Scribd Logo
Upload

Welcome to Scribd!

  • Large Scale Industries

    Uploaded by

    Shivam Kumar
    10 views6 pages

    Original Title

    Large Scale industries

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    10 views6 pages

    Large Scale Industries

    Uploaded by

    Shivam Kumar

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 6
    rere chapter, we propose to discuss some major tries of India. For our discussion we have chosen the following industries — iron and steel, jute textiles, SUB" ‘and cement, —__Z71non_anp steel ___— iron The earliest successful attempt to manufactur and steel by modem methods was made in the country at Barakar in 1875 for the production of pig iron. This was taken over by the Bengal Iron Company in 1889. However, the first effort at large-scale production was made when Tata Iron & Steel Company (TISCO) was set up in Jamshedpur in 1907. The Indian tron and Steel Company (ISCO) was set up at Burnpur in 1919. The first unit in the public sector, now known as the Visvesvaraya Iron and Steel Works Ltd., started functioning at Bhadravati in 1923. Progress in the Post-Independence Period Caner Independence, special attention was paid to the development of the iron and steel industry. The Second Plan which aimed at laying strong foundations of industrial development naturally gave top priority to the development of the iron and steel industry) This would be clear from the fact that the investment on eel programme in the Second Plan alone was about 2.5 times the combined new investment undertaken by the public and priyate sector on the industrial programmes in the First Plan. (Three steel plants of one million tonnes ingot capacity each were set up in the public sector at Bhilai, Rourkela and Durgapur, Besides, expansion programme to double the capacity of the two private sector plants, namely, TISCO and [ISCO to 2 million tonnes and 1 million tonnes respectively were also taken into hand. "The three steel plants set up in the public sector came into Bperation in stages between 1959 and 1962. The Third Plan placed emphasis on expansion of these plants and the setting up of a new steel works at Bokaro. The Fourth Plan steel programme was based on the maximum utilisation of steel capacity and preparation of plans to set up three new steel plants at Salem in Tamil Nadu, Vijaygnagarin Karnataka, and Vishakhapatnam in Andhra PradeshThe Bokaro Steel Plant was commissioned on February 26, 1978. With this, the total installed ing, "01 eapay tonnes on March 31, 1994s Mich to a 8.9 ion as on March 31, 199g, eMt*a5ed 1h eo LONE management of ISCO je COYetMENL er the ar an poy MAMENL also took Ov in 1976 to improve is aay Semi se OvNESIP Prior 1 1973, of the the plants at Bhitai, s rit sel plants in. the public ‘owned and managed by iy outils and Durga and the Bokaro Steel fan naan steel Limited 1S, '¥ Bokaro Steel Limited (BSL), In 1973, the government set xy Ltd. (SAIL). Hi iP the Steel Authority of India and under SAIL) Visvesvara: re Pu Saunas 5 8 Tron and Steet Ld. was taken over by SATL in August 1989. Thus, SAIL is now the ma integrated steel company, Vishatavapinam Steel. P Rashtriya Ispat Nigam Ltd {RINL) was commissioned July 1992. In the private sector, Tata ron and Steel Company (TISCO) is the first integrated steel Blanche is located Jamshedpur. Other important players in the private are Essar, Mukand (having the biggest mini stee! plan country), Lloyds, Jindal, Nippon Denro tspat Ltd, Mahindsy Ugine Steel Company Ltd., FACOR, Mardia Steel Ltd, et, India emerged as the third largest steel producing country in the world in 2015 after China and Japan, beating the USA to the fourth place. This sector represents around % 90,000 crore of capital and directly provides employ: to over five lakh people. Uiberalisation of Steel Policy (ton and steel industry was reserved for the publi: sectoPin the 1956 Industrial Policy Resolutiof)which bai stated that while existing units in the private Sector woald be allowed to continue and expand, new units will be setup in the public sector only. However, due to acute shorts of steel in 1960s and 1970s and increase in the demand of steel by the re-rolling and engineering industries, th government liberalised the steel policy. The process « liberalisation initiated in 1982 has been progressively exten In 1986, private sector was allowed to produce steel us ‘AF (Electric Arc Furnace) process. Small blast {um were allowed only if they used optimum energy, In Feb 1988, expansion of units was permitted within an ove rt Scanned with CamScanner Some 250,000 tonnes, ae tonnes