http://www.iisc.ernet.in/
Energy utilisation in rural industries in Karnataka
Ramachandra T.V.
Energy and Wetlands Research Group, Centre for Ecological Sciences, Indian Institute of Science, Bangalore - 560 012.
http://wgbis.ces.iisc.ernet.in/energy/

Industries in Karnataka

Industry is playing a pivotal role in the development of Karnataka State. The secondary sector in the State accounts for nearly a quarter of the State income (in real terms) of the total output in the economy [4]. The average annual growth rate of industrial production over the period from 1981-82 to 1990-91 was about 6.4% as against 7.9% in the country as reflected in the index of industrial production.

Small Scale Industries: an Overview.
The basic framework for the industrial policy of the government was first spelled out in the industrial policy resolution of 1956, with an emphasis on the development of small scale industries. Small, medium and large industries have been assigned a mutually complementary role with a view to facilitate an integrated and harmonious growth of the industries sector as whole and with the objective of economic growth with social justice.

The policy measures, announced in 1991 by the government provided further impetus to the growth of the small sector. The primary objective of the 1991 policy measure was to impart more vitality and growth impetus to the sector to enable it to contribute fully to the economy, particularly in terms of growth of output and employment. As per the recent policy (1991), in small scale industries undertaking the investment in fixed assets in plant and machinery whether held on ownership terms, or on lease or by hire purchase does not exceed Rupees (Rs) 60 lakhs.

The spectrum of industries ranges from unorganised traditional sectors and modern small-scale sectors to large and medium scale industries. The traditional sector and small scale sector provides maximum employment (413.39 lakhs in 1989-90) and constitutes an important component of the economy. In terms of value added it is estimated to contribute 50% of the value added in the manufacturing sector. The uniform distribution and growth in this sector besides resulting in preponderance of self-employment and under dispersal of industrial and economic activities, ensures maximum utilisation of both human and material resources. The economics of production is important in small-scale industries. Energy consumption plays a key and dominant role in the production economics of these industries. The small-scale industries sector plays an important role in the industrial economy of the state. It contributes substantially to the industrial production and in generating employment. These industries are dispersed all over the state, however there is disparity in regional distribution. Table 2 illustrates the growth of small-scale industries in Karnataka since 1969-70. The growth in last decade is phenomenal as the number of industries has increased from 37,148 to 129,915 with a percentage annual growth rate of 15.01 % and percentage annual growth in manpower employed of 13.58%. Table 3 gives the cumulative information of SSI's from 1982-83 to 1991-92 for each district while Table 4 gives percentage yearly increases. From Table 3 it is evident that the Bangalore district with 27,691 leads all other districts. The increase in the number of industries in the decade is given in Table 5a. Belgaum has annual average growth of 18.61 % while for Bangalore it is 9.31 %. Information regarding the number of industries, investment, and manpower employed in the SSI sector at the end of financial year 1991-92 is listed in Table 5b. The percent number of units varies from a low value of 1.15% (for Kolar District) to a high value of 21.97% (for Bangalore district). Investment per job computed for each district reveals a variation from Rs.9539.20 per person for Dharwad to Rs.22652.09 per person for Dakshina Kannada, indicating that some industries are capital intensive.

Workers in manufacturing and household industries are listed in the eleventh column of Table 5b. The share of manpower in SSI to the total manpower in the industries sector shows a variation of 16.67% for Chitradurga and 18.27% for Dakshina Kannada to 88.34% for Dharwad, 93.74% for Chikmagalur and 97.08% for Raichur. The lower values for Chitradurga and Dakshina Kannada are mainly due to the presence of large number of household industries in these districts. Most of these units are located in rural areas.

Dispersal of small scale units.
The second census of registered small scale units [5] conducted by the Directorate of Industries and Commerce of 40,525 industries reveals that 38.14% of total Industries are located in rural areas, while 49.97% in urban area and 11.86% units in metropolitan city of Bangalore as indicated in Table 6a. A look at the employment generated in these industries reveals that 40,525 units have provided employment to 244,039 persons (shown in Table 7). The food products sector (National Industry Code: NIC 20 &21) leads with 19.4% of total employment. This is followed by machinery and parts units (8.65%), Non metallic mineral products 8.33%. Table 6b gives information regarding dispersal of units in nature of activities (major activities such as repairing, servicing etc).

