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CONTENTS

• INTRODUCTION OF ENTREPRENURSHIP

• ROLE OF FIs & BANKS IN SSI FINANCING

• INTRODUCTION TO STEEL AND ALLOY CASTING

• MARKET POTENTIAL

• FINANCE ANALYSIS

• RULES & REGULATIONS

• BENEFITS

• ALLOWANCES

• LEAVE

• TECHNICAL & FINANCIAL CONSULTANCY

• SUPPLIERS OF MACHINARY AND RAW MATERIALS

• INDUSTRIAL POLICY

• OCCUPATIONAL SAFETY AND HEALTH FOR THE TENTH FIVE


YEAR PLAN (2010-2015)

• ENVIRONMENT CLEARANCE PROCEDURES

• CONCLUSION

• LIST OF ABBREVIATIONS

2
Introduction of Entrepreneurship

The word ‘entrepreneur’ has its origin in the French


language. It refers to the organiser of musical or other
entertainments.
Entrepreneurship can be described as a creative &
innovative response to the environment. Such response can
take place in any field of social Endeavour-business,
agriculture, education social work the like.
An entrepreneur is one who organizes, manages &
assumes the risk of an enterprise. An entrepreneur
visualizes a business, takes bold steps to establish under
taking, co-ordinates the various factors of production gives it
start.
Entrepreneurs are the owner of the business who
contribute the capital & bear the risk of uncertainties in
business life.
Entrepreneur is action-oriented & highly motivated
person who has the ability to evaluate business opportunities,
to gather the necessary resource to take advantage of them
& to intimate appropriate action to ensure success.
Entrepreneur takes decision regarding what to
produce, where to produce & whom to produce. He mobilizes
other factors of production namely; land, Labour, capital,
organization& initiates production process. He is responsible
for either profit or the loss. Entrepreneur is associated with
innovations. He is the main factor of production.
Entrepreneurial Philosophy
1. To take calculated risk
2. Willingness to accept responsibility for one’s own work .
3. Failure must be accepted as a learning experience.
4. Goal orientedness.
5. Acceptable results are more important than perfect
results.
6. Personal growth.

3
4
Expectations of Entrepreneurship
It are expected from the entrepreneurs that they will help: -
1. Increase number of industries.
2. Increase production.
3. Increase employment opportunities.
4. Earn foreign exchange through exports.
5. Develop the underdeveloped parts of the country.
6. Economical development.

Characteristics of Entrepreneur

• Self Confidence
• Task- Result oriented
• Risk taker
• Leadership
• Originality
• Future oriented

Challenges for Entrepreneurship


Project: -
1.Technology up gradation: -
It is found that our small scale sector is not able to compete
because of outdated technology. We must appreciate that
small scale Industry has to keep itself updated and then only
it can sell goods. In the post WTO era, the best thing would
be available anywhere in the world as there is no restriction
for goods to move. People will purchase only if the gods are
of good quality.We must remember that we may or may not
need imported technology for up gradation. Our small
industries have the advantage of developing in import
substitution period. Many SSI can therefore become world
class with only small modification or improvement.
2. Testing facilities: -
Because our small scale industries are situated in far flung
areas there for it is not possible to service by one or two
central laboratory. We suggest that educational institution
even in small town should be equipped to provide testing
5
facilities to small scale industries.

3. Exports: -
We find that small scale industries engaged in exports
do not have any benefits, although they count for bulk
export. We strongly advocate special concession for small
industries which are engaged in exports.
4.
Involvement of industrial association: -
We fell that many problems of small sector can be taken care
of industrial associations that are involved in a big way.

5. Infrastructure development: -
Small scale industries suffer maximum from lack of
infrastructure development. The quality of power is bad and
the power available is at very high cost. This must be
corrected. Roads are bad. Communication facilities are not up
to mark etc.

7.Credit: -
The credit is still not available to small scale industries. The
credit guarantee fund created by SIDBI is not being exploited
as there are still short coming in the scheme.

8.Skill up gradation: -
Small scale industries are known for providing on job training.
But in the post WTO era when cost cutting is order of the day,
the people are running small scale industries must be skilled
and these skills must be up graded continuously so that they
are in the job & no unemployment result.
9.
Marketing: -
The present market assistance scheme is most welcome.
More such scheme are required. Small scale industries are
being bundled out of the market by aggressive advertisement
done by large & multinationals. The small sector must be
protected from this, if the small sector has to survive.

10. Changing the Labour laws: -


The present Labour laws must be changed to have

6
more flexibility & suitability for running of small scale sector.

7
11. Removal of inspector : -
A small scale industry is generally a single man show. He
cannot find time to attend to all the inspectors visiting small
scale factory. The inspector must be removed.Conclusion can
be taken considering above challenges SSI unit in the
following areas will have a bright future & compete with
world industries very well as the areas of our strength: -

1. Tourism & hotel industry


2. Dairy industries
3. Food processing industries

4. Floriculture
5. Shoe & leather industries
6. Forging unit
7. Steel alloy casting
8. Plastic processing industry

ROLE OF FIS & BANKS IN SSI FINANCING:

The credit needs of entrepreneurs could be divided in three


parts:- short term, medium term and long term finance.
Accordingly, the conventional mechanism for financing of
SSIs in India stressed provision of terms loans and working
capital. The public & private sector banks, Small industries
development Bank of India (SIDBI), Regional Rural Banks
(RRBS), urban Cooperative banks (UCBs) and foreign loans for
setting up of new industries or modernization of the exiting
ones, Khadi and Village Industries Commission (KVIC) and
Khadi & Village Industries Boards (KVIC) ,Khadi and village
Industries Boards (KVIBs) assist in financing Khadi and Village
industry sector. National small industries corporation (NSIC)
and state small industries corporation (SSICs) in their own
way, also attempt to develop the cottage and small scale
sector by supplying machinery on a hire-purchase basis to
small-scale and ancillary industries, inclusion of the value of
machinery and equipment already installed.
SFCs are one of the oldest credit institutions in
the country which mainly cater to the long term credit needs
8
of small & medium enterprises. At present, there are 18 SFCs
covering the entire country & they have been in existence for
5 decades now. The cumulative sanction & disbursement of
SFCs aggregated Rs33000 crore & Rs27000 crore
respectively. It needs to be highlighted that almost 75% of
SFCs assistance flows to the SSI sector. Over the years the
financial health of SFCs has become a cause of concerns.
Some of the reasons for the poor financial health of SFCs is
poor recovery performance increase in non-performing assets
Govt. of India had amended the SFCs act 1951 in the year
2010 so as to give them more operational flexibility &
freedom so that they can improve their performance & play
their role more effectively.

MAJOR STEPS TAKEN BY THE FIS & BANKS


FOR ENTREPRENEURSHIP DEVELOPMENT: -
Sub allocation of credit for SSI sector with priority
basis: -
In order to achieve a high rate of GDP growth, there is an
imminent need to earmark allocation of credit to sector out of
the total priority sector allocation.

