Sickness In SSI.

List of Tables
Sl.No. 2.1 2.2 2.3 2.4 2.5 2." 2.% 2.8 2.9 2.1$ 2.11 2.12 2.13 1. 2. 1. 2. 3. 4. 5. ". %. 8. 9. 1$. Caption of Table ` Chitradurga city profile Page No.

General 18 Land use 18 Live Stock 19 Industries 19 Trans ortation and co!!unication 19 #anks. 2$ Po ulation 2$ &orkers 2$ Literac' rate 21 (ducation 21 (cono!ic in)rastructure inde* 21 (ducation in)rastructure develo !ent inde* 22 (*isting in t+e district 22,24 An overview of problems and sickness in small scale industries -agnitude o) industrial sickness overvie. o) sick industries in /+itradurga cit'. -agnitude o) sick industries in /+itradurga cit'. Analysis of Survey 0ge o) 1es ondents. -ont+l' inco!e o) 1es ondents. Nature o) o.ners+i . /a ital invest!ent. T' e o) /a ital invest!ent. 1a. !aterial urc+ased Po.er su l' ro2le! Pro2le! o) sickness in SSI T' e o) training rogra! re3uired. Necessit' o) su2sidies )ro! 2ank 4or5 )inancial institutions.
1

33 41 42,43 44 48 49 5$ 51 52 53 54 54

Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Chapter I
Introduction
1.1 Introduction o) t+e industries 1.2 Introduction o) t+e s!all scale industries 1.3 (volution o) 2e conce t o) SSI

2 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 1.4 I! ortance o) SSI 1.5 728ectives o) t+e stud' 1." Sco e o) t+e stud' 1.% -et+odolog' o) t+e stud 1.8 Li!itation o) t+e stud'

. Introduction!"
Industr'6 t+e ter! re)ers to t+e e*traction and conversion o) ra. !aterials. T+e !anu)acture goods and 2e rovision o) services. Industr' also re)ers to a grou o) roductive enter rises or organi9ations t+at roduce or su l' goods6 services or rocess o) inco!e. Industr' can 2e eit+er

la2our intensive6 and s eciali9ed6 using lo. tec+nolog' as in 2e less

3 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. develo ed countries6 or +ig+l' auto!ated6 !ec+ani9ed and s eciali9ed6 using advanced tec+nolog'6 as in t+e industriali9ed countries. In econo!ics6 industries are custo!aril' classi)ied as ri!ar'6

secondar' and tertiar'. Pri!ar' industr' includes agriculture6 )oresting6 )is+ing6 !ining 3uarr'ing and t+e e*traction o) !inerals. T+e secondar' industr' is also called !anu)acturing industr'6 !anu)acturing in t+e rocessing o) ra. !aterials6 su lied 2' ri!ar'

industries into custo!er goods. Tertiar' industr' is also called services industr' and includes t+e section o) nation:s econo!' e!2racing industries t+at rovide services or intangi2le gains or generate .ealt+6 2ut roduce no tangi2le goods. Industries in India +ave 2een classi)ied into large scale and s!all scale industries. classi)ication. T+e a!ount ca ital invest!ent is 2eing 2asis )or t+e

.# Small Scale Industry!"

T+e s!all scale industr' constitutes a vital co! onent in Indian econo!'. T+e govern!ent o) India +as recogni9ed 2e i! ortance o) s!all, scale industr' )or ac+ieving socio,econo!ic o28ectives like generating

4 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. e! lo'!ent and re!oval o) regional dis arities and econo!ic

2ack.ardness o) rural areas. T+e s!all,scale sector +as contri2uted a2out 55; o) t+e total industrial roduction and account )or a2out o) 4$; o) is e* ort )ro! t+e countr'. T+e e! lo'!ent rovided 2' t+is sector is 1%5 lak+ eo le in 31.%5 lak+ units. 7ver %65$$ roducts are !anu)actured 2' t+e s!all scale industr'.

.$ %volution of the concept of small scale Industry

0ccording to s!all scale Industries #oard < 1855 =0 unit e! lo'ing less t+an 5$ ersons6 i) using o.er6 and less t+an 1$$ ersons .it+out t+e use o) o.er6 and .it+ a ca ital asset not e*ceeding is 5 lak+s>. 0ccording to t+e !inistr' o) industr' in 19"" s!all < scale industr' as )allo.s =0n undertaking +aving ca ital invest!ent in lant and !ac+iner' o) not !ore t+an 1s. 1$ lak+s and 1s. 15 lak+s in case o) ancillar' units>.

T+e industrial olic' revolution o) 19%% created a ne. sector called ting sector .it+in 2e s!all scale industr' sector all industries .it+ a ca ital invest!ent o) 1s. 1 lak+ in lant and !ac+iner' and located in rural areas and s!all to.ns are included in t+e tin' sector.
5 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. ?uring 199%6 on t+e reco!!endation o) 02id @ussain /o!!ittee6 t+e govern!ent o) India )urt+er raised t+e invest!ent li!it to 1s. 3$$ crores )or s!all,scale industries and to 21.25 lak+s )or tin' units.

.& Importance of Small ' Scale Industry!"

T+e i! ortance o) s!all scale industries are as )ollo.s. 15 %mployment (eneration !" intensive and t+e' can 2e T+e s!all < scale industries are la2our rovide !ore e! lo'!ent er unit o)

ca ital. T+e e! lo'!ent generating ca acit' o) s!all < scale sectors is eig+t ti!es t+at o) large < scale sector. 25 )se of local *aw +aterials!" T+e s!all < scale units !ake use o) locall' availa2le ra. !aterials. S!all < scale industries can 2e 2ased on t+e rocessing o) locall' roduced ra. !aterials. T+ese industries not onl' econo!i9e t+at utili9ation o) resources 2ut also +el conserve )oreign e*c+ange 2' to

roducing and e* orting goods

rocessed 2' locall' availa2le resources.

35

,alanced *egional -evelopment !"

Large

industries

are

!ostl' concentrated in 2ig cities. T+e s!all to.ns and rural areas are de rived o) t+e 2ene)it o) industriali9ation. In order to 2ene)it t+e countr' as a .+ole6 t+e industries s+ould 2e dis ersed in all regions.
" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. It is ossi2le to start s!all < scale industries in al!ost all areas suc+ as villages6 +ill areas and even re!ote corner o) 2e countr'.
45

-ecentralisation of Industries !"

T+e

concentration

o)

industries in Ar2an areas encourages !igration o) eo le )ro! rural areas to ur2an areas in large nu!2ers o) ro2le!s suc+ as Po ulation6 slu!s and s+ortage o) civic )acilities. T+e dis ersal o) s!all

industries in di))erent areas reduces t+e intensit' o) t+e ro2le!.

55

+obili.ation of Capital !" S!all < scale industries are +el )ul in
!o2ili9ing ca ital. In an agrarian econo!'. Peo le +ave a tendenc' to kee t+eir !one' idle rat+er t+an investing in large scale industries since s!all < scale industries are located close to areas .+ere eo le to sta'6 !o2ili9ation o) rural savings is eas'.

"5

-eveloping %ntrepreneurship !"

S!all

enter rises

2e

environ!ent .+ic+ encourages a gro.ing net.ork o) )eeder and co! le!entar' relations a!ong lants and )ir!s. It is in t+is

environ!ent t+e latent talent o) entre reneurs can 2e develo ed.

%5

%/uitable distribution of 0ealth !" T+e gro.t+ o) large

enter rises results in concentration o) econo!ic o.er in )e. eo le. T+e inco!e and .ealt+6 as a result6 is distri2uted une3uall' in t+e countr'. 7n t+e ot+er land6 s!all industries are eit+er ro rietar' or
%

Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. artners+i concerns or t+e o.ners+i is .idel' dis ersed in rural and 2ack.ard areas. So6 t+e inco!e generated in large nu!2er o) s!all units is dis ersed .idel'.
85

Training ground for local entrepreneurs !"