Table 2 Growth of Small Scale Industries in Karnataka.
Year (1900s) No of SSI units (Reg.) Invest
ment (Rs. in lakhs)
Manpower employed SSI units (cumulative) Investment (Rs. in lakhs) (cumulative) Manpower (cumulative) Investment per job (Rs./job)
% annual growth
Units Invest
ment
Man
power
69-70 3890 3456.70 47960 3890 3456.70 47960 7207.46
70-71 1908 2279.43 44295 5798 5736.13 92255 6217.69 49.05 65.94 92.36
71-72 2372 1309.39 21343 8170 7045.52 113598 6202.15 40.91 22.83 23.13
72-73 2272 1350.10 22490 10442 8395.62 136088 6169.26 27.81 19.16 19.80
73-74 3043 1638.23 21814 13485 10033.85 157902 6354.48 29.14 19.51 16.03
74-75 1907 3991.27 56043 15392 14025.12 213945 6555.48 14.14 39.78 35.49
75-76 1562 1642.36 12783 16954 15666.48 226728 6909.81 10.15 11.70 5.97
76-77 1420 1482.51 15406 18374 17148.99 242134 7082.44 8.3B 9.46 6.79
77-78 1621 1517.11 24750 19995 18666.10 266884 6994.09 8.82 8.85 10.22
78-79 1975 1451.46 16957 21970 20117.56 283841 7087.62 9.88 7.78 6.35
79-80 2910 3255.01 34376 24880 23372.57 318217 7344.85 13.25 16.18 12.11
80-81 2776 3041.83 26164 27656 26414.40 344381 7670.11 11.16 13.01 8.22
81-82 3396 4955.16 41375 31052 31369.56 385756 8131.97 12.28 18.76 12.01
82-83 6096 6255.29 46420 37148 37624.85 432176 8705.91 19.63 19.94 12.03
83-84 7479 6396.51 44282 44627 44021.36 476458 9239.29 20.13 17.00 10.25
84-85 11962 6324.31 55849 56589 50345.67 532307 9458.01 26.80 14.37 11.72
85-86 11634 3787.09 60796 68223 54132.76 593103 9127.04 20.56 7.52 11.42
86-87 11179 9408.47 56883 79402 63541.23 649986 9775.78 16.39 17.38 9.59
87-88 10530 10165.19 52498 89932 73706.42 702484 10492.26 13.26 16.00 8.08
88-89 9811 10532.77 50448 99743 84239.19 752932 11188.15 10.91 14.29 7.18
89-90 9700 11247.02 51521 109443 95486.21 804453 11869.71 9.72 13.35 6.84
90-91 9884 11843.16 53568 119327 107329.37 858021 12508.94 9.03 12.40 6.66
91-92 10588 18623.11 61903 129915 125952.48 919924 13691.62 8.87 17.35 7.21
TOTAL 129915 125952.48 919924 Average 16.26 17.50 14.76

The total production of the 40,525 units surveyed was Rs. 2,52,687 lakhs. Out of this 28.32% is by food products, metal products (12.39%), and paper products (11.46%). This is illustrated in Table 7. The food products sector constitutes a major component in the SSI sector and most of these units are located in rural areas of Karnataka. As rural industries are one of the prime actors in the rural energy scene, further study is carried out on industries located in rural areas.

Rural Energy Scenario.
Rural energy supply is closely tied in with agricultural and forest production, and with an overall crisis of agricultural productivity and environmental degradation linked to modernisation and changes in land use. The rural community depends mainly on non-commercial energy for domestic and rural industrial needs [6]. If new energy strategies are to be successful, rural energy needs will have to be placed squarely in the context of integrated approaches to rural development, basic needs and general questions of rural poverty, land and other scarce resources. With the emphasis on rural development by the government, rural industries are gaining importance. This paper attempts to focus on the various ecological parameters, such as energy conservation and raw material availability, involved in the successful functioning of rural industries.

The rural industries are important to the stability and growth of the regional economy. They have a significant role in averting migration of rural people to urban areas and cities which in turn cause the start of new slums and hence lead to environmental and ecological problems. The rural industries thus help in the well-being and survival of rural communities. The rural industries process local raw materials, they also tend to rely on local sources such as firewood and agricultural residues for the heat energy they need.