Factory Services: -
In order to mitigate the post sale problems of
ENTREPRENEURS in realizing the sale proceeds, there is a
need to encourage bills culture without recourse. Recently,
RBI had advised the banks to take a pro-active instance in
providing help to the ENTREPRENURS which are affected by
delays in payments against supplies made by them to a large
scale 7 other units. In this context, there is a need to create
conducive climate for development of factoring services
through appropriate policy prescription/legislative changes,
rationalization of stamp duty, registration charges &
assignment of debt. Etc.
Collateral free lending: -
RBI advised to the banks to dispense with collateral
requirement for loans from the existing limit of Rs5lakhs on
the basis of good track record of the units & their financial
position. In this context, it is expected that banks would come
forward to implement these directives in letters & sprit,

9
extend collateral free credit to the borrowers.

10
Technology up gradation fund scheme for
entrepreneurs: -

After launching of TUFS by GOVT. OF INDIA, interest


reimbursement of 5% on the interest charged by FIs/banks
for rupee loans or cover free exchange rate fluctuations not
exceeding 5% in respect of foreign currency loans for bench
marked technologies provided to the units. Commercial
banks, with their vast branch net work, can play a very
important role in facilitating creation of awareness about the
scheme so as to maximize the flow of credit to the eligible
units.

ROLE OF DIC (DISTRICT INDUSTRY


CENTRE) FOR ENTREPRENURSHIP
PROGRAMME: -
During district reformation programme of Govt. of
Orissa, 13 districts became 30 districts. The major objective
was administration can reach to the lower level of society &
different development project can be successfully
implemented. This objective gave a new vision to District
Industry Centre.District Industry Centre is the gate way of
industrialization program. Same time it works as the technical
supporting body for ENTREPRENURSHIP. This is the working
body of Government of Orissa, under the ministry of
INDUSTRY. It also works as a supporting structure for
implementation of different EMPLOYMENT PROGRAM. Major
objective is to set up a DIC to promote the entrepreneurship
at the grass root level. Due to globalization &
fluctuating competitive market strategy Entrepreneurs were
facing a lot of problems to set up an enterprises through our
conventional beurecracy functions. DIC arranges to remove
the legal barriers for establishing ENTREPRISES. DIC is going
to adopt the “single window” system for entrepreneurship.
Same time it promotes self employment programme among
technical unemployed as well as Non-technical unemployed
through skill development programme. DIC increases

11
employability of the community. It also helps poverty
elevation programme.

It co-ordinates different projects for SELF HELP


GROUP basically those are formed by lower income level of
society. DIC is also coordinating different welfare programme
for economically backward community. It is playing a major
role for successful implementation of five year plan. It is also
giving emphasis for development of cottage industry &
handicraft product which is the basic structure of rural
economy. It can be concluded that DIC is a non-profitable
Government entrepreneurship project consultancy for
entrepreneurs.

Introduction to Steel and Alloy


Casting

Steel casting is a specialized form


of casting involving various types of steel. Steel
castings are used when cast irons cannot deliver
enough strength or shock resistance.[1]
Examples of items that are steel castings
include: hydroelectric turbine wheels, forging
presses, gears, railroad truck
frames, valve bodies, pump casings, mining machiner
y, marineequipment, and engine casings.[1]
Steel castings are categorized into two general
groups: carbon steels and alloy steels.[1]
Steel casting alloys
Alloy steel castings are broken down into two
categories: low-alloy steels and high-alloy steels.
[2]
Low-alloy steels contain less than 8% alloying
content and high-alloy steels have 8% or more.[2]
This is a table of some steel casting alloys:

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Heat resistant steel castings per ASTM A297-
1981[2]

0.2%
Tensile
Nominal strength, Yield %
Gra alloy strength, Elongation
minimum
de composition minimum in 2 in.,
[%wt] minimum
ksi MPa ksi MPa

HC 28 Cr 55 380 - - -

HD 28 Cr, 5 Ni 75 515 35 240 8

HF 19 Cr, 9 Ni 70 485 35 240 25

HH 25 Cr, 12 Ni 75 515 35 240 10

HI 28 Cr, 15 Ni 70 485 35 240 10

HK 25 Cr, 20 Ni 65 450 35 240 10

HL 29 Cr, 20 Ni 65 450 35 240 10

HN 20 Cr, 25 Ni 63 435 - - 8

HP 26 Cr, 35 Ni 62.5 430 34 235 4.5

HT 15 Cr, 35 Ni 65 450 - - 4

13
HU 19 Cr, 39 Ni 65 450 - - 4

HW 12 Cr, 60 Ni 60 415 - - -

HX 17 Cr, 66 Ni 60 415 - - -

Corrosion resistant steel castings per ASTM


A743-1981a[3]

Tensile
0.2%
strength
Nominal Yield %
,
alloy strength, Elongatio
Grade minimu
compositio minimum n in 2 in.,
m
n [%wt] minimum

ksi MPa ksi MPa

CF-8 9 Cr, 9 Ni 70 485 30 205 35

CG-12 22 Cr, 12 Ni 70 485 28 195 35

CF-20 19 Cr, 9 Ni 70 485 30 205 30

CF-8M 19 Cr, 10 Ni, 70 485 30 205 30

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with Mo

19 Cr, 10 Ni,
CF-8C 70 485 30 205 30
with Nb

19 Cr, 9 Ni, 25
CF-16 &
free 70 485 30 205
CF-16Fa
machining

CH-10 &
25 Cr, 12 Ni 70 485 30 205 30
CH-20

CK-20 25 Cr, 20 Ni 65 450 28 195 30

CE-30 29 Cr, 9 Ni 80 550 40 275 10

CA-15 &
12 Cr 90 620 65 450 18
CA-15M

CB-30 20 Cr 65 450 30 205 -

CC-50 28 Cr 55 380 - - -

CA-40 12 Cr 100 690 70 485 15

CF-3 19 Cr, 9 Ni 70 485 30 205 35

19 Cr, 10 Ni,
CF-3M 70 485 30 205 30
with Mo

15
CG6MM
Cr-Ni-Ma-Mo 75 515 35 240 30
N

19 Cr, 11 Ni,
CG-8M 75 520 35 240 25
with Mo

20 Cr, 29 Ni,
CN-7M with Co & 62 425 25 170 35
Mo

19 Cr, 24 Ni,
CN-7MS with Co & 70 485 30 205 35
Mo

CW-12M Ni, Mo & Cr 72 495 46 315 4

CY-40 Ni, Cr & Fe 70 485 28 195 30

CA-6NM 12 Cr, 4 Ni 110 775 80 550 15

CD- 25 Cr, 5 Ni,


100 690 70 485 16
4MCu 3 Cu, 2 Mo

CA-6N 11 Cr, 7 Ni 140 965 135 930 15

16
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PRODUCT AND ITS APPLICATIONS: -
The corrosion resistance properties of alloys steel
casting are excellent. Therefore, alloys steel castings in
various shapes and sizes are extensively used in dairy,
chemicals and pharmaceutical industries. Other special
properties like non-toxicity and strength establish its use in a

18
large measure in the above stated industries, were probably
no other better substitute can be found. Generally the casting
conform to the austenitic/non magnetic grade in the form of
flanges, valves, bodies, propeller for agitator, pipe fitting,
machine parts etc relating to above types of industries
though there are some castings conforming to other grades
also.

