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Chapter -1

Introduction and Research Design

“It is only when India has acquired the ability to design, fabricate and erect its own plants

without foreign assistance that it will have become a truly advanced and industrialized

country”. - Jawaharlal Nehru

1.1 Industrial Development

From the dawn of human civilization to the modern civilized society, the basic

physiological needs viz. - food, cloth and shelter have remained the same, but these needs

have undergone remarkable changes. Such changes have kept pace with the development

of human civilization. With the development of cultural standards and growth of

civilization, the liking, tastes, and styles of fulfilling these physiological needs have also

changed. The human wants and satisfaction are changed with time. The human wants

have not been confined to the physiological needs like food, clothing and shelter but

human beings also aspire for status, recognition, esteem etc.

The human civilization has passed through the varied stages with settled life, village

society or household system, handicraft system, factory system, industrial town and city

life, global partnership stage etc. The industrial revolution was the result of continuous

application of skills and inventions for increase in production. The invention, which took

place during this period and thereafter brought phenomenal changes in the quantity and

quality of the production, mechanical inventions gradually changed the whole character of

competition. The industrial revolution proved a mixed blessing.

Good effects:

Increase in volume of production,

Better quality of production,

Lower unit cost of production,

Minimization of human efforts,

Specialization in manufacturing activities,

Development of means of production.

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Bad effects:

Unemployment as mechanical devices,

Degradation of labour caused by the transfer of skill and intelligence from man to

machine,

Replaced human efforts,

Need for huge financial investments in machines with chances of losses on

becoming obsolete,

1.2 Problems of Industrial Development of India:

Industrial development in India since independence has been truly remarkable; the process

brought about in its wake a wide range of serious problems. Such as:

1. Failure to achieve targets of production- Even investments made in productive assets

do not bring fruits as expected in terms of time, value and quality and cost.

2. Underutilization of capacity- The factors responsible for under utilization of capacity

are said to be: demand short- falls, Supply bottle-necks, labour problems and deliberate

under – utilization to create shortages and thereby to corner more profits.

3. Increasing capital – output ratio- Another very disturbing future of industrial

development of India is the ever- rising average and Incremental Capital Output Ratios

(ICOR).

4. High cost industrial economy- The costs and prices of manufactured goods and

services in India are generally much higher than international costs and prices, high wages

rates, low productivity of labour, uneconomic size of industrial units, lack of cost

consciousness.

5. Inadequate employment generation- One of the most serious deficiencies of industrial

development over the decades since independence is its inadequate employment

generation, in relation to investment made. The process of industrialization has failed to

make a marked dent on the unemployment problems in India.

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6. Poor performance of public sectors-Though public sector has grown by leaps and

bounds over the last four decades backed by massive public investment, its performance

on production and profit fronts has been generally disappointing. It has lost dynamism and

survival capability. A large number of public sector units are „loss leaders‟ in the industrial

sphere while the rate of profitability of others is low.

7. Sectoral imbalance- Planned economic and industrial development pre-supposes co-

ordinate and balanced development of all sectors. But in reality several sectoral

imbalances at a point of time and over a period of time plague the industrial economy of

India.

8. Regional imbalances- Industrial development continues to be lopsided, region wise,

large scale industries are concentrated in a very few states. All states have not been able to

attract major industrial units in spite of incentives and facilities because of the magnetic

pull of industrially advanced states.

9. Industrial Sickness- Industrial sickness has become a serious problem affecting small,

medium and large units. It is a major area of concern due to its implications for the entire

economy and health of the industrial sector in particular. The causes of sickness are

identified as financial mismanagement, demand recession, labour unrest, working capital

shortage, cost escalations, shortage of raw materials, uneconomic size, out- dated

machinery and equipment and so on.

1.3 History of Maharashtra Industrial Development Corporation (MIDC):

The BID (Board of Industrial Development) framed the legislation and it was introduced

before the state legislation and passed in the form of "Maharashtra Industrial Act" which

gave birth to MIDC, as a separate corporation on August 1, 1962. The BID was the first

personnel strength of MIDC. A small ceremony at Wagle Estate Thane, under the

Chairmanship of the Chief Minister Shri Y.B. Chavan, marked the birthday of MIDC on

August 1, 1962. The Board of Industrial Development during its existence between

October 1, 1960 and August 1, 1962 has done enough spade work to identify the locations

for setting up industrial areas in different parts of the state. Thus, right in the first year of

establishment MIDC has come up with 14 industrial areas, to initiate action for

infrastructure and help entrepreneurs set up the industrial units in those areas.

