Champawat Industry and Manufacturing

Champawat Industry and Manufacturing

Champawat Industry and Manufacturing : Champawat district is located in the eastern part of Uttarakhand state. With a primarily mountainous terrain and forests covering 70% of its geographical area, opportunities for large scale industries are limited. However, small scale manufacturing and household industries have historically played an important role in the district’s economy.

Some of the key aspects covered in this article are:

• Overview of manufacturing and household industries in Champawat
• Opportunities and challenges
• Government policies and initiatives to promote manufacturing
• Skill development and entrepreneurship policies
• Infrastructure development like Integrated Industrial Cluster and Plastic Park

Manufacturing and Household Industries in Champawat

Overview

As per Uttarakhand government data, there are 1532 micro, small and household industrial units operating in Champawat district as of 2018-19. The total investment in these units amounts to Rs 55 crore and they employ around 4000 people.

Some of the prominent manufacturing activities in the district include:

• Food processing units making pickles, fruit juices, jam etc
• Woolen garments and products
• Handicrafts like wood carving, metal crafts etc
• Agro based units producing vermicompost, essential oils etc

Most of these are very small scale household run units catering to local demand. Lack of infrastructure, inadequate financial and marketing support are some key challenges.

Opportunities

Champawat offers opportunities for promoting small scale manufacturing in various niche areas:

Food Processing

• Fruit processing units for oranges, peaches, plums, apricots etc
• Pickles, juices and jam/jelly making
• Spice processing units

Essential Oils and Aromatics

• Distillation units for aromatic plants like Wintergreen, Wild Marigold etc
• Extraction units for plants like Valerian, Kutki etc

Livestock Based Products

• Wool processing into yarn, fabrics etc
• Natural dye extraction
• Leather goods like jackets, bags etc

Handicrafts

• Wood carving
• Metal crafts and utensils
• Cane and bamboo products

Challenges

Some key challenges faced by small scale industries in Champawat:

• Lack of infrastructure like roads, power supply, water etc
• Inadequate financial support and credit facilities
• Lack of common facility centers providing machinery, testing labs etc
• Poor access to markets and low visibility of products
• Competition from machine made and imported products
• Migration of skilled workers to plains

Government Policies and Initiatives

Recognizing these challenges, the Uttarakhand government has come up with several policies and initiatives to promote manufacturing and create jobs in hilly districts like Champawat.

Industrial Categorization

Champawat falls under Category A as per state’s industrial policies. This makes it eligible for:

• Highest subsidies – 40% of investment in plant, machinery etc or Rs 40 lakhs
• Exemptions – 100% exemption on stamp duty, land tax etc
• Power subsidies – Subsidized electricity tariff for 10 years

MSME Policy 2015

The MSME Policy 2015 aims to encourage micro, small and medium enterprises across the state.

Key features:

• Financial assistance for land, plant & machinery
• Support for technology upgradation
• Assistance in product marketing
• Setting up of new industrial areas and clusters
• Special focus on women entrepreneurs

Mukhya Mantri Swarojgar Yojana

This scheme by the Labor Department helps provide self-employment opportunities. Subsidies and tools worth Rs 25,000 are provided to youth, women and migrants who undergo skill training.

Aroma Park Policy 2018

The Aroma Park Policy 2018 aims to promote aromatic crop based industries in Uttarakhand.

Key features:

• 40% subsidy on investment in aroma product manufacturing units
• Land at subsidized rates in aroma parks
• Support for plantation of aromatic crops
• Testing labs, training centers and R&D institutions

Skill Development and Entrepreneurship Policies

Uttarakhand government has realized that skill development and promoting entrepreneurship are key to generate jobs and boost economic activities in hilly regions like Champawat.

Some of the key policies and schemes in this area are:

Uttarakhand Policy for Skill Development and Entrepreneurship 2017

This policy aims to nurture an ecosystem for skill development and entrepreneurship in the state.

Key objectives:

• Impart market relevant skills
• Encourage innovation and startups
• Develop a pool of skilled trainers
• Upgrade existing ITIs and polytechnics
• Setup incubation centers and industrial clusters

Chief Minister’s Startup Scheme

This scheme offers various incentives to young entrepreneurs:

• Subsidy on loans up to Rs 10 lakhs
• Grants for developing prototypes
• Free registration and legal consultancy
• Support for patents and IP protection
• Access to incubation facilities and mentorship

Mukhya Mantri Udyami Yojana

This scheme provides financial support to entrepreneurs:

• Subsidy of 25% on loans up to Rs 25 lakhs
• Subsidy on interest for loans up to Rs 10 lakhs
• Support for women and SC/ST entrepreneurs

Infrastructure Initiatives

In addition to policy measures, the Uttarakhand government is also focusing on developing industrial infrastructure to attract investments.

Integrated Industrial Estate (IIE) Tanakpur

A 600 acre Integrated Industrial Estate is proposed to be developed near Tanakpur on the UP border. To be developed by SIDCUL on PPP model, it aims to have:

• A multi-modal logistics hub
• Common testing facilities
• Residential complexes, hotels etc
• Units focused on food processing, aromatics, horticulture etc

Mega Food Park, Champawat

A mega food park spread over 50 acres has been proposed in Champawat district. To be set up by the Ministry of Food Processing Industries, GoI and State Government, it aims to:

• Provide modern infrastructure for food processing units
• Support development of production clusters
• Value-addition and preservation infrastructure
• Facilitate food processing industry growth

Conclusion to Champawat Industry and Manufacturing

Champawat Industry and Manufacturing : While large scale heavy industries may be difficult to establish, Champawat offers excellent scope for growth of small and medium enterprises around niche areas like food processing, aromatics, handicrafts etc.

With supportive policies, infrastructure creation and skill development initiatives, manufacturing can provide much needed jobs and boost incomes. Realizing this potential and overcoming challenges around infrastructure, credit and markets will be key for industrial growth in the district.