APPLICATIONS FIELDS ARE: -


1. STEEL INDUSTRY
2. FOOD PROCESSING INDUSTRY
3. CONSTRUCTION & STRUCTURAL WORKS
4. AGRICULTURE
5. SANITATION & WASTE TREATMENTS
6. AUTOMOBILES & POWER TRANSMISSION
7. HOUSE HOLD FITTINGS
8. MARINE APPLICATION

The entire above application field can be taken into


consideration for our project market point of view.

MARKET POTENTIAL: -
The units engaged in the manufacture of dairy
equipments, chemicals and pharmaceutical machinery
require a number of alloy steel casting in different sizes and
shapes. Moreover, NDDB, DDC regularly in need of spares
and few instrument like self-weighing scales, are also
regularly using alloy steel cast components. The nos of units
engaged in manufacture of above castings vary limited
and quality standards may not ultimately conform to the
desired specification, with lowest quality controls measures
are adopted with respected to chemical composition. In view
of the above, there is a tremendous scope for putting up of
alloy steel casting in the small scale sector with induction
malting unit & quality control facilities to cater the needs of

19
different processing industries and various equipments
manufactures same time this unit can cater different casting
orders coming from the different jobs shops.

RECOMMENDED
PROJECT CAPACITY: -
Installed capacity
proposed

Quantity/annum : 325 MT
Annual sale turn over: 178.75
Location of the project in between Dhenkanal &
Angul (according to the availability of land suitable industrial
location may be selected).

MANUFACTURING
PROCESS(foundry
engineering): -

It deals with the process of making casting in moulds


prepared by patterns. The whole process of producing casting
may be classified in to five stages.
1. Pattern
making: - It is
the primary stages of this process in which pattern is
prepared; a pattern is a replica of the object to make by the
casting process. During pattern making some consideration
should be kept in the mind a.
addition of pattern allowances
b. the provision of core prints
c. elimination of fine details which cannot be
obtained by casting and hence are to be obtained by further
processing.
Materials of pattern are wood,
plastic and plaster of Paris; some cases metallic pattern may

20
be used.

21
2. Moulding and core making: -
Mould is a box of sand or other refractory having
a hallow space which is the required size of the component.
This mould is prepared by the help of pattern through the
mould making process like ramming and the mould material
is silica grain & clay as binder and required amount of water.
This mould contains a well designed gating system as well as
a proper riser system. Cores are the
part of the mould which is used for making cavity and
depression on the component which can not normally be
produced by the pattern alone during mould making process.

3. Melting and casting: -


melting is the measured factor which controls
the quality of the casting. There are a no of methods for
melting and casting. The choice of the furnace and casting
process depends upon the amount and the type of alloys
being melted.
For alloy casting induction furnace is generally
recommended due to following advantages: -
1. It can be used for all
types of materials because heat source is isolated from the
charge and the slag & flux would be getting necessary heat
directly from the charge instead of heat source.
2. Metal chips can be used due to stirring effect of molten
material.
3. Low cast raw material can be used.
4. Better control of temperature & composition can be
achieved.

4. Fettling: -

The complete process of cleaning of casting, called


fettling, involves the removal of the cores, gates, riser,
cleaning of the casting surface & chipping of any of the
unnecessary projection on surfaces.

22
TESTING: -
Casting component is tested in order to ensure the
quality of casting, there are two types of test is generally
conducted.
1. Destructive test: -
During this testing ,component become
partially or fully destroyed. So this process cannot be
used always for all components.

2. Non – Destructive test: -


During this testing ,the component
does not under go any type of destruction. So this process
can be used for all component but these processes are costly.

INSPECTION: -
Components before delivering to the customer
its dimensional accuracy must be carefully inspected, if
some modification requires by the component this can be
suitably changed or processed with disturbing its functional
characteristics. Though steel is an alloy but when steel
contains other alloying elements like nickel, chromium,
molybdenum etc, then it is recommended as alloy steel.
The most highly
perfected steel making units generally deals with alloy steel
are using electric furnace in which electrical energy supplied
to the furnace is converted by various methods into thermal
energy for heating and malting the metal. Induction furnaces
that are found applicable in alloy steel casting
industries.Selected scrap 38%, flux 3%(lime stone), Ferro-
alloys 4%, nickel 1% and foundry return 54% is charged in
the furnace then due to induction effect material is malted
and slag is separated from its molten state. Alloys steel melt
is then transfer to the steel ladle and is poured into the
mould. Where the melt is poured that part of mould is
termed as pouring basin, in this mould a well arranged
feeding system and gating system are presented. After the
cast is solidified and cooled down to ambient temperature, it
is slackened from the mould. Then mould shake out and care
knock out down either by manual or by vibrating knock outs,

23
jolting grids and vibrators the next operation is called fettling
which involves the removal of adhering sand, gating systems
and fines from the casting.
Then cleaned casting are transferred to the heat
treatment section in order to achieve desired mechanical
properties like hardness, tensile strength, brittleness and
toughness etc. this operation is fully depends upon the
service requirement of the esteemed customers.
Inspection and quality control test to be carried out
by using different techniques the desired quality before
dispatch.

SOME ESTEEMED CUSTOMERS (proposed)


1. ORISSA MACHINERY, BBSR (For gears & hubs)
2. LARSEN & TOUBRO LTD. ROURKELA
(For standard housing)
3. STATE WEIGHT & MEASURES, CUTTACK
(For standard weight)
4. PARADEEP PORT TRUST
MECHANICAL MAINTENNANCE
5. RUCHI SPICES LTD., CUTTACK.
6. JINDAL STEELS LTD., JAJPUR ROAD.

DETAILS SPECIFICATION OF MACHINERYS: -

Induction melting furnace – Transformer 415/460v, 200kw


solid inverter, and water cooled leads, hydraulic power packs,
selector switches 200kgs box etc.
Sand mixer – 200kg batch capacity complete with 3hp
motors and accessories.
Vibrating sand sieving machine – 3 decks with multiple sieves
and 2hp motors.
Hand operated pin lift molding machine – fitted with
column squeezing arm, plunger and pressure plate.
Core and mould during oven – Inside packing cap, 25 to
30 m*3, oil fired, provided with necessary circulating fans
blower, burner.

