ENTERPRENUER SHIP REPORT

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AN ENTERPRENEURSHIP PROJECT REPORT

ON

STEEL AND ALLOY CASTING

Submitted by:

SOUMYA RANJAN PANIGRAHI

REGD. NO.:-0601216209

UJJWAL KU. BHAKAT

REGD. NO.:-0601216210SOUMYA RANJAN BEHERA

REGD. NO.:-0601216217

AMIT KU. RANJIT

REGD. NO.:-0601216220

SIDDHARTH MEHER

REGD.NO.-0501216246

Electronics & Telecomm. Engg.

Supervised by

Mr. B.M.Shetty

Miss T.Behera

PADMANAVA COLLEGE OF ENGINEERING, ROURKELA

BIJU PATNAIK UNIVERSITY OF TECHNOLOGY

ROURKELA, ORISSA

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INTRODUCTION OF ENTREPRENURSHIP

ENTREPRENEURAL PHILOSOPHY

EXPECTATIONS OF ENTREPRENEURSHIP

CHARACTERISTICS OF ENTREPRENUR

CHALLENGES FOR ENTREPRENURSHIPPROJECT

ROLE OF FIs & BANKS IN SSI FINANCING

MAJOR STEPS TAKEN BY THE FIs & BANKSFOR ENTREPRENURSHIP PROGRAMMEPRODUCT AND ITS APPLICATIONS

APPLICATION FIELDS

MARKET POTENTIAL

RECOMMENDED PROJECT CAPACITY

MANUFACTURING PROCESS

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TESTING

INSPECTION

SOME ESTEEMED CUSTOMERS

DETAILS SPECIFICATION OF MACHINARYS

LIST OF PLANT & MACHINARY

REQUIREMENT OF RAW MATERIALS ANDCONMABLE

REQUIREMENT OF INFRASTRUCTUREFACILITIES

COST OF PROJECT

PROFITABILITY ESTIMATES

RULES & HR POLICY

REGULATIONS

BENEFITS

ALLOWANCES

LEAVE TECHNICAL & FINANCIAL CONSULTANCY

SUPPLIERS OF MACHINARY AND RAWMATERIALS

INDUSTRIAL POLICY

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OCCUPATIONAL SAFETY AND HEALTH FORTHE TENTH FIVE YEAR PLAN (2002-2007)

ENVIRONMENTCLEARANCE PROCEDURES

CONCLUSION LIST OF ABBREVIATIONS

Introduction of Entrepreneurship

The word entrepreneur has its origin in the French language. It

refers to the organiser of musical or other entertainments.

Entrepreneurship can be described as a creative &

innovative response to the environment. Such response can take

place in any field of social Endeavour-business, agriculture,

education social work the like.

An entrepreneur is one who organizes, manages & assumes

the risk of an enterprise. An entrepreneur visualizes a business,

takes bold steps to establish under taking, co-ordinates the various

factors of production gives it start.Entrepreneurs are the owner of the business who contribute the

capital & bear the risk of uncertainties in business life.

Entrepreneur is action-orient & highly motivated person who has

the ability to evaluate business opportunities, to gather the

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necessary resource to take advantage of them & to intimate

appropriate action to ensure success.

Entrepreneur takes decision regarding what to produce,

where to produce & whom to produce. He mobilizes other factorsof production namely; land, Labour, capital, organization&

initiates production process. He is responsible for either profit or

the loss. Entrepreneur is associated with innovations. He is the

main factor of production.

Entrepreneurial Philosophy

1. To take calculated risk

2. Willingness to accept responsibility for ones own work .

3. Failure must be accepted as a learning experience.

4. Goal orientedness.

5. Acceptable results are more important than perfect

results.

6. Personal growth.

Expectations of Entrepreneurship

It are expected from the entrepreneurs that they will help: -1. Increase number of industries.

2. Increase production.

3. Increase employment opportunities.

4. Earn foreign exchange through exports.

5. Develop the underdeveloped parts

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of the country. 6. Economical development.

Characteristics of Entrepreneur

Self Confidence

Task- Result oriented

Risk taker

Leadership

Originality

Future oriented

Challenges for Entrepreneurship Project: -

1.Technology up gradation: - It is found that our small scale sector is

not able to compete because of outdated technology. We must

appreciate that small scale Industry has to keep itself updated and

then only it can sell goods. In the post WTO era, the best thing

would be available anywhere in the world as there is no restriction

for goods to move. People will purchase only if the gods are ofgood quality. We must remember that we may or

may not need imported technology for up gradation. Our small

industries have the advantage of developing in import substitution

period. Many SSI can therefore become world class with only

small modification or improvement.

2. Testing facilities: -

Because our small scale industries are situatedin far flung areas there for it is not possible to service by one or

two central laboratory. We suggest that educational institution

even in small town should be equipped to provide testing facilities

to small scale industries.

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3. Exports: - We find that small scale

industries engagedin exports do not have any benefits, althoughthey count for bulk export. We strongly advocate specialconcession for small industries which are engaged in exports.

4.

Involvement of industrial association: - We fell that many problems of small sector can be taken

care of if industrial associations are involved in a big way.

5. Infrastructure development: -Small scale industries suffer maximum

from lack of infrastructure development. The quality of power is

bad and the power available is at very high cost. This must be

corrected. Roads are bad. Communication facilities are not up to

mark etc.

6. Credit: - The credit is still not available

to small scale industries. The credit guarantee fund created bySIDBI is not being exploited as there are still short coming in the

scheme.

7. Skill up

gradation: -Small scale industries are known for providing on job training. But

in the post WTO era when cost cutting is order of the day, the

people are running small scale industries must be skilled and these

skills must be up graded continuously so tat they are in the job &no unemployment result.

8.

Marketing: -The present market assistance scheme is most welcome.

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More such scheme are required. Small scale industries are being

bundled out of the market by aggressive advertisement done by

large & multinationals. The small sector must be protected from

this, if the small sector has to survive.

9. Changing the Labour laws: -The present Labour laws must be

changed to have more flexibility & suitability for running of small

scale sector.

