16

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/nonindustry 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.

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 nonavailability 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

149

Table 16.1 Statewise Distribution of Gross Block and Employment
(Gross Block-Rs. in Crore) (Employment-No.in Lakh)
S. No. State/Union Territory As on 31.3.2005 Gross EmployBlock ment As on 31.3.2004 %age share as on Ranking as on 31.3.2005 31.3.2005 Gross EmployBlock ment Gross Employ- Gross EmployBlock ment Block ment

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.

Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Nagaland Orissa Punjab Rajasthan Sikkim Tamilnadu Tripura Uttar Pradesh Uttaranchal West Bengal Andaman & Nicobar Islands Chandigarh Pondicherry Others and Unallocated Total :

44545.73 2961.14 28153.81 12086.79 16072.47 21713.24 436.65 42295.53 16541.77 17390.10 11764.22 20654.82 28543.88 16828.32 29830.52 122899.24 261.48 224.17 1075.43 33354.47 9288.04 13900.88 1990.52 43475.42 1659.58 45738.01 11767.38 31397.67 199.93 99.83 123.06 21884.90 649159.00

0.99 42433.22 0.02 2183.15 0.51 26334.44 0.18 10403.24 1.00 12089.73 0.79 20249.20 0.03 395.93

1.01 0.02 0.53 0.19 1.04 0.76 0.02 0.53 0.20 0.11 0.09 2.49 0.83 0.45 1.10 2.08 0.01 0.02 0.01 0.68 0.28 0.31 0.01 0.88 0.02 0.89 0.20 2.19 0.02 0.01 0.02 0.61

6.86 0.46 4.34 1.86 2.48 3.34 0.06 6.51 2.55 2.68 1.81 3.18 4.40 2.59 4.60 18.93 0.04 0.03 0.17 5.14 1.43 2.14 0.31 6.70 0.26 7.04 1.81 4.84 0.03 0.02 0.01 3.37

5.85 0.12 3.01 1.06 5.91 4.67 0.18 2.95 1.24 0.59 0.53 13.64 4.78 2.48 6.44 11.87 0.06 0.06 0.06 4.08 1.59 1.77 0.06 6.44 0.12 5.32 0.95 11.34 0.12 0.06 0.12 2.54 100.00

3 23 10 19 17 12 27 5 16 14 21 13 9 15 8 1 28 29 26 6 22 18 24 4 25 2 20 7 30 31 32 11 -

7 25 12 19 6 10 23 13 18 21 22 1 9 15 4 2 29 30 28 11 17 16 32 5 27 8 20 3 26 31 24 14 -

0.50 39156.40 0.21 13016.90 0.10 16301.70 0.09 11002.75

2.31 22869.12 0.81 29572.93 0.42 15300.80 1.09 0.01 0.01 0.01 0.27 27655.11 242.11 186.36 1054.59 8704.52

2.01 107826.07

0.69 31415.45 0.30 15399.46 0.01 0.02 1566.39 1488.25

1.09 38517.46 0.90 39933.27 0.16 0.02 0.01 0.02 11526.08 199.10 99.67 85.65

1.92 29377.57

0.43 19803.79 16.93 596726.65

17.62 100.00

150

Public Enterprises Survey 2004-05 : Vol.-I