24
Foundry sand testing equipment – Sand rammer, cgs
permeability meter, speedy moister, tester & weighing
balance.

Financial Aspects

A Fixed Capital

Amoun
t
(i) Land and Building
(In
Rs.)
(i) Land 450 sq. mtr. @ Rs. 3500 per sq. 157500
mtr including registration 0
(ii) Cost of land development, fencing,
approach road, inside roads, land
450000
scaping, drainage etc. @ Rs. 1000 per
sq. mtr.
(iii) Total built-up area 425 sq. mtrs. as
follows:
Administrative building 75 sq. mtrs.
562500
construction cost @ Rs. 7,500 per sq. m
Factory shed 300 sq. mtrs. construction 150000
cost @ Rs.5000 per sq. mtr. 0
Stores, staff canteen etc. 50 sq. mtrs. @
300000
Rs. 6,000 per sq. mtr.
Water System (including Bore Well +
500000
over head tank etc)
488750
Total civil cost= cost of land + building
0

25
(ii) Machinery and Equipments

Sl. Amou
Ind./ Qt
No Description nt (In
Imp. y.
. Rs.)
1. Ind. 1 80000
Induction melting
2. -do- 1 60000
furnace
3. Sand mixer -do- 1 50000
Vibrating sand sieving
4. -do- 1 40000
machine
Hand operated pin lift
5. -do- 1 30000
molding machine
Patterns pattern
6. -do- 1 15000
making tools
7. Ladles (self fabricated) -do- 1 18000
8. Foundry tools -do- 1 14000
Platform weighing 7
9. machine -do- Nos 25000
.
10 Molding boxes 1
-do- 25000
. No.

26
10. Core & mould drying
oven
Materials
handling equipment
3 0.04
12. Foundry sand
testing equipment -
0.02
13. Immersion
pyrometer
- 0.07
14. Fettling and cutting
tools -
0.08
15. Measuring tools
- 0.08
16. Air compressor
1 0.25
17. Flexible shaft grinder
2 0.05
18. Bench drilling machine
1 0.04
19. Bench grinder
1 0.03
20. Arc welding machine
1 0.08
21. Transformer
- 0.95
22. Chemical testing lab
- 0.33
23. Other equipment
- 0.17

38700
Total
0
Tools and Dies 50000
Furniture and Office equipments 80000
51700
Total
0

27
(iii)Pre-operative Expenses 30000
54345
Total Fixed Capital (i+ii+iii)
00

B. Working Capital (per month)

(i) Staff and Labour

Sala
Total
Sl.N No ry
Designation (In
o. s. (Rs.
Rs.)
)
(a) Administrative Staff
Sales-cum-Marketing 1500
1. 1 15000
Manager 0
Accountant-cum Store
2. 1 8000 8000
Keeper
3. Clerk-cum-Typist 1 6000 6000
4. Peon/chowkidar 2 3000 6000
5. Sweeper (Part-time) 1 2000 2000
(b) Technical Staff
1. Foreman/Supervisor 2 8000 16000
2. Skilled Workers 8 6500 52000
3. Semi-skilled Workers 4 5500 22000
4. Welders 4 5000 20000
5. Helpers 4 4000 16000
1630
Total
00
Add Perquisites @ 22% of salary 35860
1988
Total
60

(ii) Raw Material

28
Sl. Rate Total (In
Description Qty.
No. (Rs.) Rs.)
Wrought iron
pipes of different
1. 10 45000
Dia. Sizes in
Tonnes 450000
Wrought iron
strips in 2 mm 3
2. mm, 6 mm and 4.8 53000
10 mm thickness
in Tonnes 254400
Angle Irons and
3. Rounds in 4 40000
different size 160000
Seating Material
4. for Chairs and 1000 550
Sofas in Nos 550000
Coir Foam Sheets
5. 250 1450
for beds in Nos 362500
Bought out
components such
as nuts, bolts,
6. 120000
rivets, Welding
Rods and Paints
etc.
Total 1896900

(iii) Utilities (In Rs.)


Electricity and fuel 10000

(In
(iv) Other Contingent Expenses
Rs.)
1. Insurance Expenses 3000
2. Advertisement/Publicity charges 30000

29
3. Travelling Expenses 10000
4. Consumable stores such as oil,
10000
lubricants and Cotton waste etc.
5. Repair and maintenance 4000
6. Transport and packaging charges 20000
7. Postage and stationery 6000
8. Telephone Expenses 5000
9. Miscellaneous Expenses 10000
9800
Total
0

(v) Total Recurring Expenditure (per


(In Rs.)
month)
1. Personnel 198860
189690
2. Raw Material
0
3. Utilities 10000
4. Other Contingent Expenses 98000
220376
Total
0

(vi) Total Working Capital (for 2 Months)


Rs 2203760 X 2 4407520

30
C. Total Capital Investment

(1) Fixed Capital 5434500


(2) Working Capital (for 2 months) 4407520
Total 9842020

Machinery Utilisation
The number of machines to be installed has been determined
in such a way, that planned scheduling of jobs will not cause
any bottleneck in operation during bulk production. As such,
the unit will make utilisation of machines as envisaged,
without any bottleneck.

Financial Analysis

(1) Cost of Production (per


(In Rs.)
annum)
i) Total recurring cost 26445120
ii) Depreciation on Machine
38700
Equipment @ 10%
iii) Depreciation on Furniture and
16000
Office Equipment @ 20%
iv) Depreciation on Tools and Dies
12500
@ 25%
v) Interest on total investment @
1181042
12%
vi)Depreciation in Building @ 5 % 244375
Total 27937737

(2) Turnover (per year) (In Rs.)

31
i) By sale of 3000 Nos. of Wrought iron
2700000
furnitures @ Rs. 900 each
ii) By sale of 3000 Nos. of Wrought iron
6600000
taps @ Rs. 2000 each
iii) By sale of 3000 Nos. of Wrought Iron
9000000
screw drivers @ Rs. 2800 each
iv) By sale of 3000 Nos. of Wrought Iron 1260000
crank shaft@ Rs. 4000 each 0
309000
Total
00

(3) Net Profit


Rs. 30900000 - 27937737
(per year)
=2962263

(4) Profit Net Profit per year × 100


=
Ratio --------------------
Turnover per year

2962263 × 100
=
-------------------
30900000

=9.59

(5) Rate of Net Profit/year × 100


=
Return ---------------------------
Capital Investment

=30.1

32
33
(6) Break-even Point

(In
(i) Fixed Cost (per year)
Rs.)
a) Depreciation on machinery, Office
67200
Furniture, Tools and Dies etc.
b) Depreciation on Building @ 5 % 244375
c) Insurance 36000
d) 40% of Salaries and Wages 954528
e) 40% of Contingent expenses other
456000
than Insurance
118104
f) Interest on total investment
2
29391
Total
45

(ii) Net Profit (per year) 2962263

Fixed Cost × 100


B.E.P =
-----------------------
Fixed Cost + Net Profit

2939145 × 100
=
-----------------------
2939145 + 2962263

=49.8

34
RULES & REGULATIONS: -
1. According to requirement flexible duty hours can be
allotted.
2. All the personnel are the members of contributory P.F.
scheme.
3. All the personnel will be under an insurance scheme for
accident on duty compensation.
4. Maximum 10 minutes late is allowed. If any body
continues 5 late presents in a month half day leave will be
cut off.
5. All the personnel’s are bound to perform their work at
allotted space.
6. Necessary skill development programmed may be
imparted for the need of the company.
7. There is a lunch/dinner break of 30minutes & one tea
break of 15 minutes.
8. All the personnel’s should come with uniform supplied by
the company.
9. No personnel can form union or accept the member ship
of any union.