Wood is the traditional domestic fuel in rural areas. With the depletion of forest resources, the financial viability of many industries is threatened due to the increase in fuel wood prices and the lack of technical and financial assistance to switch over to alternate fuels. Although conventional fuels

Table 3. Number of Units, Investment and Manpower details in Small Scale Industries (cumulative for each District).
Year 1982-83 1983-84 1984-85 1985-86
District Units Invest
ment (Lakhs)
Man-power Units Invest
ment (Lakhs)
Man- power Units Invest
ment (Lakhs)
Man- power Units Invest
ment (Lakhs)
Man- power
Bangalore 11368 14381.78 156691 13138 15589.10 165515 13127 15248.40 149436 15254 16942.11 158560
Belgaum 2010 1856.93 16082 3438 2319.77 20715 4102 2490.98 22693 5283 3329.12 27628
Bellary 1530 788.16 8133 2041 1121.29 11271 2135 1222.58 11531 2634 1395.70 14156
Bidar 625 400.79 5790 989 703.05 7920 1077 707.17 8036 1330 917.22 9364
Bijapur 1282 604.15 12979 1693 799.25 14973 1890 919.56 15573 2321 1052.57 17579
Chickmagalur 598 380.12 4503 980 636.59 6065 917 492.67 5182 1134 618.78 5932
Chitradurga 1638 979.72 11417 1867 1086.13 12221 2024 1293.00 12278 2460 1582.85 14668
Dakshina Kannada 2641 2027.17 23989 3984 2444.58 29618 3708 3602.86 29445 4471 4987.61 35304
Dharwad 2444 4094.75 64714 3178 4702.68 69050 4094 5092.78 72204 5280 5698.78 77730
Gulbarga 850 642.62 7830 1232 775.54 9014 1385 794.71 9100 1793 877.45 10529
Hassan 824 550.90 6133 1085 685.31 7476 1155 739.67 7203 1422 1036.12 9274
Kodagu 460 959.61 10936 600 986.80 11487 643 962.27 11299 772 1022.28 11674
Kolar 1816 1124.05 11672 2170 1298.88 13779 2246 1256.32 15482 2614 1769.74 17947
Mandya 1087 624.54 6275 1392 759.36 7580 1293 807.94 7387 1545 952.36 9595
Mysore 2871 2619.16 23153 4314 3140.62 30863 5075 3361.04 33320 6241 3919.89 41007
Raichur 855 1767.17 19670 1179 1968.01 21106 1372 2088.51 21966 1800 2664.52 24550
Shimoga 1904 2022.83 13779 2543 2428.31 15830 2796 2721.31 15832 3379 3216.48 18703
Tumkur 1492 1279.13 17737 2243 1900.44 21479 2591 2389.19 23466 3340 2939.23 27116
Uttara Kannada 798 537.23 9214 989 619.41 10584 1083 692.74 11010 1274 767.98 11923
TOTAL 37093 37640.81 430697 49055 43965.12 486546 52713 46883.70 482443 64347 55690.79 543239
Year 1986-87 1987-88 1988-89
District Units Investment (Lakhs) Man- power Units Investment (Lakhs) Man- power Units Investment (Lakhs) Man- power
Bangalore 17185 19021.37 167351 18872 21106.14 177084 20520 23851.00 188173
Belgaum 6487 4252.23 32022 7610 5150.28 36564 8445 6057.54 40190
Bellary 3137 1543.34 16801 3639 1745.10 18889 4085 1965.11 20848
Bidar 1596 1065.92 10777 1856 1426.66 12111 2101 1771.19 13047
Bijapur 2707 1237.00 19894 3121 1394.67 21507 3516 1652.16 23345
Chickmagalur 1357 722.90 7542 1560 819.21 8771 1741 962.18 9490
Chitradurga 2872 2007.70 17375 3276 2515.74 19356 3658 3000.97 21279
Dakshina Kannada 5745 5935.33 40685 6488 7502.01 45476 7175 8996.06 49523
Dharwad 6109 7097.61 84202 6944 7696.27 88735 7844 8309.61 93316
Gulbarga 2226 1198.69 13201 2658 1558.29 15695 3118 2015.43 18025
Hassan 1673 1210.40 10125 1930 1404.03 11157 2167 1527.04 12102
Kodagu 872 1149.05 12696 982 1199.39 13058 1084 1246.53 13419
Kolar 3003 2123.51 20339 3327 2505.42 22445 3676 2903.63 24676
Mandya 1799 1106.78 10948 2008 1267.09 11972 2208 1425.29 12885
Mysore 7203 4498.07 45912 8331 5199.00 50848 9129 5774.33 54930
Raichur 2236 3002.03 26507 2695 3397.33 28521 3108 3722.88 30245
Shimoga 3892 3573.76 20964 4402 4004.76 22808 4906 4447.87 24681
Tumkur 3942 3485.98 29999 4671 4410.03 33889 5523 5089.36 38403
Uttara Kannada 1485 847.59 12787 1686 943.03 13739 1863 1059.04 14493
TOTAL 75526 65079.26 600127 86056 75244.45 652625 95867 85777.22 703070
Year   1989-90     1990-91     1991-92  
  District