Promotion of Balanced Regional Development
PROMOTION OF BALANCED REGIONAL DEVELOPMENT
16.1One of the objectives of setting up ofpublic enterprises was to promote balancedregional development. In order thatindustrialization may benefit the economy ofthe country as a whole, it is important thatdisparities in levels of development betweendifferent regions are progressively reduced.The pace of economic development ofdifferent States and Regions in the countryhas not been uniform over the years owingto historic reasons and a number of otherfactors. Even the States which are fairly welldeveloped, have pockets and areas whichhave not been able to keep pace with theprogress achieved elsewhere. The lack ofindustries in different parts of the country areoften due to the factors such as non-availability of the raw material or other naturalresources, non-availability of power, watersupply and transport facilities which have notbeen developed there. Therefore oneof theaims of the national planning is to ensurethat these facilities are steadily madeavailable to areas which are at presentlagging behind. Recognising the existence ofthese disparities in economic development ofdifferent States/Regions, the Industrial PolicyResolution adopted by the Parliament in 1956and subsequent Resolutions, emphasizedthe need of accelerated rate of economicgrowth and speedy industrialization andremoval of imbalances in the levels ofdevelopment between different regions/ areas.16.2The States in which the public sectorenterprises have been set up by the CentralGovernment became the direct beneficiariesand stand to gain manifold in terms ofremoval of regional imbalances, increasedemployment opportunities, balanced growthof small scale and ancillary industries,resource mobilization etc. Any study of thebenefits flowing from the central public sectorenterprises to the economy will remainincomplete if these contributions to the Stateeconomies are not taken into account.16.3Industrialisation plays an importantrole in correcting the regional imbalancesand accelerating the industrial growth. Inorder to remove regional inequalities andencourage balanced industrial growth ofdifferent States/Regions, subsidies toindustries set up in backward districts/non-industry districts are given. While deciding onthe locations of central public sectorenterprises, due consideration is also givento backwardness of the regions.16.4Another dimension of the balancedregional development through setting uppublic enterprises is the expansion of theemployment opportunities in the backwardregions. The establishment of central publicsector enterprises has resulted in generationof substantial employment, both direct andindirect in the States where the units arelocated. The work force recruited locally inthese enterprises, constitute a substantialportion of the total employment. State-wisedistribution of gross block and employmentfor the year 2004-05 and 2003-04 is given inTable No. 16.1.