BENEFITS: -
35
1. Suitable bonus may be declared basing upon the profit
of organization.
2. An insurance premium will be paid by the company for
the accidental benefit as Rs.40000 & in case of death
Rs.100000.beyond that no other financial benefit will be
provided.

ALLOWANCES: -
1. Dust allowance will be paid as Rs.41 working day.
2. TA/DA will be provided if employee goes outside for
company work.
3. Over time allowance will be provided Rs.201 (beyond his
over time salary) for more than 4hrs over time.
4. No other allowances will be provided under any
conditions.
LEAVE: -
1. Leave should be taken when ever it is extremely
necessary.
2. 10 days casual leave & 5 days sick leave in a year.
3. Maximum 15 days accident on duty leave may be
allotted according to serious ness of injury.
4. If any employee continues 21 days leave with out
notice, he may be terminated.

TECHNICAL & FINANCIAL CONSULTANCY: -


1. SIDBI, BHUBANESWAR
2. DIRECTORATE OF SSI CUTTACK
3. SHYAM INDUSTRIES LTD., BHUBANESWAR
4. DISTRICT INDUSTRY CENTRE, KHURDA
5. STATE POLLUTION CONTROL BOARD, ORISSA

SUPPLIERS OF MACHINARY AND RAW


MATERIALS: -
a. List of plant & machinery suppliers: -
1. Inductotherm (i) ltd.
42, GIDC.Vatva, Pune
2. Simplicity engineers, Delhi
3. Pioneer equipments, Baroda

36
4. Kirloskar India pvt.ltd.Mysore

b. Raw materials suppliers: -


Required raw materials are freely available in the
open market. All of them are indigenous.

INDUSTRIAL POLICY: -
Introduction:
1.0 Transforming Orissa into a vibrant industrial state
remains an important goal in the beginning of the new
millenium.
With its abundance of mineral resources, long coastline
and inland water, the biodiversity of its forest and rich
culture heritage, Orissa ought to become a privileged
destination for industrial investment.
.1 The economic reforms and the liberalization
process initiated in 1991 provide an important
opportunity to the state to leverage the natural
resources to attract investment, both domestic and
international.
.2 The super cyclone in October 1999 caused
widespread damage to all sectors of the state
economy, including industry. Reconstruction of the
shattered industrial economy poses a major
challenge to the government as well as the civic
society.
.3 The recent white paper on Orissa state finances
(Brought out by Finance department, Government
of Orissa, on the 29th March 2001) highlights the
difficult situation of the public budget and sets
clear limits on the future availability of financial
incentives to spur industrial growth.
.4 At the same time, the combined forces of economic
globalization and governance decentralization,
pose new challenges to the policy-makers and call
for a profound redefinition of the way, government
can effectively support business.
.5 This industrial policy resolution is a result of such
an exercise and contains the following parts:
PART A – Statement of mission and objectives

37
PART B – Definitions and interpretations
PART C - Policy instrument

PART-A

STATEMENT FOR MISSION AND


OBJECTIVE
2.1. The mission of this IPR is to
*Create a business climate conductive to accelerate
investment in industry and infrastructure projects;
*Raise income, employment and economic growth in the
state;
*Reduce regional disparities in economic development.
2.2. To this end, the Government will
*Encourage Private Initiative and restricts its intervention
to such areas where it enjoys a distinct commutative
advantage;
*Invite private investment for the development and
operation of quality infrastructure;
* Promote the image of Orissa as an attractive destination
for investment and tourism;
*Assume a pre-active role in selected sectors, such as
*Mineral – based industries
* Craft-based products;
*Agro and marine based industries, industries based on
medicinal herbs and minor forest produce;
*tourism;
*Electronics, information technology & bio-technology;
* Encourage the creation of SSI cluster in similar lines of
business;
*Proceed more decisively with the restructuring and
consolidation of sick industrial units;
*Leverage the potential in SL/ST build concentration of
technologically advanced manufacturing industries.

PART B
DEFINITION AND INTERPRETATION
38
For the purpose of this industrial policy resolution,
the various terms shall have the meanings assigned to
them here under-
3.1. BIFR- Means the board of industrial & financial
reconstruction.
3.2. Earlier IPR- Means the industry policy resolution, 1992
and/or the industrial policy, 1996, as the case may be.
3.3. Effective date- Means the date on and from which
provision of this IPR shall be operative.
3.4. Entry tax- Means the tax payable under Orissa entry
tax act, 1999.
3.5. Existing industrial unit- Means are industrial units
where fixed capital investment has commenced before the
effective date.
3.6. Fast track project- Means project having a project cost
of Rs100crore and above.
3.7. Industrial units- Means any industrial undertaking
located inside the state and engaged in any manufacturing
or servicing activity as detail in the schedule appended to
this policy.
3.8. Large, medium & small scale industry- Means
industrial unit defined the govt. of India from time to time.

39
PART C
POLICY INSTRUMENT
4. General policy

4.1. Deregulation and simplification of rules and


procedure, rationalization of Labour laws, facilitation of
industrial restructuring and accelerated development of
physical & social infrastructure through public- private
partnership will enable a conductive business climate for
attracting investment and establishment of competitive
industry.

Medium/Large/Mega Industrial Project

4.2. Actively encouraged investment in large industrial


units, which the Govt. acknowledges have the potential to
be the nuclei for further industrial & economic
development. For this fast track project, clearness will be
hastened eliminating the factors causing delay and
facilitating timely implementation of such project.

SSI Tiny Sector

4.3 All effort will be encourage and ensure growth of small


scale industry sector, in particular through cluster
development approach.
4.4. Back-ended financial support for SSI unit in priority
sector, the way of grant of interest subsidy.
4.5. Market support through preference in Govt.
procurement as detailed else where in this IPR, to the SSI
or the tiny sector with emphasis on competitiveness based
on quality.

5. Clearness for fast track project

5.1. An industrial and infrastructural advisory board under


the chairemanship of the chief minister and prominent
industrialist and senior official of Govt. as membership will
advise the Govt. to ensure taking timely and effective

40
steps for rapid and sustainable industrialisation of state.
The minister, industry could be the vice chairman of board.
5.2. The board shall meet atleast twice a year to review
and give advice on various issues pertaining to
industrialisation.
5.3. Industrial and Infrastructural Advisory Committee
under the chairmanship of the Chief secretary will process
clearance to the fast track project as well as all other
industrial projects needing interdepartmental references.
5.4.On approval of chief minister ,the decision of IIAC will
not require further clearance from any other Department
under the state Government.

STRATEGY

6.1.The state govt. will introduce a land Bank scheme


.Tracts of Government Land will identified by IDCO in
consultation with collectors in potential locations
throughout the state and earmarked for industries. These
tracts will be exclusively reserved for location of
industries. Concerned revenue Authorities will make land
from the land bank available to IDCO and entrepreneurs
to establish industrial and infrastructure project.
6.2. The state government will encourage formulation of
an Infrastucture policy and establish a legal framework
for private participation in infrastructure projects.
6.3. Special economic zones, in accordance with new
policy initiatives of the central Govt already in place,would
be developed leveraging such location advantages of
orissa having long coast line and proximity to South-east
Asia. Private Investments will be encouraged for
development of these zone with world class infrastructure
with full support from the Govt in order to attract large
investment particularly FDI ,in manufacturing and service
sector for export production. Special
Dispensations for easing regulatory burden will be
provided for these zones .

