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DEPARTMENT OF

COMMERCE AND INDUSTRIES

AAMOAL
REPORT
1994-95

DEPARTMENT OF INDUSTRIES AND CCWtERCE-

ANNUAL REPORT FOR THS YEAR 1994 - 93

DEPARTMENT OF INDUSTRIES AND CIWERCE
ANNUAL REPORT FOR THE YEAR 1994 - 93

INTRODUCTIONS

Karnataka is one of
the
progressive
States
in
the
farefront
of
industrial
development.
State
Government
has
been
pursuing a progressive industrial policy.
It
is
the
endeavour of the State Government to
improve i'ts position in the industrial map of
the Country and become one
of
the
foremost
industrialised States
by
the
turn
of
the
Century.
2.
The State currently has 746 Large
and
Medium
Industries with an investment of
Rs.6290.02 Crores
and
employing
2.80
lakh
workers.
The
State also has 1,50,021 Small
Scale Industries with an investment
of
over
Rs.
1671.53
Crores
employing
10.03
lakh
workers.
The State has 60
Industrial
Areas
with
17430
acres
of
developed
Industrial
Plots and 104 Industrial
Estates
with
more
than 4100 sheds.

3.
In tune with the liberaliseed New
Industrial
/
Economic
and
Trade
Policy
measures announced
by
Government
of
India
since
July 1991, the Government of Karnataka
have announced its New Industrial Policy
and
Package
of
Incentives and Concessions 1993.
The highlights arei
a) State has been
classifi-ed
into
3
Zones
i.e.,
Zone—I
(developed
area
- 2 taluks),
S'lil ■

1

Zone — II
Zone—I11
Ra ichur).

(developing
area
173
(Growth
Centres Hassan

t a 1 u ks )
.V.
/ Dharuar /

b>
Special
attention
is
given
for
promotion of Mega Projects with investment of
Rs.
100
Crores
and above and having scope
for development of ancillaries,
down
stream
industries
and
special
scale of incentives
and concessions are tonsidered on merits.

c>
State Investment Subsidy at 25‘Z
307.
is offered to Tiny / Small Industrial Units.
d)
Sa lee Ta:< concesiions in the form
of
Exemption
/ Deferral for period ranging from
4 to 9 years is offered for tiny
/
small
/
meaium
and
large
scale
industries,
with
option exercisable by the entrepreneurs.
e)
Emphasis is
laid
on
strengthening infrastructural

improving
facilities.

and

f)
Stamp
Duty
for registration of land
and sheds, allotted by the
KSSIDC.,
KIADB.,
and
KEONICS.,
chargeable
on
the
original
allotment price.

g)
Conversion of
agricultural
land
to
industrial
land
in
identified
industrial
zones of
the
respective
Municipal
/
Town
Planning
Authorities
need no prior approval
of the Government.

obtaining
exemption
h>
Procedure
for
under • the
Urban Land Ceiling Act in respect
State
infrastructural
of land
allotted
by
agencies simplified.
2

i>
Ceiling
under
Land
Reforms
purchase of agricultural land for
use, enhanced to IO units.

Act,
for
industrial

J)
Single
Window Agency (SWA) mechanism
strengthened, Karnataka Udyoga Mitra (KUM) to
act as the Secretariat for SWA..

k>
District Level SWAs., to be headed by
Deputy Commissioners and would
be
empowered
committees
to
sanction
incent i ves
and
concess ions'
as
a 1 so
Infrastructural
facilities
for
the
tiny
and
smal1
scale
industr i es.

1)
Emphasis laid on voluntary compliance
in
the
matter
of
various
legislataions
applicable to
industries.
Inspection uioi/ld
be rendaered to bare minimum.

m)
Only
non-polluting
and
environmentally
friendly
industries
in
electronics, Tele-Communication, informatics,
Readymade
Garments
including
leather
gaarments
(but
excluding
tanneries)
and
precision tooling / tool room
industries
to
be
encouraged
in
Bangalore
Urban
Agglomeration
Area
and
North
and
South
ta1uks.
n)
Industries
Associations
and
Groups
would be encouraged
to
manage
and
further
develop
training
institutions set up by the
Gove rument.
o)
Private transport operators would
be
permitted
to
operate
point
to
point
transportation facilities between
industrial
areas
/ estates and the nearby urban centres
/ towns.

3

p)
(EPIP)

An Export Promotion
Industrial
to be set up near Bangalore.

Park

q)
Additional
investment
subsidy at 5’Z
to
special
category
entrepreneurs
Viz.,
SC/ST.,
Minorities,
Women,
Physically
Handicapped and Ex-Servicemen.

r)
Incentives available for 1OOX
Export
Oriented Units as Thrust Sector would also be
available
for
other
export oriented units,
who are exporting a minimum of 50‘Z
of
their
turnover.
s)
Thrust Sector Industries Electronics,
Telecommunication,
Informatics
(Software),
Agro Food Processing, Agro based
Industries,
Leather
and
Leather
products,
Readymade
Garments, Silk reeling twisting, Weaving
and
processing,
Spinning,
Weaving
Powerloom,
Knitting
and
Textile
processing,
Cutting,
Polishing
and
Processing
of
semi precious
stones,
Pharmaceutical
Industry.
Sugar
Industry and others.
In order to achieve these objectives,
a
package
of incentives and concessions has
been announced vide G.O.
No.
CI 140 SPC
93
dt.
12-7-1993.
The
special
features
of
the
New
Package of Incentives and Concessions are:

1.
Reclassification
of
Developed.
and
Developing Areas and other allied matters.

4

Investment Subsidy:

It
is
proposed
to
offer
the
incentives of investment subsidy to Tiny
and
Small
Scale
Industrial
Units
only.
(includinng
Ancillary
and
Export
Oriented
Units with
an investment of Rs.
73.00 lakhs
each in Plant and Equipment).
3.
Incentives
for
installation
of
Equipment
for
Utilisation
of
Renewable
Sources of Eneqgy.

4.
Oil and
other
kinds
of
Industries
Encouraged to be located in developed areas.
5.
Sales
Tax
concessions
option of waiver and deferral).

6.
Mega
incent i ves.

Projects

gets

7.
Special
Concessions
Oriented Industries including

(like

the

special

for
Export
1OO 'A E.O.U.

8.
Exemption
from
Stamp
Concessional Registration Charges.

Duty'

9.
Waiver
of
conversion
converting agricultural lands
to
use .

fee
for
Industrial

10.

and

Relaxation from Power cut.

These
incentives
and concessions as
per the Government Order shall be
applicable
to
all new investments made on or after 12th
July 1993 and would be valid for a period
of
3 years.

5

LARGE AND MEDIUM INDUSTRIES»

The
Department
has
been
assisting
entrepreneurs wanting to establish Medium and
Large Scale
Industries.
During
the
year
1994-95
upto
end of December 1994, 82 units
have been approved by
Single
Window
Agency
and
High
Level
Committee with an envisaged
investment
of
Rs.3815.31
Crores
and
employment: potential for 22675 persons.
HIGH LEVEL COMMITTEE:

The
High
Level
investments
under:

projects
approved
by the State
Committee
during
1994—95
with
more than Rs.50.00 Crorea are as

SI.
No. Year

Proj ec ts
approved

Invest­
ment in
crores

Emp1oy- Powe r
ment
snc td.
M.V.A.
Nos .

1994-95
upto
12/94

9

2998.16

9978

6

155.98

The details are ss under:9 9 4 - 9 5

1

Project

1.

.

3.

4.

5.

Location

M/s.lCudremukh
Iron Ore Co.Ltd.
Mangalore
(2 lakhs TPA Pig
Iron/Due tile Iron
Spun Pipe Project
Mangalore

Invest-Employ Pauisr
ment
ment
MVA
in
Crores

249.04

370

12.50

M/s. I.T.C. Ltd.,
(Neui Cigarettes
Plant) Meenakunte,
410.92
0'lore (U>

1800

3.00

M/s.Mysore Cements
Ltd., (1.40 million
TPA cement
plant)
500.00
Gulbarga

600

45 . OO

-

M/s. BPL Limited,
(1.50 Million Nos.
Colour TV Sets p.a . )
Dobespet IA,
125.00
Tumkur
Diet.

3000

6.00

M/s. BPL Group
(1 million pcs. of
Colour
Picture
tubes p.a.)
Dobespet IA.,
Tumkur District

1OOO

6.50

250.00
7

5 8H

6.

7.

8.

9.

M/B.Kalyani Steels
Ltd. (Pig Iron/
Engg. & Alloy Steels
-*2.25 lakh TPA)
Singersa, Koppal Tq.,
Raichur Dist.
313.00

750

27. OO

M/s BPL Group
(Battery project)
Dobespet I A", Tumkur
Dist.
300.00



15.00

M/s ARM Ltd. (Steel
Dvn) (0.40 Million
TPA Pig Iron Proj.
Raichur Dist.
495.00

2000

33.48

155.20

450

7.30

2998.16

9978

155.98

M/s Kanoria Inds.
Ltd., (Expansion
of capacity from
3.30 to 6.95 lakh
TPA) Bagalkot,
Bijapur Dist.

Total

SINGLE WINDOW AGENCY,
The
State
Level
Single Window
Agency under the Chairmanship of
Secretary,
Commerce
and
Industries Department provides
Infrastructure
and
other
assistance
to
projects upto Rb. 50.00 crores.

During
the year 1994-95 (upto and of
December
1994),
the
State
Level
Single
Windo Agency (SWA)
has
cleared
73
new
8

projects
bringing
in
an
additional
investment of Rs.817.13
Crores with employ­
ment opportunities to 12697
persons.
The
Karnataka
Udyog
Mitra
<KUM)
set
up
during
1992—93,
provides
escort
services
for the
Large
and
Medium
Industries
Project
cleared
in
the
State
Level
Single
Window
Agency
for speedy imple­
mentation of the projects.
The district level
Single
Window
Agency has
been converted
into
District
Level
Empowered Committee
in
order
to
expedite
the
process
of
granting
concessions and hearing grievances.
The
Single Windo
Agency
has been
reconstituted
at the District Level.

SMALL SCALE INDUSTRIES^
Upto the
end
of November,
1994
1,50,021 Small
Scale
Industries have been
sot up in the State with an
investment
of
Rs.1671.53 Crores
providing
employment to
1,03,000 persons.
At the
District
Level.
the
District
Industries
Centre functions
as the "NODAL
AGENCY"
to
assist
in
the
'.starting
of
Tiny
and
Sma 1 1
Scale
.Industrial Units.
Data
Bank
has
A
Computer
been
all
Smal 1
occreated in respect of
the
the
Scale
Industries
in
State.
Computerised information of
all
the
SSIs
are available at the
District
Head-Quarterg
as well as at the State level.
9

The procedure
for
issue of
PRC
and
PMTs has
been
simplified.
The
PRCs
are
being issued across ths Table,
as
soon
as
an
application
is received for issue of PRC.
PMT
Certificate
is
also
issued
within
a
time limit.
The
issue of PRC/PMTs has been
computerised
in
the
Bangalore
Urban
district 8<
other
districts are being taken

up

in a phased manner.

In
order
to
ensure
that
there
is
upgradation
of
Technology
to
adjust to the
changed market conditions, the
State
has
already
taken
action
to set up the Research
and Quality Testing Centre
for
Ceramics
and
Tiles
at Suratkal.
This
Centre
is
being
set
up at a
cos t
of
Rs.58.50
lakhs
in
association
with
the Tiles Manufacturing
Association
and
the
Karnataka
Regional
Engineering College,
Suratkal.
Government
of
Karnataka
has
also
sanctioned
Rs.25.00 lakhs for the same.