per ay eget 1 150 per cent of ont oft ene capacity Was allowed within the over ices The existing, all ceiling, © imposed, jit) HO li i ‘ylides ionalise the manufacture of ste mniitions. wey ines On June 6, le sector was allowed city of 1 i ome milo es peta tl, for this purpose esa ~ “t tie freedom fo choose between the electric are furnace ana piast furnace proce ses sei to the announcement ofthe substantial liberalisation measures in July 1901, the goverment removed the iron and sleet industry front the jt of industries reserved for the public sector and ales exempted it from the provision of eomputsory licensing The government also abotished price and distibutioneenrats on igh ane STR MaTUTACtUTET by integrated seed plans ‘wifreffect from January eht Equalisation GTIOITHUCT iran and steel sector is me was also withdrawn, (he tht no sectoral reservations, row almost entirely open with no licensing, pricing, distribution and import controls This is a radical departure for an industry which hac experienced near exclusive public sector monopoly, eanalised imports, protective import tariffs and gover domestic prices. ment rewulated Production and Consumption of Steel ‘The production of finished steel (alloy plus non-alloy) for sale was 60.6 million tonnes in 2009-10 and this rose to 98.7 million tonnes in 2015-16. However, steel produ in 2015-16 at 98.7 million tonnes implies that only about 82 per cent of the country’s installed stecl making capacity of 120 million tonnes is being used. In other words, almost one-fifth of the installed capacity is not being used.| As far as consumption of finished stecl is concerned, it was 59.3 million tonnes in 2009-10 which rose to 77.0 million tonnes in.2014-15. ikea Iron and Steel Industry ‘The development and expansion of the industrialisation programmes of a country depends crucially on the development and expansion of the iron and steel industry. It is mainly due to the emphasis laid on the development of this industry in the post-Independence period and the progress registered by it that India’s industrial base has now become strong enough to meet the requirements of rapidly expanding engineering goods industries, machine building industries, machine tools industries and a number of other capital ‘00ds, intermediate goods and consumer goods industries. Naturally, a set-back in the iron and steel! industry due to Major industries of tn a 9 ainy reasony whatsoever has Nee ithas adverse reperenssio 1 be viewed with concer Med wih(Letusnowemsinrsemeen nai atthe steel indistry his had to fee LAC Shortage of coat and and power, requently fave probe mre the desired quality of ek © problems The steel plants ng.aulequiate quantities of This ha Indian coking Gat Wasa hiphe sh conten} mainly b plants were designed for u: 7 ‘cen per cent increase in production of blas and to lower cent. Every one Every ash brings down the We ke te esp al ny the peta sea keep the ash content of the blend at around 15 per cent, the dependence on imported coal It is to be increased which is obtained at a considerably higher cost as compared with domestie coal (rower shortages also affect the funetioning of steel plants adversely ‘ Some public sector plants are today vietims of technological obsolescence) In respect of blast furnace productivity, consumption of coke and tap-to-tap time in convertors, most of the integrated steel plants are half as efficient as the steel plants in the rest af the world. While labour productivity in Indian steel industry ranges between 39 tonnes per man year to 228 tonnes per man year, it ranges between 300-500 tonnes per man year in the steel industry of industrialised countries.’ Due to technological obsolescence, energy consumption in ndian steel mills is considerably higher than that in steel mills ofthe developed countries. For instance, while energy s about 20 per cent or one-fifth of the total cost of steel making in the latter, it is as high as 33 per cent {almost one-third) of the total cost of steel making in india) 3. Inefficient management. The management and control of steel plants leaves much to be desired{ The top management ofien comprises non-specialised, non-technical people who are often unequal to the task of providing the requisite managerial competence in the complex and capital- intensive projects as the steel plants, in fact, are. The management also works under severe constraints likqundue political interference, frequent labour disputes vie) ~~ 4. The demand constraint. (The steel industry has faced rough time during a number Wf recent years due to a slump in demand following reduction