10. Removal of

inspector : - A small scaleindustry is generally a single man show. He cannot find time to

attend to all the inspectors visiting small scale factory. The

inspector must be finished.

Conclusion can be taken considering above challenges SSI unit in

the following areas will have a bright future & compete with world

industries very well as the areas of our strength: -

1. Tourism & hotel industry

2. Dairy industries

3. Food processing industries4. Floriculture

5. Shoe & leather industries

6. Forging unit

7. Steel alloy casting

8. Plastic processing industry

ROLE OF FIS & BANKS IN SSI

FINANCING:The credit needs of

entrepreneurs could be divided in three parts:- short term, medium

term and long term finance. Accordingly, the conventional

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mechanism for financing of SSIs in India stressed provision of

terms loans and working capital. The public & private sector

banks, Small industries development Bank of India (SIDBI),

Regional Rural Banks (RRBS), urban Cooperative banks (UCBs)

and foreign loans for setting up of new industries or modernizationof the exiting ones, Khadi and Village Industries Commission

(KVIC) and Khadi & Village Industries Boards (KVIC) ,Khadi and

village Industries Boards (KVIBs) assist in financing Khadi and

Village industry sector. National small industries corporation

(NSIC) and state small industries corporation (SSICs) in their own

way, also attempt to develop the cottage and small scale sector by

supplying machinery on a hire-purchase basis to small-scale and

ancillary industries, inclusion of the value of machinery andequipment already installed.

SFCs are one of the oldest credit

institutions in the country which mainly cater to he long term

credit needs of small & medium enterprises. At present, there are

18 SFCs covering the entire country & they have been in existence

for 5 decades now. The cumulative sanction & disbursement of

SFCs aggregated Rs33000 crore & Rs27000 crore respectively.It needs to be high lighted that almost 75% of SFCs assistance

flows to the SSI sector. Over the years the financial health of SFCs

has become a cause of concerns. Some of the reasons for the poor

financial health of SFCs is poor recovery performance increase in

non-performing assets Govt. of India had amended the SFCs act

1951 in the year 2010 so as to give them more operational

flexibility & freedom so that they can improve their performance

& play their role more effectively.

MAJOR STEPS TAKEN BY

THE FIS & BANKS FOR ENTREPRENEURSHIP

DEVELOPMENT: -

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Sub allocation of credit for SSIsector with priority basis: - In order to achieve a high

rate of GDP growth, there is an imminent need to earmarkallocation of credit to sector out of the total priority sector

allocation. Factory Services: -

In order to mitigate

the post sale problems of ENTREPRENEURS in realizing the sale

proceeds, there is a need to encourage bills culture without

recourse. Recently, RBI had advised the banks to take a pro-active

stance in providing help to the ENTREPRENURS which are

affected by delays in payments against supplies made by them to a

large scale 7 other units. In this context, there is a need to create

conducive climate for development of factoring services throughappropriate policy prescription/legislative changes, rationalization

of stamp duty, registration charges & assignment of debt. Etc.

Collateral free lending: -RBI advised to the banks

to dispense with collateral requirement for loans from the existing limit of

Rs5lakhs on the basis of good track record of the units & their financial

position. In this context, it is expected that banks would come forward to

implement these directives in letters & sprit, extend collateral free credit to

the borrowers.

Technology up

gradation fund scheme for entrepreneurs: - After launching of TUFS by GOVT. OF INDIA, interest reimbursement of 5% on

the interest charged by FIs/banks for rupee loans or cover free exchange rate

fluctuations not exceeding 5% in respect of foreign currency loans for bench

marked technologies provided to the units. Commercial banks, with their

vast branch net work, can play a very important role in facilitating creation

of awareness about the scheme so as to maximize the flow of credit to the

eligible units.

ROLE OF DIC

(DISTRICT INDUSTRY CENTRE) FOR

ENTREPRENURSHIP PROGRAMME: -

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During district reformation programme of Govt. of

Orissa, 13 districts became 30 districts. The major objective was

Administration can reach to the lower level of society & different

development project can be successfully implemented. Thisobjective gave a new vision to District Industry Centre.

District Industry Centre is the gate way of

industrialization program. Same time it works as the technical

supporting body for ENTREPRENURSHIP. This is the working

body of Government of Orissa, under the ministry of INDUSTRY.

It also works as a supporting structure for implementation of

different EMPLOYMENT PROGRAM. Major objective is to set

up a DIC to promote the entrepreneurship at the grass root level.Due to globalization & fluctuating competitive market

strategy Entrepreneurs were facing a lot of problems to set up an

enterprises through our conventional burecracy functions. DIC

arranges to remove the legal barriers for establishing

ENTREPRISES. DIC is going to adopt the single window

system for entrepreneurship. Same time it promotes self

employment programme among technical unemployed as well as

Non-technical unemployed through skill development programme.

DIC increases employability of the community. It also helpspoverty elevation programme.

It co-ordinates different projects for SELF HELP

GROUP basically those are formed by lower income level of

society. DIC is also coordinating different welfare programme for

economically backward community. It is playing a major role for

successful implementation of five year plan. It is also giving

emphasis for development of cottage industry & handicraft product

which is the basic structure of rural economy. It can beconcluded that DIC is a non-profitable Government

entrepreneurship project consultancy for entrepreneurs.

PRODUCT

AND ITS APPLICATIONS: -

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Thecorrosion resistance properties of alloys steel casting are excellent.

Therefore, alloys steel castings in various shapes and sizes are

extensively used in dairy, chemicals and pharmaceuticalindustries. Other special properties like non-toxicity and strength

establish its use in a large measure in the above stated industries,

were probably no other better substitute can be found. Generally

the casting conform to the austenitic/non magnetic grade in the

form of flanges, valves, bodies, propeller for agitator, pipe fitting,

machine parts etc relating to above types of industries though there

are some castings conforming to other grades also.

APPLICATIONS FIELDS ARE: -

1. STEEL INDUSTRY

2. FOOD PROCESSING INDUSTRY3. CONSTRUCTION &

STRUCTURAL WORKS 4. AGRICULTURE

5. SANITATION &

WASTE TREATMENTS 6. AUTOMOBILES

& POWER TRANSMISSION 7. HOUSE HOLD

FITTINGS 8. MARINE

APPLICATION

The entire above application field can be taken into consideration

for our project market point of view.