4

Maharashtra Industrial Development Corporation is the nodal industrial infrastructure

development agency of the Maharashtra Government with the basic objective of setting up

Industrial areas with a provision of industrial infrastructure all over the state for planned

and systematic industrial development. MIDC is an innovative, professionally managed,

and user friendly organization that provide the World Industrial Infrastructure. MIDC has

played a vital role in the development of industrial infrastructure in the state of

Maharashtra. As the state steps into the next millennium, MIDC lives up to its motto

„Udyamat Sakal Samruddhi‟ i.e., Prosperity to all through industrialization. Indeed, in

the endeavour of the state to retain its prime position in the industrial sector, MIDC has

played a pivotal role in the last 35 years.

MIDC has developed 268 industrial estates across the state which spread over 52653

hectares of land. The growth of the Corporation, achieved in the various fields, during the

last three years, could be gauged from the fact that the area currently in possession of

MIDC has doubled from 25,000 hectares in 1995. Maharashtra Industrial Development

Corporation is the premier body for the development of IT Industry in Maharashtra. The

MIDC has constructed 15 IT Parks in the state.

The Government of India in 1988 announced a scheme for development of growth centers

covering each District of the State. Out of these growth centers, 61 have been notified and

in 24 growth centers, the land is already in possession and in 17 growth centers, MIDC has

already started allotment of plots.

The State Government has also announced a programme of establishment of 140 mini

industrial areas at Taluka levels. This work has also been entrusted to MIDC. Among 102

areas, land is already in possession 90 industrial areas and plots have already been allotted

to small scale entrepreneurs.

MIDC is also a “special planning authority” for all its industrial areas for various

functions such as selection of land, planning, development and management of industrial

parks. Other objectives are

1. Development of industrial areas by acquiring land.

2. Preparing layout with suitable grouping of plots of various sizes and allotment of

plots on leasehold basis.

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3. Construction of roads, drainage system and provision of street lights in the

industrial areas.

4. Planning, implementation and managing water supply schemes.

5. Establishing common facility centers (CFC) by providing accommodation for

bank, post office, telecom facilities, police station, fire station, medical facility,

canteen, etc.

6. Establishment of effluent collection and disposal systems for chemicals zones.

7. Implementing government/semi government projects.

1.4 Locations of Maharashtra Industrial Development Corporation (MIDC):

MIDC areas are spread all over the state of Maharashtra. The MIDC started in 1962 with

Wagle estate, Thane as its first industrial Area. MIDC's major Industrial Areas are at:

TTC (Trans Thane Creek) near Thane & Navi Mumbai

Pimpri-Chinchwad near Pune

Satpur, Ambad, Sinnar, Gonde near Nasik

Butibori near Nagpur

Nanded 5 Star MIDC Nanded

Kupwad - Sangli

Miraj - Sangli

Latur

Waluj near Aurangabad

Islampur near Sangli

Objectives of MIDC for development of Small and Medium Enterprises (SME):

Set up Industrial Areas for planned and systematic industrial development in Navi

Mumbai.

To function as a special planning authority in development of industrial areas in Navi

Mumbai.

"Prosperity to all through Industrialization" is the corporate philosophy of MIDC

MIDC has developed specialised parks in Navi Mumbai based on sectors such as:

Automobiles and Auto Components

Biotechnology

Consumer Durables

Chemicals

http://en.wikipedia.org/wiki/Wagle_estate

http://en.wikipedia.org/wiki/Thane

http://en.wikipedia.org/wiki/Navi_Mumbai

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Nagpur

http://en.wikipedia.org/wiki/Nanded

http://en.wikipedia.org/wiki/Sangli


http://en.wikipedia.org/wiki/Aurangabad,_Maharashtra


6

Engineering

Electronics Hardware

Information Technology

Petrochemicals

Pharmaceuticals

Transportation

Textile

Wine

Achievements at a glance

Since its inception, MIDC has established at least one industrial area in every District of

the State.

a. 225 industrial areas (including Major, Mini, etc.) are functioning.

b. Notified industrial areas by the Government.

c. 52653 hectares of land in possession out of 86822 hectares planned.

d. 44598 plots (including Industrial, Commercial, amenities, residential, etc.) are

allotted out of 54304 plots demarcated.

e. 3199 kms. Length of pipeline constructed by MIDC.

f. Construction and maintenance of airstrips and helipads.

g. MIDC has developed five star rated industrial areas with state-of-the-art

infrastructure at nine strategically located centres in Maharashtra.

h. MIDC has acquired 90,000 hectares of land for industrial development.

i. 2,235 kms of road has been laid by MIDC as a part of infrastructure facilities on

offer.

k. 1,300 industrial units already operating in MIDC parks-another 3887 units are

under Implementation.

