Lok Sabha Question No. 18 (STARRED), answered on 2022-12-07
Subject: New Industries in Rural Areas
Ministry: COMMERCE AND INDUSTRY
Asked by: Kuldeep Rai Sharma, Sunil Dattatray Tatkare

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

STARRED QUESTION NO. 18.

TO BE ANSWERED ON WEDNESDAY, THE 07 TH  DECEMBER, 2022.

## NEW INDUSTRIES IN RURAL AREAS

- *18. SHRI KULDEEP RAI SHARMA: SHRI SUNIL DATTATRAY TATKARE:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

- (a) whether the Government is planning to start and operate new industries in the rural areas in the country specially in Andaman and Nicobar Islands and if so, the details thereof;
- (b) whether the Union Government is extending assistance for establishment of new industries in Andaman and Nicobar Islands; and
- (c) if so, the details of assistance provided by the Union Government during the last three years and the current year, company-wise and if not, the reasons therefor?

## THE MINISTER OF COMMERCE & INDUSTRY

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) (SHRI PIYUSH GOYAL)

- (a) to (c): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA STARRED QUESTION NO. 18 FOR ANSWER ON 7 th  DECEMBER, 2022.

- (a) to (c): Setting  up  of  industries  is  a  State  subject.  However,  Government  of  India provides a lot of  support for promotion of Industrial activities across the country including  the  rural  areas.  Government of  India,  through  the  Department for Promotion of Industry & Internal Trade (DPIIT) and other Central Ministries/ Departments,  provide  an  enabling  eco-system  for  the  overall  industrial development of the country, including Andaman and Nicobar Islands through appropriate policy interventions.

No centralized information on assistance provided to State governments, with respect to industries, is maintained. However,  information collated by co-ordination  with  ministries  under  the  Central  Government,  of  the  efforts made for promoting and strengthening industries in the country, is given below:

One District One Product (ODOP) Scheme: The Central Government has initiated the One-District-One-Product (ODOP) in different States/UTs. ODOP is  seen  as  a  transformational  step  towards  realizing  the  true  potential  of  a district,  fueling  its  economic  growth,  generating  employment  and  rural entrepreneurship.

ODOP initiative is operationally merged with 'Districts as Export Hub (DEH)' under DGFT, Department of Commerce. The objective of DEH is to identify products/ services across a district (including GI products) which has possible export potential. State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs) have been constituted in all the 36 States/UTs to provide support for export promotion activities and address the bottlenecks  for  attaining  export  growth  in  these  districts.  Products  from Andaman and Nicobar Islands included under ODOP are mentioned below with districts  details:

|   S.No. | Name of District       | Products/Services identified with Export Potential                                            |
|---------|------------------------|-----------------------------------------------------------------------------------------------|
|       1 | Nicobar                | Marine products with thrust on Tuna, Coconut and Coconut based products, Tourism, IT Services |
|       2 | North & Middle Andaman | Marine products with thrust on Tuna, Coconut and Coconut based products, Tourism, IT Services |
|       3 | South Andaman          | Marine products with thrust on Tuna, Coconut and Coconut based products, Tourism              |

Start-up India is a flagship initiative of Government of India which aims at building  a  strong  ecosystem  for  nurturing  innovation  and  Startups  in  the country. A 19-point Startup India Action Plan was launched in January 2016 which paved the way for the introduction of a number of policy initiatives to build a strong, conducive, growth-oriented environment for Indian Startups. Year-wise  and  State-wise  details  of  startups  recognized  by  DPIIT  for Andaman and Nicobar Islands as on 30 th  November, 2022 is given below:

| States                    |   2019 |   2020 |   2021 |   2022 |
|---------------------------|--------|--------|--------|--------|
| Andaman & Nicobar Islands |      8 |      5 |     13 |      9 |

DPIIT, in consultation with the State Governments, started a comprehensive reform exercise in States and UTs in December 2014. Under the Business Reform Action Plan (BRAP) , all States/UTs in the country are ranked on the basis  of  reforms  undertaken  by  them  on  designated  parameters.  BRAP covers reform areas such as Information Wizard, Single Window Systems, Online Building  Permission  System, Inspection  Reforms,  Labour Reforms, etc.