MARKET

POTENTIAL: -The

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units engaged in the manufacture of dairy equipments, chemicals

and pharmaceutical machinery require a nos of alloy steel casting

in different sizes and shapes. Moreover, NDDB, DDC regularly in

need of spares and few instrument like self-weighing scales, are

also regularly using alloy steel cast components. The nos of unitsengaged in manufacture of above castings are vary limited and

quality standards may not ultimately conform to the desired

specification, with lowest quality controls measures are adopted

with respected to chemical composition. In view of the above,

there is a tremendous scope for putting up of alloy steel casting in

the small scale sector with induction malting unit & quality control

facilities to cater the needs of different processing industries and

various equipments manufactures same time this unit can caterdifferent casting orders coming from the different jobs shops.

RECOMMENDED PROJECT CAPACITY: -

Installed capacity proposed

Quantity/annum : 325 MT

Annual sale turn over:

178.75 Location of the

project in between Cuttack& Bhubaneswar (according to the

availability of land suitable industrial location may be selected).

MANUFACTURING

PROCESS(foundry engineering): -

It

deals with the process of making casting in moulds prepared by

patterns. The whole process of producing casting may be classified

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in to five stages.

1. Pattern

making: - It is the

primary stages of this process in which pattern is prepared; a

pattern is a replica of the object to make by the casting process.During pattern making some consideration should be kept in the

mind a.

addition of pattern allowances

b. the provision of core prints

c elimination of fine details which cannot be obtained

by casting and hence are to be obtained by further processing.

Materials of pattern are wood, plastic andplaster of Paris; some cases metallic pattern may be used.

2. Moulding and core

making: - Mould is a

box of sand or other refractory having a hallow space which is the

required size of the component. This mould is prepared by the help

of pattern through the mould making process like ramming and themould material is silica grain & clay as binder and required

amount of water. This mould contains a well designed gating

system as well as a proper riser system.

Cores are the part of the mould which is used for making cavity

and depression on the component which can not normally be

produced by the pattern alone during mould making process.

3. Melting and casting: -

melting is the measured factor which controls thequality of the casting. There are a no of methods for melting and

casting. The choice of the furnace and casting process depends

upon the amount and the type of alloys being melted.

For alloy casting induction furnace is

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generally recommended due to following advantages: -

1. It can be used for all types

of materials because heat source is isolated from the charge and the

slag & flux would be getting necessary heat directly from thecharge instead of heat source. 2. Metal chips can be used due to

stirring effect of molten material. 3. Low cast raw material can be

used. 4. Better control of temperature &

composition can be achieved.

4. Fettling: -

The

complete process of cleaning of casting, called fettling, involves

the removal of the cores, gates, riser, cleaning of the casting

surface & chipping of any of the unnecessary projection on

surfaces.

TESTING: -

Casting component is tested in order to ensure

the quality of casting, there are two types of test is generallyconducted.

1. Destructive test: -

During this testing

component become partially or fully destroyed. So this process can

not be used always for all components.

2.Non Destructive test: -

During this

testing the component does not under go any type of destruction.So this process can be used for all component but these processes

are costly.

INSPECTION: -

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Components before delivering to the customer its dimensional

accuracy must be carefully inspected, if some modification

requires by the component this can be suitably changed orprocessed with disturbing its functional characteristics.

Though steel is an alloy but when steel contains other alloying

elements like nickel, chromium, molybdenum etc, then it is

recommended as alloy steel.

The most highly perfected steel making units

generally deals with alloy steel are using electric furnace in which

electrical energy supplied to the furnace is converted by various

methods into thermal energy for heating and malting the metal.

Induction furnaces that are found applicable in alloy steel casting

industries. Selected scrap 38%, flux 3%(lime

stone), Ferro-alloys 4%, nickel 1% and foundry return 54% is

charged in the furnace then due to induction effect material is

malted and slag is separated from its molten state. Alloys steel melt

is then transfer to the steel ladle and is poured into the mould.

Where the melt is poured that part of mould is termed as pouring

basin, in this mould a well arranged feeding system and gating

system are presented. After the cast is solidified and cooled downto ambient temperature, it is slackened from the mould. Then

mould shake out and care knock out down either by manual or by

vibrating knock outs, jolting grids and vibrators the next operation

is called fettling which involves the removal of adhering sand,

gating systems and fines from the casting.

Then cleaned casting are transferred to the heat treatment

section in order to achieve desired mechanical properties like

hardness, tensile strength, brittleness and toughness etc. thisoperation is fully depends upon the service requirement of the

esteemed customers.

Inspection and quality control test to be carried out by

using different techniques the desired quality before dispatch.

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SOME ESTEEMED CUSTOMERS(proposed)

1. ORISSA MACHINERY, BBSR (For gears & hubs)

2. LARSEN & TOUBRO LTD. ROURKELA

(For standard housing)

3. STATE WEIGHT & MEASURES, CUTTACK

(For standard weight)

4. PARADEEP PORT TRUST

MECHANICAL MAINTENNANCE

5. RUCHI SPICES LTD., CUTTACK.

6. JINDAL STEELS LTD., JAJPUR ROAD.

DETAILS SPECIFICATION OF MACHINERYS: -

Induction melting furnace Transformer 415/460v, 200kw solidinverter, and water cooled leads, hydraulic power packs, selector

switches 200kgs box etc.

Sand mixer 200kg batch capacity complete with 3hp motors and

accessories.

Vibrating sand sieving machine 3 decks with multiple sieves and

2hp motors.

Hand operated pin lift molding machine fitted with column

squeezing arm, plunger and pressure plate.Core and mould during oven Inside packing cap, 25 to 30 m*3,

oil fired, provided with necessary circulating fans blower, burner.

Foundry sand testing equipment Sand rammer, cgs permeability

meter, speedy moister, tester & weighing balance.