S!all

<

Scale industries are t+e training ground )or local entre reneurs. T+e skills and kno.ledge ac3uired can 2e trans)erred to ot+er industries and s!all enter rises !a' gro. into !ediu! si9ed industries.
95

%fficient use of productive factors !" S!all

enter rises

use

roductive )actors !ore e))icientl'. T+is results in lo.er ca ital < out ut. T+is results in lo.er ca ital < out ut ratio and +ig+er la2our < ca ital ratios. 0 ru ee .ort+ o) )i*ed assets roduces al!ost seven ti!es out ut in s!all < scale as co! ared to large scale.
1$5

1romotion of %2port !"

T+e contri2ution o) s!all < scale 0 )eature +as 2een ra id

sector in e* ort

ro!otion is signi)icant.

gro.t+ in t+e e* ort o) non,traditional ite!s. T+e s!all < scale sector accounts )or 1s. "$6$$$ corer6 e* ort annuall' .+ic+ is 4$; o) total e* orts in India.

.3 4b5ectives of the study

To anal'9e t+e sick industries in t+e sa! le cit'
8 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. To )ind out .+ic+ t' e o) ro2le!s are )aced 2' t+e s!all scale industries. To stud' t+e e*ternal and internal causes 2eing )aced 2' t+e s!all scale industries in t+e stud' area. To give in)or!ation a2out re!edial !easures to overco!e )ro! sickness.

.6 Scope of the Study

T+e resent stud' 8usti)ies ro2le!s o) SSI6 causes and re!edial

!easures take to i! rove t+e sick industries and it .ill contri2uting to a develo !ent o) industrial activities in articular and econo!ic develo !ent in general. @o.ever6 t+e stud' is con)ir!ed to onl' t+e industrial estatesBarea located in /+itradurga cit'.

.7 +ethodology of the study

T+e data )or t+e resent stud' as 2een gat+ered 2ot+ ri!ar' and secondar' data. 15 Pri!ar' ?ata Pri!ar' data as 2een gat+ered
9 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. a5 ?irect intervie. 25 72servation. 25 Secondar' ?ata Secondar' data as 2een gat+ered a5 Li2rar' 25 1esearc+. c5 Indirect intervie. 2' sending 3uestionnaire.

.8 Limitations of the study

T+e !ain li!itations o) t+is stud' are as )ollo.s 15 T+e stud' is li!ited onl' to t+e sick industries o) /+itradurga cit'. 25 To anal'sis o) surve' )indings .ill 2e 2ased on t+e o inions o) res ondents. 35 T+e o inions o) res ondents .ere li!ited to 3$ nu!2ers.

C9A1T%* 'II

#. #.#

(eneral profile of Chitradurga 9istory

1$

Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

#.$ #.& #.3

1hysical feutures %conomy and Infrastructure S04T " analysis of -istrict

C9A1T%* ' II #. (eneral profile of Chitradurga -istrict

/+itradurga is a )irst cit' .it+ +istorical 2ackground ?istrict +as nu!2er o) tourist laces like )ort o) regi!e o) alegaras covering 0ne2agilu6

11 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 1angaiana #agilu6 7nake 72avvana kindi etc. ?istrict +as ot+er +istorical laces T+i like @alura!es+.ara6 Sri 1anganat+a Te! le6 Guru

arudras.a!' Te! le at Na'akana+atti etc. ?istrict +as ric+ natural resources like li!e stone6 !anganese etc.6

district +as traditional artisans engaged in .ool .eaving6 silk .eaving and +andicra)t. /+allakere taluk o) t+e district is o ularl' kno.n as oil centre o) Carnataka6 since good !an' nu!2er o) oil !ills6 solvent e*traction lants are located. T+e district +as good nu!2er o) training centers and net.ork o) 0P-/:s )or ite!s like6 ground nuts6 !ai9e6 sun)lo.er6 areca nut and oil seeds. ?istrict +as good 'ield o) coconut and us suc+ nu!2er o) coir

industries are located district +as ot+er industries like cotton lant6 cotton ginning etc. ?istrict +as nu!2er o) traditional silk .eaving artisans and .ool .eavers.

#.# 9istory
T+e +istor' o) t+is region dates 2ack to re,+istoric eriod o) "$$ #./ according to t+e e*cavations conducted at /+andravalli under t+e guidance o) ?r. -.@. Cris+na 2' t+e de art!ent o) arc+aeological researc+ers6 -'sore state. It .as re,e!inentl' t+e land o) assures in t+e age o) t+e
12 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. e ics. ?'nasties like nanolas6 !ora's. Satava+anas6 Cada!2a6 /+aluk'as6 Pla9as6 1etracts6 /+olas6 Di8a'anagar kings and lastl' t+e )a!ous ala'a uras o) /+itradurga6 +ad ruled t+e district t+e seven round )ort 2uilt 2' alegaras at to o) t+e +ills o) t+e /+inna!uladri ad8acent to t+e cit' +as 2roug+t t+e touris! value to t+e cit'.

#.$ 1hysical features

T+e district is located 2et.een 1334: and 151$: nort+ longitudes and %5: 3%: and %%: $1: east longitudes. It is surrounded #ellar' district in t+e nort+. 0nant+a ur district o) 0nd+ra Prades+ in t+e east6 Tu!kur district in t+e sout+ < .est and t+e Surve' )ound ?avanegerei district in t+e .est. Generall' s eaking t+e .+ole district is dr' land6 c+aracteri9ed 2' +uge6 understanding lans. It lies in t+e Dalle' o) Dedavat+i 1iver. It co!es under t+e Cris+na 2asin as t+e onl' river vedavat+i )lo.ing no. in t+e district 8oins t+e Cris+na 1iver. Dedavat+i is a river o) t.o tri2utaries veda and 0vat+i. #au*ite6 /+ro!iu!6 Gold6 Iron ore6 li!e stone6 !anganese6 'rites. &+ite 3uart9es are t+e i! ortant !inerals availa2le in t+e district. T+e .eat+er during su!!er is too +ot and receives less rain)all. average rain)all is %5" !!. T+e

13 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. ?ece!2er to Ee2ruar' is cold season .it+ clear 2rig+t .eat+er. -arc+ to Fune is +ot su!!er. T+e te! erature is #et.een 2%.9$ to 42.2$$

#.& %conomy and Infrastructure

/+itradurga district +as a geogra +ical area o) %6%$6%$2 +ectares. T+e area covered 2' )orest is %"6"4" +ectares. T+e total cultivated land is

462265%4 +ectares and non cultivata2le land including 2arren land o) 2564$3 +ectares6 is %"6"4" +ectares 4;5 in t+e 'ear 2$$1 < $2 out o) t+e total cultivated land6 irrigated land is %$65$$ +ectares. Ear!ing ,,,,,,,,; vanivillas da! artial tanks and tu2e .ells6 are t+e sources o) irrigation. To.er6 1agi6 /oconut6

#.3 S04T ' Analysis of the -istrict

T+e strengt+ .eakness6 o district is anal'9ed as under. ortunities and t+reats 4S&7N5 o) t+e

A: Strength
15 Location advantage o) national @ig+.a' No. 4 and National @ig+.a' No. 13.

