth.
5.63. Even with this target, the outlays for the Plan are likely to be of the order of Rs. 1025 crores as against the earlier provision of Rs. 747.60 crores. This includes the requirements for the setting up of 10 million tones of additional washery capacity, of which, 4 million tonnes will be operational by 1978-79. Two units of low temperature carbonisation plants are also contemplated. Adequate provision has been made for better housing facilities and other welfare activities etc.
Lignite 5.64. The draft Fifth Plan made a provision of Rs. 39.80 crores for the Neyveli Lignite Project which was expected to reach a production of 6.0 million tones in 1978-79.
5.65. On the basis of the review now carried out, this provision has been increased to Rs. 122.25 crores, mainly on account of escalated cost of the specialised mining equipment which is to be imported. In view of the slippages in the implementation of the programme, a production of 4.5 million tones of lignite is now expected by the end of the Fifth Plan period, the production of 6 million tonnes being attainable by 1980-81.
Iron Ore 5.66. The production target envisaged for iron ore in the Draft Plan was 58 million tonnes. Due to slight fall in the domestic demand, the production now envisaged is 56 million tonnes,
5.67. As currently reckoned Donimalai, Bailadila-5 and Kiriburu expansion projects will be commissioned in 1976-77. The development of Meghahatuburu project for meeting the requirements of Bokaro steel plant at the 4 million tonnes stage is expected to be taken up shortly. Provision has also been made for establishing pelletisation capacity. A notable feature in the field of iron ore development has been the decision to develop the Kudremukh magnetite deposit for a production of 7.5 million tonnes of magnetite concentrates at a cost of around Rs. 567 crores.
5.68. Based on current estimates, a provision of Rs. 107.57 crores, excluding the investments on Kudermukh Project, has been made in the Plan.
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Consumer Industries
Sugar 5.69. To achieve speedy implementation of licences issued and to make new sugar factories and expansion schemes economically viable, incentives were announced in September, 1975. The capacity is expected to increase from 4.3 million tonnes in 1973-74 to 5.4 million tonnes in 1978-79.
Cotton Textiles 5.70. From a production of 7900 million metres of cloth in 1973-74, the production is expected to go upto 9500 million metres in 1978-79. The share of the mill sector is envisaged at 4800 million metres and the decentralised sector would contribute the balance of 4700 million metres.
5.71. The spinning capacity is being expanded so as to ensure adequate availability of yarn to the decentralised sector.
5.72. To accelerate the modernisation of the textile industry, a scheme to extend long term finance at concessional rate is being drawn up. A provision of Rs. 104 crores has been made for the rehabilitation and modernisation of the mills of the National Textile Corporation.
Cement 5.73. The capacity in the cement industry is expected to go up to 23.5 million tonnes by 1978-79 from 19.7 million tonnes in 1973- 74.
5.74. The share of the public sector (Central and States) in the cement industry is expected to increase from 2.30 million tonnes in 1973-74 to 3.88 million tonnes. in 1978-79
Drugs and Pharmaceuticals 5.75. The drug industry which was mainly confined to formulation activities and the manufacture of bulk drugs from penultimate intermediates has in a progressive manner entered into the field of manufacture of bulk drugs.
5.76. Public sector has been given a prominent role in the overall development of drug industry. A significant step up in production in the area of antibiotics, synthetic drugs and formulations in public sector is envisaged.
Vegetable Oils and Vanaspati 5.77. The production of vanaspati is expected to increase from 449,000 tonnes in 1973-74 to 610,000 tonnes in 1978-79.
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Paper and Newsprint 5.78. The production of paper and paper board is expected to be stepped up to 1.05 million tonnes by 1978-79 from 0.77 million tonnes in 1973-74. Provision has been made for initiating construction of two new projects in the Central sector.
5.79. Production of newsprint is envisaged to be stepped up to 80,000 tonnes by 1978-79. The additional production will be contributed primarily by the expanded capacity of NEPA and the Kerala Newsprint project in the public sector.
5.80. A provision of Rs. 203 crores has been made in the Central Sector of the Plan for the development of paper and newsprint industry.
Industrial and mineral programme relating to atomic energy 5.81. The major programmes in this field are the completion of heavy water plants, the schemes under the nuclear fuel complex and the expansion of public sector undertakings under the Department of Atomic Energy. A provision of Rs. 184.18 crores has been made for these programmes.
5. Village and Small Industries
Small Scale Industries 5.82. The number, volume and range of production of small scale industries have continued to grow. Schemes of extension services and increase in institutional finance have materially assisted in this increase. Regional testing centres have been established. A few branches of Small Industries Service Institutes have also been opened.
5.83. For the next two years, adequate provisions have been made both for the continuing schemes and for schemes to be formulated for margin or seed money to facilitate institutional finance and for supply of machines on hire-purchase terms.