Development of 5-star industrial areas at 9 centres:

1. Butibori (Nagpur)

2. Mahad (Raigad)

3. Kagal- Hatkangale(kolhapur)

4. Sinnar (Nashik)

5. Indapur (Pune)

6. Shendre (Aurangabad)

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7. Nivli Phata(Ratangiri)

8. Krushnoor (Nanded)

9. Nandgaon Peth (Amaravati)

are the top quality infrastructure is being developed by MIDC

1.5 General Introduction:-

Schumacher was right when he said “Small is beautiful”. The experience of Small and

Medium Enterprises (SME) development during the last two decades all over the world

has proved it so.SME have emerged as an engine of growth in the new millennium. In

India also they have emerged as vibrant and dynamic components of the economy by the

virtue of their significant contribution to GDP, industrial production and exports.

However, the most important contribution of this sector toward employment at lower

capital cost generation which is second only to agriculture. It has also helped in balanced

regional development, generation of exportable surplus and in the establishment of a

more flexible, innovative and competitive structure. Even in many developing countries,

it is being accepted as key to sustainable economic growth. Considering its potential and

ability, the SME sector has been assigned a target of 12 per cent annual growth rate and

additional employment of 4.4 million persons.

Small and Medium Enterprises (SME) exist in the form of factories, workshops, trading

and service organizations and range from the most modern and up-to-date enterprise to

the simple and traditional unites. These enterprise exist in various forms such as

proprietorship, partnership, companies or co-operatives in almost all major sectors in the

Indian Industry such as Food Processing, Agricultural inputs, chemicals and

pharmaceuticals, Electrical and Electronics, Medical and Surgical equipment, Textiles

and Garments, Gems and Jewellery, Leather and Leather products, Plastic Products, Bio-

engineering, Computer Software etc. Within the SME sector, the small sector serves as a

green field for nurturing of entrepreneurial talent and helping the units to grow into

medium and large size.

After the formation of Maharashtra State on May 1, 1960, the Government of

Maharashtra constituted a "Board of Industrial Development" (BID) on October 1, 1960,

under the Chairmanship of Shri.S. G. Barve, I.C.S. The various committees

recommendations received in the industries department were taken up for implementation

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and as per the Borkar Committee's recommendations; development of Ulhas Valley

Water Supply was entrusted to the Board of Industrial Development (BID). The BID

framed the legislation and it was introduced before the state legislation and passed in the

form of "Maharashtra Industrial Act" which gave birth to MIDC, as a separate

corporation on August 1, 1962. A small ceremony at Wagle Estate Thane, under the

Chairmanship of the Chief Minister Shri Y.B. Chavan, marked the birthday of MIDC on

August 1, 1962.

The key historical policy decisions taken by MIDC certainly changed the socioeconomic

scenario of the state highly in Navi Mumbai as its activities spread in the interior. The

important policy decision of setting up "independent filtered, potable water supply system

of adequate capacity" as essential infrastructure for industrial development was the most

intelligent step taken by MIDC right in the beginning. It stabilized the population base

near the industrial areas in Navi Mumbai. The strategic wise decision taken

simultaneously to provide water supply to nearby domestic population from the

capabilities created by MIDC of their own water supply system resulted in phenomenal

urban growth in the nearby small towns and villages.

The growth of Kalyan complex, Pimpri-Chinchwad and Navi Mumbai are results of this

key policy decision taken by MIDC. Up to date 229 industrial areas are developed by

MIDC in State of Maharashtra on 53120 Hectors of land. With the experience of 45 years

MIDC observed that certain industries are required to be provided some specialized

facilities. For the growth of such industries and accordingly specialized parks / industrial

clusters are developed with specialized infrastructure facilities. In this way IT & BT

Parks, Wine Parks, Textile Parks, Chemical Zones, Food Parks, Leather Park, Floriculture

Park and Electronic Zone etc. are developed by MIDC in Navi Mumbai.