7. Human Resource Development

7.1. The state government would formulate policy for


technical education in the private sector to facilitate the

41
establishment of new technical institution of good quality
and standard in the private sector .New Engineering
colleges and Medical colleges will be permitted in the
private sector in selected locations.
7.2. A Technical University will be established in the state
at the earliest. Steps would be taken to ensure close co-
operation and coordination between industries and
technical institution so that a trainee gets education in
conformity with needs of industries. Entrepreneur training
programs will be taken up .The policy also promote
training institute of international repute to be set up by
large industry houses in areas like IT, BT, etc. Employment
oriented Training scheme will introduced in it is and
engineering schools.

8. Priority Sectors

8.1. In addition to financial concessions provided in this


policy,
Efforts will be made to prepare competitive profiles of
priority industries in the state, so as to identify
opportunities and constraints in detail. These will be
addressed in sector specific policies, if needed.
8.2. Some sectors already have separate policies which will
be updated taking into account new information and
realities.

9. Financial and other support measure

ELIGIBILITY
9.1. New and existing industrial units shall, be eligible for
incentives provided in this policy, subject to the general
conditions and specific conditions stipulated.
9.2. Industrial units, hotels, cinema halls etc. covered
under earlier industrial policy resolution shall continue to
enjoy the incentives admissible under the said policy,
except to the extent abridged or modified or enlarged in
this policy.
GENERAL PROVISIONS
9.3. Implementation of various provision covering the
incentives, concessions etc. will be subject to the issue of

42
detailed guidelines notifications where ever necessary in
respect of each item by concerned Administrative
Department.
9.4. An industrial unit which considers itself eligible for any
incentives shall apply in accordance with the operational
guidelines and instructions set out in the Manual to be
brought out and same shall be considered and disposed of
on merit.
10. Sales Tax

10.1.In pursuance of the decision taken by all states and


union Territories regarding reforms in Sales tax, Govt. have
decided that no fresh Sales tax incentives will be extended
to industrial units in the state.
10.2. The state govt. is committed to reforms in the sales
tax administration with the objective over to the
harmonized value added tax system effective from 1st of
february 2010.
10.3. The industrial units enjoying or eligible for the
benefits under I.P.R-09 and Pre-09, I.P.R. will not get Sales
tax incentives after 31-7-10 as per F.D.,S.R.O
th
no.622/10,dated the 30 July 2010.
10.4. Industrial units which are in pipeline as on 1st January
2010 shall entitle to incentives under said notification with
same terms and conditions as applicable to them if they
fulfill the following criteria as on the 1st January 2010,
namely:
(i) Industrial unit which is registered under Orissa sales Tax
act,1947.
(ii) Industrial unit which has been allotted land for factory
or industrial unit which acquires land or space for its
operation.
(iii) Industrial unit which has applied for finance from
regular Financial Institution.
(iii) Industrial unit which will start commercial production
before 1st January 2010.

11. Patent Registration.


Industrial units will be encouraged for filling patent of
their research and State will provide assistance to
entrepreneurs for Patent and Intellectual property Right (IPR)

43
provisions the rate of 50 per cent of the expenditure up to
maximum of Rs.5.00 lakhs.

12. Quality Certification


High priority being accorded by the State Government
for improvement of quality of the industrial units and will be
provided with assistance for obtaining quality certification
from B.I.S. and other internationally recognized Institutions at
the rate of 50 per cent of the expenditure up to maximum of
Rs.2.00 lakhs.

13. Land

13.1. Government land earmarked for industry under the


Land Bank Scheme and other Government land wherever
available will be allotted for industrial projects.

13.2. IDCO will be the competent authority in the matter of


allotment of land for industrial and infrastructure projects
including those needed for creating social infrastructure in
designated Industrial Estates, Industrial Areas, Industrial
Parks and Growth Centres and also in respect of land
transferred to it under the Land Bank Scheme. For the above
purpose IDCO will fix up the premium cost of land for
different locations based on prevailing area rates and cost of
acquisition including expenditure in relief and rehabilitation
requirement, if any, for private land. Ground rent will be 1%
or the premium cost of land. Development cost will be
charged by IDCO separately based on the scope and extent
of development undertaken.
Allotment of land by IDCO/State Government would be
considered after verifying the antecedents of
partners/proprietors of the new industrial units in respect of
their past default,if any, in the matter of payment of premium
on the land allotted on the earlier occasion.
13.3. Rate of Government land, other than IDCO land for
industrial or infrastructure projects, will be as fixed by
Revenue Department/Collectors or the General
Administration Department as the case may be.

16.Environmental and social issues

44
16.1. The state govt. intends to facilitate handling of
environment and social issues involved in setting up
industrial and infrastructure project.
16.2. For relief and rehabilitation issues in connection with
land acquisition for industrial and infrastructure projects, the
State Government will put in place a new relief and
rehabilitation mechanism after re-examining the current
policy and procedures. This mechanism will seek to ensure
tht the interest of all stakeholders, in particular, the local
population would be fully taken into account.

17. Rationalisation of Inspections.


The industry requires free atmosphere for full growth.
The relationship should be of mutual trust and confidence
between Government and Industry. The policy is to promote
a system of self certification in which the industry voluntarily
fulfils its social and legal obligations. In order to genuinely
abolish the Inspector Raj, attitudinal changes will be ensured
at all levels. For this, trainings will be organized with the full
involvement of Industry Associations.

18. Review and Monitoring.

The success of the policy will depend largely on the


spirit in which it is implemented. The implementation of the
policy decisions will be periodically reviewed t appropriate
levels for necessary facilitation and mid-course correction,
wherever necessary.

ORDER:- Ordered that the Resolution be published in the


Orissa Gazettee and copies thereof be forwarded to all
Departments of Government, all Heads of Departments and
Accountant General Orissa.
By order of the Governor

D.P.BAGCHI
Chief Secretary, Orissa.

45
46
SCHEDULE UNDERTAKINGS CARRYING ON
ACTIVITIES RECOGNISED AS INDUSTRIAL
UNITS, OR GIVEN THE STATUS OF
INDUSTRIAL UNITS, FOR THE PURPOSE OF
IPR,2001.
A. Units engaged in manufacturing and/or servicing activity
belonging to the following categories:
(a) Industries listed under the first schedule of the Industries
Development and Regulation Act,1951.
(b) Industries falling within the purview of the following Bords
and Public Agencies:
(i) Small Scale Industries Board
(ii) Coir Board
(iii) Silk Board
(iv) All India Handloom and Handicrafts Board
(v) Khadi and Village Industries Commission/ Board
(vi) Any other Agency constituted by Government for
Industrial development.
(c) Infrastructure projects including projects undertaken for
social infrastructure.
(d) Services sector projects such as Tourism, Information
Technology and IT Enabled Services, Bio-technology.
B. Industrial unit will not include non-manufacturing/servicing
industries except
(a)General workshops including repair workshops having
investment in plant & machinery of Rs.5.00 lakhs and above
and running with power.
(b) Cold storage and Fish freezing units.
(c) Electronics repair and maintenance units for professional
grade equipment and Computer Software, Data Processing
and related services.
(d) Technology Development Laboratory/Prototype
Development Centre.
C. The following units shall not be eligible for incentives as
industrial units:
1. Rice hullers and rice mills excluding modern rice mill.
2. Flour mills including manufacture of basin, pulse mills and
Chuda mills excluding roller flour mill.