Similarly
a
Centre
is
being
established
at Bangalore
in
association
with
the
All
India
Agarabathi
Manufacturers aoAssociation
for
Research
and Development
8<
Testing of Agarbathies,
The
approximate
cost
of
the
First
Phase
is estimated to
be
Rs.100.00
lakhs.
This
Centre
is
being
set
up
with
contribution
from
Government of
Karnataka and the All
India Agarbathi
Manufacturers
Association.

REVIVAL OF -SICK INDUSTRIES;
tuted

Government
a
State

of
Karnataka
has consti­
Level
Rehabilitation
IO

Committee for
Un its.

revival

Sick

of

Small Scale

Under the existing
schemes,
50%
of
the
promoters
contribution
fixed by the
Financial Institutions subject to
a
maximum
of Rs.50,000/—
is
given as Margin Money
to
the Sick SSI Units, A sum of
Rs.10.00
hikhs
is provided for in
the
Budgdet
dur'ing
the
year
1994-95.
A
compreheng i ve
scheme for rehabilitation of
Sick
SSI
is
being prepared.

In
all
113
Medium and Large
units
have been
registered
with
BIFR.
The High
Level
Committee
for
rahabilitation
of
sick
Medium
and
Large
units
(BIFR
cases) has
so
far
rehabilitated
42
units
(including
12 units
during
the
current
year
1994-95) and
various
concessions/
reliefs have ben granted on
the
basis
of
BIFR approved rehabilitation package.
Other
units are under various stages of hearing
in
BIFR.

DISTRICT

INDUSTRIES CENTRES;

(DICa)

District
Industries
Centres
have
been established in all the
districts
with the
assirtance
of the Government of
India.
The
DICs
study
the
industrial
potential of
ths districts &
prepare Action
Plan
to
promote
rapid
industrialisation.
Adequate
powers
have
been
given
to
the
General
Managers
of
District
Industries
Centres to implement various schemes of
the

1 1

Government.
The Single Window Agency at
the
District
Level caters
to
the
needs
of
enterprises in terms of
allotment
of
land,
power and
shed.
Construction
of
-DIC
Buildings
at Belgaum,
Bellary,
Bidar,
Bijapur,
Chickmsgalur,
Chitradurga
Dakshina
Kannada
(Mangalore),
Dharwar,
Bulbarga,
Hassan,
Kodagu,
Kolar,
Mandy®,
Mysore, Raichur,
Shimoga,
Tumkur,
Uttara
Kannada
(Karwsr)
have
been completed,
Construction, of
buildings
for
Bangalore
Rural
and
Bangalore
Urban DICs. is being
planned.

SPECIAL COMPONENT PLAN;

(SCP)

1.
Dr. Ambedkar Industrial
Estate
is
one
of
the
important
schemes
taken-up
during
1993-94.
Karnataka
Industrial
Areas Development Board has allotted
land in
Jigani
Industrial
Area, for construction of
Industrial
sheds
/
formation of sites for
the benefit of
only
SC/ST
entrepreneurs.

2.
A scheme for
providing
subsidy
to
SC/ST
entrepreneurs
in
the
allotment
of
industrial
plots/Indl.
Sheds
has
been
sanctioned by Government
vide
G.O.
No.
CI
49 CSC
94
dt.
26-8—1994, in order to
make
their
scheme attractive and
viable.
This
scheme
shall be applicable only to SSI Units
in respect of
land/sheds
provided
by
the
Government
Agencies.
The maximum amount of
subsidy
component plan funds would be 407. of
the price of land
/ shed.

3.
A scheme for providing skills
/
new
technology to
SC/ST
entrepreneurs has been
sanctioned vide G.G. Mo. CI
30
ITP
94
dt.
3-9-1994,
Under
the scheme young entrepre­
neurs shall be trained in reputed institutions
like GTTC, CIPET., NTTF etc. This scheme
will
facilitate
SC/ST entrepreneurs to get skills
in Tool and
Die
making,
Plastic
Engineering etc.,so that the trained candidate
can seek local employment or start
their own
industries.
The entire
training
cost is
met
out of Special Component Funds.

TRIBAL SUB-PLAN

Under
the
Tribal
Sub-Plan,
four
districts
viz., Mysore,
South
Kanara,
Kodagu.
and
Chickmagalur
are
covered.
A
sum of Rs.13.54 lakhs has
been
incurred
as
expenditure benefitting 420 Tribal in 1994—95
(upto Deer. 1994).
Training
in crafts like
Carpentry,
Bakery,
Cane
and
Bamboo,
Tailoring,
Coir,
Leather,
Fancy
articles
etc., have
been
imparted.
The
Department
has
been
assisting
Zills
Parishads
in
supplying Tool
Kits
after
the
Training.
A
sum
of
Rs.3B.90 lakhs its provided to the
scheme during 1994—95.
APICULTURES
that
Karnataka
It
is
estimated
could
produce around 20 lakhs Kgs., of Honey
are
fully
tapped.
if
available
resources
programmes
in
Bee-Keeping
development
hands
of several
Karnataka
is
in
the
agencies Viz., Department of
Industries
and

13

Commerce, Khadi
and
Village
Industries
Commission, Khadi- Z-. Village Industries Board
and the Pee-Keeper's Co-operative
Societies.
The
steps are
being taken
to
control
the
Thaisac Brood Disease.

for

A sum
of Rs.27.75 lakhs
this scheme during 1994-75.

is

provided

TRAINING:
At
present, there
are
21
Artisan
Training Institutes
with
S
Branches.
In
addition,
we
have
the Rural
Industrial
Development Centre at
Hunsur,
Chamara.jendra
Technical
Institute
at
Mysore
and
the
Industrial
Training Centre in Bangalore
run
by the Department at N. P. Kendra.
These institutes enable the craftsmen
to
adopt
modern methods of production
and
become self employed in rural areas.

The
proposal
of
having
District
Industries Training Centres has been approved
by Government of
India
as
part
of
TRYSEM
INFRASTRUCTURE.
This
has
been
taken up
in
two
phases.
In
the
first
phase, the
following 9 districts have been
selected and
the
construction
of
building
have
been
also completed.

1) Bangalore,
2> Belgaum, 3) Bellary,
4) Ch ickm.agalur5) Dharwar, A) Mysore
(Hunsur)
7) Mangalore (Moodbidr1),
B) Tumkur f>-. 9) Hassan.

14

Government of India hive sanctioned a
sum
of Rs.102.68 lakhs for
the
1st
Phase,
for implementation
of
District
Industries
Training
Centres (DITCs) programme
and
the
aancTioneu amount nas a reaay
Deen
reieasea
of
buildings" and
towards
construction
purchase
of machinery, tools and equipment*.
above
centres
The training programme in the
have
started
from
1-4-1992
through
the
concerned ,Zilla Parisha ds.

In the Second Phase, 7 more
District
have
bean
Industries Train Ing
Centres
sanctioned
by
Government
in
the following
dis tri etat-

1) Dijapur,
2)
4) Gulbarga, 3)

Bidar,
Mandya,

3>
Chickmagalur,
6) Kolar & 7) Raichur,

The construction of District Industries
Training
Centres
Building
at
Gulbarga,
Raichur,
Bidar
have
been
completed
and
construction at Nagamangala, Mandya District
is in progress.
A sum of Rs.113.294
lakhs
has
been
sanctioned
by Government
for
II
Phase,
for
the
above
7
District
Industries
Training
Centres and
released
directly
to
Zilla Parishads.

V I S H H A

PROGRAMME.

Viflhwa
Programme aims at
providing
continuous Rural Productive Employment.
The
programme

structured
to
strengthen the
£8)7-3

15

rural
economony
Dy
providing
continuous
rural
employfnent
by supply of raw materials
and sale of products.
In
the cur-rent year-, it is targstied
to
cover 60,000 tienef icisriae.
Upto
tine
end
of
November
1994,
45320 beneficiaries
are covered both
under
training
and
production in Unorganised i-. Organised Sectors

During
the
year
Rs.2670.00
lakhs
(Revised
Outlay) • has
been
given- for
the
implementation of the
programme.
Out
of
which an amount
of
Rs.642.00 lakhs has been
approved for training
& production activity.
Construction of 810 Common
Worksheda
have
been taken
up,
and
7S6
sheds
have
been completed.
KARNATAKA STATE KHADI AND VILLAGE
BOARD (U.VIB)

INDUSTRIES

KVIB chanalises the funds provided by
the Khadi & Village
Industries
Commission
(KVI0>,
Bombay
for
the
development
of
various
Khadi and Village Industries in the
State.
The Board,
assists
in
establishing
the
Khadi &
Village
Industries
in remote
parts of the State.
The main
objectives
of
the
Board
is to establish Khadi and Village
Industries in rural areas.
Board
provides
financial
The
to
individuals,
co-operative
assistance
and
registered
institutions.
societies
Government
is
providing
The
State

- 16 ~

financial
assistance
to
meet
.
the
administrative expenditure of
the
Board.
Rebate on sale of products manufactured
in
Khadi
&
Village
Industries
is
also
provided by
the
State
Government.
During
the
year
1994-95 a sum of Rs.275.00.
lakhs
is
provided
towards the above schemes.

GOVERNMENT

TOOL,
G.

ROOM
AND
T, T. C,

TRO I MING

CENTRE

Government
Tool
Room
and
Training
Centre has twin objectives
of
manufacturing
quality tools
and
providing
training in
tool
making.
It
serves
as
a
technical
infrastrauctural
facility for the growth and
development
of tool
room
industry
in
the
Stats.
The Institute ia
well established in
Bangalore.

A sub-centre of GTTC
at
Mysore
has
been
established
with
an estimated cost
of Rs.29.54 Crores (.1993 estimates) of
which
Rs.9.G4 crores
is
the
State's
Share.
The
balance is being obtained as Danish Assistance.
The Training
Block
is
completed
at
an
estimated cost of Rs.95.00 lakhs
and
the
machineries
for
the
training
centres
both imported and indigenous
worth Rs.900.00
lakhs have also been received It
commissioned.
Training in Tool and die making has commenced
with candidates from October 1992.
The
tool
production
building
Block
is
under
construction.
During
the
yqar 1994—95,
a
sum
of
Rs.300.00
lakhs
is
provided
towards
the
above
Centre, and centres at
Hassan, Mangalore, Gulbarga and Belgaum.

17

-

PR!ME MINISTER ROJGAR YQJANA;

A New Scheme
by
the
name
"PRIME
MINISTERS ROJGAR YOJANA" has been introduced
by the Central Government.
Under
this
scheme,
an
entrepreneur
is
eligible to
avail loan upto Rs.1.00 lakh. In the
initial
stage,
the scheme
was
introduced
only
in
Municipal
Areas.
This year this ia extended
extended to rural areas
also.
To
monitor
this
scheme,
Committees
have
been
constituted.
At District level, the
Deputy
Commissioner is
the
Chairman
of
the
Committee and at State Level, Chief Secretary
is the Chairman of the
Committee.
For the
year 1994-95, upto the
end
of November 1994,
an
amount of loan Rs.2542.37 lakhs has
been
sanctioned
to
the
7496
beneficiaries.
Interest subsidy
is
provided
to
these
beneficiaries under the scheme "Udyog Jyothi."
T

E

C

s

p

k.

