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Ministry of Defence 193 DUaaston on working of [9 MAY 1972 ] Minitiry of Indistrial 194 Development Ministry of Defence (Department of Defence because of the poor performance in certain Production) Reservation or Scheduled Castes sectors particularly steel, sugar, textiles, and Scheduled Tri' i+he Defence Public transport equipment and certain others, the Sector Undertaking. overall industrial development and the growth rate have declined. Even in the reply MR. DEPUTY CHAIRMAN : The of the Minister I find that it does not give Houses stands adjourned till 2 P.M. any ray of hope, unless these particular The House then adjourned for lunch sectors improve their lot. In view of all this, I at seventeen minutes past one of the fail to understand how we can expect to clock. reach our target, how we can attain self- reliance, how we can fulfil our commitments to the abolition of poverty, giving employ- The House reassembled after lunch at ment to the millions of unemployed people— two of the clock, MR. DEPUTY CHAIRMAN in the exact figure the Government itself does the Chair. not know. Also I failto understand—if the industrial growth rate declines to such a DISCUSSION ON THE WORKING OF state—and the Minister himself is not confi- THE MINISTRY OF INDUSTRIAL dent about it—what would happen in the DEVELOPMENT future, and I do not know how we can SHRI PRANAB KUMARMUKHERJEE implement our programmes and the pledges (West Bengal) : Mr. Deputy Chairman, when given to the electorate. I went through the Report of the Ministry of Mr. Deputy Chairman, Sir, when I went Industrial Development for the year 1971-72, through the report I expected that something I expected that I would find in it a reflection would be said about regional imbalances. of the mood of the nation which has been Various schemes have been taken up by the clearly manifested in the two massive Government itself. Two important schemes mandates in the period under review and the were announced by the Minister himself on confidence which has been expressed by the the floor of the House to remove regional nation in the glorious victory of the fourteen imbalances, namely, financial assistance at days' battle. But I am sorry to say that the concessional rates to new entrepreneurs Report itself starts with a note of pessimism which covered a large number of schemes in and it corroborates the apprehension made by almost all the States and 10 per cent, subsidy the Midterm Appraisal (The Fourth Plan) scheme for one district in each State ana the document, in para 4 of Chapter 17— Union territories. I do not find anything. "At the beginning of the Fourth Plan What happened to development in those industrial production had shown a marked areas about which we talked in the report recovery. The rate of growth in industrial itself ? How many industries have been production went up to 6.6 per cent during established in these backward areas ? How 1968-69 and to 6.9 per cent during 1969-70. many enterpreneurs have been advised by the This was largely through fuller utilisation of licensing committees? How many old the available capacity. However, during entrepreneurs have been advised by the 1970-71 the rate of growth dropped to about Licensing Committee and the Ministry of 3.5 per cent. There seems to have been a Industrial Development to establish their further decline in this trend in the initial units in those backward areas to develop months of 1971-72. Thus, during the first half them ? of the Plan period, industrial production has Mr. Deputy Chairman, Sir, the burning remained substantially below the average issue today, sofar asindustrial development is levels envisaged in the Fourth Five Year concerned, is the regional imbalance. I do Plan." not find even a word about it in the report It appears from the Report of the Minis- itself. I do not know what steps have been try, as the Minister himself has admitted in taken and what steps the Ministry has taken his reply to the Demands in the Lok Sabha, to remove the regional imbalances there for which there is a crying need from the backward regions. 