Chandigarh: Small-scale industrial units in Jalandhar have been hit with power constraints, the absence of effective administrative support, lack of basic facilities, financial constraints, and lack of approaches to the local market, a study conducted by the Lyallpur faculty Khalsa College Collect Campus has revealed.
Constraints of research and small-scale industrial prospects in punjab ‘focusing on the main obstacles faced by small-scale industries selected from five sub-sectors – engine parts, hand tools, spare parts, auto parts and industrial mounting pipes – in Jalandhar District .
This study said the small-scale industry was well recognized for its contribution to work, innovation and economic dynamics and was considered a growth machine, and acted as an inseparable part of a healthy economy.
Research by Associate Professor Inderpal Singh and Assistant Professor Ubique Bedi, Rupinder Sampla and Tarunjit Singh revealed that Jalandhar has 12% of the total small scale units registered in Punjab with 13.5% of total fixed investments by small-scale industries in Punjab Records of the district industry center for 2018-19.
In short, this research concludes that the growth and development of small-scale industries can be convinced by providing sufficient and appropriate finances, increasing the basis of technology by connecting all district industry centers (DIC) and small industrial development companies (Sidco) below separate networks and also by giving Marketing support to the unit.
JalandHar has 20,000 punjab units have a large industrial cluster of small scale industries in Jalandhar, Amritsar and Ludhiana.
Jalandhar is a leading manufacturer of country sports goods and is famous for electrical items, auto parts, hand tools, steel and iron rolling mills, rubber goods and pipe installation products.
Jalandhar has around 20,000 small-scale industries with an estimated annual turnover around Rs 45 million, the research said.
Power shortages reveal that small-scale industrialists are reluctant to go for modernization because of the high cost of installing alternative resources due to an increase in the bank loan interest rate.
Furthermore, high power rates and voltage fluctuations have hampered the growth of this sector.
To overcome this situation, the power plant capacity of existing power plants must be maximized and the new power project must be regulated.
The difficulties in the loan have also been found that loans from banks lead small scale industries to take financial assistance from personal moneylender, which collect high interest rates.
The other main factor is that industrialists feel that the amount given by the bank is relatively less than the required amount.
Some entrepreneurs hold that their energy and enthusiasm are wasted in proving their credit worthiness to banks to get sufficient financial support.
Corporate companies between 11-20 suffer more financial problems because they are in the development stage and need more resources and capital.
Thus the study recommends that the central government must direct the public sector bank to issue loans to small-scale industries for entrepreneurial development with less documentation and formality.