Considering the International standard facilities required to attract multinational

companies, five star industrial areas are developed by MIDC at 9 locations in the State of

Maharashtra and out of this one is Trans-Thane creek i.e. Thane - Belapur Industrial Belt

. Considering the export potential of the various products specifically delineated duty free

enclave which is to be deemed to be foreign territory for the purpose of trade operations

and duties and traffics special economic zones are being developed by MIDC at Thane-

Belapur Industrial Belt to provide hassle free environment for exporters.

http://en.wikipedia.org/wiki/Kalyan,_India

http://en.wikipedia.org/wiki/Pimpri-Chinchwad

9

Maharashtra got overwhelming 74 Special Economic Zone approvals from the

Government of India which is leading at No.1 position compare to other states in India.

The planned and systematic industrial development in the State of Maharashtra has

continuously placed Maharashtra at No.1 position in India for the highest productivity,

economics performance, business efficiency, government efficiency, infrastructures and

overall competitiveness.

As per the World Competitiveness Report 2006 Maharashtra ranks 37, ahead of South

Korea, South Africa, Philippines, Greece, Brazil, Italy, Russia & Indonesia. In the

Maharashtra State MIDC has demarcated 57650 No. of plots and allotted 48701 No. of

plots to the entrepreneurs. There are total 28918 No. of industries in production. MIDC

has provided the water supply scheme of total 2240.83 MLD Capacity and water

consumption is 1314.73 MLD in the MIDC areas in the State of Maharashtra. MIDC has

provided water supply pipelines of 3238.60 K.M. lengths to cater the water supply

demand of the industries in Maharashtra. Total roads of 2422.82 K.M. lengths are

constructed by MIDC for providing good quality approach to the industries. The

development expenditure of Rs.3096.75 Crores is incurred for the various infrastructure

works by MIDC. The annual revenue generated from the water supply is Rs.432.00

Crores.

The Thane Belapur Industrial belt developed by MIDC in mid sixties witnessed a Sharp

growth of Small and Medium Enterprises in terms of number of units, capital deployed,

employment and turn over. Most of the small industrial units continue to be high capital

incentive industries. The basic petro chemical units like NOCIL and Hardily Chemicals

were set up in late 1960s. This is followed by setting up a large number of chemical

industries such as Polyethylene Plastic and Resins, Synthetic Tanning Agents Leather,

PVC Products etc. The Thane Belau Industrial belt had 72 industrial units in 1974. This

has been increased to 533 in 1984 and 1931 in 1990. Now there are about 2,300 industrial

units with an employment of over one lakh with an annual turnover of more than 10,000

Crores.

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1.6 History of Small and Medium Enterprises (SME):

Unlike most countries, which define small and medium enterprises in terms of

employment levels, capital investment or turnover in India, the small and medium

enterprises are defined in terms of investment limit in plant and machinery. The small and

medium enterprise was defined under the Industries (Development and Regulation) Act,

1951. The definition of small and medium enterprises had undergone several changes

over the years; in terms of investment limit.In 1950 with certain conditions on the number

of persons employed the investment limit in fixed assets was set at Rs.5.0 lakh. This

definition was revised in a phased manner further. Till 2006, a small and medium

enterprise is defined as an industrial undertaking in which the investment in plant and

machinery does not exceed Rs.100 lakh. The Government of India enhanced the

investment limit of Rs.100 lakh for classification as small and medium enterprises to

Rs.500 lakh in respect of certain specified items under hosiery, hand tools, drugs and

pharmaceuticals, stationery items and sports goods.

1. Small and medium enterprises where in investments in plant and machinery

(excluding land and building) up to Rs.25 lakh are classified as tiny industries.

2. Food and agriculture based processing units with investment in plant and machinery

up to Rs.500 lakh was included under priority sector lending.

3. All small and medium enterprises, which export more than 50 per cent of their output,

are classified as Export Oriented Units.

4. Industry related service business enterprises with investment in fixed assets,

excluding land and building up to Rs.10 lakh are registered under Small Scale Service

Business Enterprises (SSSBEs).

5. The Internal Group to review Guidelines on Credit Flow to SME sector, appointed by

the RBI in 2005 suggests that current tiny definition may continue. Units with

investment in plant & machinery in excess of small and medium enterprises limit and

up to Rs.10 crore may be treated as Medium Enterprises (MEs).