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LIST OF PLANTS & MACHINERY: -

Sl.no Particular Qty. Value(lakhs)

1. Induction melting furnace 1 11.7

2. Sand mixer 1 0.25

3. Vibrating sand sieving machine 1 0.20

4. Hand operated pin lift molding machine 1 0.25

5. Patterns pattern making tools - 0.17

6. Ladles (self fabricated) 10 0.04

7. Foundry tools - 0.07

8. Platform weighing machine 1 0.109. Molding boxes - 0.13

10. Core & mould drying oven 1 0.41

11. Materials handling equipment 3 0.04

12. Foundry sand testing equipment - 0.02

13. Immersion pyrometer - 0.07

14. Fettling and cutting tools - 0.08

15. Measuring tools - 0.08

16. Air compressor 1 0.2517. Flexible shaft grinder 2 0.05

18. Bench drilling machine 1 0.04

19. Bench grinder 1 0.03

20. Arc welding machine 1 0.08

21. Transformer - 0.95

22. Chemical testing lab - 0.33

23. Other equipment - 0.17

Total 15.5

Requirement of raw materials and consumable

SI. No. Particulars qty values (lakhs)

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1. Graded stainless 251T 70.28

Steel

[email protected]/T

2. Ferro alloy - 1.22

Total 71.48

Requirement of infrastructure facilities

i) Land 1000sq.mtrs.

ii) Building 420sq.mtrs.

iii) Manpower requirement

sl.no particulars number

1. Supervisors 22. Skilled workers 6

3. Semiskilled workers 10

4. Office staff 5

Total 23

COST OF PROJECT

Sl.no Particular Amount (lakhs)

1. Land 1.00

2. Factory building 5.00

3. Machinery 18.00

4. Dies, jigs& fixture -

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5. Preliminary and preoperative 1.00

Expenses

6. Contingency 2.40

7. Misc. fixed assets 0.60

8. Working capital margin 4.47

Total 32.47lakhs

Working capital margin (1st year)

Gross working capital 14.90lakhs

Working capital margin 4.47lakhs

Bank borrowing 10.43lakhs

Probability Estimates(1st year)

Sales turnover 89.37lakhs

Costs of production

a) Raw materials and consumables 71.50lakhs

b) Wages and salaries 5.00 lakhs

c) Interest 3.00lakhs

d)Depreciation 3.00lakhs

e)Other expenses 1.00lakhs

Total 83.50lakhsNet operating profit(before tax) 5.87

Net operating profit to sales(%) 6.57

Breakeven point 43%

HR POLICY(proposed)

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MANPOWER QUALIFICATION SALARY

Super visor Diploma/ITI,5yrs 7000

Skilled worker (H) ITI,3yrs experience 5000

Semi Skilled ITI,1Yr experience 4000Unskilled HSC 3000

Office Assistance GRADUATE 3500

RULES & REGULATION: -

1. According to requirement flexible duty hours can be allotted.2. All the personnel are the members of contributory P.F. scheme.

3. All the personnel will be under an insurance scheme for

accident on duty compensation.

4. Maximum 10 minutes late is allowed. If any body continues 5

late presents in a month half day leave will be cut off.

5. All the personnels are bound to perform their work at allotted

space.

6. Necessary skill development programmed may be imparted for

the need of the company.

7. There is a lunch/dinner break of 30minutes & one tea break of

15 minutes.

8. All the personnels should come with uniform supplied by the

company.

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9. No personnel can form union or accept the member ship of any

union.

BENEFITS: -1. Suitable bonus may be declared basing upon the profit of

organization.

2. An insurance premium will be paid by the company for the

accidental benefit as Rs.40000 & in case of death

Rs.100000.beyond that no other financial benefit will be

provided.

ALLOWANCES: -1. Dust allowance will be paid as Rs.41 working day.

2. TA/DA will be provided if employee goes out side for

company work.

3. Over time allowance will be provided Rs.201 (beyond his

over time salary) for more than 4hrs over time.

4. No other allowances will be provided under any conditions.

LEAVE: -

1. Leave should be taken when ever it is extremely necessary.2. 10 days casual leave & 5 days sick leave in a year.

3. Maximum 15 days accident on duty leave may be allotted

according to serious ness of injury.

4. If any employee continues 21 days leave with out notice, he

may be terminated.

TECHNICAL & FINANCIAL CONSULTANCY: -

1. SIDBI, BHUBANESWAR

2. DIRECTORATE OF SSI CUTTACK

3. SHYAM INDUSTRIES LTD., BHUBANESWAR

4. DISTRICT INDUSTRY CENTRE, KHURDA

5. STATE POLLUTION CONTROL BOARD, ORISSA

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SUPPLIERS OF MACHINARY AND RAW

MATERIALS: -

a. List of plant & machinery suppliers: -1. Inductotherm (i) ltd.

42, GIDC.Vatva, Pune

2. Simplicity engineers, Delhi

3. Pioneer equipments, Baroda

4. Kirloskar India pvt.ltd.Mysore

b. Raw materials suppliers: -

Required raw materials are freely available in the open

market. All of them are indigenous.

INDUSTRIAL POLICY: -

Introduction:1.0 Transforming Orissa into a vibrant industrial state remains

an important goal in the beginning of the new millenium.

With its abundance of mineral resources, long coastline and

inland water, the biodiversity of its forest and rich culture

heritage, Orissa ought to become a privileged destination for

industrial investment.

.1 The economic reforms and the liberalization process

initiated in 1991 provide an important opportunity tothe state to leverage the natural resources to attract

investment, both domestic and international.

.2 The super cyclone in October 1999 caused widespread

damage to all sectors of the state economy, including

industry. Reconstruction of the shattered industrial

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economy poses a major challenge to the government as

well as the civic society.

.3 The recent white paper on Orissa state finances

(Brought out by Finance department, Government of

Orissa, on the 29th March 2001) highlights the difficultsituation of the public budget and sets clear limits on

the future availability of financial incentives to spur

industrial growth.