TECSPK
(Technical
Consultancy
Services
Organisation
of
Karnataka
)
oiae
promoted by Government of Karnataka
with the
assistance
from
other State Level financial
institutions &
developmental Corporations as
* Registered Society in 1976.
The objective
of promoting
TECSOK
was
mainly
to
provide
reliable
consultancy
services at
reasonable costs to entrepreneurs who want to
set up tiny, small & medium
scale industries.
The
• consultancy
services
provided
by
TECSOk
to
enterpreneurs
extend
from

IB -

idantification of projects
at a nominal cost.

to

implementation

TECSOK
over
the
years
of
its
existence has developed
necessary expertise
to
provide
consultancy
services in various
■fields.
Presently, TECSOK
has * Team of
Young and Experienced
Professionals
in
various disciplines
viz., chemicals,
food
electrical,
Electronics,
Mechanical,
Drugs
and
Pharmaceuticals,
Metallurgy, Textiles,
Energy
Conservation
and
Audit,
Pollution
Control
and
Environment,
Marketing
and
Statist ics.
C E D O K;

The Centre
for
Entrepreneurship
Development
of Karnataka (CEDOK.)
has
been
established in Dharwad.
The Director of the
Centre ha-s also
been
appointed
with
the
required staff.
This
has
helped
rural
entrepreneurs
in establishing Small and Tiny
industries.
During 1994-95, upto
December
1994,
1270
persons have been trained. A sum
of
Rs.20.00
lakhs
is
earmarked
as
Grant
from
Government
to
this
Centre during the
year 1994-95.

KARNATAKA INDUSTRIAL AREAS DEVEI.PPMENT DQARD.

KIADD is the main Agency
of
the
Government
to
develop
industrial areas by
acquiring land and
providing
tha
necessary
infrastructural facilities.

19

During the year 1994—95, upto end
of
December sems of land and allotted about 592
acres
of
land to 54
units.

During the year 1974—95, a provision
of
Rs,1432 lakns
is
made
for
the Board
for providing
industrial infrastructure and
and establishing Export Oriented
Industrial
Zone at Bangalore & Growth Centres st Hassan,
Bharwad
and
Raichur
and
Common Effluent
Treatment Plant in Industrial Areas.
The Board
is
also
providing infrastructural
the
"No
Industry
District

the
Agency
f ac i 1 i t i 6 s
Bidar".

for
in

KARNATAKA
STATE
INDUSTRIAL INVESTMENT
ANO
DEVELOPMENT CORPORATION LIMITED (KSIIDC).

KSIIDC is the Agency for promotion of
Large
and
Medium
Industries
in the State.
During 1994-95,
(upto
December 1994)
Term
Loan assistance of Rs.90.45
Crores for 90
units and Equity Capital of Rs.?.39 crores to
15 projects have been sanctioned. The KSIIDC.
is the Nodal
Agency
for
providing
assistance
to
Non-Resident
Indians
to
establish
industrial
projects
in
the
State. Assistance
is
provided
to
ND I
Entrepreneurs to
identity
projects
and
complete
formalities
prescribed
by
the
Government
of India and the State Government.
KARNATAKA

STATE
(KSFC)

KSFC.,

helps

FINANCIAL

the

CORPORATION

entrepreneurs

20

by

providing
Term Loan and
Soft
Loans. During
the year
1994—93, (upto December, 1994)
the
Corporation
has
eanctioned
loans amounting
io
R®.31130.59
laths to
9543
casern
and
disbursed
Rs.22200.45
lakhs
provisionally
The Corporation
is
provided
with
Equity
support of
Rs.500 lakh? from the Government
during 1994-95.

K E

N 1

The
Karnataka
State
Electronics
Development Corporation
popularly
known
as
(KE0NIC3),
is
a
State undertaking,
which
iE
engaged
in
promotion and development of
electronic industries in the State.
Various
activities
undertaken
by
the
Corporation
to fulfil its objectives, ares-

8)

Promotion of Joint Ventures,
Electronic City at Bangalore.
Training programmen in consumer
elect ronic
goods and computer related field.
Electronics material Centre.
In-Housa
production of communication
equipmen ts
and voltage resistors.
Guidance to entrepreneurs and escort
services
Marketing of electronic products and
display of high tech electronic goods
Export Software.

company

in all the
has
taken

1)
2>
3)

4)
5)

A)

7)

above
activities,
the
up
massive
programme

during
the
year
1994-95
electronic cities at Mysore
being established.

and
and

two
mare
Dharwsr
srs

Computers
hardware
and
industries
are
being
encouraged
Electronic City of Bangalore.

software
in
the

A
sum
of
Rs.270.CO
lakhs has been
provided in the
Budget
for
the
year
1994-95
for implementation
of
the
various
schemes of KEONICS.

HIGHTECH IN BANGALORE 8
(a>

BANGALORE

INFORMATION TECHNOLOGY PARK

A
comprehsnaively
planned
and
designed technology park providing integrated
services
has been taken up in a 68 acre plot
in
the
Whitefield
area.
This
has
been
jointly
setup by the Government of Karnataka
the
TATAs, and Cansoritum of companies fund
Singapore.
This park is being
set
up
to
provide
integrated servica and amenities and
compatibility
between
residential,
commercial,
business
and
industrial
operations therein.
As
many
as
17000
person®
would
be
engaged
once
ths
Park
is
fully
operational. The total turnover is
expected to be of the
order
of
Rs.
2000
crores
cut
of which 30% will be export turn
over.

<b>

3 SE CENTRE:
The

European

Community

along

with

Government
of
Indi a
and
Government
of
Karnataka have setup
/started
the
Software
Service
Support
,nd
Education
Centre
at
Bangalore
for
impart i ng
ski Ils
tn
the
Software industries in
Bangalore.
A
Public
Limited Company for'
t his purpose has already
been set up.

KARNATAKA STATE
SHALL INDUSTRIES DEVELOPMENT
CORPORATION LTD,.. (KSSIDC)

KSSIDC-,
is
the
Agency
of
the
Government of Karnataka
to
take
up
construction,
maintenance
and
manage
industrial sheds in the State. During 1'774-93,
the
Corporation has taken up construction of
212
sheds. The Corporation has supplied
raw
material worth Rb.35.04 Crores
during
th®
year
1994-95
(Upto
to
December, 1994).
The Corporation has
been
provided
with
an
Equity
support
of
Rs.200.00
Lakhs
during
1994-95.

The
Corporation
provides
raw
materials
like Iron, Steel, Coal, Coke, Pig
Iron,
Paraffin
Wax,
Fatty
Acid,
Titanium
Dio—Oxide etc.,
required
for SSI Units.

KARNATAKA SMALL INDUSTRIES MARKETING
CORPORATION LTD..CKSIMC)
KSIMC provides
marketing
assistance
under
the
rate
contract
scheme
and
marketing
assistance
scheme.
It
makes
advance payments upto 75!'. against the supplies
made
by
the
Small
Scale Units, till
they
receive
payments from the purchasers. During
3

1994-95
upto
snd
of
Dscember,
1994,
the
orporation
has
achieved
a
turn
over
of
Rs.3866.DO
lakh's by
marketing the products
at 600 small scale units.
KARNATAKA STATE LEATHER
MENT
CORPORATION LTD.,

INDUSTRIES
DEVELOP­
(KLIDC? - LI'DKAR

The alm of KLIDC (popularly known ats
LIDKAR) is to
encourage
leather
based
industries
in
the
State.
KLIDC
supplies
raw
materials
to
artisans
through
its
district raw materials and production centres
established in 20 locations.
30
leather
footwear artisans have been
trained
during
1994—95.
The
Corporation
han
supplied
406 Wayside Cabins upto end of Dscambsr 1994.

(he
activities:
1)
2)
3>
4)
5)

corporation

has

fa 1lowing

the

Establishment of Leather Craft Complex.
Raw material supply to Leather craft
aratissns.
Marketing support to Lather artisans
through its
Emoorias.
Effluent Treatment Plant to tannery.
Training of Leather artisans
and
conducting
of Diploma course in
leather technology.

A sum of Rs.136.00 lakhs
for LIDKAP during 1995-96.

is provided

KARNATAKA STATE HANDICRAFTS DEVELOPMENT
CORPORATION LTD., (KSHDC.>

KSHDC encourages handicrafts
24

artisans

through

the following

facilities:

1. Craft Complexes,
2. Raw materials depots,
3. Marketing assistance through net—
work of show rooms.
4. Purchase of finished goods.
". Supply of improved tools and
6. Credit facility through Banks,

The Corporation has procured finished
goods worth
of Rs.722.00
lakhs
from
the
craft
persons
and
sold
goods
worth
Rs.040.00
lakhs
through
its
emporiaa
upto end of December 1994.
The
Corporation
has
exported items worth of Rs.70.00 lakhs.

During

the

above

peri od,

th®

Corporat ion has
covered
GOO beneficiaries
oi
which
75
belongs
to S.C. Community.
A
provided

in

sum
of Rs.37.00
lakhs
is
the budget during 1994—95.

KARNATAKA STATE CO IP, DEVELOPMENT CORPORAT ION
IKSCDC).-.
1CSCDC
has been established with
a
view
to
promote
and
develop
Coir
based
industries in
the
State. The
Corporation
encourages
production
of
Coir
Fibre,
manufacture of coir
products
and
marketing
of
coir products.
Technical
support
to
coir artisans is also approved.

The Coir Corporation

- 25 -

imparts

training

During
the
year
1'794-95,
upto
end
of
December, 1994, the Corporation has
assisted
setting up
of
44
Coir
Complex
Centres
for
weaving,
matting,
and
Spinning
and
provided
training
to
1755
persons
in
coir
products
manufacture
under
different
Government sponsored schemes. The Corporation
has
the
following activities:

1)
2)
3)
4)

Establishment of Coir Complex.
Exp lorat ion of Co ir fibres for
manufacturing activities.
Marks t ing
Transfer of skilled manpower
establishing of coir based
indus try.

A sum of Rs.140.00 lakhs is provided
in the budget for Coir Sector during 1994-95.

GOVERNMENT DE KARNATAKA
ANNUAL REPORT EUR 1994-8.5 QE
DEPARTMENT QE HANDLOOMS AND TEXTILES

The Government of Karnataka have established a
separate
Directorate
for
Handlooms
and
Textiles vide their order No.CI 285
ICS 86
dated 2-6-1988.

Subsequently, the Government have created
the
post of "Commissioner for Textiles"
in
the
supertime scale of IAS vide G.O.No.CI 75
ICS
91 dated 10-7-1991 and posted the Commissioner
for Textiles for the first time to head the
Department.
Further,
the Deputy Directors and Assistant
Directors of Handlooms and Textiles both at
the district level and at the directorate
level were posted along with ministerial staff
to implement various schemes under handlooms,
powerloom and mill sectors with the main
objective of providing continuous employment
to the traditional weavers and powerloom/mill
workers,
upgradation of their skills and to
improve
their
socio-economic
conditions
through the Corporate and Co-operative Sectors

Package.