195 Discussion on working of [ RAJYA SABHA] Ministry of Industrial 196 Development [ Shri Pranab Kumar Mukherjee ] to understand from the chapter on licences in the report itself what steps the Government Mr. Deputy Chairman, Sir, from a study have taken while issuing now licences to the made in one of the economic papers regard- concerned parties for the development of ing regional imbalances we find that between backward areas. Mr. Deputy Chairman, 1956 and 1966, ten years, only four States Sir, the Minister himself has stated in the Lok got the maximum benefit of industrial deve- Sabha about the eastern region that lopment. Thefour States are Maharashtra, "conditions in West Bengal last year were West Bengal, Gujarat and Tamil Nadu. unsettled and Members are aware that clcse These four States accounted for 60 per dent, to a quarter of the aggregate industrial of the licences applied for and schemes output in the country emanated from the approved. Andhra Pradesh, Uttar Pradesh, eastern States." It appears that nearly 20 per Bihar, Kerala. Mysore and Punjab got only cent of the total industrial output comes from 29 percent, of the industrial licences issued the State of West Bengal. That means only 5 during the period 1956-66. During this per cent of the total aggregate comes from the period 89 percent, of the licences went to rest of the three States in the eastern region. I these States while 11 percent, went to the would like to know from the Minister what rest. I do not know what happened to the steps they have taken to improve the situation States from which the Minister of Industrial in these areas. Mr. Deputy Chairman, Development comes, namely Assam, and Sir, when West Bengal was under other eastern States, Orissa and Bihar. I do President's rule, the Union Industrial not know what happened to these States. Development Ministry took up a scheme for AN HON'BLE MEMBER : What about supplying raw materials to 224 engineering West Bengal ? industries in the State of West Bengal. There was no popular Ministry then; I am talking SHRI PRANAB KUMAR MUKHER- of 1971. The administration was being JEE : In comparison to others West Bengal carried on by the Government of India. got much more. The Industrial Development Ministry at the AN HON'BLE MEMBER : Due to Naxa- request of the Government of West Bengal lites' activities. prepared a scheme for ad hoc allotment of steel to 224 engineering concerns in West SHRI PRANAB KUMAR MUKHERJEE Bengal. We all know that the engineering There was no Naxalite activity then. indistry constitutes the backbone of the SHRI BHUPESH GUPTA (West Bengal) industrial structure of West Bengal. But the You tell him that there was Atulya Ghosh Steel Ministry refused to give any ad hoc activity at that time. allotment to the engineering concerns of West Bengal. Now we understand that SHRI PRANAB KUMAR MUKHERJEE: almost all the engineering concerns in If you take the financial assistance given for the State remain idle for want of raw industrial development to the various material. This scheme was sent by the industries you will find that it was concen- West Bengal Government. It was approved trated to two or three States; they got the by the Industrial Development Ministry. It maximum benefit. Out of the total amount of was placed before the Consultative assistance given by the I.D.B.I, from 1964 Committee on West Bengal. But the Steel to 1970 Gujarat alone got Rs. 41 crores, Ministry straightway refused to make any ad Maharashtra Rs. 119 crores, Tamil Nadu Rs. hoc allotment of steel. That being the case, I 42 crores, West Bengal got Rs. 41 crores. fail to understand how the industrial situation As against these our States getting Rs. 245 in West Bengal and in the eastern region as crores, six States got Rs. 79 crores. The such, can be improved. others including the Union territories, got Rs. 24 crores. Similar is the case with the Mr. Deputy Chairman, Sir it has been I.F.C. and. the I.C.I. C.I. loans. Therefore, stated in the Report itself that the so far as industrial licences are Government is taking speedy action in the concerned, I dp not find how regional matter of giving licences, and large figures imbalances can be removed, how the about the licences have been backward areas can be developed, I fail 197 Discussion on working of [9 MAY 1972] Ministry of Industrial 198 Development given. It has been staled that against 363 Government? There is no mention of it in the industrial licences and 438 letters of intent report. What steps is the Government taking issued during the year 1970, as many as 626 to expand public sector industries in the field industrial licences and 1,015 letters of intent of consumer industries ? Again about loans were issued during the year 1971. From the to big business houses only the other day, in figures, it appears that the Ministry is doing the last session, on the floor of this very well. But I would like to know to whom House, it was admitted by the Finance these industrial licences have been issued. Minister that out of the total assistance How many ofthembelongto the big business given by the Life Insurance Corporation to houses? Is it a fact that in the name of joint the business houses, out of Rs.
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