.4 At the same time, the combined forces of economic

globalization and governance decentralization, pose

new challenges to the policy-makers and call for a

profound redefinition of the way, government can

effectively support business..5 This industrial policy resolution is a result of such an

exercise and contains the following parts:

PART A Statement of mission and objectives

PART B Definitions and interpretations

PART C - Policy instrument

PART-A

STATEMENT FOR MISSION AND OBJECTIVE

2.1. The mission of this IPR is to

*Create a business climate conductive to accelerate investment

in industry and infrastructure projects;

*Raise income, employment and economic growth in the state;

*Reduce regional disparities in economic development.

2.2. To this end, the Government will*Encourage Private Initiative and restricts its intervention to

such areas where it enjoys a distinct commutative advantage;

*Invite private investment for the development and operation of

quality infrastructure;

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* Promote the image of Orissa as an attractive destination for

investment and tourism;

*Assume a pre-active role in selected sectors, such as

*Mineral based industries

* Craft-based products;*Agro and marine based industries, industries based on

medicinal herbs and minor forest produce;

*tourism;

*Electronics, information technology & bio-technology;

* Encourage the creation of SSI cluster in similar lines of

business;

*Proceed more decisively with the restructuring and

consolidation of sick industrial units;*Leverage the potential in SL/ST build concentration of

technologically advanced manufacturing industries.

PART B

DEFINATION AND INTERPRETATION

For the purpose of this industrial policy resolution, the

various terms shall have the meanings assigned to them here

under-

3.1. BIFR- Means the board of industrial & financial

reconstruction.

3.2. Earlier IPR- Means the industry policy resolution, 1992

and/or the industrial policy, 1996, as the case may be.

3.3. Effective date- Means the date on and from which provision

of this IPR shall be operative.

3.4. Entry tax- Means the tax payable under Orissa entry tax act,

1999.

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3.5. Existing industrial unit- Means are industrial units where

fixed capital investment has commenced before the effective

date.

3.6. Fast track project- Means project having a project cost of

Rs100crore and above.3.7. Industrial units- Means any industrial undertaking located

inside the state and engaged in any manufacturing or servicing

activity as detail in the schedule appended to this policy.

3.8. Large, medium & small scale industry- Means industrial

unit defined the govt. of India from time to time.

PART C

POLICY INSTRUMENT

4. General policy

4.1. Deregulation and simplification of rules and procedure,

rationalization of Labour laws, facilitation of industrial

restructuring and accelerated development of physical & social

infrastructure through public- private partnership will enable aconductive business climate for attracting investment and

establishment of competitive industry.

Medium/Large/Mega Industrial Project

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4.2. Actively encouraged investment in large industrial units,

which the Govt. acknowledges have the potential to be the

nuclei for further industrial & economic development. For this

fast track project, clearness will be hastened eliminating the

factors causing delay and facilitating timely implementation ofsuch project.

SSI Tiny Sector

4.3 All effort will be encourage and ensure growth of small

scale industry sector, in particular through cluster development

approach.

4.4. Back-ended financial support for SSI unit in priority sector,the way of grant of interest subsidy.

4.5. Market support through preference in Govt. procurement as

detailed else where in this IPR, to the SSI or the tiny sector with

emphasis on competitiveness based on quality.

5. Clearness for fast track project

5.1. An industrial and infrastructural advisory board under the

chairemanship of the chief minister and prominent industrialist

and senior official of Govt. as membership will advise the Govt.

to ensure taking timely and effective steps for rapid and

sustainable industrialisation of state. The minister, industry

could be the vice chairman of board.

5.2. The board shall meet atleast twice a year to review and give

advice on various issues pertaining to industrialisation.

5.3. Industrial and Infrastructural Advisory Committee underthe chairmanship of the Chief secretary will process clearance to

the fast track project as well as all other industrial projects

needing interdepartmental references.

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5.4.On approval of chief minister ,the decision of IIAC will not

require further clearance from any other Department under the

state Government.

STRATEGY

6.1.The state govt. will introduce a land Bank scheme .Tracts of

Government Land will identified by IDCO in consultation

with collectors in potential locations throughout the state and

earmarked for industries. These tracts will be exclusively

reserved for location of industries. Concerned revenue

Authorities will make land from the land bank available to

IDCO and entrepreneurs to establish industrial andinfrastructure project.

6.2. The state government will encourage formulation of an

Infrastucture policy and establish a legal framework for

private participation in infrastructure projects.

6.3. Special economic zones, in accordance with new policy

initiatives of the central Govt already in place,would be

developed leveraging such location advantages of orissa having

long coast line and proximity to South-east Asia. PrivateInvestments will be encouraged for development of these zone

with world class infrastructure with full support from the Govt

in order to attract large investment particularly FDI ,in

manufacturing and service sector for export production. Special

Dispensations for easing regulatory burden will be provided

for these zones .

7.Human Resource Development

7.1. The state government would formulate policy for technical

education in the private sector to facilitate the establishment of

new technical institution of good quality and standard in the

private sector .New Engineering colleges and Medical colleges

will be permitted in the private sector in selected locations.

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7.2. A Technical University will be established in the state at the

earliest. Steps would be taken to ensure close co-operation and

coordination between industries and technical institution so that

a trainee gets education in conformity with needs of industries.

Entrepreneur training programs will be taken up .The policyalso promote training institute of international repute to be set

up by large industry houses in areas like IT, BT, etc.

Employment oriented Training scheme will introduced in it is

and engineering schools.

8. Priority Sectors

8.1. In addition to financial concessions provided in this policy,Efforts will be made to prepare competitive profiles of priority

industries in the state, so as to identify opportunities and

constraints in detail. These will be addressed in sector specific

policies, if needed.

8.2. Some sectors already have separate policies which will be

updated taking into account new information and realities.

9. Financial and other support measure

ELIGIBILITY

9.1. New and existing industrial units shall, be eligible for

incentives provided in this policy, subject to the general

conditions and specific conditions stipulated.

9.2. Industrial units, hotels, cinema halls etc. covered under

earlier industrial policy resolution shall continue to enjoy the

incentives admissible under the said policy, except to the extentabridged or modified or enlarged in this policy.