47
3. Making of spices, papad, etc. (excluding papad
manufactured by Co-operative Societies)
4. Confectionary (excluding mechanized confectionary)
5. Preparation of sweets and numkeens, etc.
6. Bred making (excluding mechanized bakery)
7. Mixture, Bhujia and Chanachur preparation units.
8. Manufacture of ice candy and ice fruits.
9. Manufacture and processing of betel-nuts.
10. Hatcheries, Piggeries, Rabbit or Broiler farming
11. Iron and Steel processors including cutting of sheets,
bars, angles, coils M.S. sheets, recoiling, straightening,
corrugating, drop hammer units, etc.
12. Cracker maing units
13.Tyrertreading units
14. Stone crushing units
15. Coal/coke screening units or Briquette.
16. Production of fire-wood and charcoal.
17. Painting and spray painting units
18. Units for physical mixing of fertilizers
19. Brick making units (except units making refractory bricks
and those making bricks from flash, red mud and industrial
waste).
20. Manufacturing of tarpaulin out of canvas cloth.
21. Oil mills including oil processing, filtering, coloring,
discoloring, refining, hydrogenation, scenting, etc.
22. Saw mill, sawing of timber Carpentry, joinery and
furniture
23. Drilling rigs ,bore –wells and tube-wells
24. Units for mixing or blending of tea
25. Units for cutting raw tobacco and sprinkling jiggery for
chewing purposes and gudakhu manufacturing units.
26.Units forbottling of medicines

Note:- List of Industrial units indicated above can be modified


by the Government in Industries Department from time to
time.

48
OCCUPATIONAL SAFETY AND HEALTH FOR THE TENTH
FIVE YEAR PLAN (2010-2015)

GOVERNMENT OF INDIA
PLANNING COMMISSION
SEPTEMBER,2009
Factories & Ports:-
Strengthening & Restructuring of DGFASLI: Need to grant
autonomy to CLI and Labour Institutes units functioning. They
should be generating their resources under the principle of
“User Pays”.

Coordination of Administration of Factories Act: This will


include extensive training of factory inspectors, preparation
of code of practices, standard procedures and inspection
manual in the factories and ports. Setting up of task force to
review and simplify the information to be furnished in FAS
forms. Compulsory furnishing of information in FAS form by
CIFs to DGFASLI.

Enforcement of dock workers (safety, healthy and welfare)


act, 1986: - This will include appointment of qualified safety
officers in all ports and docks, Notification of dock workers
(safety, healthy and welfare) rules by all state government.
Alternative it will be notified by the central government. To
enlarge the scope of dock safety advisory committee to
include representative from small and intermediate ports
also.

Education and training of factory and dock workers: -

49
Consultancy studies and service: - Strengthening of facilities
at CLI, RLIs, NIOH, and ITRC etc. to undertake major
consultancy studies on OSH.
Following amendments should be made-
A) Factories Act:

i). Factories employing 500 and above workers should


appoint safety officer.
ii). Independent safety audit of the facilities by factories
involving hazardous processes as defined under section 2(cb)
should be conducted.
iii). To ensure compulsory healthy insurance of workers
employed in hazardous processes.

B). Dock workers (safety, healthy & welfare) Act


(i) Inland container depots should be brought under its
purview.
(ii). All offices of the inspectorates of docks safety as well as
state factory inspectorates should be strengthened in terms
of infrastructure facilities such as transport, electronic
networking etc.
iii). Chief inspector of factories should be selected from
amongst the cadre of inspectors of factories and be given the
status of head of department directly reporting to Labour
secretary. This will increase his functional autonomy.
iv). Medical inspectors of factories and certifying surgeons
should be appointed in all inspectorates of factories in the
country.

A national committee on control of occupational


diseases under the apex body on OSH may be constituted.
This committee would facilitate close coordination and
exchange of information amongst agencies.
A data base containing information on handling
of containers and dangerous goods, hazardous installation,
inland container depots, minor and intermediate ports,
competent persons, panel of medical doctors, etc., for various
ports should be created for the benefits of the port users.
Training of crane operators should be
undertaken by respective owners of the equipment. This will
help in addressing the problem of accident due to transport

50
equipments in port areas statement of status of OSH in
company’s annual report.

Tiny/small (UN registered units): - The small scale units


employing less than 10/20 workers and outside the purview
of the factories act, 1948 should be covered by any other
legislation to ensure OSH of the workers in these units.
Software development units to be brought under the purview
of the factories act.

51
Environmental protection:
The following is a brief description of the laws and
regulation relating to environmental protection in India.

A.Constitutional status:

Article 48A of the directive principal of the state


policy provides for the state’s commitment to protecting the
environment and the article 51A(g) states that to protect and
improve the natural environment shall be the fundamental
duty of the citizens of India.

B. Regulatory Environment Protection Laws:


In observation of the directive principal, the union of
India has enacted the following major legislations:

a). The Environment (protection) Act, 1986, which is the


umbrella legislation.
b). The water (prevention & control of pollution) Act, 1981, as
amended in 1978 and 1988.
c). The air (prevention & control pollution) Act,1981,as
amended in 1987.the above act has been substantially
amended in recent past and some of the most significant
aspect of amendment are 1). Consent order is now valid for
15 years or till such time there is some significant change in
the process, whichever is earlier, 2). A consent order
cannot be provided provisionally & will be obtainable only
when all the provision, prevention requirements are adopted
in to ,action under these acts are to be taken by respective
state control Boards.
d) The Forest Conservation act, 1980.
e) The Wildlife Preservation act, 1982 extend to cover
biosphere resources and the Hazardous wastes Rules 1989.
f) Manufacture storage and import of hazardous chemical
rules 1989
i) The Motor Vehicle Act, 1939, amended in 1988 and
j) The Environment Tribunal Bill, 1992.

52
C. Promotional Policy Framework:

a) The National Forest Policy,1988


b) The National Conservation Strategy and Policy Statement
on Environment & Development 1992.
c) The policy statement for abatement of pollution 1922
d) The above Policy statements complement the National
water Policy and Factories Act 1948 besides other related
legislation
having a bearing on resources and economic activities
e) The national Housing policy 1988 the National water
policy 1987 and the National Land use Policy 1988 recognize
the importance of maintaining ecological balance.