14 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 25 -a8or tourist centre. 35 02undant agriculture and @orticulture resources contri2uting to Industrial develo !ent in t+e sector. 45 &ind velocit' is uni)or! in all t+e seasons. @ence t+ere is sco e )or .ind!ill in /+itradurga and @iri'ur Taluks. 55 T+e district +as good +u!an resources as t+ese are nu!2er o) educational institution including (ngineering /ollege6 Pol'tec+nic6 Fo2 oriented course centers6 skills develo !ent institutions like 1A?S(T6 0TI6 ?IT/. "5 ?istrict +as got +ig+est nu!2er o) sel),+el grou in t+e state. 0s suc+ t+is is a sco e )or grou oriented roduction activities. %5 7il testing centre is located at c+allakere to cater to 3ualit' anal'sis o) oil6 oil seed6 oil cake etc. 85 ST(P institution is encouraging tec+nical entre reneurs to set u in)or!ation tec+nolog' and (lectronic industries.

,: 0eakness
15 T+e district +as droug+t rone area. T+ere is no erennial source o) .ater. /ultivators onl' de end on rain)all.
15 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 25 0ir ort is )ar,o)) to an e*tent o) 2$$ k!s )ro! /+itradurga. 35 /+itradurga is o) included on t+e direct route o) #angalore < une 1ail.a' route. 45 -ega industries +ave not 2een set u .

C: 4pportunities
15 #ased on t+e +u!an resources t+ere is a! le sco e )or 2ot+ engineering and Tec+nical industries like !anu)acturing service industries 25 T+ere is good sco e )or )ood rocessing industries 2ased on ric+

gro.t+ o) 0griculture and @orticulture cro s. 35 Good sco e )or non,conventional energ' source like .ind !ill. 45 T+ere is sco e )or truck ter!inal6 trans ort 2ased industries etc.6 as National @ig+.a' No. 4 and 13 are assing t+roug+ t+e district 55 #ased on natural resources like li!e stone6 good sco e )or ce!ent 2ased industries. "5 T+ere is otential )or industries like +eav' )a2rication s+eet !etal .ork etc. %5 Touris! related activities suc+ as 3 star +otels could 2e esta2lis+ed.

1" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

-: Threats
15 Interru ted o.er su l' is 2locking t+e continuous and regular

roduction activit' 25 T+ere is a cute s+ortage o) drinking .ater and industrial .ater )or c+e!ical 2ased industries. 0nd areca nut lantations are t+e !ain lantations Sugar cane6

oilseeds6 onion6 !ul2err'6

lants are i! ortant co!!ercial cro s

@orticulture6 Sericulture6 and ani!al +us2andr' are ot+er activities carried out in addition to agriculture .+ic+ is a !ain occu ation. T+ere are no o) large scale industries. -ediu! scale cottage and village industries are t+e i! ortant industries ta2le gives details a2out t+e agriculture industr' in)rastructure co! uted 2' +ig+ o.er co!!ittee )or redressed o) regional i!2alances a ointed 2' t+e govern!ent o) Carnataka under t+e

c+air!ans+i o) ?r. ?.-. Nan8unda a t+e econo!ist.

0ccording to t+e co!!ittees re ort t+e district .as in 11t+ lace in t+e state in 19"$,"1 and +as gone u to "t+ lace 2' t+e end o) 1998,99. t+e total o ulation as er t+e census is 2$$1 is 1561$622% .it+ literac' rate o)

"4.88;. It +as 1%92 ri!ar'. Pri!ar' sc+ools .it+ 26%464$4 c+ildren6 331
1% Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. +ig+ sc+ools .it+ 156"95 students and 24 colleges 4general5 .it+ 814% students in t+e 'ear 2$$1,2$$2. T+e district lan outla' )or t+e 'ear 2$$1 ,$2 .as 5426%85 lak+s including state and central govern!ent6 contri2ution Ta2le 1. General Sl.;o. 1articular 1. Taluks 2. @o2lies 3. Dillages Ta2le 2. Land use Sl.;o. 1. 2. 3. 4. 5. ". 1articular Total geogra +ical area Eorest Per!anent astures and gra9ing Land Irrigated land Net area so.n Ta2le 3. Live stock Sl.No. 1. 2. 3. 4. Particular #u))aloes S+ee Goats Pigs Ta2le 4. Industries Sl.No. Particular 1. Eactories
Govt. 0rts /ollege6 /+itradurga

;o. of units $" 22 1$59

9ectares %6%$6%$26 22%36%19 886%4$ "86242 36586$3% 4"62%9

No. o) Live 16%26%%% %61"6433 2615614$ %6923

No. o) units 148

18

Sickness In SSI. 2. 3. 4. 5. ". (! lo'ees S!all scale industries &orkers Industrial s+eds Industrial estates Ta2le 5. "212 "554 28"15 "$ $3

Trans ortation and co!!unication Sl.No. 1. 2. 3. 4. 5. ". %. Particular No. o) De+icles -otor c'cles 386225 /ars 23$1 /a2s 19$ 1icks+a.s 2%4$ 7!ni 2uses %$ Goods ve+icles 114$ 7t+ers 8%1" Ta2le ". #anks No. o) #anks 51 "5 5163%5

Sl.No. Particular 1. /o!!ercial #anks 2. 1egional,1ural #anks 3. Total de osits 41s in lak+s5 Ta2le %. Po ulation Sl.No. 1. 2. 3. 4. 5. Particular -ale Ee!ale Total 1ural Ar2an

No. o) Persons %6%26"49 %63%65%8 1561$622% 1263"6148 26%46$%9

19 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. Ta2le 8. &orkers Sl.No. 1. 2. 3. 4. 5. Particular -ain -arginal Non .orkers /ultivators 0griculture la2ors Ta2le 9. Literac' rate Sl.No. Particular 1. Total 2. -ale 3. Ee!ale Ta2le 1$. (ducation Sl.No. Particular 1. Pri!ar' sc+ool 2. 3. /+ildren @ig+ sc+ool c+ildren P.A./ollege Students Ta2le 11. (cono!ic in)rastructure inde* Sl.No. Particular 1. 1elativel' develo ed 2. Taluks #ack.ard Taluks No. o) units $1 $2
2$ Govt. 0rts /ollege6 /+itradurga

No. o) &orkers 56%"6$24 164"6$58 %6886148 26%96"4" 264$6942

Percentage "4.88 %4."9 54."2

No. o) Sc+ools 16823 2655655" 3$5 "$6249 85 9"41

Sickness In SSI. 3. 4. -ale 2ack.ard taluks -ost 2ack 2ack.ard Taluks Ta2le 12. (ducation in)rastructure develo !ent inde* Sl.No. Particular 1. 1elativel' develo ed 2. 3. 4. Taluks #ack.ard Taluks -ale 2ack.ard taluks -ost 2ack 2ack.ard Taluks (*isting industries in t+e district
Sl.No. Na!e o) t+e Industr' $1. $2. $3. $4. $5. $". $%. $8. $9. 1$. 11. 12. 13. #ri3uette )uel Eried Gra! Der!icelli -asala Po.der #aker' roducts /o))ee roasting and grinding Pickles and a ed -)g. (di2le and Non,edi2le oil ?ecorticating Eloor !illsB.et grinding 1iceB-andkki #+atti Poultr'B/attle Eeeds 1ead' !ade Gar!ents Total No. $5 $" 1% 2$ "8 19 $8 1$$ 13" "95 22 15 192 Installed /a acit' Per da' er unit 1.5.-T 5-T 25 kg 2$ kg 25 kg 15 kg 2 kg 2 -T 5 -T 2$$ kgs. 5 -T 2 -T 2$ No.s Total Production Per 'ear 9$$ -T 3825 -T 32 -T 3$ -T 12%.5 -T 5.1$ -T 32 -T 14$$$ -T 3825$ -T 8"$$ -T %5$$ -T 3$$$ -T 11.5 lak+ No.s
21 Govt. 0rts /ollege6 /+itradurga