GENERAL PROVISIONS

9.3. Implementation of various provision covering the

incentives, concessions etc. will be subject to the issue of

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detailed guidelines notifications where ever necessary in respect

of each item by concerned Administrative Department.

9.4. An industrial unit which considers itself eligible for any

incentives shall apply in accordance with the operational

guidelines and instructions set out in the Manual to be broughtout and same shall be considered and disposed of on merit.

10. Sales Tax

10.1.In pursuance of the decision taken by all states and union

Territories regarding reforms in Sales tax, Govt. have decided

that no fresh Sales tax incentives will be extended to industrial

units in the state.

10.2. The state govt. is committed to reforms in the sales taxadministration with the objective over to the harmonized value

added tax system effective from 1st of february 2010.

10.3. The industrial units enjoying or eligible for the benefits

under I.P.R-09 and Pre-09, I.P.R. will not get Sales tax

incentives after 31-7-10 as per F.D.,S.R.O no.622/10,dated the

30th July 2010.

10.4. Industrial units which are in pipeline as on 1 st January

2010 shall entitle to incentives under said notification with sameterms and conditions as applicable to them if they fulfill the

following criteria as on the 1st January 2010, namely:

(i) Industrial unit which is registered under Orissa sales Tax

act,1947.

(ii) Industrial unit which has been allotted land for factory or

industrial unit which acquires land or space for its operation.

(iii) Industrial unit which has applied for finance from regular

Financial Institution.

(iii) Industrial unit which will start commercial productionbefore 1st January 2010.

11. Patent Registration.

Industrial units will be encouraged for filling patent of their

research and State will provide assistance to entrepreneurs for

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Patent and Intellectual property Right (IPR) provisions t the rate of

50 per cent of the expenditure up to maximum of Rs.5.00 lakhs.

12. Quality Certification

High priority being accorded by the State Government for

improvement of quality of the industrial units and will be providedwith assistance for obtaining quality certification from B.I.S. and

other internationally recognized Institutions at the rate of 50 per

cent of the expenditure up to maximum of Rs.2.00 lakhs.

13. Land

13.1. Government land earmarked for industry under the Land

Bank Scheme and other Government land wherever available will

be allotted for industrial projects.

13.2. IDCO will be the competent authority in the matter of

allotment of land for industrial and infrastructure projects

including those needed for creating social infrastructure in

designated Industrial Estates, Industrial Areas, Industrial Parks

and Growth Centres and also in respect of land transferred to it

under the Land Bank Scheme. For the above purpose IDCO will

fix up the premium cost of land for different locations based on

prevailing area rates and cost of acquisition including expenditure

in relief and rehabilitation requirement, if any, for private land.

Ground rent will be 1% or the premium cost of land. Development

cost will be charged by IDCO separately based on the scope and

extent of development undertaken.

Allotment of land by IDCO/State Government would be

considered after verifying the antecedents of partners/proprietors

of the new industrial units in respect of their past default,if any, in

the matter of payment of premium on the land allotted on theearlier occasion.

13.3. Rate of Government land, other than IDCO land for

industrial or infrastructure projects, will be as fixed by Revenue

Department/Collectors or the General Administration Department

as the case may be.

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ORDER:- Ordered that the Resolution be published in the Orissa

Gazettee and copies thereof be forwarded to all Departments of

Government, all Heads of Departments and Accountant General

Orissa.

By order of the Governor

D.P.BAGCHI

Chief Secretary, Orissa.

SCHEDULE UNDERTAKINGS CARRYING ON ACTIVITIES

RECOGNISED AS INDUSTRIAL UNITS, OR GIVEN THE

STATUS OF INDUSTRIAL UNITS, FOR THE PURPOSE OF

IPR,2001.

A. Units engaged in manufacturing and/or servicing activity

belonging to the following categories:

(a) Industries listed under the first schedule of the Industries

Development and Regulation Act,1951.(b) Industries falling within the purview of the following Bords

and Public Agencies:

(i) Small Scale Industries Board

(ii) Coir Board

(iii) Silk Board

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(iv) All India Handloom and Handicrafts Board

(v) Khadi and Village Industries Commission/ Board

(vi) Any other Agency constituted by Government for Industrial

development.

Infrastructure projects including projects undertaken for socialinfrastructure.

(d) Services sector projects such as Tourism, Information

Technology and IT Enabled Services, Bio-technology.

B. Industrial unit will not include non-manufacturing/servicing

industries except

(a) General workshops including repair workshops having

investment in plant & machinery of Rs.5.00 lakhs and above and

running with power.(b) Cold storage and Fish freezing units.

Electronics repair and maintenance units for professional grade

equipment and Computer Software, Data Processing and related

services.

(d) Technology Development Laboratory/Prototype Development

Centre.

C. The following units shall not be eligible for incentives as

industrial units:1. Rice hullers and rice mills excluding modern rice mill.

2. Flour mills including manufacture of basin, pulse mills and

Chuda mills excluding roller flour mill.

3. Making of spices, papad, etc. (excluding papad manufactured by

Co-operative Societies)

4. Confectionary (excluding mechanized confectionary)

5. Preparation of sweets and numkeens, etc.

6. Bred making (excluding mechanized bakery)

7. Mixture, Bhujia and Chanachur preparation units.8. Manufacture of ice candy and ice fruits.

9. Manufacture and processing of betel-nuts.

10. Hatcheries, Piggeries, Rabbit or Broiler farming

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11. Iron and Steel processors including cutting of sheets, bars,

angles, coils M.S. sheets, recoiling, straightening, corrugating,

drop hammer units, etc.

12. Cracker maing units

13.Tyrertreading units14. Stone crushing units

15. Coal/coke screening units or Briquette.

16. Production of fire-wood and charcoal.

17. Painting and spray painting units

18. Units for physical mixing of fertilizers

19. Brick making units (except units making refractory bricks and

those making bricks from flash, red mud and industrial waste).

20. Manufacturing of tarpaulin out of canvas cloth.21. Oil mills including oil processing, filtering, coloring,

discoloring, refining, hydrogenation, scenting, etc.

