13.22. For promoting the programmes outlined above, the Small Scale Industries Development Organisation including the Small Industries Service Institutes will be strengthened with technical staff and provided with the equipment required for testing and other facilities. The State Industries Directorates and Small Industries Cooperation will also be adequately strengthened. The scheme for supply of machines on hire-purchase terms by the National Small Industries Corporation and States Small Industries Corporation will be expanded with the assistance of banking institutions. Efforts will be, continued to collect and disseminate information about the parts and components in demand by large units and to encourage the large industries in the public and private sectors, to obtain their requirements to the maximum possible extent from small units. As regards new large industrial undertakings in the public and private sectors, project reports and applications will be scrutinised carefully with a view to excluding from their capacity the items capable of being produced in the small sector.

13.23. Industrial Estates.-The programme of industrial estates will be consolidated. Ordinarily, no new estates will be set up in the vicinity of cities and large towns. However, in exceptional cases where there is an effective demand for them, the States will provide developed sites to small enterpreneurs or their cooperatives and joint stock companies, on which they could construct their own factory buildings. The programme of setting up industrial estates, complete with factory premises will, however, be pursued in small towns and promising rural and backward areas. Selection of sites for industrial development and industrial estates will be made on the basis of quick techno-economic surveys. The public sector undertakings will be encourged to establish estates for small ancillary units. The funds allotted for the industrial development areas would be used for promoting of small

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scale industries along with medium and large scale industries. Establishment of cooperative industrial estates will also be encouraged.

13.24. Handloom and Powerloom.-Production of cotton cloth by the decentralised sector (viz., the handloom, powerloom and khadi industries) estimated at 3,596 million meters at present, is expected to increase to 4250 million metres in 1973-74. Greater efforts will be made to enable handloom cooperatives to obtain their credit requirements for working capital from the State Cooperative Banks. Steps will be taken to arrange regular supply of yarn of the counts needed by the societies and also other essential raw materials at reasonable rates, to train the weavers in improved equipment and appliances, to enforce more effectively restrictions on production of specified, varieties of cloth already reserved exclusively for the handloom sector, to concentrate on production of' those varieties of cloth which provide higher earnings and are required for exports, and to set up common service facilities centres for improvement of quality. It is proposed to reduce the rebate on sale and to extend certain types of assistance and facilities to the weavers outside the cooperative fold. The value of the exports of the handloom products is estimated to increase from about Rs. 8.2 crores in 1968 to about Rs. 15 crores by 1973-74.

13.25. In pursuance of the recommendations of the Powerloom Enquiry Committee, 105,000 powerlooms were allotted to the States and Union Territories in 1966, of which about 14,000 powerlooms had been installed by the end of June 1969. The scheme for financing production and marketing activities of the handloom societies through the State Cooperative Banks has recently been extended to the powerlooms in the cooperative sector. It is proposed to liberalise patterns of assistance for powerlooms to accelerate the programme.

13.26. Khadi and Village Industries.-It is envisaged that additional production of traditional including Ambar khadi in future will be on self-sufficiency basis, As regards the new 2-spindle and sets of 6- and 7-spindle charkhas being tried on pilot basis, an Evaluation Team has recently been set up to make a detailed assessment of their working, to examine the economic and social justification and technical and organisational feasibility of their large-scale introduction and to suggest the future role of the traditional and Ambar charkha programmes during the Fourth Plan period. In order to undertake a large programme for development of village industries, it is proposed to utilise larger outlay to improve progressively their production techniques so as to bring them to a viable level, as recommended by the Asoka Mehta Committee. Accordingly, of the total Central outlay of Rs. 95 crores, about Rs. 59 crores are to be utilised for khadi and Rs. 36 crores for the development of village industries, including Rs. 22.50 crores for subsidy in lieu of interest on loans for both khadi and village industries.

13.27. Sericulture.-The main problem of the sericulture industry continues to be a relatively high cost of production on account of shortage of food for silk worms, short supply of disease-free layings and inefficient reeling equipment. Under the programme of the Central Silk Board, priority will be given to research to ascertain the relative merits of multivoltine and bivoltine races so as to determine suitable combinations for large scale use in future. In the silk growing States efforts will be directed mainly towards increasing the production through greater use of fertilisers, larger assistance from financial institutions for sinking wells for irrigation, establishment of graft nurseries and seed stations, increasing the supply of healthy layings, construction of grainages and larger assistance for cooperatives. For improving the quality of reeled silk, the programme of introducing cottage basins in place of the traditional charkhas will be intensified and efforts made for organisings them into inexpensive cottage filatures with the use of power and steam. The value of exports of silk fabrics and waste is expected to increase from about Rs. 6 crores in 1968 to about Rs. 10 crores by 1973-74. Production of raw silk is expected to increase from 2.32 million kgs. in 1968-69 to about 3.0 million kgs. in 1973-74.

13.28. Coir.-A Study Group on Coir Industry has recently been set up to make a comprehensive review of progress since the beginning of the Third Plan period with particular reference to its export performance and to recommend suitable changes in the programme for its development so as to develop the industry on sound lines keeping in view the objectives of increasing the output of coir yarn and other diversified products improving their quality, and stepping up of their exports and internal sales. In the meantime, schemes formulated by the Coir Board for research into better methods of dyeing, bleaching and finishing of coir goods for improving quality and evolving new products for domestic and export markets, would be confined. Mechanisation of the mat weaving and spinning sectors will be assisted as also the establishment of mechanical de-fibering plants. It has recently been decided by the Reserve Bank to advance loans to State Cooperative Banks for financing coir cooperatives. It should be possible for the coir industry to avail itself of these credit facilities as also those available under the State Aid to Industries Acts. The value of the exports of coir industry is expected to increase from about Rs. 14.5 crores in 1968-69 to about Rs. 17 crores in 1973-74.

13.29. Handicraft.--The programme of development for handicrafts will aim at improvement in the productivity of artisans through supply of improved appliances and introduction of Dew designs, quality control, promotion of organised production, preservation of skills, promotion of cooperatives and associations of craftsmen and expansion of exports and internal sales. Special efforts will be made for the development of those selected crafts which have an expanding demand in the export market. It is proposed to setup model centres for stimulating the growth of well organised units in which new designs and improved tools would be used to produce quality handicrafts. For preservation of skills, facilities will be provided for the training of young apprentices under master craftsmen. Now emporia will be set up for expanding sales. The sales through public emporia are expected to increase from the present level of about Rs. 4 crores to Rs. 10 crores and the value of exports from about Rs. 76. 5 crores; to Rs. 100 crores by the end of the Fourth Plan.

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13.30. Rural Industries Projects.-The Centrally sponsored Rural Industries Projects in which progress has not been encouraging will be wound up; the others will be continued. It is envisaged that the staff at the Centre and in the States will pay special attention to identification of the technological and economic problems and possibilities revealed by progress of various industries in the project areas and arrange for research and investigation on them through appropriate agencies.

13.31. Collection of Statistics.-Under the Annual Survey of Industries, factories employing 50 or more workers and using power and 100 or more workers without using power are individually enumerated: the smaller factories are covered, not by census, but on a sample basis. It is proposed to collect annual statistics on a census basis for the smaller factories according to a phased programme. Under a Centrally sponsored scheme, data for non-household units below the factory level employing five or more workers will be collected on a sample basis for all States.