Welfaxa. Schemas

The handloom weavers are assisted through
various welfare schemes of the
State and
Central Government assistance in respect of
Centrally Sponsored Schemes so as to
improve
their living condition to provide
better
working condition and to increase productivity
by strengthening infrastructural
facilities.
Some
of
the important
welfare
schemes
1
-2-7-

Implemented during the current year are Thrift
Fund Scheme covering 25,000 handloom weavers
both in the corporate and cooperative sectors,
Group Savings Linked Insurance scheme intended
to cover nearly 25,000 handloom
weavers;
workshed scheme
for construction of
2720
worksheds;
431
living-cum-worksheds ,
to
provide assistance
to 1214
weavers
under
Nekarara
Ashajyothi
Scheme;
and
loom
modernisation
to increase the
level
of
productivity and health package scheme
for
betterment of health and productivity
of
weavers.
These package of welfare schemes are
aimed at improving the health and the working
conditions of the handloom weavers and help
them to increase their production and income.
Establishment of. Training InstltutlQJQS-L

The impart Advance training to upgrade the
skills of the handloom weavers,
Government
have issued orders
for setting up of an
Advance Training Institute at
Jamakhandi,
Bijapur District.
The said
Institute would
start functioning during the current financial
year.
Similarly,
the
Government
have
established the Handloom Technology
Institute
at Gadag-Betageri in Dharwad District
to
provide technical education to the educated
unemployed youths and to give
them diploma
certificates on completion of three
year
course on handloom technology under A.I.C.T.E.
Scheme.
A Governing Council
under
the
Chairmanship of the Commissioner for Textiles
for close supervision and monitoring
the
functioning
of
the Institute
has
been
constituted.
Adequate budget provision
has
been made to run both of these
Institutions
during
the current year.
The
Karnataka
Handloom
Technology Institute
at
GadagBetageri has started functioning from October

Siaia FowerlQpia

Development

The
State
Government
has
announced
a
comprehensive Textile Policy on 11-8-1193, for
the overall growth of textile industry in the
State.
In'order to convert the cotton grown
in the State into yarn and to produce
fabrics
out of the yarn produced and also to sell
the
same in India and Abroad, the State Government
have emphasised
the need for the growth of
textile industry in the State.
So far as the
powerloom sector is concerned,
the
State
Government
have incorporated
a
separate
Corporation for the development of powerloom
sector in the State and accorded sanction for
establishment of the Karnataka State Powerloom
Development Corporation as a company
fully
owned
by the State Government
with
an
authorised share capital of Rs.5.00 crores.
The said Corporation was inaugurated on 8th
September 1994.

of. Easlilim.

\in.siliuisd.

In principle, the State Government have agreed
to establish a Fashion Technology Institute at
Bangalore during the current financial year
itself on the lines of N.I.F.T.
New Delhi.
Efforts are on to finalise the project report
in
this regard and forward
the same
to
Government of India for consideration through
the State Government.

Establishment q£ laaXile. TaHiiahiiii.
Having identified the potential
of
textile
industry
in Karnataka State,
the
State
Government have decided to establish a Textile
Township in the northern Karnataka
to cater

the needs of the textile industry.
For this,
the
Government of India have agreed
in
principle to consider the proposal of the
State Government if necessary project proposal
is sent to them.
A place near Hubli has been
indentified
for establishment of
Textile
Township.
Action has been taken for transfer
of the above land in favour of Department of
Handlooms and Textiles for further action.

30

GOVERNMENT OF KARNATAKA
DEPARTMENT OF SERICULTURE

(Up

ANNUAL REPORT 1994 - 95
to end of December 1994

)

Sericulture
is
a
labour-intensive
expgrt
oriented
cottage
industry.
It
has
beeen playing an important role in alleviating
unemployment
and poverty in rural areas.
It
provides
full-time
employment
to
all
the
people irrespective of age and sex.

Keeping
in view the importance
of
the
Sericulture Industry special emphasis has been
given for the development of this industry
in
Karnatake.
The
achievement
under
various
aspects
of
the
Industry
is
furnished
as
fol 1ows.

2.0

PLAN OUTLAY

The
Annual
Plan Outlay
for
the
year
1994-95
is
Rs.3189.55
Lakhs.
Details
are
furnished in Annexure-1.
Expenditure incurred
upto end of December 1994 is Rs.1410.24 Lakhs.

3'

SUITS'

3.0

PHYSICAL TARGET

The annual target for production of
Ran
Silk for the year 1994-95 is 9000 Tonnes.
The
production
of Raw Sill upto end of
December,
1994
is
6582.10 tonnes, of
which
Bivoltine
Silk
is 198.61 tonnes.
Cocoon p roduct i on
in
Mysore
Seed
Area
is 149.73
crores
and
in
Bivoltine Seed Area cocoons produced is
31 .59
crores.

4.0

INFRASTRUCTURE

4.1
During
the
year
under
report
95
Government Silk Farms, 85 Government Grainages
and
824 Private Grainages
were
functioning.
All
put together have produced
14.43
ccores
layings
till
the end of
December
1994
and
supplied to Sericulturists.

4.2
246
Technical Service Centres
and
17
Reeling
Technical
Service
Centres
were
■functioning to provide Technical knowledge
to
farmers.
In
addition
to
this,
20
Model
Chawkie Rearing Centres function in the State,
8SS
Private Chawkie Rearing Centres also
are
functioning.
Trasnsitory assistance is
given
to the Centres which fulfilled the norms under
N.S.P.

4.3
Six
Sericultural
Training
Schools
established
at Channapatna,
Kuderu,
Hassan,
Tholahunse, K.R.Pet and Rayapura have imparted
training to 2507 farmers, 13122 farm women and
staff of the Department of Sericulture..

4.4

MARKETING

The functions of the cocoon markets
in
the
State
are
distinct
in
nature.
The
sericu1turists sell their cocoons and
reelers
buy them in open auction.
Pair weighment
and
payment is ensured here.

(a)
During
the
year
under
report
61
Government Cocoon Markets functioned. Upto end
of
December 1994 a quantity of 39,0S8
tonnes
of.-cocoons was transacted of which 702
tonnes
are',.',Bivoltine cocoons.
The value of
cocoons
transacted
and market collected
during
this
period
is
Rs.37,309.41 lakhs
and
Rs.737,31
lakhs respectively.

<b)

SILK EXCHANGES

During
the
year under
report
1432.67
tonnes of Raw Silk was transacted in
the Silk
Exchange.
The
Market
Fee
collected
is
Rs.254.51 lakhs.
In
the State there are nine
Silk Exchanges.

5.0

KARNATAKA STATE

SEfiicULUIBE

BESSfifiGH.

AND. DEVELOPMENT INSTITUTE.

The
State
has
established
Karnataka
State
Sericulture
Research
and
Development
Institute
to
undertake
developmental
research
in the sericulture
particularly
on
the -field problems in Karnataka.
The Institue
has
two sub—stat ions: one at
Thirtahally
to
serve Malnad region and another Kadaganchi
of
Gulburga District which serves the arid
zone.
The Institue has a sub—station established
at
Ooty,
a
Germ Plasm Bank for
maintenance
of
mulberry
varieties
and
silkworm
races.
A
research
advisory
committee
’ has
been
constituted
to
monitor
research
programme.
During
1994—95
an amount of
Rs.93.33
lakhs
under Plan and Rs.150.00 lakhs under
Non—Plan
has been provided.
Upto end of December
1994
the
expenditure
incurred
under
Plan
is
Rs.53.31 lakhs and Non-Plan is Rs.99.92 lakhs.
In
addition to this grant under
P.S.F.A.
is
being provided.

6,

NATIONAL 5ERICULUTRE PROJECT

(K-S.p.II)

This
project
with
an
outlay
of
Rs.118.30
crores
assisted
by
World
Bank
and
Swiss
Dev e1opmen t
co-op e ra t i on
is
under
implementation
in Karnataka from April
1989.
Out
of this for credit to
farmers,
reelers,
twisters
and
weavers
Rs.54.17
crores
is
provided.
Outlay provided
for
departmental
infrastruture
is
Rs.64.13
crores.
During
1994—95 an outlay of Rs.1812.00 lakhs has been
provided.
Expenditure incurred till the
end
df
December 1994. is Rs.761.86 lakhs.
During
the
year under report 5504 hectares of
areas
has been brought under cultivation as
against
a target of 5443 hectares.

The credit sanctioned to the farmers
for
plantation, equipment and rearing houses is as
foil ouis .

SI .

I tern

Upto end of Dec.94

Achievement

No.of Ben- Phys ical
ficiaries
(Nos )

Finane ial
(Rs/takhs)

1.

Plantation

1603

2159

76.74

2.

Equipment

2214

2669

160.46

C/ .

Rearing
Houses

2058

-

606.59

4.

Wells

19

1

6.66

Total

5974

4829

850.45

Loans sanctioned for establishment of
charakas and cottage basins is as fallowss

SI .
No.

I terns

No. of
Benefi
c i ary

No. of
Un its

326

53.31

Loans Sancd.
(Rs. L akha)

1 .

Ch a raka

186

2.

Cot t ag e
Bas i n

27 *

38

30.8 1

Private
L icensed seed1
preparers

1

1

0.98

Mu11 i —end

1

1

3.00

215

366

88.10

3.

4.

Total

38

New

7.0

PRICE STABILISATION FUND AUTHORITY

Under this head the outlay is
Rs.17.11
crores.
An expenditure of Rs.3.42 crores
has
been
made
upto
end
of
December
1994.
Emphasis
has been gi en for the
deve1opmenmt
Disease control,
of Sericulture in the State.
incentives to farmers / reelers and facilities
seed
in cocoon markets and infrastructure for
supply
are
some imp rtant
activities
under
this fund.

8.0

WESTERN (3HATS SCHEME

Under this an outlay of Rs.44.57
lakhs
has been allotted out of which an
expenditure
of
Rs.4.01
lakhs has been
made
to
provide
facilities
for
mulberry
cultivation
and
silkworm rearing to the farmers of the area.

39

9.0

SPECIAL COMPONENT plan

During
the year 1994-95 in
the
State
Sector outlay budgetted is Rs.217.00 lakhs for
construction
of rearing houses to
help
rear
silkworms in hygenic environment.
Expenditure
incurred till end of December 1994 is Rs.66.95
lakhs
benefitting
470
scheduled
caste
sericulturists.

(b)

STAT£ ASSISTANCE IQ DISTRICT SECTOR

Apart
from
the above,
an
amount
of
Rs.23.49 ‘ lakhs
has been spent
upto
end
of
December
1994 against an outlay
of
Rs.84.99
lakhs
by
Zilla
panchayats.
This
has
benefitted 726 sericulturists.

(c)

CENTRAL ASSISTANCE TO DISTRICT SECTOR

An
p rovi d e d
lakhs
h

has
been
amount of Rs.67 37 lakhs
of
which
Rs.21.37
uring
1994-95
benefitting
2036
sp en t
been

4-6

10.

(a)

TRIBAL SUB-PLAN
STATE ASSISTANCE TO DISTRICT SECT*OR

Till ths end of December 1994 an amour
of
Rs.0.86
lakhs has been spent
against
«
outlay
of
Rs.3.20
lakhs
benefitting
s e ric u1t uriIsts.

<b)

CENTRAL ASSISTANCE TO DISTRICT SECT^OR

Rs.29.90
lakhs has been provided
ot
of
which
Rs.5.85
lakhs
has
been
spec
benefitting
514
sericulturists
by
Zill
p anch aya ts.

11.0

PROGRAMME FOR
PHYSICAL

199^-96

TARGET

During the year 1995—96 it is targette
to
bring an additi on al area of 4600
hectars
under Mulberry cultivation and to produce 95f
tonnes of Raw Silk of which 450 tonnes wi 1 1 t
Bivoltine Silk.

41

FINANCIAL TARGET

For
the year 1995—96 the
Annual
Plan
utlay
is
fixed
at
Rs.3155.59
lakhs
as
etailed in Ann exit re- I I .

For Commissioner for Sericultural
Development and Director of
Sericulture.

4-^

ftnnoxure — 1
Annual Plan 1994 — 93
Budget Egtlwt»W

SI .
No.
I .

Schemes

(Rs.

/ Lakhs

State Sector

1 .

Silk Farms

25.00

2.

Control of disease
b. pests (Uzifly)

20.00

Incentives for Bivoltine
Rearers and Reelers

137.00

4.

Buildings - Minor works

20.00

5.