22. Saw mill, sawing of timber Carpentry, joinery and furniture

23. Drilling rigs ,bore wells and tube-wells

24. Units for mixing or blending of tea

25. Units for cutting raw tobacco and sprinkling jiggery for

chewing purposes and gudakhu manufacturing units.

26.Units forbottling of medicinesNote:- List of Industrial units indicated above can be modified by

the Government in Industries Department from time to time.

OCCUPATIONAL SAFETY AND HEALTH FOR THE TENTH

FIVE YEAR PLAN (2010-2015)

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GOVERNMENT OF INDIA

PLANNING COMMISSION

SEPTEMBER,2009

Factories & Ports:-

Strengthening & Restructuring of DGFASLI: Need to grantautonomy to CLI and Labour Institutes units functioning. They

should be generating their resources under the principle of User

Pays.

Coordination of Administration of Factories Act: This will include

extensive training of factory inspectors, preparation of code of

practices, standard procedures and inspection manual in the

factories and ports. Setting up of task force to review and simplifythe information to be furnished in FAS forms. Compulsory

furnishing of information in FAS form by CIFs to DGFASLI.

Enforcement of dock workers (safety, healthy and welfare) act,

1986: - This will include appointment of qualified safety officers in

all ports and docks, Notification of dock workers (safety, healthy

and welfare) rules by all state government. Alternative it will be

notified by the central government. To enlarge the scope of docksafety advisory committee to include representative from small and

intermediate ports also.

Education and training of factory and dock workers: -

Consultancy studies and service: - Strengthening of facilities at

CLI, RLIs, NIOH, and ITRC etc. to undertake major consultancy

studies on OSH.

Following amendments should be made-

A). Factories Act:

i). Factories employing 500 and above workers should appoint

safety officer.

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ii). Independent safety audit of the facilities by factories involving

hazardous processes as defined under section 2(cb) should be

conducted.

iii). To ensure compulsory healthy insurance of workers employed

in hazardous processes.

B). Dock workers (safety, healthy & welfare) Act

(i) Inland container depots should be brought under its purview.

(ii). All offices of the inspectorates of docks safety as well as state

factory inspectorates should be strengthened in terms of

infrastructure facilities such as transport, electronic networking etc.

iii). Chief inspector of factories should be selected from amongst

the cadre of inspectors of factories and be given the status of headof department directly reporting to Labour secretary. This will

increase his functional autonomy.

iv). Medical inspectors of factories and certifying surgeons should

be appointed in all inspectorates of factories in the country.

A national committee on control of occupational

diseases under the apex body on OSH may be constituted. This

committee would facilitate close coordination and exchange ofinformation amongst agencies.

A data base containing information on handling of

containers and dangerous goods, hazardous installation, inland

container depots, minor and intermediate ports, competent persons,

panel of medical doctors, etc., for various ports should be created

for the benefits of the port users.

Training of crane operators should be undertaken by

respective owners of the equipment. This will help in addressing

the problem of accident due to transport equipments in port areasstatement of status of OSH in companys annual report.

Tiny/small (UN registered units): - The small scale units

employing less than 10/20 workers and outside the purview of the

factories act, 1948 should be covered by any other legislation to

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ensure OSH of the workers in these units. Software development

units to be brought under the purview of the factories act.

Environmental protection:The following is a brief description of the laws and

regulation relating to environmental protection in India.

A. Constitutional status:

Article 48A of the directive principal of the state policy

provides for the states commitment to protecting the environment

and the article 51A(g) states that to protect and improve the natural

environment shall be the fundamental duty of the citizens of India.

B. Regulatory Environment Protection Laws:

In observation of the directive principal, the union of

India has enacted the following major legislations:

a). The Environment (protection) Act, 1986, which is the umbrella

legislation.

b). The water (prevention & control of pollution) Act, 1981, asamended in 1978 and 1988.

c). The air (prevention & control pollution) Act,1981,as amended

in 1987.the above act has been substantially amended in recent

past and some of the most significant aspect of amendment are

1). Consent order is now valid for 15 years or till such time there is

some significant change in the process, whichever is earlier,

2). A consent order cannot be provided provisionally & will be

obtainable only when all the provision, prevention requirements

are adopted in to ,action under these acts are to be taken byrespective state control Boards.

d) The Forest Conservation act, 1980.

e) The Wildlife Preservation act, 1982 extend to cover biosphere

resources and the Hazardous wastes Rules 1989.

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f) Manufacture storage and import of hazardous chemical rules

1989

i) The Motor Vehicle Act, 1939, amended in 1988 and

j) The Environment Tribunal Bill, 1992.

C. Promotional Policy Framework:

a) The National Forest Policy,1988

b) The National Conservation Strategy and Policy Statement on

Environment & Development 1992.

c) The policy statement for abatement of pollution 1922

d) The above Policy statements complement the National water

Policy and Factories Act 1948 besides other related legislationhaving a bearing on resources and economic activities

e) The national Housing policy 1988 the National water policy

1987 and the National Land use Policy 1988 recognize the

importance of maintaining ecological balance.

D. Organizational structures of the Regulating Bodies for

Environment management

The ministry of Environment and Forest created in 1986 is the

nodal regulating agency .The Ministry has four division:

a) Environment: The central Pollution control Board function

under it and this Ministry is responsible for exercise of promotion

and regulatory functions under the water air and Environment

acts.

b) Forests and wildlife: Wildlife preservation offices responsible

for implementing the wildlife protection act,1972 and the Regionaloffices of the MOEF for implementing the provisions of Forest

conservation Act,1980.

c) Ganga project Directorate

d) National A forestation and Eco-Development Board.

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All the state governments looking after environment and forest

collectively.

Most of the states have states pollution control Boardswhich have a significant role to play in enforcing environmental

management and pollution control as required under different

laws.

Environmental Impacts Assessment as per a notification issued

on 27 January 1994. The EIA is a statutory for 29 different

activities in industry ,mining ,irrigation, power plant ,atomic

power plants, railway and roads highways, bridges, airport andcommunications. The central government apprises the following

types of projects:

a) Projects which requires the approval of the public Investment

Board commission Electricity Authority etc.

b) Projects referred to the MOEF by other ministries

c) Projects which are sensitive and fall in environmentally fragile

areas

d) projects under dispute.