$2 $1

No. o) units $5 $1 , ,

Sickness In SSI.
14. 15. 1". 1%. 18. 19. 2$. 21. 22. 23. 24. 25. 2". 2%. 28. 29. 3$. 31. 32. 33. 34. 35. 3". 3%. 38. 39. 4$. 41. 42. 43. 44. 45. 49". 4%. &ool .eavingBCnitting Silk reelingBT.isting &ooden )urnitureB/ar entr' &ood sa. !ill /ane and #a!2oo PrintingB7))set rinting #ook2inding Screen rintingB?TP Pa er (nvelo es Eoot.ear Tire 1et+reading PD/ Pi es -)g. Pol'et+'lene 2ags /andle .ork Li!eBc+alk cra'on Industries #ricks /e!ent roductBsoil 2ricks Potter' Stone crus+ing General (ngineering Steel )urniture !anu)acturing (lectrical Trans)or!er G -otor 1e.inding 1adioBTDBTa e recorder re air De+icle 2od' 2uildingBservicing Tu2e reconditioning #atter' reconditioning &atc+ re air Gold s!it+' Ice cand' -)g. P+oto studioB)ra!e.ork Hero*BST? #oot+ A!2rella re air #eaut' arlour ?is+ 0ntenna 131 2" 21" 24 3% 9% 24 24 1$ 2"" 32 $1 $2 $" 42 23 58 52 11 51$ 212 14% 48 9" 124 3$ 28 81 18 38 "8 21 1" 25 5 kg 5 kg 2$ No.s 1$$$ /)t 2$$ No.s 1$$$ No.s 1$$ No.s 1$$$ No.s 1$$$ No.s 1$ Pairs 35 No.s 5$$ kgs. 1$$ kg 5$$ kg 25 kg 5$$$$ No.s 5$$$ No.s 1$ No.s 4$ unit 25$ kg 2$$ kg 1$ No.s 1$ No.s 2$ No.s 1$ No.s 1$ No.s $5 No.s 1$ g! 5$$No.s 1$$ No.s 4$$ No.s 1$ No.s $5 No.s 2$$ No. P0 %5 -T 25.5 -T 1$2$$ No.s 43.2$ /)t 13.2 No.s 1%4." No.s 4.32 No.s 43.2 No.s 18 No.s 4.%9 Lak+ 2 No.s 12%.5 -T %5 -T 3$$ -T %5 -T 345$ lak+ No.s 522 No.s 93."$$ No.s %9.2$$ units 2295$ -T %"32 -T 18%5$$ No.s 3$$$$ No.s 3$"$$ No.s 1"$$$ No.s "$$$$ No.s %5$$ No.s 145 kg 8.$ lak+ No.s 3$$$$$ No.s 48 Lak+ No.s 3$$$$ No.s 14$$$ No.s 3$$$ No.s
22 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.
48. 49. 5$. 51. 52 53 54. 55. 5". 5%. 58. 59. "$. "1. "2. "3. "4. "5. "". "%. "8. "9. %$. %1. %2. %3. %4. %5. %". %%. %8. %9. 1e acking o) tea Seed rocessing 0reca,nut rocessing /oconut o.der Soo8i G &+eat )lour industries Ta!arind seeds decorticating ?estoner #ed -)g /otton )a2rics /otton Ginning Plastic articles #all en re)ill !)g Sa)et' !atc+ 0gar2at+i Soa industries P+en'l G Ter entine !)g ?istilled .ater !)g.B 0erated .ater Tiles !)g. 7 tical Lenses Dessel -)g &ire redra.ing H,ra' G (/G ?r' cleaning /us+ion .ork Soda )actor'BSo)t drinks Scented su ari ?ie cutting industries 7t+er re airBservicing /oir di)i2ring /oir roduct -)g. #roo! sticks Silk saris .eaving $1 $1 "" $1 $3 $3 $4 13 28 1% $9 $1 $5 1" $3 $1 $4 $1 $2 $2 $2 $8 $2 1" $5 $1 $5 "" 1$ $8 $5 85 1$$ kg 1 -t $.%$ -T $.1$ -T 4 -T 4 -T $.2 -T 5 No.s 1 -T 2$$ kg $.24 -T 15 Gross 2$ Gross 1$ Cgs 1$$ Cg 5$ L 4$ #ottles 4eac+ 2ottle %5$ !l5. 1$$$ No.s 1s.$.25B-ont+s 2$ No.s $.4 -T 1s 156$$$B-ont+ 4$ Iaors 1s. 2$6$$$B-ont+ 5$$ L 5$ kg 1s. 2$$ 1s 3$$$B-ont+s 5 -T 15$ kgs 1$$ No.s 2! 18 -T 18$ -T 2%$$ -T 3$ -T 3"$$ -T 18$$ -T 51 -T %5$$ No.s 252$ -T "12 -T 388 -T 45$$ Gross 3$$$$ Gross 15.3$ -T 54 -T 15$$$ L 24$$$ #ottles 2$$$$$ No.s 1s.5.1$ Lak+s 12$$$ No.s 12$ -T 1s. 8.$$ Lak+s 1"$$$ airs 1s. 23.$$ Lak+s 2.25 Lak+s 8.5 -T 1s.2.55 Lak+s 1s. 14.25 Lak+s "3%5 -T 21" -T 9$6$$$ No.s 3$6"$$ !

23 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Chapter III

An 4verview of 1roblems and sickness in Small Scale Industries

Pro2le!s o) t+e s!all scale industr'. Introduction a2out sickness in SSI. -eaning and de)inition o) sickness in SSI. Signals and s'! to!s o) sickness. -agnitude o) industrial sickness. /auses o) industrial sickness. 1e!edial !easures to revent t+e industrial sickness in SSI.

24 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

1roblems of Small Scale Industries

T+ere are !an' ro2le!s o) s!all scale industries t+e' are

roduction6 distri2ution and )inance. T+e' are a))ecting to 2e continuing o) s!all sale sector. T+e ro2le!s and di))iculties )aced 2' 2e s!all scale industries are discussed 2elo.. . <inance !" In ade3uate )inance is t+e !a8or ro2le! )or s!all scale units6 2ecause t+ese )ir!s internal resources are s!all. T+e credit rovided 2' 2e various institutional agencies suc+ as 2anks6 SE/:s and SI?#I are inade3uate to !eet t+e re3uire!ents o) s!all units. #. *aw material !" T+e availa2ilit' o) ra. !aterials is a great ro2le! o) S!all scale units. !aterials. T+ese units +ave used !ostl' local ra. oor 3ualit'6 inade3uate

T+ese units +ave to )ace 2e

3uantit' o) ra. !aterial urc+ased at a +ig+er rice. $. Technology !" S!all scale entre reneurs are )ull' e* osed to 2e latest tec+nolog' !ore over6 t+e' lack re3uisite resources u date or !oderni9e t+eir lant and !ac+iner' due to o2solete !et+ods o)

roduction. T+e' are con)ronted .it+ t+e ro2le!s o) less roduction o) in)erior 3ualit' and t+at too at +ig+er cost. T+e' are in no osition to co! ute .it+ t+eir 2etter e3ui scale industries.
25 Govt. 0rts /ollege6 /+itradurga

ed rivals o erating !odern large

Sickness In SSI.

&. Infrastructure !"