Capital works under
Sericulture Industry

42.50

Pub 1icity,Exhibition,
Study Tours, Books and
peri od i c a1s

30.00

Bonus to cocoons produced
in Mysore Seed Area

190.00

3.

6.

7.

8.

9.

10.

Loans for establishment
of co-operative filature
factory (NCDC )

5.00

K.S.P. - World BankAssistance Phase - I

0.50

N . S . P ■. (K. S.P . /W.B . A. Phase-I I )
Salaries, operation cost
and equipment

782.00

b)

Civil

works

1000.00

c)

Special conveyance
advance

30.00

a)

to KSSRDI

11.

Grant-in-aid

12.

Maintenance — cold
storage plants

13.

14.

15.

K.S.P/W.B.A-I civil works
including cold storages

S.C.P.Assistance
Sericulturists

25.55

5.00

to

Strengthening of Silk
Filatures

44

70.00

217.00

30.00
2629.55

11.

Z.P. Sectar (inclusive—
of S.C.P.?-, T.S.P.)
Total

III.

IV.

560.00
3189.55

S.C.P. with speical
central assistance

67.37

T.S.P.with special central
ass i st anc e

29.90

For Comm ission er for Sericultur
Development and Director of
Serie u1 tore.

^5

ANNEXURE - 11
ANNUAL PLAN 1995 - 96
PROPOSED BUDGET ESTIMATES

SI.
No.
I.

(Rs., in

SCHEMES

Lakhs>

STATE SECTOR

1.

Silk Farms

2.

Control of diseases
pests (Uzi f 1 y >

25.00

and
20.00

Incentives for Bivoltine
rearers and reelers

135.00

4.

Buildings - minor works

41.00

5.

Capital works under
Sericulture industry

20.00

Publicity, Exhibition, Study
tours, Books and periodicals

30.00

3.

6.

7.

Bonus to cocoons produced
Mysore Seed Area

in
225.00

8.

9.

Loans for Sericultural
co-operative Filature Factory
(NCDC)
National

(K.S.P.
a)

Project

Sericulture
/ W.B.A.

Phase -

Salaries,operationa 1
and equipments

b)

Civil works

c)

Special

II)

cost

conveyance

advance

to KSSRDI

Grant-in-aid

11.

Maintenance of cold storage
plants

S.C.P.assistance
sericulturists

900.00

850.00

10.

12.

10.00

30.00
59.00

25.00

to
150.00

sub-plan

13.

Tribal

14'.

Strengthening of silk filature

34.00
30.00
2584.00

4-1-

I.

Z . P . sectar (inclusi ve of S . C . P . ?■< T . S.P )

Total

571.59

3155.59

For Commissioner for Sericultural
Development ?< Director of
Ser icu1ture.

4s

ANNUAL ADMINISTRATIVE REPORT OF STORES PURCH4
ASS DEPARTMENT FOR THE YEAR 1-4-94 to 31-12-94
11 ) INTRODUCTION
1.1 .Main objectives/respensibilities of the
Bepartment:?The Main objective of Department is to arrange
:for purchase of materials required by the Govt
Departments at the ri^it time of right quality
jat the right price and from the right sources.
1 .2 .Major Regulatory function:The S.P.D. regulates the fixation of rate
contract and quantity purchase contracts for
supply of requirements of all indenting Depa­
rtments of Government for various items which
are not covered under their purchasing powers .
Besides medicinal items required by Health and
Family Welfare Department and items reserved
for purchase ffom KSS1DC/KSIMC which are exclu
ded fr on purview of S.P.D. The contractors
are finalised as per provisions of S.P.D.
Manual, well intime. After the contracts are
finalised as p r provisions, S.P.D. will have
to watch t he jb r for mane e of the firms with
reference to the terms and conditions of the
contract and takes such punitive action for
any contravention of the terms and conditi onh
co f contract.
1 .3 .Principal Laws/Enactments being enforced
and imports! t chaiges amendment in .them. The
S.P.D Manual lays down the procedure and
guidelines followed by this Department.
Admin str at ion Department; In the fixation of rate contract and in
the enforcement of terms and conditions ef
rate contract, the S.P.D. relies on provisic^is
in S.P.D.Manual and Indiaa contract Act as
amended from time to time.

50

■J .4 .Stratagies for achieving the Dep ar isen tail
objectives
.By addressing indentin g departments at the
beginning ®f the year, to intimate their
annual requirements of items.
2.I© verify the specifications for items welh.
intine frsn ISI, BIS., DGS&D aid the indent?”
ing Departments as well, befare floating
tender enquiry.
5 .To ascertain from known testing agencies
about testing facilities and to ensure th$t
samples received in the tender are got
tested expeditiously.

II .ADA INSPIRATION?
2.1 .Organisational set up?" Heirarchial sat
up of the Department from State Head Quarters
down to lower level. The S.P.D. is a single
unit office with H8Ra Quarters at Bangala'e
The Director is the head of the Department
assisted ty.1 Deputy Directory 2 Assistant ,
Directors(Purchase), 1 Asst .Di re ctor (Accounts')
and 2 Assistant Di rector (Technical) .Apart
from these there is a Executive committee
consisting of tto following?"
1 .Commissioner for industrial.. CHAIRMAN
Development and Director,
Industries and Commerce.
2.Director, Steres Pur chase
.<> MEMBER/SECRlt
Departmeit
TARY/CONVE0R
5.Secretary to Govt., Finance.. MEMBER
Department or his nomine©
4tAddl.Director(SSI)Department . MEMBER
©f Industries and Commerce
Ban galore
5.Joint Director, KSBPE
..MEMBER
5C

6 .Di reot©r(Inspection(e/© the
DGS&D
.. Special invitee

2 .2 .Officers-in diarge during tha year-Heafl
of Department.
1 .Sri Gopalakr i ishn e Gowda, I.A.S. Director
S.PD upto 12.5.94
2 .Snt ,g .Kalpana, I .A .3
Director, S.P.D. from 15.5.94 till fee
date.
2.3-Addl.Staff sanctioned during the yesr-Nil

2 .4.Staff strength as at the end of yearsi)Sanctioned/filled;No fresh sanction was
obtained during the year 1994-95©an ct i e- Filles
ii)By Category
□ OG
1
1
1 . Director
2. Deputy Director
1
1
2
2
3. Asst . Directors(Furchsse)
4. Asst. Director (Accounts)
1
1
2
2
5. Asst. Director(Technical)
12
12
6 . Superintendents
7 » First Division Assistants 26
25
8. Stenographers
2
2
12
12
9. Second Division Assists^
10.Typists
8
1
1
11 .Daffedar
1
1
12.Attender
1
12
13 .Dalayaths
13
1
1
14 .Driver
83

74

Male
iii) 1) birsctcr
2) Deputy Director
1
3 )Assistant
Director
4 Assistant
DirectorC-icaounts) 1
5 Assistant
Director(Technical)2
Superintenc?ents
6)
7
First
7)
Division
Assistants
20
8)Stenogciphers
Socond
9)
Division
Assistants
7
10)Typists
1
11 )Daf fedar
1
12)Attender
1
13)Dalayaths
10
15)Driver
1

IV)Representation of
SC/ST
1 )Director
2 )Dy.Director
3 )Asst.Director
4)Asst.Director
(Accounts)
5 )Asst.Director
(Technical)
Superintendents
6)
?irst
7)
Division
assistants.
Second
8)
Division
Assistants.
9 )Stenographer
10)Typists
ll)Daffedar
Attender
12)
Dalayath
13)
Driver
14)
Sit

Female
1

2

5
2
5

2
ST

1

3

1

2
1

1
3
1

1
1

1

2• a Training of Department staff;Luring 19-94—95, 9 officials and one
Assistant Director were deputed to
District Training Institute,Bangalore
for training.
2.7 Tours by Head of Department: Wherever it becomes necessary to in­
spect any industrial establish:?'.nts
supplying cr intending to supply goods
to Government Departments or to in­
spect the testing laboratories tours
are undertaken for purposes of veri­
fication.
Ill) FINANCIAL; -

3.1 Rovenue/income during the year total
and sourcewise comparision with corre—
ponding figures of last 2 years reasons’
for variations.
Tender
l)

form fees ; Rs. 24,02,491.90

2) Registration fees; Rs. 1,92,810.00
3) Penalty/others
; Rs. 2,39,144.75
Rs.28,34,446. 65
INC 0 M E

1993-94

1994-95

Difference

Rs.27,44,584.75
Rs. 89,861.40
Rs. 28,34,446.15
(1.4.94 to 31.12.94)
The difference is due to revision in
tender form cost.
S3

3.2 Annual expenditure of Department total
Plan and Non-Plan and according to
major programmes schemes comparison
with corresponding figures of last
2 years and reasons for variation.

,

l)Officer Pay
: rs. 1,93,182.00
2) pay of the Staff ; Rs. 13,49,181.00
D.A,
3)
: Rs.15,64,943.00
Other
4)
allowances • Rs. 3,58,144.00
Travel
5)
allowances ■ Rs.
8,899.00
6)Office expenses
; Rs. 2,17,916.00
Rent
7)
and revenue ; Rs. 2,25,225.00
8) Advertisement/
sale/publication ; Rs.
35,866.00
Rs. 39,53,356. 00
Comparison with corresponding figures
of last 2 years and reasons for signi­
ficant variation.

1992-93
Rs. 41,01,881.00

1993-94
1994-95
Rs. 50,14,469. 00
Rs.
39,53,356.00
(1-4-94 to 31-12-94)

The difference is due to sanction of
enhancement in the D.A.etc.,

3.3 Major taxation charges and anticipated
actual additional yield during the
year (in the case of departments like
commercial tax) ;
- NIL
IV)

PROGRAMME/PR OGRESS ; -

As this is a purchase department on
behalf of the State Government only
5^

indents received from the various
Departments of State Government will be
processed.
Hence no definite programmes
are chalked out.

NSCs worth Rs. 17,33,500/- were collected
upto the end of December-1994.
V ) S UMMfi. RY C PNC LUS I ON; -

A broad sum up of the purchase section.
Although this Department still important
State Government Enterprises,Government
Boards,Corporations and Municipal Bodies
etc., are functioning outside the pur­
view of S.P.D. in the matter of purchas­
ing of their requirements. It is necess­
ary to widen the ambit of this department
to cover all such purchases and also to
strengthen th^further for this purpose.
Department
Proposals in this regard have been sub­
mitted to Government.

71) STATISTICAL ArrLNDlX (ITOT dXCSLDlTJG ^S?<
PAGLS;1) Tender enquiries pendins
as cn 1.4.94.
; 42

2) lender enquiries issued :
from 1.4,04 to 31.12.94

C9

Ill
3) lender enquiries dis­
posed off from 1.4,94 to
31. 12. »4 by iixec at i v e
Comi.lt t ce.
4) Balance enquiries as
cn 31.12.94
17
5) /alue of local indent
order (quatity tender)
issued from 1.4.94 to
Rs. 40,42,633.23
31. 12.94.
6) Mat eria 1 procured
?.TL
through D.G.S & D.
1,37,^.6,04,635^3
7) Rate contract value
from 1.4.94 to
31.12.94.
8) Total value of material:
procured through SPD
from 1.4.94 to 31.12.94
ds. 1,57,56,47,268 .16

S4/-

Director,
stores Purchase Dept.,

Government of Karnataka
Stores Purchase Department
0057 Supplies & Disposals
Rs. in lakhs

0057

1994.95 1994.95 1995.96
estimate revised Budget
estimate estimate

Stores purchase
Department.
0057-00-800-1-01
01-tender form
sale 0057-00-8001-§2
25.00

03-Registratien
an d r enewal
charges 005700-800-1-05
ether charges

25.00

26.00

2.50

2.50

3.00

2.75

2.50

2.50

30.25

30.00

31 .50

Director,
Steres Purchase Department

ST

■iSovernHefTc or LafnataKa,
Stores purchase Department
,

'

Expenditure

2057 Supplies and Disposals
, .
us. in Lakhs
1993.94
199'3.94
1994.952057-101-0-01
estimut e r e«ised. actual ex.
estimat e pendit ur e
las on
31.12.94?
41.55
34.66
1) Salary
40.08
Allowance
0.15
0.15
0.09
2) Travel
expenses
3)Office
3.15
3.15
2.18
expenses
4.79
4.79
2.25
4) Rent and
taxes
5) Advert! so0.75
0o 36
0.75
ment and
publicity

Total

50.49

48.92

39O54

S J? JDirector,
Stores Purchase Department

S8

OFFICE Of FHE COlULGSi OIJ-iLX FUi< CANE DE‘/ELOPIlEliT & DI^IECTOR
cf *-ug. a in k.-»rnmT'ka: jajgau.jre.