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6. For the purpose of lending, the Rs.1000 crore SME Fund, launched by Small

Industries Development Bank of India (SIDBI) Defines SMEs as those industries

which invest more than Rs.1 crore but less than Rs.10 crore in plan and machinery.

With the revised definitions of SSI Units, the sector has also witnessed changes in its

structure during the recent times.

7. Micro Small and Medium Enterprises Development (MSMED) Act was passed in

2006 which offers separate definitions for manufacturing and service enterprises.

These are as under:

For enterprises engaged in Manufacturing activities, the criteria are as -

Manufacturing category:

Investment in Plant & Machinery (excluding Land & Building)-

Micro Enterprises- UptoRs. 25 lakhs

Small Enterprises- AboveRs. 25 lakh uptoRs. 5 Crore

Medium Enterprises- AboveRs. 5 crores uptoRs 10 crores

For enterprises engaged in service activities, the criteria are as:

Service category:

Investment in equipment (excluding Land & Building)-

Micro Enterprises- UptoRs. 10 lakhs

Small Enterprises- AboveRs. 10 lakh uptoRs. 2crores

Medium Enterprises- Above Rs. 2 crore uptoRs. 5 Crore

For the development of MSME, particularly of the Micro and Small Enterprises, the

Government has given importance in its MSME Development Act, 2006.

1.7 Small and Medium Enterprises (SME):

SME play important role in restructuring and in transformation of an economy with a

comparatively higher Labour-capital ratio and a shorter gestation period. SME involve

lower investment and greatly suit the economies of less developed countries that are

capital deficient and labour abundant. They operate relatively in smaller markets to be

economic. They offer a method of ensuring more equitable distribution of national

income and facilitate on effective mobilization of resources of capital and skill which

might otherwise remain unutilized Small and Medium Enterprises (SME) stimulate

growth of entrepreneurship and promote diffused pattern of ownership and location and

development of rural urban areas. They make use of more unskilled labour force and have

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direct impact on poverty alleviation. Have the spread effect on domestic market since

they buy more of domestic inputs and indigenous raw materials and domestic technology

to a large extent.

1.8 Development trend of Small and Medium Enterprises (SME):

The legacy of the present policy framework for development of small and medium

enterprises in India derives from a conscious attempt to reconstruct and re-

conceptualize pre-colonial and pre-capitalistic mode of production in the fabric of

modern manufacturing activities On the other hand this approach was a political

necessity to rehabilitate millions of distressed rural craftsmen, who could not survive

the onslaught of the forces of colonial economic imperialism; on the other hand such

compulsions forced the planners to make an attempt to evolve a development strategy

to integrate this segment of the country in the overall ambit of successive Five Year

Plans in India

1.9 Structure of the SME Sector:

Till recently, the SME sector structure is broadly classified into

“Household enterprises (those establishments, which carry out their operations from their

own residence)” and “Non-household enterprises (all other establishments in the

manufacturing sector)”. The household enterprises engage in the manufacture of a variety

of products that include food products, beverages, tobacco products, cotton textiles,

textile products, wood products, paper, leather, rubber, plastics, etc.

The manufacturing sector may be classified into „registered‟ and „unregistered‟.

Administratively, India‟s SSI sector is divided into seven industry groups – (1)

handicrafts (2) handlooms (3) Khadi, village and cottage industries (4) coir (5) sericulture

(6) power looms and (7) residual small scale industries.

The first five sub-sectors are collectively called the “traditional” sector whereas the last

two are known as the “modern” sector. The small-scale industrial undertakings can also

be classified into ancillary units, tiny units, export-oriented units and small-scale service

business enterprises.

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The Ministry of SSI, Government of India has conducted Four all-India censuses so far to

capture the developments taking place in the small-scale sector in India. The first and

second censuses were conducted in 1972 and 1987 respectively. The third census was

carried out during 2002-03 covering information up to 2001-02 and fourth census were

conducted in 2013.

1.10 Significance of Small and Medium Enterprises (SME)

Small and Medium Enterprises (SME) occupy a significant place in the industrial set up

of a country irrespective of the stage of its economic development. The importance of

Small and Medium Enterprises (SME) in the economic life of an under-developed and

developing country is indeed very great, particularly in view of its large employment

potential and contribution to national income. The principal elements in the economic

picture of India are the rapid growth of population, increasing size of labour force, large

volume of unemployment and under-employment and a low rate of savings. This

panorama can be effectively altered through the establishment of Small and Medium

Enterprises (SME).

