Category 2: Non-Traditional Industries

Category 2: Non-Traditional Industries

The state has ample potential for horticulture processing. The area and production of fruit and vegetable crops in the state during 2008-09 was 192850 ha. and 7.46 lakh MT and 56644 ha. and 5.65 lakh MT respectively. Fruits such as apples, oranges, pear, grapes peach, plum apricot, litchi, mangoes and guava are widely grown in the state. The maximum area of fruit crops is occupied by mango (19.8 %) followed by apple (15.8%).

There are 31 dairy clusters in the state out of which clusters of U.S Nagar are of special significance. Dehradun and Haridwar are also known for milk production. This potential can be used for milk processing. Moreover the plain areas of Pauri, Dehradun, and Nainital and entire US Nagar have become the hub of poultry production, as the raw material is available in plenty thus bakery products, processed meat etc. are supplied to the adjoining hill areas and UP. Some of the poultry units especially in Khatima (US Nagar) are supplying poultry products as well as poultry feed to the adjoining areas of Nepal.

But unfortunately there are not adequate units to undertake the processing of agro-based products though there is ample potential for such units too.

To take full benefit from natural, cultural, business, leisure, spiritual, religious, ecological, adventure and health tourism, the efforts should focus on creation of adequate tourism infrastructure like modernization and expansion of Air Ports, increase in accommodation facilities under star and budget category and improved road connectivity to tourist destinations. Tourism will be one of the largest earners in the next 5-7 years as far as the State is concerned.

In terms of pucca roads, the average length per ‘000 sq km is 319 km for the hill districts and 800 km for the plain districts of state. Nainital, Chamoli, Pithoragarh, Uttarkashi, Champavat, Rudraprayag, and Bageshwar are having road network lesser than state average whereas other districts are having road network equal to the state average.

The infrastructure of postal and communications services in the hill regions is also poor. The communication network in Uttarkashi, Pauri Garhwal, Tehri, Rudraprayag and Chamoli were observed below the State average. Except BSNL connections services of other networks are not satisfactory in the hilly areas. However, a revolution in communication services is expected soon.

Industrial units particularly located in rural areas still do not have proper and adequate supply of power; so they have to depend on generators which increase their cost of production. So these units located in rural area should be provided power connection to minimize their cost of production. Alternative energy sources like solar energy should be encouraged. An investment in this direction can be both a cheaper and more eco-friendly source of electrification.

The presence of banks remains quite low in the hill districts of the state except for Pauri Garhwal. Presently, the major banks of the State are SBI (lead bank in 9 districts), PNB (lead bank in Dehradun and Haridwar), Bank of Baroda (lead bank in Nainital and U.S. Nagar), Uttaranchal State Cooperative Bank, District Central Cooperative Banks and RRBs. As on 31.03.2011 all the banks are having 1499 branches (64% of commercial banks and only 8% of the private banks. SBI is taking several steps to achieve 100% financial inclusion in the state especially in hilly regions like; zero balance account; general purpose credit card; kisan card; loan without collateral etc. Since there is a problem with road connectivity, SBI is trying to link households with the banks through mobile phones that get connected with the bank’s server; this way, customers can make bank transactions through their mobile phones. These steps are very helpful for the hill people of the state. However, wide disparities still exist between the plains and the hill regions in terms of banking structure in the state.

Since the formation of state, bank deposits have increased tremendously; ` 10587 crore in 2000-01 to ` 46838 crore in 2010-11. C.D. Ratio was highest in US Nagar (85%) and Tehri (66%) in 2005-06 which is appreciable. As on 31.03.2011, the overall CD ratio was 49 % in the state (53% with RIDF advances included) which varied between 23% in Pauri to 95% in US Nagar.

Even having so many efforts by the banks, banking status in rural areas of the state is still not satisfactory. However, SBI and NABARD are doing exceptionally well for the development of hill districts.

In 2005 the number of rural households in the state was estimated 11,959 out of which 8,962 were farmers and 644 (7.2%) were indebted farmers. This shows the pathetic picture of credit and banking facilities in rural areas.¹

Therefore it can be observed that there is a great disparity between the hills and the plains wherein the plain areas have better physical and social infrastructure and therefore better growth prospects in the various sectors. As per the above data, districts comprising of entirely/mostly the plain areas, namely, Dehradun, Haridwar, Nainital and US Nagar are in general placed better in terms of infrastructure when compared to the hill districts.

So it is very difficult to implement development programmes which are already affected due to the infrastructural constraints. These constraints are affecting the growth of industrialization in hilly regions.