.annual .teport fox the year 1994-95 (As at 31-12-94):-

A.Brief Description aoout the Sugar Industry in Karnataka:-

1.

There are 30 sugar factories in the state out of which

17 are in the Cooperative sector, 2 in the Pulic Sector,

2 in the Joint sector and 9 in the Private sector.

2.

The state has received Letters of Intent for establi­

shment of 8 more sugar factories out of which 7 are in

the Cooperative sector and one in the Private sector.
3.
The estimated total area under sugarcane in the
state during 1994-95 is 2.15 lakhs hectares and the cane

production is expected to oc around 215 lakh IlTs.
•4.

The total cxxusning capacity of 30 sugar factories

is 69390 MTs per day and the factories have the capacity
to utilise 124.90 lakh MTs. or cane in a season.

5.

6 existing sugar factories have obtained Letters of

Intent for expansion out of their crushing capacity. 6f

which 2 sugar factories in the Cooperative sector have
taken up expansion programmes which in nearing complition.

B.Commissioning of new sugar factoriesx-

Setting up of new sugar factories is held up du.e to
non-sanction of loans by the Term Lending Institu*^-ns4
The Financing Institutions are'linking saglion of loan tp
clearance of ovcrdues of the existing sugar factories. The
State Government has cleared the overdues of two Cooperative
Sugar Factori c*s( Bakshina Kannada 'SSK
Sahakara Sakkare
Karkhane Ltd.. Mnd) amounting to Ps.9W.64 lakhs duelngthe
yea* 1994* The overdues of the existing sugar factories
have been’minimised and at present only two sugar factories
have overdue loans. As the Term Lending Institutions are
still not considering sanction of loans to the new Coopera­
tive sugar factories, one of them has already obtained
consent of Syndicate Bank and Co-Operative Banks for
financial AsGistano ' for setting up the plant.

V

Jx. :.ii>_ uerfornnnce of Sugai' factories:Lujinj the season 94-95, all sugar .factories except
Katipli Coo-. •’ * '■ to Ju/i- factories Ltd., have started
crushing operations. Vanivilasa CSF Ltd., Hiriyur has
restarted during this season after closure for 9 years.
fie crushing performance during 94-95 season
is as follows;

No.of Sugar
factories.

Total Cane
Crushed.

29

5746422

Total Sugar
Produced
(in MTs.
from 1-10-94 to 51-12-94.
581040

Average Sugar
recovery.

10-17

Crushing performance of the sugar factories during
the past three years is as follows;
Year

No.ofSugar
factories
worked.

Total cane
Crushed.

Totalsugar Averagesugar
Produced
Recovery.

(in Lakh IMTs.

91-92

92-95
95-94

27
29
28

92.26

10.56

79.54
79.55

8.45
8.50

10.54
10.62
10.47

D.Share capital requirement of new Co-operative sugar
factories:-

The State has received Letters of Intent for
establishment of 7 new Cooperative Sugar factories, 5 during
1938-89 & 4 during March 1994. The project Cost of the
sugar factories which received Letters of Intent during
1988-89 is re-estimated at fc.40 crores per unit while
that Of the sugar factories which received Letters of
Intent during March 1994 is estimated nt Rs.42 crores per
unit. Tue state Government has to contribute 52.5% of the
....5/-

project cost which amounts to a total of to. 9360 'i. -hs.
The State Government has already sanctioned to.l>74 lakhs
to the 3 Cooperative sugar factories which received
Letter of Inrent during 1988-89 and has made a bugat
provision of to.600 lakhs in the 1994-95 budget which is
yet to be sanctioned and released. Hence, the balance
share capital amount to be sanctioned and released by
Government is to. 7786 lakhs.
Recovery of Purchase Tax arrear converted into Interest

Free loan :-

Out of lb.39.37 crores purchase Tax arrears converted
as Interest Free Loan in respect of 19 sugar factories,
an amount of lb.7 crore hasbeen remitted leaving a balance
of Rs.32.37 crore of which lb.18.08 crore is the overdues as
at the end of 30-11-94. During the year 1993-94, an amount
of to.88-89 lakhs has been recovered from the sugar facto­
ries, towards the said loan.
Sanctlonof loan out of 3ugar Development Fund for
undertaking Cane Development Programmes:-

The total loans sanctioned to sugar factories of
Karnataka out of this fund amount to to.3949.18 lakhs for
undertaking cane Development works of which to.169O.27lakhs
has been released. During the year 1993-94, an amount of
to.454.94 lakhs was sanctioned and released to 4 Cooperative
Sugar factories for undertaking cane Development Schemes.
Establishment of Karnataka Sugar Institute:-

The Karnataka Sugar Institute has been setup and the
Government has been requested to earmark Re.1/-out of
the Purchase Tax paid by the Sugar factories for strength­
ening the Institute.

Co-generation by the Sugar FaotorlesiThe sugar factorieshave been advised to take-up
Co-generation. Two sugar factories in the Co-operative
Sector have already finalised proposals for this purpose
and one of them has already submitted itsproposal to the
Government of India for sanction of subsidy.

Strengthening of the Directorate of Sugar:-

A detailed proposal for strengthening of the
Directorate of Sugar has been submitted to the Government
in Commerce and Industries Department.The Government
has provided fa.10 lakhs in the 94-95 budget under Plan
Head towards strengthening of the Directorate. A meeting
in this regard washeld under the Chairmanship of the
Chief Secretary to Government on 9-12-94 and the proposal
is under active consideration of Government.
Establishment of Dr.B.R.Ambedkar Coop.Sugar Factory:-

The Deputy Commissioner, Belga um has been appointed
as the Chief Promoter of this karkhane which is proposed
to be established at Nej.Chikkodi Tk. Belgaum Dist.

Some Important Statistics pertaining to 1994-95:a)
Sugar
Cane Price:
1)Statutory Minimum Cane Price - Rs.591 per Mt;:, linked
fixed by Govt, of Indiato 8.5*> sugar recovery.
2)State Advisory Cane price

Levy
b)

Sugar Price;-

- Rs.56#/- per M.T linked
to 8.5% recovery for
si>Mr factory £2 -hl ch
do not have distillery
units.
Rs.6O4/-linked to 8.5%
recovery for.sugar facto­
ries which have distillery
Levy Sugar price for 94-95*
season is yet to be fixed
presently, the levy sugar
price being paid to the
sugar factories of Karnataka
(except Dakshinakannada
SSK)is Rs.678-81 ).

Loan
c)
sanctioned by Government to Cooperative sugar
factories during 94-95:-

1.Kampli CSF Ltd - Rs. 15 lakhs (Interest bearing Loan)
2.Sahakari SSK Ltd.,id.60 lakhs (Interest bearing Loan)
J.Bldar SSK Ltd., Rs. 62.50 lakhs( - " If
4.Bakshina Kannada Rs.624,64 lakhs (Interest free loan)
SSK.
----------------Total: fa. 762.14 lakhs
5/ZaL

Revenue
d)

to Government from Sugar Industry;-

Purchase Tax a 5% lidvolorun.
Cane Cess 8 1%
- " -(for road development in
sugar factory areas).
Turn Over Tax. 0 2.5%
Besides this, the state is also gottlng revanue
from the following;
1) State share of excise dutxy on sugar.
2) Tax on Molasses and other down stream products.
5) Licence fees from sugar factories & Khandasarl
Units.
4) Sales Tax on Khandasarl Sugar.

Profit & Loss position, of sugar factoriess-

The Profit Loss position of sugar factorise for
1993-94 is still not available as the Audit is still in
progress in many of the sugar factories.

So far as 1992-93 is concerned, the position is
as follows;

SI.
Uo.

sector

Ko’
Sugar Bo.oS sugar No.ofsugar No.ofsugar
factories
factories
factories j factories
established which made which incu-which are
profit.
rred loss, continuing
with accu­
mulated
losses.

1 .Cooperative
2.Public
3.Joint
Private
4.

17
8
9
13
2.-22
2112
9 (information not furnished)

(Details enclosed vide Annexure.)

Name of the Sector

Name of thp
Sugar factory

Profit
Karned

Lobo
incurred

(Es. in lakhs)

' ‘Public Sector

O'-

Joint Sector:

1.Mysore Sugar Co.,

-

225.42

2..4.P.M

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129S.60

DEPARTMENT OF MINES AND GEOLOGY
ANNUAL REPORT FOR,1994-95

The
Department
of
Mines
and
Geology
being
an
important
department
has the following
prime
functions to attend during 1994-5.

Mineral Administration
a) Inspection and
recommendation
for
sanction
of mining
lease
for
major
minerals, sanction of
quarry
leases,
periodical
inspection,
mineral
concession
grant,
and
enforcement of action rules
related
to minerals and mines.
1.

b)
Revenue
collection
due
from
mining and quarrying activities.
c) Prevention of unauthorised mining
and
quarrying
activities
and
consequent ' loss of revenue
to
the
State exchequer.

d) Exploration and
development
mineral resources of State.

of

e)
Mineral
exploration
and
development
employing
modern
technology
and
concepts,
categorising the resources in
terms
of
grade
and
industrial
utility
identifying scope for development of
mineral based industries and
export
potent i al.

Cl

f)
Survey
and
development
and
groundwater management using
modern
concepts
and
techniques
such
as
Remote
Sensing
and
Geophysics
in
water balance studies.

g)
Establishing
by
Groundwater
and
mineral
identified
by
using
techniques.

drilling
resources
surf ace

h) Mineral beneficiation studies
to
build
up potential ore and
mineral
deposits for development.
1) Special geological
investigation
such
as structural geology,
impact
on
environment
due to
mining
and
quarrying
etc.,
in
co-ordination
with
other
National
Research
Institutes and Universities.
j)
Special studies
on
under a project of BRGM ,

g roundwa t e r
F r anc e.

The
activities under
the
mineral
and
groundwater
development
are
described
more fully later in
this
note.

2.BUDGET
The
total
budget alloted
to
the
Department
is Rs.1130.65 lakhs
for
1994-95. The budget outlay
pertains
to both Groundwater and Mineral Wing
of
the
Department.
The
plan
and

6%

non-plan
components
of
this
allocation in respect of Groundwater
and Mineral Wing is as follows:—

1.
2.

Groundwater
un i t
Mineral Wing

Non-p1 an
P1 an
(In Lakhs)
332.48
422.00

305.17

71.00

The
details
of
allocation
under
different
Heads
of
Account
wi tn expenditure details from
April
9a
to
December
94
are
given
in
Tab 1 e- I .