In)rastructure 2ottlenecks adversel' a))ect T+e in)rastructure ro2le!s are

)unctioning o) s!all scale units.

inade3uate availa2ilit' o) trans ortation6 co!!unication. Po.er and ot+er )acilities in t+e 2ackground area. 3. +arketing !" In !arketing t+eir roducts6 2e s!all units +ave to

)ace co! etition )ro! ot+er s!all scale units and also )ro! large scale industries. T+e s!all units 2$ not osses t+eir o.n !arketing organi9ation. T+e' do not +ave t+e resources and e* ertise to !arket t+eir roducts e))ectivel'. T+eir roducts are o)ten sat standardi9ed and o) varia2le 3ualit'. T+ere)ore6 2e s!all scale industries su))er )ro! a co! arative disadvantage vise large scale units. 6. )nderutili.ation of Capacity !" T+e s!all industries +ave an

in+erent ro2le! o) under utili9ation o) ca acit' due to t.o reasons Ere3uent o.er cuts6 and In a2ilit' to go )or alternatives like generators. 7n an average 4$; to 5$; o) t+e ca acit' is not utili9ed in s!all units.

2" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

7. *ecovery !" It is one o) t+e 2asic ro2le!s o) s!all scale industr' is recover' )ro! sales. T+e 2u'er:s do not a' t+eir dues in ti!e6 !ost o) t+e J rinci al:6 do not a' t+e a*illaries )or si* !ont+s are even longer a)ter urc+ase o) goods. 8. Institutional Constraints !" T+e entre reneurs )ace !an'

constraints in availing t+e!selves o) t+e various concessions and )acilities rovided 2' various )inancial institutions and govern!ent agencies. T+e s!all entre reneurs +ave to a roac+ several agencies

to get t+eir re3uire!ents. 0s a result t+e' are not a2le to get t+e assistance in ti!e. =. 4ther problems !" In addition to t+e ro2le!s generated a2ove6 t+e s!all scale industries )ace ro2le!s suc+ as i! er)ect kno.ledge o) !arket condition6 de)icient !anagerial skills and lack o) e))ective co, ordination a!ong various su orting institutions. 0ll t+e a2ove

ro2le!s +ave ut t+e s!all scale sector at a disadvantageous osition in do!estic and e* ort !arkets.

2% Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Introduction
1a id industrial gro.t+ +as 2roug+t in its .ake incidence o) sickness in t+e s!all scale industries. Sickness in industrial units is a gradual stages6 it gets re)lected in t+e )or! o) de)ects and !istakes in t+e unit:s )unctional areas like roduction )inance and !anage!ent. Later it is o2served in t+e )or! o) s'! to!s like irregular turnover in t+e account6 slo. and unsatis)actor' !ove!ent o) stocks6 decline in roduction6 sales and ro)ita2ilit'. Ere3uent violation o) t+e ter!s6 condition and asking )or additional grants.

-efinition
T+e ter! industrial sickness +as 2een de)ined in a nu!2er o) .a's and its conce t lacks un)ortunate. In co!!on a sick industr' is one .+ic+ not +ealt+'. 0 +ealt+' unit is one .+ic+ earns a reasona2le return on ca ital e! lo'ed and .+ic+ 2uilds u reserves a)ter roviding reasona2le de reciation.

28 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

*eserve ,ank of India

0ccording to 1eserve #ank o) India. =0n industrial unit is sick6 it +as incorrect cas+ loss )or one 'ear and in t+e 8udg!ent o) t+e 2ank6 it is likel' to continue to incur loss in t+e t.o )ollo.ing 'ears and it +as i!2alance in its )inancial structure suc+ as current ration 2eing less t+an 1K1 and .orsening.

-ebt e/uity *ation.

0n industrial unit6 according to 1#I6 is sick i) it +as 2e )ollo.ing )eatures. . Incurred cas+ loss in t+e revious accounting 'ear. #. Likel' to incur loss in t+e )ollo.ing 'ear. $. /urrent ratio is less t+an 1K1 &. &orsening de2t e3uit' ratio. T+e sick industrial co! anies 4S ecial rovisions5 0ct6 1985 de)ines a sick co! an' as6> an industrial co! an' 42eing a co! an' registered )or less t+an seven 'ears5 .+ic+ +as at t+e end o) an' )inancial 'ear

accu!ulated losses e3ual to or e*ceeding its entire net .ort+ and +as also su))ered cas+ losses in suc+ )inancial 'ear i!!ediatel' roceeding suc+ )inancial 'ear>.
29 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Signals and symptoms of industrial sickness!"

Industrial sickness does not occur suddenl'. It is a gradual rocess an take a nu!2er o) 'ears. T+e .arning signals o) sickness !a' 2e discerni2le in t+e earl' li)e o) an industr'. T+e identi)ication o) t+e signals can revent t+e sickness o) t+e industrial units. T+e i! ortant signals o) sickness in t+e industrial units are as )ollo.s. . ?ecline in ca acit' utili9ation. #. S+ortage o) )unds to !eet s+ort ter! )inancial o2ligation $. Stock o) inventories. &. Ere3uent 2reak do.n in lant and !ac+iner'. 3. ?ecline in t+e 3ualit' o) roducts or services. 6. ?ela' as de)ault in t+e a'!ent o) statutor' does suc+ as rovident )und. (! lo'ees state insurance etc. 7. ?ecline in tec+nical e))icienc'. 8. Ere3uent turnover o) .orkers =. Irregularit' in !anaging 2ank accounts. >. ?ela' in su2!ission o) data to 2anks and )inancial institutions.

3$ Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+e s'! to! o) industrial sickness re)lects t+e er)or!ance o)

industrial units. T+e !a8or s'! to!s o) industrial sickness are given 2elo. . ?ecline in roduction and sales #. Ere3uent re3uest )or t+e en+ance!ent o) credit li!its. $. S+ortage o) cas+. &. ?eteriorating )inancial ratios. 3. ?iscounting c+e3ues )or a!ounts in e*cess o) genuine 2usiness transactional. 6. @eav' de endence on e*ternal )unds. 7. ?e)ault in t+e audit o) accounts. 8. ?ela' in t+e audit o) accounts. =. Lo. e! lo'ee !orale. >. Ase o) crating account.

+agnitude of Industrial sickness !"

0 co! arative osition o) sick s!all scale industr' units during t+e eriod 1991 < 98 is given in t+e ta2le. Nu!2er o) sick units in s!all scale industr' sector

31 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. Lear 1991 1992 1993 1994 1995 199" 199% 1998 No. o) Anits 262164%2 264565%5 263861%"3 265"6452 26"86815 26"263%" 26356$32 2621643"

Causes of Industrial Sickness

Sickness in s!all scale industr' cannot 2e attri2uted to a single )actor alone. It is 2e ulti!ate result o) !an' causes .orking si!ultaneousl'. T+e causes o) sickness can 2e classi)ied into t.o categories. . (*ternal /auses. #. Internal /auses.

%2ternal Causes
T+e e*ternal causes are 2e'ond t+e central o) t+e industr' and usuall' a))ect t+e industr' as a .+ole. So!e o) t+e i! ortant e*ternal causes are as )ollo.s. . /+anges in t+e govern!ent olicies like rice controls )iscal duties and rocedural dela's on t+e art o) t+e )inancial or licensing or regulating aut+orities.
32 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. #. In)rastructural ro2le!s o) like trans ort 2ottle necks6 o.er cuts etc. $. Inade3uate availa2ilit' o) in uts like ra. !aterials due to oor agricultural out ut6 c+ange in i! ort conditions etc. &. 1ecessionar' trends. 3. /redit s3uee9e 2' 2anks.