The process to be followed is:

Project authorities are required to provide relevant information

as indicated in the guideline along with a EIA

statement/environmental management plan. After the preliminary

scrutiny by the ministry, the appraisal committee evaluates the

impact and makes commendations for approval, rejection or

modification in the project. The above recommendations from thebasis of the ministrys decision regarding approval/rejection.

ENVIRONMENTAL CLEARANCE PROCEDURES

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Under the environment (protection) Act, 1986, 24

categories of projects and industries will require environmental

clearance from the central government.

In addition, any project proposed to be located within 10km of

the boundary of a reserved forest or a designated ecologicallysensitive area or within 25kms of the boundary of a national park

or sanctuary will require environmental clearance from the central

government.

For all other projects, environmental clearance needs to be

obtained only at the level of the state government. Clearance is

required from the environmental (for site clearance) and pollution

control angle, which has to be obtained by all units other than

certain, specified non-polluting units in the small scale sector.No objection certificate (NOC) for the site clearance usually

involves clearance from the concerned state pollution control board

NOC is also required for adequacy of pollution control measures.

In general, the state pollution control board is the concerned

authorities which will the state pollution control board is the

concerned authority which will usually specific certain pollution

control measures to be taken by the unit.

AUTHORITY OF STATE FOR ENVIRONMENTAL

CLEARANCE (ORISSA)Orissa state pollution control board

Gautam Nagar

Bhubaneswar 751014

Efforts have been made to ensure that data is accurate. However

the source of data may be referred to for further clarification.

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GOVERNMENT OF ORISSA

INDUSTRIES DEPARTMENT

No.XIV-HI-12/2005-7569 /I., Bhubaneswar, 13.04.2010From:

Shri Subas Pani

Chief Secretary, Orissa.

To

The All Collectors,

Sub: Role of Collectors in Promotion of Industries

Sir/madam,

The state government is committed to facilitate the

process of industrialization to achieve sustainable development and

generation of employment. Orissa offers tremendous investment

opportunities in the areas of mineral based industries agro

processing, value addition of forest products, tourism, fisheries,

I.T. and I.T.E.S. and power generation etc. Government have

enacted the Orissa Industries (Facilitating)act, 2004 to provide forthe constitution of clearance Authorities at the district and state

levels for speedy clearance of the investment proposals of the

entrepreneurs proposing to establish industries in the state. A copy

of the said act has been sent to you by the director of industries

vide his letter No.3506 dated 04.03.2010. The Act provides for

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issue of all clearances under various state laws for establishment of

industries through single window mechanism at district and state

levels. It also provides for self certification by industries as far as

compliance to various state laws are concerned and rationalization

of inspection with a view to reducing the transaction cost forestablishment and post entry operation of the industries. Recently

govt. has notified the district single window clearance authority

(DSWCA) under the chairmanship of collector for the purpose of

speedy issue of license/clearance/ certification required under

various enactments for setting up project where the amount of

investment is less than Rs.50 crore. The govt. has also notified the

Orissa industry rules to implement various provision of Act.

Copies of the act and rules are enclosed herewith for yourreference. District Industries centre shall be nodal Agencies to

undertake industrial promotion activities and to facilitate investor

at district level. The DIC have been entrusted with following

function.

i) Investment Promotional activities at district level.

ii)District image building to attract investment;

iii)Investment climate improvement exercise;

iv)Provide secretarial and other support services to district levelsingle window clearance authority.

v) Issue and receive combined application from entrepreneur and

arrange required clearance from department concerned within the

specified time limit.

Yours faithfully

Sd /-

Chief Secretary ,Orissa

CONCLUSION

This project will be successfully implemented within the

three month after approval of concerned authorities. The

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commercial production from unit may be started from the

unit may be started within the six month of approval if

everything goes right. This project is prepared through the

collection of different departmental policies of governmentas well as technical consultancy from various organization

and during these project financial policies of different

financial institutes and banks.

During real time implementation of project the

different management technique may be implemented to

reduce the set up cost and different overhead expenses maybe avoided by suitable industrial engineering methods. This

project is a analytical representation of data collected from

various sources. So during real time implementation further

clarification must be done to make success the project.

LIST OF ABBREVIATIONS

AMP Abandonment Mine Plan

BCCL Bharat Cooking Ltd.

BIS Bureau of Indian Standard

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CBWE Central Board of Workers Education

CFS Container Freight Station

CLC - Chief Labour Commissioner (Central)

CIF CHIEF inspector factory

CLI - Central Labour instituteCMAL- Coal Mines Authority Ltd

CONCOR-Container Corporation of India

CPWD Central Public Work Department

DDG Deputy Director General

DGFASLI-Directorate General Factory Advice Service & Labour

Institute

DGMS-Directorate General Mines Safety

DME-Department of Mines And EnergyDMRS-Development of mines rescue and service

DMSIS-Development of Mines Safety Information system

DOPT-Department of Personal & Training

ESIC-Employee State Insurance Corporation

FAS-Factory Advice Service

HAZOP-Hazard Operability

ICD-Inland Container Depots

ILO-International Labour OrganizationISO-Information system planning

ISP-Information System planning

ITRC-Indian Toxicology Research Centre

JNPT-Jawaharlal Nehru Port Trust

LPA-Loss Prevention Association

MAH-Major Accident Hazard

MOL-Ministry of Labour

MSHA-Mines safety and Health Administration

NB-OSH-National Board on occupation safety and healthyNGO-N0n-Governmental organization

NICMAR-National institute for construction Management and

research

NIOH-National Institute of Occupational Health

NSC-National Safety Council

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OISD-oil industry safety directorate

PIACT-an ILO training project

PIF-Providing infrastructure facility

POL-Petroleum oil liquid

PSCT-Port side Container TerminalR&D-Research and development

RCD-Rail container deports

SEWA-An NGO

SSI-Small Scale Industry

SWP-safe work procedure

TISS- Tata Institute of social science

UNDP-United nations Development Program

UT-Union TerritoryWHO-World Health Organization

Documents

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