D. Organizational structures of the Regulating Bodies for


Environment management

The ministry of Environment and Forest created in 1986 is


the nodal regulating agency .The Ministry has four division:
a) Environment: The central Pollution control Board function
under it and this Ministry is responsible for exercise of
promotion
and regulatory functions under the water air and
Environment acts.
b) Forests and wildlife: Wildlife preservation offices
responsible for implementing the wildlife protection act,1972
and the Regional offices of the MOEF for implementing the
provisions of Forest conservation Act,1980.
c) Ganga project Directorate
d) National A forestation and Eco-Development Board.

All the state governments looking after environment and


forest collectively.

Most of the states have states pollution control


Boards which have a significant role to play in enforcing
environmental management and pollution control as
required under different laws.

Environmental Impacts Assessment as per a notification


issued on 27 January 1994. The EIA is a statutory for 29

53
different activities in industry ,mining ,irrigation, power plant
,atomic power plants, railway and roads highways, bridges,
airport and communications. The central government
apprises the following types of projects:
a) Projects which requires the approval of the public
Investment Board commission Electricity Authority etc.
b) Projects referred to the MOEF by other ministries
c) Projects which are sensitive and fall in environmentally
fragile areas
d) projects under dispute.

The process to be followed is:


Project authorities are required to provide relevant
information as indicated in the guideline along with a EIA
statement/environmental management plan. After the
preliminary scrutiny by the ministry, the appraisal committee
evaluates the impact and makes commendations for
approval, rejection or modification in the project. The above
recommendations from the basis of the ministry’s decision
regarding approval/rejection.

ENVIRONMENTAL CLEARANCE
PROCEDURES
Under the environment (protection) Act, 1986, 24
categories of projects and industries will require
environmental clearance from the central government.
In addition, any project proposed to be located within
10km of the boundary of a reserved forest or a designated
ecologically sensitive area or within 25kms of the boundary of
a national park or sanctuary will require environmental
clearance from the central government.
For all other projects, environmental clearance needs to
be obtained only at the level of the state government.
Clearance is required from the environmental (for site
clearance) and pollution control angle, which has to be
obtained by all units other than certain, specified non-
polluting units in the small scale sector.
No objection certificate (NOC) for the site clearance usually
involves clearance from the concerned state pollution control
board NOC is also required for adequacy of pollution control
measures.

54
In general, the state pollution control board is the
concerned authorities which will the state pollution control
board is the concerned authority which will usually specific
certain pollution control measures to be taken by the unit.

55
AUTHORITY OF STATE FOR ENVIRONMENTAL
CLEARANCE (ORISSA)
Orissa state pollution control board
Gautam Nagar
Bhubaneswar – 751014
Efforts have been made to ensure that data is accurate. However the
source of data may be referred to for further clarification.

GOVERNMENT OF ORISSA

INDUSTRIES DEPARTMENT

No.XIV-HI-12/2005-7569 /I., Bhubaneswar, 13.04.2010


From:
Shri Subas Pani
Chief Secretary, Orissa.

To
The All Collectors,

Sub: Role of Collectors in Promotion of Industries

Sir/madam,
The state government is committed to facilitate the
process of industrialization to achieve sustainable development and
generation of employment. Orissa offers tremendous investment
opportunities in the areas of mineral based industries agro
processing, value addition of forest products, tourism, fisheries, I.T.
and I.T.E.S. and power generation etc. Government have enacted
the Orissa Industries (Facilitating)act, 2004 to provide for the
constitution of clearance Authorities at the district and state levels
for speedy clearance of the investment proposals of the

56
entrepreneurs proposing to establish industries in the state. A copy
of the said act has been sent to you by the director of industries vide
his letter No.3506 dated 04.03.2010. The Act provides for issue of
all clearances under various state laws for establishment of
industries through single window mechanism at district and state
levels. It also provides for self certification by industries as far as
compliance to various state laws are concerned and rationalization
of inspection with a view to reducing the transaction cost for
establishment and post entry operation of the industries. Recently
govt. has notified the district single window clearance authority
(DSWCA) under the chairmanship of collector for the purpose of
speedy issue of license/clearance/ certification required under
various enactments for setting up project where the amount of
investment is less than Rs.50 crore. The govt. has also notified the
Orissa industry rules to implement various provision of Act.
Copies of the act and rules are enclosed herewith for your
reference. District Industries centre shall be nodal Agencies to
undertake industrial promotion activities and to facilitate investor at
district level. The DIC have been entrusted with following function.
i) Investment Promotional activities at district level.
ii)District image building to attract investment;
iii)Investment climate improvement exercise;
iv)Provide secretarial and other support services to district level
single window clearance authority.
v) Issue and receive combined application from entrepreneur and
arrange required clearance from department concerned within the
specified time limit.
Yours faithfully
Sd /-
Chief Secretary ,Orissa

CONCLUSION
57
This project will be successfully implemented within the
three month after approval of concerned authorities. The
commercial production from unit may be started from the
unit may be started within the six month of approval if
everything goes right. This project is prepared through the
collection of different departmental policies of government
as well as technical consultancy from various organization
and during these project financial policies of different
financial institutes and banks.

During real time implementation of project the


different management technique may be implemented to
reduce the set up cost and different overhead expenses may
be avoided by suitable industrial engineering methods. This
project is a analytical representation of data collected from
various sources. So during real time implementation further
clarification must be done to make success the project.

58
LIST OF ABBREVIATIONS

AMP – Abandonment Mine Plan


BCCL – Bharat Cooking Ltd.
BIS – Bureau of Indian Standard
CBWE – Central Board of Worker’s Education
CFS – Container Freight Station
CLC - Chief Labour Commissioner (Central)
CIF – Chief inspector factory
CLI - Central Labour institute
CMAL- Coal Mines Authority Ltd
CONCOR- Container Corporation of India
CPWD – Central Public Work Department
DDG – Deputy Director General
DGFASLI- Directorate General Factory Advice Service & Labour
Institute
DGMS- Directorate General Mines Safety
DME- Department of Mines And Energy
DMRS- Development of mines rescue and service
DMSIS- Development of Mines Safety Information system
DOPT- Department of Personal & Training
ESIC- Employee State Insurance Corporation
FAS- Factory Advice Service
HAZOP- Hazard Operability
ICD- Inland Container Depots
ILO- International Labour Organization
ISO- Information system planning
ISP- Information System planning
ITRC- Indian Toxicology Research Centre
JNPT- Jawaharlal Nehru Port Trust
LPA- Loss Prevention Association
MAH- Major Accident Hazard
MOL- Ministry of Labour
MSHA- Mines safety and Health Administration
NB-OSH- National Board on occupation safety and healthy
NGO- Non-Governmental organization
NICMAR- National institute for construction Management and
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research
NIOH- National Institute of Occupational Health
NSC- National Safety Council
OISD- oil industry safety directorate
PIACT- an ILO training project
PIF- Providing infrastructure facility
POL- Petroleum oil liquid
PSCT- Port side Container Terminal
R&D- Research and development
RCD- Rail container deports
SEWA- An NGO
SSI- Small Scale Industry
SWP- safe work procedure
TISS- Tata Institute of social science
UNDP- United nations Development Program
UT- Union Territory
WHO- World Health Organization

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