The banking sector being a part of the economic system has its crucial role in economic

development. The scope for banks to play a vital role as development agencies is

practically unlimited. In earlier periods, commercial banks were concentrating on

metropolitan areas and industrial centers with the Nationalization of Bank and the

assigning of priority in their credit to Small and Medium Enterprises (SME), there has

been a rapid expansion of bank credit to the Small and Medium Enterprises (SME).

sector. Bank finance has diversified and is finding its way to the rural and semi-urban

areas. Commercial banks have become the principal financial institutions in meeting the

financial needs of Small and Medium Enterprises (SME).

1.11 Brief of Thane District

1. General Characteristics of the District.

Thane is the third most industrialized district in the State. The Thane Belapur-Kalyan

industrial belt is the Centre of highly sophisticated modern industries. The industrial

growth in the district, however, is concentrated in this industrial belt. The district can be

divided into three district parts. The first is the area under direct influence of Mumbai

metropolis. This area is more or less suburban to the metropolis and includes Thane,

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Kalyan and Ulhasnagar talukas where a number of organized modern industries are

concentrated. The second zone comprises the industrially developing areas of Vasai,

Bhiwandi, Palghar and Dahanu. The third part includes the rest of the area of the district

having conventional village industries, age-old cottage industries and primary processing

agro-industries.

2. Location and geographical Area.

Thane, the northern-most district of Konkan, lies adjoining the Arabian Sea in the north0-

west of Maharashtra States. It extends between 18*42‟ and 20*20‟ north latitude and

72*45‟ and 73*48‟ east longitude. Its northern limits adjoin the Union territories of

Dadra, Nagar Haveli and the State of Gujarat while the district of Nasik and Ahmednagar

to its east, Pune to the South –East, Raigad to the south and Mumbai Metropolitan to the

South – West. The total geographical area of the district is 9558 Sq. KMS which is 3.11%

of the total Maharashtra area.

3. Topography

Topographically, district can be divided into 3 parts:-

(1) In the Eastern Part of the district, Sahyadri ranges are spread and its north side the

thick forest area is situated.

(2) The Central Region of the district is mostly flat area and Rice farming is done in

this area.

(3) In the coastal part and 15 to 20 Kms, its nearly area cultivated for Vegetables,

Fruits and high quality of grass.

4. Avaibility of Minerals.

There is no major mineral or mining in the district. However, the mining activities in the

district are confined to quarrying of stones and sand which is carried on especially at

places which are near urban areas in Kalyan, Bhiwandi and Thane Tehsils. Deposits of

reddish laterite clay are also found near Gokhivara in Vasai Tehsil. The clay is used for

making bricks, tiles and cheap red glazed wares.

5. Forest

The total area under forest in the district is 3463 Sq. Kms which is 37.10% of total

geographical area. Out of this total forest area, 80.51% area is spread in Shahapur,

Palghar, Jawhar, Wada, Murbad, Dahanu and Vasai talukas and in remaining talukas it is

spread only 19.49%

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Table No1.1

Status of Forest in Thane District

2008 – 2009 2009 – 2010 2010 -2011

Sl.

No

Name of the

forest product

Total

produ-

ction

Total

value of

sale

Total

produ-

ction

Total

value of

sale

Total

produ-

ction

Total

value of

sale

1.

Timber

(„000‟cubic mtrs.) 6.798 18387 1.480 11095 0.787 6181

2.

Fire wood

(„000‟cubic mtrs.) 28.622 10592 5.250 8972 4.437 4849

3. Bamboo (Nos.) 16176 266835 35 - - -

4. Grass (Qntls.) 1200 130 740 117 1660 176

5. Gum (Qlsnt) 345 138 2100 134 2526 182

6. Others X 4798 X 3559 X 8217

Total X 36713 X 23877 X 19605

(Source: Thane District Industrial Survey, 2012)

1.5. Thane District at Glance:

According to Administrative convenient, the State is divided in six regional divisions.

The Thane district is included in Konkan Region Division. The district consists of 15

tehsils which are Thane. Vasai, Palghar, Dahanu, Talasari, Jawhar, Mokhada, Bhivandi,

Wada, Shahapur, Murbad, Kalyan, Ulhasnagar, Ambernath and Vikramgad.