in govemment’s plifined expenditure, lack of investment in the housing and infrastructure sectors, and additional capacity ereation base ‘onassumed growth in consumption which did not materialise ASaresult, there was huge piling up of inventories resulting Scanned with CamScanner 7: Menace of du failure of domestic Indian. steel industr downtrend in intern mping. Already in distress over the demand to increas ve misery of the fy Was compounded “by the alarming respect of detain ational price during the late 1990s. In certain steel products, the decline in prices was as much as 30 to 40 per cet his led to unhealthy Practices like dumping which pulfedown domestic prices and eroded the bottom line of the local steel = lower tariff regime in the current era of liberalisation andthe unrestricted import of all iron and steel material under the new export-import policy made things worse for the domestic producers of steel.) What is more worrying is the fact that seconds and defective grades of steel were dumped into the economy. These were no match to the quality products turned out by the Indian steel mills but spoiled the market of domestic steel makers. India has been a net importer of total finished steel every year since 2007-08 except 2013-14. In recent times, due to near stagnant demand for steel globally, and in particular in China, major global steel producers are pushing steel products into the Indian market, leading to a surge in steel imports( The Indian steel industry with higher borrowing and raw material costs and lower productivity is at a comparative disadvantage. ’) Scanned with CamScanner d Z TEXTILE INDUSTRY 2 . ( Textile industry is the largest industry of modern In fa. It plays a pivotal role through its contribution to_ SS Scanned with CamScanner 342 industrial output and employment generation and the export Gaming of the country. Vr contributes to 10 per cent inamupactarmg production, 2 per cent of India’s GDP an 13 per cent of the country’s export earnings, With aver 45 million people employed directly, textile industry is on of the largest sources of employment generation in thi country.” (I is the only industry which is setf-refiant. Taw matefial to the highest value added products, vie, Eammentsmade-ups. The first cotton mill was set up in Kolkata in 1818, However, the industry made a reat beginnin in 1834 when a cotton mill was set up in Mantel} fact, the industry got localised in Mumbai and Ahmedabad a would be clear from the fact that in 1911 Mumbai City had and provided forkers of the 33 per cent of the total number of mills employment to 45 per cent of the total w industry. Ahmedabad had 19 per cent of the mills and cent of the workers. provided employment to 13.6 per Tocated in Sholapur, Outside Mumbai City, some mills wer Baroda and other minor local centres in Mumbai State. In the United Provinces (Uttar Pradesh), Kanpyr had S Tat mills and dominated the industry of vite the post= Independence period, important centres ofNhis industry have been Mumbai, Ahmedabad, Sholapur. Kanpur. Kolkata. Indore and Coimbatore. India’s textile industry continues 10 be predominantly cotton bi fabric consumption in the country being accounted for by inst the world average of 46 per cent), cotton (as 28% ‘pansion of the Textile Industry ‘There are four sectors in the textile industry — mill sector, powerloom sector, handloom sector and hosiery. re latter three are jointly considered under the heading ‘decentralised sector’, Over the years, the government has, SW Te su a i sa oft sei production Ras increased considerably. For example, while the share of the mill sector in total cloth production was 80 per cent in 1950-51, it fell to 50 per cent in 1980-81 and further to 3.8 per cent in 2011-12. The share of the decentralised sector correspondingly rose from 20 per cent in 1950-51 to 96.2 per cent in 2011-12. (ore thtee sub-sectors — handlooms, powerlooms and Ntosiery — in the decentralised sector, itis the powerlooms, sub-sector that has grown at a faster pace. Asa result, its siiare in total cloth Petia coe yrisen to around 62 per cent. There are many reasons for the fast development of the powerloom sub-sector: (i) govemment's favourable policies on synthetic fabric industry; (if) ability of this sub-sector to introduce flexibility inthe product mix in Jine with the market situation; (ii) low labour eosts achieved indirectly through the flexible use of labour itself wased, more than 56 per cent of a production, and providing ap in exports from the resulting in fower cost oF P of inthe market; and (iv) increase me dsl

    You might also like