1.

2.

Mon-plan , P1 an
Total
( In Lakhs)
Groundwater 221.26
9.79 231.05
Un i t .
Mineral
198.86 17.57 216.43
Wing.

3.
MINERAL
REVENUE

ADMINISTRATION

AND

3.1.
During
the
recent
times,
Mineral
Administration
has
become
priority function of the
Department
and
the activities under this
wing
are
related to sanction of
mineral
concessions,
inspections ,etc.,
During
April 94 to December 94
the
following work has been carried out.
1.

Inspection of areas
applied for M.L.

■- ts

2.

Inspection of areas
applied for Q.L.

...

630

3.

Audit

inspection of M.L.

...

120

4.

Audit

inspection of Q.L.

...

100

5.

No. of cases booked for
violation of mining and
quarrying Rules.

...

30

3.2.
The collection of revenue
due
from
minerals
forms
one
of
the
important
responsibil i ty
of
the
Department.
This revenue
comprises
of royalties on minerals
exploited,
rents
and
cess '
on
mineral
concessions,
penalty
for
unauthorised
transportation
of
minerals, groundwater fees etc.,

The details of revenue
realisation
from
minerals which
constitutes
a
bulk
of the revenue is
as
follows
for the period April 94 to Dec.1994.

Roya1ty (Rs. in lakhs)
Target Ach i evemen t
1.
2.

Major Mineral 2790.00
Minor Mineral
1300.00

Total

4090.00

1531.289
2132.390

3663.679

3.3. At present there are 553 mining
1e ases
and 4974 quarry
leases
for
different
minerals.
The

70

districtwise
position is
given
Table-2 far the past 3 years.

in •

4.MINERAL EXPLORATION

4.1.
The
functions
of
Plan
Monitoring Wing of the Department is
mainly to investigate the
resources
of
minerals
and
ores
of
the
economical value.
The investigation
and exploration for the
occurrences
of
titan 1ferrous
manganese,
molybdenite,
nickle,
Copper,
Limestone,
Kyanite,
Sillimanite,
Magnetite,
steatite,
Precious
and
Semi-precious
stones,
Ornamental
stone
etc., have been proposed
for
the year 1994—95.
These exploration
programmes
have
been
carried
out
under
the
following
six
on-going
non-plan schemes.

i) Survey and assessment of
ferrous
minerals.
ii) Exploration of Sulphide Zones..
iii)
Investigation
of
Ornamental
Stones.
iy)
Investigation
of
Limestone
Depos its.
v)
Assessment
of
refractory
raw
material.
vi)
Exploration
for
precious
and
Semi-precious stones.

4.2
The
exploration
carried
out
comprises
regional
survey
for'
locating
mineral
deposits
and

tracng
their
continuities,
large
scale
mapping
for
preparing
the
actual
plan
of
the
deposit,
systematic sampling for
determining
the
grades
of
ores/minera1s
and
diamond
drilling
for
establishing
the
depth
persistence
and
grade
variation, and reserves availability
of different mineral deposit.

The
physic a1
p rogress
achieved
under different non-plan sch ernes
is
as fol 1ows:*

-

(ha )

Ferrous
22 '200
Su1ph ide 214
102
Ornamen- 132 3SS4
tai
Lime694
155
s ton e
Refrac—
13
350
tory
Preci92
712
ous stone

100
46

1167 5403

216

To tai

I

cn

_j

i

(Sq. km)

i

i





[fl

6.

i

5.

a

4.

(I.

1 .
2.
3.

Scheme Samp

1

I

SI.
No .

Drilli nq
<m)

203
829


1363
70




2395

NOTE
1.
Samples
under
Sulphide
Scheme
includes
geochemical
samples
and
stream sediment for gold analysis.

2,
12 bore hole sites selected
and
1014
meters of core logged from
14
bore holes under Limestone Scheme.
4.4.
The
salient features
of
the
investigations carried out. under the
different schemes are:-

4.4.1.

a)

Ferrous Scheme

Under
this scheme exploration
has
been
carried out
for
tttaniferous
magnetite and manganese ore deposits
in parts of Mandya,
Tumkur,Shimoga,
Chitradurga
and
Uttara
Kannada
Districts. In all six investigations
have been carried out during 1993—94
and
seven
investigations
are
proposed for the year 94-95.

4.4.2 b)

Su1 phide Scheme:-

Exploration carried out under
this
scheme
has
proved
the
depth
of
persistence and strike continuity of
Copper
Ore at Ingaldhal,
promising
Gold
prospect
in
Deodurga '
and
indications
of
Molybdenum
ore
in
parts
of
Hassan, Coarg
and
South
Kanara
Districts.
In
all
three
investigations have been carried out
during
1993-94
and
five
investigation
programmes
are
included for the year 1994-95.

4.4.3.

Under

c)

Ornamenta 1

this scheme

Ston e Scheme : -the

survey

has

been
carried cut for locating
pink
granite, grey granite, multicoloured
granite
and dolerite dyk.
depos its
in
parts
of
Gulbargr,
Raichur.
Dhr.rwar, Mandya,
Tumkur
Bangalore
and
Hassan Districts an a
regional
scale.
The
pink
variety
of
granites,
dolerite
dyke
rocks
of
ornamental
quality
have
been
identified
in
Raichur,
Bangalore,
Hassan.
Dharwar
and
Mandya
Districts.
In
all
nine
investigation
works
are
completed
during
1993—94
and
proposed
four
items
of
survey
works
for
identifying
ornamen tai
stones
in
parts
of Kolar, Mandya
and
Tumkur
District during 1994-45.

4.4.4.

d)

L imes tone Scheme

Exploration for limestone has
been
carried
out
in parts
of
Belgaum,
Gulbarga,
Dharwar
and
Bellary
Districts
during 1993-94.
In
all
six investigations have been carried
out
during
1993-94.
Five
investigations
are
included
for
1994-95.
4.4.5.

e)

Ref r ac tory Scheme: —

Survey for various refractory group
of minerals like Kyanite,
Asbestos,
Quartz, Steatite and others has been
carried
out in Mysore,
Mandya
and
Hassan
Districts.
Totally
.five

74

investigation have been earned
out
during
1993-94
and
totally
four
items of investigations are included
during 1994-95 field season.

4.4-6.
f)
P rec ious
p rec ious S tone Scheme t —

and

Semi-

Exploration for Precious and
Semi­
precious
Stones like Corrundum
and
Agate minerals have been carried out
in parts of Mysore, South Kanara and
Gulbarga
Districts.
In
all
four
investigations have been carried out
in
these districts during
1993—94.
Semi-precious and industrial variety
of Corrundum occurs in various parts
of Mysore, Mandya, Chickmagalur
and
Tumkur
Districts.
Further,
six
items
of investigations
have
been
proposed for the year 1994-95.
4.4.7. During the year 1994-95 field
season the Department has programmed
to carry out the detailed assessment
of
Iron
and
Manganese
ore,
Cop.per,Nickel
ore, Gold
Ornamental
stones,
Limestone,
Kyanite,
Sillimanite,
refractory
grade
U1tramafites, Felspar and Corrundum.
It
has also been proposed to
carry
out
trial.beneficiation studies
on
low
grade manganese ores, sand
and
lithium
ore.
These
investigations
are
spread
out
in
parts
of
Chickmagalur, Chitradurga,
Bellary,
Shimoga,
North
Kanara,
Mandya,

Kolar,
Tumkur,
Belgium,
Bijapur,
Gulbarga,
South Kanara, Hassan
and
Mysore
Districts,
The
proposed
physical targets are as follows:Regional Survey
Large scale mapping
P i t t i ng & t renching
Drilling

...
...
...
...

625
1O1O
150
3000

Sq.Kms.
ha
cum
m

4.5.
Besides the above
6
non—p1 an
schemes connected with the mineral
wing,
Department
also
has
the
•following
on
going
plan
schemes,
namely,
1 .
Strengthening of
Department
Mmes and Geology (Mineral)

2.
of

Training of officers and
the Department.

of

staff

3. Establishment of publication wing
in the Department.
Environmental
the Department.

Geological wing

of

The
proposed
new
scheme
is
"Creation
of
mineral
conservation
cell in the Department". This is
to
be
implemented after obtaining
the
Government administrative sanction.

4.5.1.
Scheme 1;Mentioned
above
aims
at
an
effective
control,
regulations of mining and
quarrying

^76

activities,
transportation
of
minerals,-and realisation of
higher
revenues from minerals.
4.5.2. Under the training scheme ten
officers
have been sent
for
short
term
training programmes,
symposia
in
the
field
of
exploration
for
Gold, application of remote
sensing
in
earth science etc., at
national
organisation
like
GSI,
NGRI
AMD
MRSA.
As
a
result
of
technical
investigations
a
large
volume
of
data
has
been generated
over
the
last
fe"w years.
These data are
to
be
published
as
reports
under
publication wing.
During the period
of
this note 24 reports
have
been
published.
Under the
environmental
geology
wing it is proposed,
carry
out
the
study
of
the
impact
of
quarrying
activities
around
Bettahalsur
(Bangalore
Rural)
on
environment and impact of mining
on
environment
in the Joida region
of
North
Kanara
District
action
has
been
initiated with
the
Bangalore
University in this regard.

4.5.3.
Under
the
new
scheme
Mineral Conservation Cell programmes
of
sand
assessment
in
the
neighbourhood
of Maddur
in
Mandya
district,
assessment of rejects
in
some
prominent
ornamental
stone
quarries exploration for Diamond
in
Raichur
District, clay deposits
in

77

parts
of Dakshina Kannada
District
are contemplates.
These
programmes
are
proposed to be got executed
by
outside
agencies.
Administrative
sanction for the schemes is awaited.
4.5.4
Besides the above
mineral
explorat ion
tne
Department
has
carried
cut the special studies
on
structural
features
of
certain
ancient
rock group in
the
Mercara
area
along with the
scientists
of
National
Geophysical
Research
Institute,
Hyderabad.
A
programme
of
detailed
Structural
Geological
studies
in
parts
of
Bellary
and
Raichur districts has been taken
in
collaboration with Exeter University
of'U.K.

5.

Ground Water Un i t

5.1.

I.STATE SECTOR

The activities included under the
state
sector are
micro-water
shed
investigations,
application
of
remote
sensing
techniques
for
groundwater
targetting,
study
of
groundwater
quality,
rendering
of
technical
advices for various
well
sinking programmes, conducting yield
tests
of
borewells
and
rendering
necessary
advice to the public
for
the
installation of
suitable
pump
sets etc.,

5.2.
The
microwater
shed
investigations
which
includes
intensive
field
survey,
geohydrological
mapping,
inventory
of wells, study of cropping
pattern
and
estimations
of
groundwater
resource
position
would
help
for
assessing
the stage of
groundwater
development in the area under study.
The
application of
remote
sensing
techniques through interpretation of
TM-FCC satellite imagery of
1:50000
scale
has
immensely
helped
for
structural
mapping of the area
and
to identify the blocks which have no
proven
data
to study
further
for
groundwater viability or
otherwise.
The
data interpreted
are
normally
further
followed
with
intensive
groundtruth
verifications
by
geohydro1ogica 1,
geophysical
observations
and
drilling
of
exploratory
borewells.
There
are
four
fast rigs which
are
deployed
for
exploratory
drilling
of
borewells
and
also
observation
borewells for monitoring
the
water
level
fluctuations.
Works
like
cleaning
and rejuvenation
of
sick
borewells,
revitalisation
of
of
existing
dug wells,
extraction
of
pumps
from the borewells etc.,
are
being
attended with the help of
15
slow rigs.
In addition there are 19
yield
testing
units
which
are
engaged
for
testing
of
borewell
yield,
development
of
borewells

75

etc., through which suitable advices
for
the type and capacity of
pumps
to be installed are rendered to
the
general
public .
The
groundwater
quality to study the suitability for
agricultural,
domestic
and
industrial
usage
are
being
determined
by chemically
analysing
the
groundwater
samples
collected
during the course of
investigations
through
6 laboratories attached
to
the
division offices and
one
main
laboratory
attached to Head
Office
in
Bangalore.
Totally
1879
water
samples
have been analysed
so
far
during
1994—95.
The
works
on
geophysical
investigations
in
the
divisional
and
zilla
panchayat
sectors
are
being
supervised
and
monitored by the Chief
Geophysicist
at
Head
Office.
Proving
of
lineaments
through
geophysical
survey
has
been
carried
out
in
Ratnahally,
Mysore
Taluk
and
Rangapur, Tarikere taluk.