Till date five editions of BRAP (2015, 2016, 2017-18, 2019 and 2020) have been  completed  and  States/UTs  have  been  assessed  accordingly.  The Action  Plan  for  BRAP,  2022  (i.e.,  the  sixth  edition)  was  shared  with States/UTs for its implementation and is currently under progress. Following table depicts the ranking of Andaman & Nicobar Islands in different years:

|   Year-Wise Ranking of Andaman & Nicobar Islands |   Year-Wise Ranking of Andaman & Nicobar Islands | Year-Wise Ranking of Andaman & Nicobar Islands   |   Year-Wise Ranking of Andaman & Nicobar Islands | Year-Wise Ranking of Andaman & Nicobar Islands   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|                                             2015 |                                             2016 | 2017- 2018                                       |                                             2019 | 2020                                             |
|                                               25 |                                               31 | 31                                               |                                               22 | 'Emerging Business Ecosystem'                    |

Over the past few years, UT Administration of Andaman & Nicobar has taken multiple initiatives to facilitate Ease of Doing Business in the UT:

-  Online  systems  with  Information  wizard  and  dashboards  have  been implemented to  aid  businesses  in  obtaining  information,  approvals  and clearances online in the UT
-  Online system for e-payment of bills, display information on tariffs, notify customers on planned outages

Government of India intends to promote Trade, Business and Industries in Andaman & Nicobar Islands through its exercise of BRAP 2022 and enhance its overall development.

Initiatives have also been taken by the Government of India to facilitate multimodal  connectivity  by  providing  integrated  and  seamless  connectivity  for movement  of  people,  goods  and  services  from  one  mode  of  transport  to another. PM  Gati  Shakti is  a  National  Master  Plan  for  multi-modal connectivity. Gati Shakti - a digital platform - brings 16 Ministries including Railways  and  Roadways  together for  integrated  planning  and  coordinated implementation of infrastructure connectivity projects.

Ministry of MSME  is implementing Prime Minister's Employment Generation Programme (PMEGP), which is  a  major credit-linked  subsidy programme  aimed  at  generating  self-employment  opportunities  through establishment  of  new  micro-enterprises  in  the  non-farm  sector  by  helping traditional artisans and unemployed youth. Under PMEGP general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe/OBC /minorities/women, Transgender,  ex-serviceman,  physically  handicapped,  NER,  Aspirational Districts, Hill and Border areas etc. the margin money subsidy is 35% in rural areas  and  25%  in  urban  areas.  Maximum  project  cost  is  Rs.50  lakh  for manufacturing sector and Rs.20 lakh for service sector.

PMEGP  is  being  implemented  across  the  country  including  Andaman  & Nicobar Islands. The details of the margin money subsidy disbursed to, microenterprises number of units setup and estimated employment generated in the Andaman & Nicobar Islands is given below:

| Year                     |   Margin Money subsidy disbursed (Rs. In lakh) |   No. of micro- enterprises setup |   Estimated employment generated |
|--------------------------|------------------------------------------------|-----------------------------------|----------------------------------|
| 2019-20                  |                                         146.16 |                                93 |                              744 |
| 2020-21                  |                                         186.12 |                               155 |                             1240 |
| 2021-22                  |                                         238.69 |                               162 |                             1296 |
| 2022-23* Upto 01.12.2022 |                                         119.94 |                                68 |                              544 |

Government of India has also undertaken integration of industrial parks across the  country  onto  the India  Industrial  Land  Bank  (IILB) ,  a  GIS  enabled platform, which will allow showcasing of respective industrial parks to investors on one common platform. Details of the Industrial Parks located in Andaman and Nicobar Islands which have been integrated onto IILB are given below:

|   S.No. | District               | Park Name                                     |
|---------|------------------------|-----------------------------------------------|
|       1 | South Andaman          | Industrial Estate Dolly Gunj                  |
|       2 | North & Middle Andaman | Industrial Estate Bakultala                   |
|       3 | Nicobars               | Industrial Estate Campbell Bay Joginder Nagar |
|       4 | South Andaman          | Industrial Estate Garacharma                  |
|       5 | South Andaman          | Industrial Estate Hut Bay                     |
|       6 | South Andaman          | Industrial Estate Mithakhari                  |

Lakshadweep and Andaman & Nicobar Islands Industrial Development Scheme (LANDIS), 2018 was notified by Department for Promotion of Industry and Internal Trade. As per Allocation of Business Rules, with implementation of the scheme and budget for the scheme being administered by Ministry of Home Affairs. Benefits under the Scheme are as under:

-  Central Capital Investment for Access to Credit (CCIIAC)
-  Central Interest Incentive (CII)
-  Central Comprehensive Insurance Incentive (CCII)
-  Goods and Service Tax (GST) Reimbursement
-  Income Tax (IT) Reimbursement
-  Transport Incentive (TI), and
-  Employment Incentive (EI).

The  said  scheme  has  been  extended  from  time  to  time  till  31.03.2023. However, till date no unit had qualified for registration under the scheme.

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