Nagpur posts high SSI growth

A number of small scale units (SSI) have mushroomed across the region reflecting the growth the economy is experiencing.

A record number of 605 units registered with the Nagpur division of the department of industries in the first half of the financial year, sending officials here into a tizzy. As many as 1,500 units are in the waiting-list as their documents are being scrutinised.

The units have sprung up in the six districts of Nagpur, Wardha, Bhandara, Gondia, Chandrapur and Gadchiroli. In Nagpur, they are scattered across the city and in industrial areas.

The investment per unit is not very high and ranges between a few lakhs to a crore. But what is heartening is that entrepreneurship is taking root again after a long gap and that employment is being generated here. Another positive side is their success.

None of the units is large and don't require people by thousands. But they are labour-intensive and need more people per crore in investment unlike a big automated plant which deploys thousands of crore in investments.

For example, Indo Rama Synthetics (India) Limited, which invested Rs 1,800 crore initially and at one time employed up to 1,700 people, had an employment to investment ratio of 0.94 per crore.

According to joint director of industries, Nagpur, Subash Rode, the total investment by these 605 units is over Rs 50 crore and they have already employed more than 4,000 people directly. This means that over 80 people have got employment per crore of investment against 0.94 that Indo Rama employed at its peak.

The units are mainly ancillary units for steel and cement, fabrication units, some are from the food processing sector, plastic manufacturing, pharmaceuiticals, agro-based units, making small components used by the IT sector and others.

Rode said that the number of units not being able to cope with pressure and closing down has decreased from around 20 per cent five years ago to some 2 to 3 per cent.

In the Nagpur division, on March 31, 2006, the number of SSIs registered with the department was 12,225. The figure touched the 12,830-mark on September 30, 2006.

The total amount of investment involved in these 12,225 SSIs is Rs 1,130 crore generating direct employment for 90,000 people. The investment involved in 12,830 SSIs is estimated at Rs 1,180 crore providing direct employment to 94,000 people in the division.

The district-wise spread of 12,830 SSIs in the division is as follows "" Nagpur (8,218), Wardha (1,412), Bhandara (958), Gondia (938), Chandrapur (953) and Gadchiroli (351).