Internal Causes
Internal causes are .it+in t+e central o) t+e industrial unit and !ostl' relate to !is!anage!ent in various o erational areas. T+e' are6 . Lack of e2perience of 1romoters &rong selection o) ro8ect6 )ault' ro8ect lanning and oor

i! le!entation due to t+e ine* erience o) t+e sickness o) t+e industrial unit. #. %asy approval of small scale units T+e eas' a

ro!oters contri2ute to

roval o) t+e units 2' t+e state .it+out ro er screening o)

ro8ect ro osal resulted in sickness. T+e ro8ects .ere not assessed .it+ ade3uate cure articularl' .it+ regard to )inancial via2ilit' $. -ependence on own <unds

33 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. -ost o) t+e s!all units de ended !ostl' on t+eir o.n )unds rates t+an on 2orro.ed )unds. co!!ercial 2anks. &. Improper <inancial Structure T+e long,ter! )inancial re3uire!ents o) a unit are net 2' raising long, ter! loans. T+e s+ort,ter! re3uire!ents are !et 2' restoring to .orking ca ital loans. In s!all units t+e usual cause o) sickness is .eak e3uit' 2ase and ina ro riate )inance !i*. Eor .orking ca ital t+ese units de ended on

3. -iversion of <unds 0 )inanciall' disci lined co! an' uses t+e long,ter! )unds )or long, ter! needs and s+ort,ter! )unds )or .orking ca ital needs. I) diverts )unds )ro! long,ter! to s+ort ter! uses and vice versa6 it !a' go sick.

6. Lack of management e2perience Loung entre reneurs even at t+e start u stage 2orro. at +ig+ rate o) interest and do not care to econo!i9e t+e cost. T+e +ig+ over+ead cost during t+e stage o) in)anc' leads to sickness.

7. ;on observance of the principle management

34 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+e entre reneurs in s!all scale sector start enter rises .it+ lo. e3uit' 2ase6 !ake no e))ort to 2uild internal )inancial resources during good 'ears6 !aintain +ig+ inventories to total roduction etc. develo inade3uate internal resources to !eet di))icult ti!es 8. -elay in payments ?ela'ed or non a'!ent 2' t+e rinci al to t+e ancillaries +as 2een an i! ortant cause )or sickness in s!all scale industr'. T+e ractice o) credit sales is )orced u on s!all scale industries is larger one. =. +arketing -arketing is one o) t+e !a8or stu!2ling 2locks )or s!all industries. -arket researc+ is necessar' to discover custo!er +a2its6 desires needs and acce ta2ilit' o) a ro osed or e*isting roduct or services. S!all enter rises are una2le to carr' out !arket researc+ due to li!ited resources. ?e!and is continuousl' c+anging and its e*act )orecast is ver' di))icult )or s!all units. In t+e a2sence o) a !arketing c+annel6 !an' s!all units sell t+eir roducts to large 2usiness +ouses .+ic+ !ake a +andso!e ro)it and t+e s!all units get a ra. deal.

>.Choice of inappropriate technology

35 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+e s!all scale entre reneur:s c+oice o) in a ro riate tec+nolog' is

one o) t+e causes )or sickness. T+is is no )inance )or ado ting a ne. tec+nolog' )or an industr'. .1ersonnel constraints Industries located I 2ack.ard areas 'et a2undant su l' o) unskilled

la2our 2ut it !a' 2e di))icult to get skilled !an o.er. Eurt+er education and training rogra!!ers suited to t+e needs o) 2e sta)) o) s!all enter rises are not availa2le. T+is results in oor 3ualit' o) roducts and services6 lo. roductivit' and ulti!atel' !erge ro)it. #.)nder utili.ation of Capacity Lack o) .orking ca ital6 lack o) de!and )or t+e roduct and non, availa2ilit' o) ra. !aterials result in under utili9ation o) ca acit' .+ic+ !ake t+e unit as sick ones

*emedial measures to prevent sickness in small units

: %arly detection of sickness It .as generall' )elt6 could go a long .a' in initiating re!edial !easures )or restoring otential sick units to +ealt+. #: Einancial Institutions and 2anks s+ould initiate necessaril' corrective action )or sick to sickness units 2ased on diagnostic studies. In case
3" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. o) gro.ing sickness. T+e' s+ould also consider assu! tion o)

!anage!ent res onsi2ilit' .+ere t+e' are con)ident to retracing a unit to +ealt+. $: 1riority to Small scale )nits T+e govern!ent can accord riorit' in t+e allocation o) scarce ra. !aterials6 e*tend !arketing assistance and grand concessions to s!all units .+ic+ s+o. 2etter record o) er)or!ance. &: Action for non 1ayment T+e govern!ent s+ould take )ast action against t+e rinci al )or non, a'!ent )or t+e goods su lied 2' s!all units.

3: *ehabilitation package to cover various areas So!e s!all units !a' 2eco!e sick 2ut !a' 2e otentiall'

via2le. Suc+ units are taken )or re+a2ilitation. T+e re+a2ilitation rogra!!ed covers onl' )inancial !easures suc+ as re sc+eduling o) de2ts6 en+ance!ent o) .orking ca ital etc. t+e re+a2ilitation rogra!!ed6 to 2e e))ective6 !ust rovide )or !anagerial e))icienc'. T+e -arketa2ilit' o) roducts6 ade3uate availa2ilit' o) o.er6 ra. !aterials etc. T+e rogra!!ed o) re+a2ilitation s+ould 2e )inali9ed and

i! le!ented s eedil'.
3% Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 6: Separate -ivision in ,I<* to deal with Sickness T+e 2oard )or Industrial and Einancial 1econstruction 4#IE15 .as originall' dealing .it+ t+e revival o) large scale units. No. sick s!all units also )all .it+in t+e revie. o) #IE1. 0 se arate division to deal .it+ sickness in s!all scale industries !a' 2e set u as s!all units are c+aracteri9ed 2' di))erent sets o) ro2le!s as co! ared to !ediu! and large scale industries.

Chapter ' &

38 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

An overview of Sick Industries in Chitradurga district.

Introduction Nu!2er o) sick industries in /+itradurga district. -agnitude o) sick industries in t+e /+itradurga district. 1e+a2ilitated sick units in /+itradurga district.

Introduction

39 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. Sick industries o) SSI are a))ects t+e gro.t+ o) industriali9ation and develo !ent econo!' also in a large !anner. In /+itradurga cit' industries +ave )allen sick due to 2e internal and e*ternal causes. Ee. o) t+e! +ave 2een te! orar' closed )or t+e

seasonalit' o) activit'. T+e !a8or s+are o) sick industries ertains to oil and decorticating sector. T+e !ain reasons are )ailure o) !onsoon6 interru ted o.er su l'. Paucit' o) .orking ca ital etc and )e. industries +ave

2eco!e sick due to tec+nolog' o2solesce. ;umber of the sick industries in the Chitradurga district are as follows Sl.No 1. 2. 3. 4. 5. ". %. 8. 9 1$ Lear 199",199% 199%,1998 1998,1999 1999,2$$$ 2$$$,2$$1 2$$1,2$$2 2$$2,2$$3 2$$4,2$$5 2$$",2$$% 2$$%,2$$8 Total No. o) Sick Anits 1 1$ 32 8 3 3 5 1 1 2 66

4$ Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

*ehabilitation of sick industries!"

41 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. In /+itradurga district a!ong e*isting industries are 56"8" a!ong t+ese t+ere are "4 industries +ave 2een identi)ied as sick out o) t+ese 14 industries +ave 2een re+a2ilitated. T+e industries +ave )allen sick due to t+e internal and e*ternal causesBreasons. T+e via2le industries )or re+a2ilitation are 2eing identi)ied and e*tended .it+ incentives and concessions as er t+e guidelines announced 2' t+e govern!ent. T+e )inancial institutions +ave announced 7TS 47ne Ti!e Settle!ent5 sc+e!e .+erever via2ilit' )or re+a2ilitation. T+e re+a2ilitated sick industries in t+e cit' are as )allo.s.

