DIC seeks to double funds for city’s industrial growth

Noting that the budgetary allocation for industrial development in the city was too less,the District Industries Centre,Pune,has asked the state government to provide additional funds for industrial growth in the city.

Written by Ishfaq Naseem | Published:June 20, 2012 1:06 am

Noting that the budgetary allocation for industrial development in the city was too less,the District Industries Centre (DIC),Pune,has asked the state government to provide additional funds for industrial growth in the city. The DIC has asked for an increase in allocation by more than 100 per cent to accelerate industrial production.

According to the officials,the budgetary allocation for Pune district in the current year has only increased by around Rs 40 lakh for industrial promotion through funding to entreprenuers and organisations to help people set up new manufacturing facilities. The allocation has been increased to Rs 1.9 crore from Rs 1.54 crore previous year. However,officials said the allocation was not enough for the district and an increase of Rs 2 crore has been sought at the earliest.

M V Bhagat,Joint Director Industries,Pune,said additional funds have been sought from the Industries department over and above the current year’s allocation. He said the allocation increase has been sought particularly for training and capacity building of entrepreneurs. The additional funds were also required for scaling up disbursements under the government’s subsidised loan schemes,he added.

S S Survase,General Manager,DIC Pune,said the allocations under the different subsidised schemes will depend on the demand from entrepreneurs. He,however,said the increase in allocation will help raise more trained manpower for setting up industries.

Officials,however,said there is a manpower crunch in all major sectors and the funds available for raising trained manpower are inadequate. From the overall budget allocation,the funds available for training was Rs 70 lakh as compared to Rs 47 lakh last year. The allocation is particularly low for DIC loan scheme under which funds to the tune of Rs 4-5 lakh are made available to the DIC on an annual basis to fund small ventures. The Rs 1.9 crore allocation also covers the state’s soft loan scheme that provides 15 per cent of project cost at a low-cost borrowing of 6 per cent annual interest with a cap of Rs 25 lakh and the money earmarked for giving awards to the enterprises that do exceptionally well.

“The allocation is very low,particularly for the DIC loan scheme. The allocation under the loan scheme is mostly given to artisans in rural areas for setting up self-employment ventures. The demand for the increase in allocation has been made ahead of the revised budget estimates that are prepared in the month of October,” said a district industries centre (DIC) official.

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