16 PROMOTION OF BALANCED REGIONAL DEVELOPMENT
16.1 One of the objectives of setting up of
public enterprises was to promote balanced
regional development. In order that
industrialization may benefit the economy of
the country as a whole, it is important that
disparities in levels of development between
different regions are progressively reduced.
The pace of economic development of
different States and Regions in the country
has not been uniform over the years owing
to historic reasons and a number of other
factors. Even the States which are fairly well
developed, have pockets and areas which
have not been able to keep pace with the
progress achieved elsewhere. The lack of
industries in different parts of the country are
often due to the factors such as non-
availability of the raw material or other natural
resources, non-availability of power, water
supply and transport facilities which have not
been developed there. Therefore oneof the
aims of the national planning is to ensure
that these facilities are steadily made
available to areas which are at present
lagging behind. Recognising the existence of
these disparities in economic development of
different States/Regions, the Industrial Policy
Resolution adopted by the Parliament in 1956
and subsequent Resolutions, emphasized
the need of accelerated rate of economic
growth and speedy industrialization and
removal of imbalances in the levels of
development between different regions/
areas.
16.2 The States in which the public sector
enterprises have been set up by the Central
Promotion of Balanced Regional Development
Government became the direct beneficiaries
and stand to gain manifold in terms of
removal of regional imbalances, increased
employment opportunities, balanced growth
of small scale and ancillary industries,
resource mobilization etc. Any study of the
benefits flowing from the central public sector
enterprises to the economy will remain
incomplete if these contributions to the State
economies are not taken into account.
16.3 Industrialisation plays an important
role in correcting the regional imbalances
and accelerating the industrial growth. In
order to remove regional inequalities and
encourage balanced industrial growth of
different States/Regions, subsidies to
industries set up in backward districts/non-
industry districts are given. While deciding on
the locations of central public sector
enterprises, due consideration is also given
to backwardness of the regions.
16.4 Another dimension of the balanced
regional development through setting up
public enterprises is the expansion of the
employment opportunities in the backward
regions. The establishment of central public
sector enterprises has resulted in generation
of substantial employment, both direct and
indirect in the States where the units are
located. The work force recruited locally in
these enterprises, constitute a substantial
portion of the total employment. State-wise
distribution of gross block and employment
for the year 2004-05 and 2003-04 is given in
Table No. 16.1.
149
 Table 16.1
Statewise Distribution of Gross Block and Employment
(Gross Block-Rs. in Crore)
(Employment-No.in Lakh)
S. State/Union Territory As on 31.3.2005 As on 31.3.2004 %age share as on Ranking as on
No. 31.3.2005 31.3.2005
Gross Employ- Gross Employ- Gross Employ- Gross Employ-
Block ment Block ment Block ment Block ment

1. Andhra Pradesh 44545.73 0.99 42433.22 1.01 6.86 5.85 3 7

2. Arunachal Pradesh 2961.14 0.02 2183.15 0.02 0.46 0.12 23 25
3. Assam 28153.81 0.51 26334.44 0.53 4.34 3.01 10 12
4. Bihar 12086.79 0.18 10403.24 0.19 1.86 1.06 19 19
5. Chhattisgarh 16072.47 1.00 12089.73 1.04 2.48 5.91 17 6
6. Delhi 21713.24 0.79 20249.20 0.76 3.34 4.67 12 10
7. Goa 436.65 0.03 395.93 0.02 0.06 0.18 27 23
8. Gujarat 42295.53 0.50 39156.40 0.53 6.51 2.95 5 13
9. Haryana 16541.77 0.21 13016.90 0.20 2.55 1.24 16 18
10. Himachal Pradesh 17390.10 0.10 16301.70 0.11 2.68 0.59 14 21
11. Jammu & Kashmir 11764.22 0.09 11002.75 0.09 1.81 0.53 21 22
12. Jharkhand 20654.82 2.31 22869.12 2.49 3.18 13.64 13 1
13. Karnataka 28543.88 0.81 29572.93 0.83 4.40 4.78 9 9
14. Kerala 16828.32 0.42 15300.80 0.45 2.59 2.48 15 15
15. Madhya Pradesh 29830.52 1.09 27655.11 1.10 4.60 6.44 8 4
16. Maharashtra 122899.24 2.01 107826.07 2.08 18.93 11.87 1 2
17. Manipur 261.48 0.01 242.11 0.01 0.04 0.06 28 29
18. Meghalaya 224.17 0.01 186.36 0.02 0.03 0.06 29 30
19. Nagaland 1075.43 0.01 1054.59 0.01 0.17 0.06 26 28
20. Orissa 33354.47 0.69 31415.45 0.68 5.14 4.08 6 11
21. Punjab 9288.04 0.27 8704.52 0.28 1.43 1.59 22 17
22. Rajasthan 13900.88 0.30 15399.46 0.31 2.14 1.77 18 16
23. Sikkim 1990.52 0.01 1566.39 0.01 0.31 0.06 24 32
24. Tamilnadu 43475.42 1.09 38517.46 0.88 6.70 6.44 4 5
25. Tripura 1659.58 0.02 1488.25 0.02 0.26 0.12 25 27
26. Uttar Pradesh 45738.01 0.90 39933.27 0.89 7.04 5.32 2 8
27. Uttaranchal 11767.38 0.16 11526.08 0.20 1.81 0.95 20 20
28. West Bengal 31397.67 1.92 29377.57 2.19 4.84 11.34 7 3
29. Andaman & Nicobar Islands 199.93 0.02 199.10 0.02 0.03 0.12 30 26
30. Chandigarh 99.83 0.01 99.67 0.01 0.02 0.06 31 31
31. Pondicherry 123.06 0.02 85.65 0.02 0.01 0.12 32 24
32. Others and Unallocated 21884.90 0.43 19803.79 0.61 3.37 2.54 11 14
Total : 649159.00 16.93 596726.65 17.62 100.00 100.00 - -

150 Public Enterprises Survey 2004-05 : Vol.-I