42 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Chapter " 3

Analysis of Survey

43 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Introduction 728ectives o) t+e surve'. Li!itations o) t+e surve' 0nal'sis o) Surve'

Introduction T+e surve' conducted in /+itradurga district. T+is surve' is conducted to kno. t+e ro2le!s and causes o) sickness in s!all scale revent

industries in /+itradurga and to give t+e re!edial !easures to sickness o) S!all scale industries.

44 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+is c+a ter deals .it+ t+e anal'sis o) data collected )ro! t+e )ield o) surve'. T+irt' res ondents )ro! di))erent location +ave rando!l' selected )or getting t+e )eed 2ack.

4b5ectives of the survey T+e surve' conducted to ac+ieve t+e )ollo.ing o28ectives. 1.5 To kno. t+e ro2le!s o) SSI in /+itradurga 2.5 To kno. t+e causes )or sickness in SSI in /+itradurga. 3.5 To kno. t+e re!edial !easures to revent sickness in SSI. 4.5 To give suggestion to overco!e )ro! sickness in SSI.

Limitations of the study. Eollo.ing li!itations restricts t+e surve'. 1.5 T+e surve' is conducted onl' in li!ited laces. 2.5 T+e res ondents .ere li!ited to 3$ nu!2ers 2ecause o) ti!e constraints. 3.5 So!e res ondents did not res ond t+eir o inions )reel' and accuratel'. 4.5 So!e res ondent !a' )ill t+e 3uestionnaire .it+out interested as t+e' .ere 2us' in transaction 4.orking5.
45 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Analysis of Survey
The interpretation of data is as follows Ta2le No.1 Age of *espondents Sl.No. 1. 2. 3. 0ge grou 2$,3$ 31,4$ 41,5$ No. o) 1es ondents 5 8 11 Percentage 1"; 2%; 3%;
4" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. 4. 51 and a2ove " 2$; Total 3$ 1$$; T+e ta2le s+o.s t+e distri2ution o) res ondents according to t+e age.

T+e a2ove ta2le reveals t+e !a8orit' o) res ondents 2elongs to 2e age grou o) 41 < 5$ 'ears 43%;56 )ollo.ed 2' 21,3$ 'ears 41";. 31 < 4$ 'ears 42%;5 and a2ove 51 'ears are 42$;5. T+e diagra! s+o.ing t+e age grou o) res ondents
No. of Respondents 12 10 8 6 4 2 0 1 2 3 4

No. of Respondents

Ta2le.2 +onthly income of *espondents Sl.No. 1. 2. 3. 4. -ont+l' Inco!e Less t+e6 1$6$$$ 1$6$$$,156$$$ 156$$$,2$6$$$ 2$6$$$ and a2ove Total No. o) 1es ondents 9 1$ % 4 3$ Percentage 3$; 33; 23; 14; 1$$;

4% Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+e )ollo.ing ta2le s+o.s t+e distri2ution according to !ont+l' inco!e. 0ccording to t+e a2ove ta2le6 .e can conclude !a*i!u!

res ondent are 2elongs to t+e inco!e grou o) 1$6$$$ to 156$$$ 433;5 )ollo.ed 2' less t+an 1$6$$$ 43$;5. 156$$$ < 2$6$$$ are 423;5 and a2ove 2$6$$$ are 14;. T+e diagra! s+o.ing !ont+l' inco!e o) t+e res ondents

No.o) 1es ondents Less t+an 1$6$$$ 1$6$$$ to 156$$$ 156$$$ to 2$6$$$ 2$6$$$ G 02ove

Ta2le .3 ;ature of 4wnership T+e )ollo.ing ta2le s+o.s t+e distri2ution o) res ondents according to t+e nature o) o.ners+i Sl.No. 1. 2. 3. 4. Nature o) o.ners+i Sale Trading Partners+i @indu undivided )a!il' 7t+ers No. SSI 14 9 % $ Percentage 4%; 3$; 23; $;
48 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. Total 3$ 1$$;

0s er t+e a2ove ta2le6 .e can sa' t+e !a8orit' o) SSI are 2elongs to t+e sale trading is a account )or t+is 4%; and t+e ot+ers like artners+i 3$; @AE 23; and )or ot+ers $;.
50% 40% 30% 20% 10% 0% 1 2 47% 30% 23% 0% 4

Ta2le .4 /a ital Invest!ent Sl.No. 1. 2. 3. 4. /a ital Invest!ent #elo. 16$$6$$$ 16$$6$$$ to 26$$6$$$ 26$$6$$$ to 46$$6$$$ 46$$6$$$ and a2ove Total No. o) SSI 3 8 5 14 3$ Percentage 24; 33; 3$; 13; 1$$;

49 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T+e a2ove ta2le s+o.s t' e o) ca ital invest!ent. 0ccording to t+e ta2le s+o.s !a*i!u! SSI are run )ro! t+e ca ital )ro! 2anks i.e. 33; )ro! )inancial institution 3$;6 o.n )unds 24; and )ro! ot+ers 13;.
40% 30% 20% 10% 0% 1 2 3 4 5

#elo. 16$$6$$$ 16$$6$$$ to 26$$6$$$ 26$$6$$$ to 46$$6$$$ 46$$6$$$ G 02ove

Ta2le .5 T' e o) 1a. !aterial urc+ased Sl.No. 1. 2. 3. Purc+ase o) 1a. !aterial Local -arket I! ort 7t+ers Total No. o) SSI 2$ % 3 3$ Percentage "%; 23; 1$; 1$$;

T+e a2ove ta2le s+o.s t+e t' e o) ra. !aterial urc+ased. 0ccording to t+e a2ove ta2le ra. !aterial is urc+ased !ore )ro! local !arket "%; i! orted )ro! ot+er areas 23; and ot+ers are 1$;.

5$ Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.
100% 80% 60% 40% 20% 0% 1 23% 10% 2 3 4 67% 100%

Ta2le ." Pro2le!s o) Sickness in SSI Sl.No. 1. 2. Pro2le!sBcauses (*ternal Internal Total No.o) SSI 18 12 3$ Percentage "$; 4$; 1$$;

T+e a2ove ta2le s+o.s t+e ro2le!s o) sickness in SSI. 0ccording to t+e ta2le t+e !ain reasons )or sickness is e*ternal causes "$; like in)rastructural and internal causes 4$;.

51 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

40% 60%

(*ternal Internal

Ta2le .% Po.er su Sl.No. 1. 2. l' ro2le! 7 inion Les No Total No. o) SSI 22 8 3$ Percentage 24; 2"; 1$$;

T+e a2ove ta2le s+o.s t+e o.er su

l' ro2le! in SSI. 0ccording l' ro2le! and 24; no

to t+e a2ove ta2le t+ere is a %4; o) o.er su o.er su l' ro2le!

Ta2le .8

52 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. T' e o) training rogra!!ed 1e3uire!ent T+e )ollo.ing ta2le s+o.s t+e re3uire!ent o) )lo.ing rogra!s to revent sickness in SSI. Sl.No. 1. 2. 3. Training Progra!s (ntre reneurial -anagerial -arketing Total No. o) SSI 1" 9 5 3$ Percentage 53; 3$; 1%; 1$$;

17%

53% 30%

(ntre reneurial -anagerial -arketing 0s er t+e ta2le .e can sa' t+e !ore entre reneurial training can 2e re3uired )or t+e ro rietors o) SSI6 i.e.6 53; )ollo.ed 2' !anagerial training 3$; and !arketing kno.ledge 1%; can 2e re3uired.