At the district level, Collector is the Administrative Chief and the Tehsil level. For rural

development, Chief Executive Officer of Zilla Parishad, at district level and Block

Development Officer at Block level, are in charge of the administrative.

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Table No1.2

Thane District at a glance

Sl.

No.

Particular Year Unit Statistic

1. Geographical

(A)

i) Latitude 2010-11 Degree 18.42‟-20.20‟

ii) Longitude 2010-11 Degree 72.45‟- 73.48‟

iii) Geographical Area Sq. Kms. 9558

(B)

Administrative Units

i) Sub divisions Nos. 6

ii) Tehshils Nos. 15

iii) Sub Tehshils 0

iv) Patwari Circle Nos. 588

v) Panchayat Samiti Nos. 13

vi) Nagar Nigam (Mahapalika) Nos. 7

vii) Nagar Palika Nos. 5

viii) Gram Panchayat Nos. 924

ix) Revenue Village Nos. 1748

x) Assembly Area 24

2. Population

(A)

Sex-wise

i) Male 2010-11 „000‟ 4378

ii) Female 2010-11 „000‟ 3754

(B) Rural Population 2010-11 „000‟ 2229

3. Agriculture

Land Utilization

(A)

i) Total area 2010-11 Thousand

Hectares

934

ii) Forest cover 2010-11 Thousand

Hectares

346

iii) Non Agriculture Land 2010-11 Thousand

Hectares

58

17

iv) Cultivable Barren Land 2010-11 Thousand

Hectares

55

4. Forest

i) Forest 2010-11 Thousand

Hectares

346

5. Livestock & Poultry

(A)

Cattle

i) Cows 2007 Nos. 454372

ii)Buffaloes 2007 Nos. 192700

(B)

Other Livestock

i) Goats 2007 Nos. 203433

ii) Pigs 2007 Nos. 192700

iii) Dogs & Bitches/Horse 2007 Nos. 76022

(C) Railways

i) Length of rail line 2010-11 Kms. 545

(D)

Roads

i) National Highway 2010-11 Kms. 467

ii) State Highway 2010-11 Kms. 3349

iii) Main District Highway 2010-11 Kms. 2205

iv) Other district & Rural roads 2010-11 Kms. 3398

v) Rural road/Agriculture

Marketing Board Road

2010-11 Kms. 8782

(E)

Communication

i) Telephone connection 2010-11 Nos. 60639

ii) Post offices 2010-11 Nos. 412

iii) Telephone Centres 2010-11 Nos. 7

iv) Density of Telephone 2010-11 Nos./1000

persons

606

v) PCO Rural 2010-11 Nos. 1710 Approx.

vi) PCO STD 2010-11 Nos. 1820 Approx.

vii) Mobile 2010-11 „000‟ Nos. 813 Approx.

18

(F)

Public Health

i) Allopathic Hospital 2010-11 Nos. 44

ii) Beds in Allopathic Hospitals 2010-11 Nos. 9525

iii) Ayurvedic Hospital 2010-11 - 01

iv) Beds in Ayuvedic Hospitals 2010-11 - 0

v) Unani Hospitals 2010-11 - 0

vi) Community Health Centre 2010-11 Nos. 113

vii) Primary Health Centres 2010-11 Nos. 125

viii) Dispensaries 2010-11 Nos. 44

ix) Sub Health Centres 2010-11 Nos. 532

(G)

Banking Commercial

i) Commercial Banks 2010-11 Nos. 709

ii) Rural banks 2010-11 Nos. 20

iii) Co-operative banks 2010-11 Nos. 83

(H)

Education

i) Primary 2010-11 Nos. 5794

ii) Middle schools 2010-11

Nos.

1866 iii) Secondary & senior

secondary schools

2010-11

iv) Colleges (Degree) 2010-11 Nos. 96

v) Technical University 2010-11 Nos. 0


19

Table No1.3

Existing Status of Industrial Areas in the Thane District

Sl.

No

Name of

Indl. Area

Land

Acquir

ed (in

hectar

es)

Land

Develop

ed (in

hectares)

Prevaili

ng Rate

Per sq

km

(in Rs.)