5.3. The details of the
on-going
plan
schemes
under
which
the
p rog rammes envisaged to tak e-up
are
indicated below:

5.3.1.

Dri11inq

This is an ongoing plan programme
and
continued
for
1994-95
also.
Under this scheme it is proposed
to
drill
observation
wells
for

£c_

monitoring
long
term
GROUNDWATER
levels on regular basis and also
to
drill exploratory borewells to prove
the occurrence of groundwater at the
sites
selected after
an
intensive
survey.
15 slow rigs
are
engaged
for
drilling,
cleaning
and
rejuvenation
of sick borewells
and
extrications
of
pumps
from
borewells.
There
are
19
yield
testing
units
engaged
for
development and testing of bcrewells
and
render suitable advice for
the
installation of pumps.

5.3.2.

Specia 1

Component Plan

The scheme envisaged drilling
of
exploratory borewells in the
unplan
blocks
belonging to
the
scheduled
caste
people
where
the
Geohyd rological
cond i t i ons.
It
is
also
contemplated to hand over
the
successful
borewells
to
the
respective
land owners,
collecting
only
the
cost of casing
etc.
The
scheme
also
helps
the
collecting
useful
sub surface
geohydrological
data.

5.3.3.Groundwater
de v e1 opmen t
remote sens i ng techniques-

by

The
scheme
envisaged
adopting
remote sensing data obtained through
satellites
for
groundwater
development.
The
technology
is

Si

being
applied in the chronic
water
scarcity areas through ground
truth
verifications by hydrogerlogical and
geophysical
invest iga ions
also
followed by experiment i drilling on
selected
lineaments
to
prove
the
aquif e rs.

5.3.4. Estaclishment of
Groundwate r
Research
and De ve1opmen t
Un i t
and
training Ge 11
The scheme envisages
groundwater
status
evaluation
through
data
gathering,
carrying out studies
on
groundwater occurrence,
management,
quality
etc.,
in
different
hydro1ytho1ogica 1
units
of
the
State.
The studies are mainly aimed
at
reducing
incidence
of
failed
wells,
rejuvenating
groundwater
levels
in over developed
areas
by
identifying
suitable
zones/
structures for artificial
recharge,
planing
for
a
proper
resources
development
on a
scientific
basis
and
public
awareness
programme
th rough' aud i o/v i sua1
aids.
This
also
encompasses,
training
and
updating exploratory knowledge among
the
staff
of
the
department
by
imp anting
necessary
training
in
collaboration
with
other
allied
organ isat ions.

5.3.5
III. BRGM
AIDED PROJECT)

PROJECT

(EXTERNAL

Under
the
agreement
executed
between the Department of Mines
and
Geology
and
BRGM
(France),
the
Department has taken up collaborated
project
works with BRGM of
France.
It
is
a time bound
project
being
carried out to (1) study the
causes
of
decline
in water table
in
the
Palar
Basin (Karnataka) and (2)
to
evaluate resource estimations in the
Arkavathy
and
Palar
Basins.
The
projects
also involves
setting
of
ground-water
data
base
management
systems
and use of
SPOT
Satellite
imagery
data
processing
for
Groundwater applications.
6.

ZILl.A PANCHAVAT SECTOR

(NDN-PLAN)

6.1. Each district office head by
the
Geologist with
his
supporting
staff
coming
under
the
administrative
control
of
the
respective
Zilla
Panchayats
carry
out
the technical works
under
the
guidance
and
supervision
of
the
Department
of
Mines
and
Geology.
The
important
works
carried • out
under
Z. fj.
Sector
are
microwater
shed investigations on similar lines
as
explained
earlier,
artificial
recharge studies, recording of water
levels
from
observations
wells,
rendering
technical advices to
the

S3

general
public
and
Government
agencies
for various
well
sinking
programmes,
yield
testing
of
borewells etc.,

6.2
The
concept
behind
the
artificial
recharge studies
is
to
identify the areas where such of the
structures
like nalla bands,
check
dams, percolation tanks etc.,
could
be
provided to arrest
the
surface
run-off
and thereby to augment
the
groundwater
recharge.
Based
on
conducting
the
yield
test
of
borewell suitable advices are
given
for
the
installation
of
suitable
pumpsets
and
it
also
provides
cleaning
of
borewells,
thus
rejuvenating the existing borewells.
The recording of water levels
would
enable
to
study
the
water
level
fluctuation and groundwater recharge
est ima11on.
6.3
The
physical
progress
achieved
under
State
and
Zilla
Panchayat
Sectors are furnished
in
Table-3 & 4.
7.

CHEMICAL

LABORATORY

The
Chemical Laboratory
of
the
Department
is one of the
important
wings
of
the
Department.
This
laboratory
is engaged in
analysing
both
mineral
and
water
samples
collected
by
the
Department

investigation units as well as
from
the private agencies on part
basis.
The main laboratory attached to
the
Head
Office at Bangalore has
Minor
Units
attached
to
the
Divisional
Offices and are engaged in analysing
both mineral and water samples.

The
Chemical Laboratory of
Head
Office
has analysed samples of
all
kinds
of minerals and
ore
samples
and determined various constituents.
During
the
year
1994-95
(upto
December
94)
the
laboratory
has
analysed
554 sample and
determined
percentages of 1931 const i tuen ts.

BUDGET AND EXPENDITURE 1994-95
Tab 1e-1
Non-P1 am

1.
2.
3.
4.

Allocation
Rs. in lakhs

Expend i ture
(end of Dec.1994)

2702-01
2702-03
2702-04
2702-05

153.54
66.96
1.50
110.48

1,05,61,504
44,86,547
28.061
70,50,855

Total

332.48

2,21,26,967

(/y Plan
O' 1. 2702-02
2. 2702-11
3. 2702-13
4. 2702-14

28.00
60.00
134.00
200.00

2,79,956
6,99,929

-

422.00

9,79,885

754.48

231.06

Total

Both Plan and
Non-p1 an

Note: Plan budget of 2702-04 of Rs.32.00 lakhs has
surrendered to Government.

been

Non-P1 an

1.
2.
3.
4.
5.
6.
7.
8.
9.

2853-02-001-0-01
2853-02-102-0-01
2853-02-102-0-02
2853-02-102-0-03
2853-02-102-0-04
2853-02-102-0-05
2853-02-102-0-06
2853-02-102-0-07
2853-02-102-0-08

Total
Plan
1. 2853-02-102-0-02
2. 2853-02-102-0-07
3. 2863-02-102-0-10
4. 2853-02-102-0-11
5. 2853-02-102-0-14
6. 2853-02-102-0-15
Total

Both plan and Non-Plan

Al location
Rs. in lakhs

Expend itune
(end of Dec.1994)

227.96
14.11
15.51
9.24
10.27
8.68
11.31
1.52
6.57

1,52,19,,531
5,68,,689
10,54.,583
6,08,,664
6,57.,976
5,70,,084
7,66., 159
17..304
4,23.,862

305.17

1,90,86.,852

10.00
41.50
1.00
3.00
13.50
2.00

15,77.,903
79.,426

71.00

17,57.,329

376.17

1,00.,000

16.44

STATEMENT SHOWING DISTRICTWISE NUMBER OF LEASES FOR
LAST THREE YEARS

THE

TABLE-2

Districts

1. Bangalore South
2. Bangalore North
3. Be 11 ary
4. Belgaum
5 . Bij apur
nr- 6. B i d a r
7. Chi tradurga
8. Chickmagalur
9. Coorg
10.Dharwar
11.Gulbarga
12.Hassan
13.Kolar
14.Mysore
15.Mandya

No .

of Mining
1e ases

No.

of iquarry
1e ases

1991

1992

1993

1991

1992

1993

7
12
95
46
26
3
67
5
22
28
16
11
9
12

10
11
97
50
25
3

10
11
87
50
43

62
5

27
27
17
18
22
10

443
433
1 18
276
120
I 1
63
66
43
80
252
32
131
107
139

513
607
201
386
161
17
97
96
47
1 17
287
82
165
145
210

507
67 1
25 1
329
155
19
141
108
52
138
289
137
167
151
271

.

55
5

27
22
16
9
22
13

Districts

16.North Kanara
17 .Raichur
18.South Kanara
19.Sh i mog a
20.Tumkur
Total

No.

No ..

of Mining
1e ases

of <quarry
1 e ases

1991

1992

1993

1991

1992

1993

78
5
32
17
51

68
6
27
18
54

71
6
19
18
50

81
54
303
149
94

165
65
754
250
155

230
73
833
267
184

542

538

553

2992

4523 4974

PHYSICAL

PROGRESS

THE YEAR
1994-95
SECTOR
(UPTO DECEMBER 1994)

FOR

STATE

UNDER

Tab 1e-3
SI .
No
1.

Name of

Microwater Shed Survey
Technical Advice

4.

Unit

T arget

Achievemen t

Sq . Km

762

299.50

Geohydro1ogica 1 method
Geophysical method

No.
Mo .

-

80
270

Special Component Plan
a) Drilling of borewells
b) Yield test

No.
No.

60
400


54

Sq . Km
No .

1433
66

993
13

No .
No .
Mtrs

600
50
2000

143
11
540

a)
b)

<£■ 3.
C;

the Scheme

Remote Sensinq Studies
a) Ground truth survey
b) Identification of
1ineaments'
c) V.E.S.
d) Drilling
e) Depth

SI.
No.

5.
6.
CC 7.
~~ 8.

Name of the Scheme

Drilling
Yield test
Water sample collection
Water sample analysis

Unit

M t rs
No .
No
No.

Target

12200
3650
5000
5000

Achievemen t

4087
2703
3969
2768

PHYSICAL TARGETS AND ACHIEVEMENTS OF GROUNDWATER UNITS
Z.P.
SECTOR DURING THE YEAR
1994-95 UPTO END
OF
31.12.1994
TABLE-4
SI .
No K

Programme

1 .
2.

Unit

Micro Watershed Survey
Sq.Kms
Artificial recharge
Sq.Kms
stud i es
3. Observation well
No .
record ings
4. Techo ical Advice
a) Geohydro1ogica 1
No.
method
b) Geophysical method
No.
c) Failed wells
No.
d) Deepen ing
No.
5 . Water sample collection
No.
6. Yield tests
No.
♦Note:

As and when the
attended .

Printed by

Target

Prog ress
f rom 1.4.94
upto end of
31.12.94

3263
3263

2228
43

10912

13190

-

23991



4050


■*2469
795
136
3071
*1109

applications received will be

Hie Diru lor■ ol punting. Stationery and pnblieanon.s. Government Press. Bangalore-1

Printed By :
The Director of Printing, Stationery & Publications.
Government Press, Bangalore

Position: 597 (7 views)