Ta2le .9
53 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. Necessit' o) su2sidies )ro! 2ank 4or5 )inancial institutions Sl.No. 1. 2. 0s 7 inion No. o) SSI Percentage Les 22 %4; No 8 2"; Total 3$ 1$$; er t+e ta2le t+ere is a necessit' o) su2sidies )ro! 2ank 4or5

)inancial institutions 2' %4; and )allo.ed 2' t+e necessit' is 2";.

Chapter ' 6

1roblems Suggestions and Conclusions

Pro2le!s. Suggestions. /onclusions.

54 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

T+e surve' reveals t+e )ollo.ing ro2le!s o) SSI in /+itradurga cit' 1. In)rastructure Pro2le!s. 2. Einancial Pro2le!s 3. 1a. -aterial Pro2le!s 4. Tec+nolog' Pro2le!s 5. Po.er Pro2le!s. ". -anagerial ro2le!. %. -arketing ro2le!s.

Infrastructural 1roblem
In /+itradurga !an' !ore s!all,scale industries are su))ering a2out in)rastructural ro2le!s like .ater6 roads6 co!!unication net.orks etc. to over co!e )ro! t+e a2ove ro2le!s govern!ent !a' take t+e art to

rovide ade3uate )acilities to SSI to co!e out )ro! in)rastructural ro2le!s.

55 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

<inancial problems
-ost o) sick industries +ave 2een su))ering )ro! t+e )inancial ro2le!6 2ecause o) scarcit' o) ca ital. To overco!e )ro! +is ro2le! t+e ro)iteers +ave to 2e 2orro.ing loan )ro! an' )inancial institution 4or5 2anks.

*aw material problems

It is a !a8or cause to 2eco!e sickness in SSI. To overco!e )ro! +is ro2le! t+e' can arrange su2sidiar' su laces also. Tec+nolog' Pro2le! In SSI +ere is a ost tec+nolog' .ill ado ted 2ecause o) lies o) ra. !aterials )ro! ot+er

!oderni9ation o) tec+nolog' t+e roduction 2eco!es slo. and 2e cost o) roduction .ill 2e +ig+er. To overco!e )ro! t+is ro2le! ado t a suita2le tec+nolog' to t+e roduction rocess.

1ower problem In /+itradurga cit' o.er ro2le! is a !ain ro2le! in SSI6 2ecause o) voltage variations SSI are )ace ver' critical ro2le!. To overco!e t+is

5" Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. ro2le! t+e govern!ent s+ould take art and rovide ade3uate o.er to SSI.

+anagerial problems
Lack o) -anagerial e* erience and co! etence s!all,scale industries .ere )acing t+e a2ove ro2le!s. To solve +is ro2le! ro er and ade3uate !anagerial and skilled erson are re3uired.

+arketing 1roblems
Lack o) clear !arketing strateg' and !arketing su ort s'ste!s t+e'

)ailure to redict t+e !arket tried to overco!e out o) t+is ro2le! t+e' s+ould kno.n a2out t+e !arketing strategies and re lan t+e !arketing s'ste! 2e)ore su l' t+e )inancial goods.

Suggestions
In /+itradurga is 2ack.ard district6 in t+e cases like industrial6 training and educational develo !ents etc. To overco!e )ro! t+ese cases t+e )ollo.ing suggestions .ill 2e !ore +el )ul

5% Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Conclusion
Sickness in s!all scale industries in articular is cause )or concern. T+e 2anks6 )inancial institutions and t+e govern!ent s+ould address to redressed strategies )or t+e sick units. 1evival o) sick units s+ould 2e taken on a riorit' 2asis. Ero! t+is surve' it is concluded t+at6 t+e sick industries are )acing t+e !an' ro2le!s. To solve t+ese ro2le!s sick industries s+oud rovide reasona2le causes )or sickness to t+e district industr' centre. T+en t+e ?I/ .ill e*a!ine t+e causes o) sickness and a)ter t+is .+et+er it is )it to continueBe*ist in t+e )uture .ill 2e tested. 0)ter t+e ins ection6 t+e' .ill grant seed !one' to re+a2ilitate 2e sick industries.

58 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Chapter ' 7

A;;%?)*%
@)%STI4;;AI*% ,I,IL4(*A19A

59 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

Muestionnaire

Ero!6 +IBAL CI;4Einal 'ear #.#.Govt. 0rts /ollege ?e art!ent o) #usiness -anage!ent /+itrdurga ?ear 1es ondents6 I a! student o) )inal 'ear #.#.-. and as a art o) t+e course I +ave taken u a ro8ect re ort under t+e ca tion. =T+e s ecial stud' on sickness in s!all scale industries < 0 case o) /+itradurga cit'>. I kindl' re3uest 'ou to s are 'our recious ti!e on ans.ering t+e )ollo.ing 3uestions 2' ticking t+e o tions.

T+ank 'ou Lours Sincerel'

"$ Govt. 0rts /ollege6 /+itradurga

Sickness In SSI. D+IBAL CI;4-:

. Na!e o) t+e Pro rietor #. 0ddress $. 0ge

K K K a5 2$,3$ 25 3$,4$ c5 4$,5$ d5 5$ G 02ove

&. (ducation

K a5 S.S.L./ 25 P.A./. c5 ?egree. or P+? d5 7t+ers 4I.T5

3. -ont+l' inco!e

a5 Less t+an 1$6$$$ 25 1$6$$$ to 156$$$ c5 156$$$ to 2$6$$$ d5 2$6$$$ G 02ove

6. Social Status

a5 S/ "1

Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.
25 ST c5 General d5 7t+ers 7. Ea!il' 2ackground K a5 Les 25 No 8. Nature o) #usiness =. ?ate o) co!!ence!ent >. Place o) o eration . 0!ount o) /a ital (! lo'ed K a5 #elo. 16 $$6$$$ 25 16$$6$$$ to 26$$6$$$ c5 26$$6$$$ to 46$$6$$$ d5 4$6$$6$$$ G 02ove #. &+ic+ t' e o) ca ital to 2e e! lo'edN a5 7.n )und 25 Loan )ro! 2anks c5 Loan )ro! )inancial Institutions d5 I) ot+ers s eci)' $. T' e o) ra. !aterial used a5 Local 25 I! ort c5 7t+ers K K K

"2 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.
&. ?o 'ou )ace t+e ro2le! in o.er su l' a5 Les 25 No 3. ?o 'ou )ace t+e !anage!ent ro2le!s a5 Les 25 No

6. ?o 'ou )ace t+e !arketing ro2le!s a5 Les 25 No 7. ?o 'ou .ant concession a2out a govern!ent olicies a5 Les 25 No 8. 0n' necessar' training can 2e re3uired a5 Les 25 No =. I) 'ou .ant an' su2sides )ro! 2anks or )ro! )inancial institution a5 (ntre reneurial Training 25 -anagerial training c5 -arketing designs #>. &+ic+ t' e ro2le! to 2eco!e a sick o) 'ou industr'N OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

"3 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO # . ?id 'ou earn ro)it during t+e )inancial 'ear 2$$5,$"N a5 Les 25 No. ##. I) so state t+e a!ount o) ro)itBloss. a5 1s. 1$6$$$ to 5$6$$$ 25 1s. 5$6$$$ to 16$$6$$$ c5 1s. 16$$6$$$ G 02ove Suggestion K

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO ?ate K PlaceK 4Signature of the industry:

"4 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

,ibliography
;ame of the ,ook %ntrepreneurship -evelopment -ynamics of %ntrepreneurial development and management 1rospective plan of district Industry center #>> " >3 Author 1rof. %. (4*-4; B. ;ATA*AEA; CASA;T9 -%SAI -IC F CIT*A-)*(A

"5 Govt. 0rts /ollege6 /+itradurga

Sickness In SSI.

"" Govt. 0rts /ollege6 /+itradurga