No. of

plots

No.of

allotte

d

plots

No.

of

vaca

nt

plots

No. of

units (in

produ-

ction)

1 Thane 252.36 252.36 13570/- 827 737 90 633

2 Tarapur 1028.5

4

1028.54 2355/- 71588 70109 1479 1760

3 Dombivali 357.27 357.27 10180/- 21468 19915 1553 1514

4 Mira 7.82 7.82 6650/- 4647 4647 0 37

5 Ambernath

(Ambernath

Belapur

Rd)

228.49 228.49 2660/- 291 290 1 250

6 Addl.

Ambernath

Anandnagar

507.47 504.47 2695/- 846 823 23 717

7 Addl.

Ambernath

Village

Pale &

Bohonoli

506.64 503.22 2660/- 3 3 0 0

8 Badlapur 101.10 99.80 2660/- 374 331 43 274

9 Kalyan

Bhiwandi

48.16 48.16 1995/- 33 33 0 20

10 Addl.

Kalyan

Bhiwandi

4.27 44.27 1995/- 2 2 0 0

20

11 Murbad 130.71 130.71 935/- 217 202 15 172

12 Addl.

Murbad

(Khudavali)

138.85 134.86 935/- 303 300 3 260

13 T.T.C. 2333.27 2333.27 15960/- 3693 3664 29 2812

Total

5,644.95 5,673.24 104.292 101056 3236 8449


Table No1.4

Co-operative Industrial Area of Thane District

Sr.

No.

District No. of

Co-op.

Indl.

Estate

Total

Area

No. of

plots

carved

No. of

plots

allotted

No. of

working

industries

1. The Palghar

Taluka Co-op.

Indl. Estate

-- 8.80 60 60 57

2. The Vasai

Taluka Co-op.

Indl. Estate

-- 25.60 140 140 138

(Source: District Industrial Survey,2012)

22

Table No1.6

Year wise trend of units registered in Thane District


Sr.No. YEAR

Number of

Registered Units Employment

Investment

(lack Rs.)

1 1984-85 2028 17408 445711

2 1985-86 377 5341 145302

3 1986-87 437 5135 215753

4 1987-88 480 4524 259819

5 1988-89 470 4266 250809

6 1989-90 378 3587 235786

7 1990-91 299 3091 203403

8 1991-92 535 4564 284273

9 1992-93 684 6323 355542

10 1993 – 94 1166 9277 455041

11 1994 – 95 1059 10071 584333

12 1995 – 96 594 5250 514791

13 1996 – 97 409 3509 410380

14 1997 – 98 449 5288 592169

15 1998 – 99 443 5604 1272829

16 1999 – 2000 436 5282 1239667

17 2000 – 01 355 4152 923182

18 2001 – 02 315 3746 1050181

19 2002 – 03 324 3693 914115

20 2003 – 04 311 3594 697361

21 2004 – 05 318 3510 711050

22 2005 – 06 383 4384 910677

23 2006 – 07 734 7735 868056

24 2007 – 08 1038 20120 846656

25 2008 – 09 992 16532 623464

26 2009 – 10 1160 20287 781138

27 2010 – 11 2139 31148 1271124

TOTAL 18313 217421 17062612

23

Table No. 1.7

Existing Micro & Small Enterprises and artisan units in the Thane district.

Sr. No. Type of Industry No. of Registered Units

(in 000‟)

1 Agro Based 245

2 Soda Water 28

3 Cotton Textile 460

4 Woolen, silk & artificial tread based clothes 282

5 Jute & Jute based 9

6 Ready-made garment & Embroidery 67

7 Wood/wooden based furniture 30

8 Paper & paper products 81

9 Leather based 11

10 Chemical/chemical based 342

11 Rubber, plastic & petro based 273

12 Mineral based 105

13 Engineering units 826

14 Electrical machinery and transport

equipment

87

15 Repairing & servicing 44

16 Metal Based 145

17 Others 13927

TOTAL 16962


24

Table No. 1.8

Investment in Existing Micro & Small Enterprises and

artisan units in the Thane district

Sr. No. Type of Industry Investment (in lakhs)

1 Agro Based 15283

2 Soda Water 1776







9 Leather based 300






equipment

4599


16 Metal Based 18420

17 Others 623571

TOTAL 16962


25

Table No1.9

Employment in Existing Micro & Small Enterprises and

artisan units in the Thane district

Sr. No. Type of Industry Employment

1 Agro Based 3849

2 Soda Water 282







9 Leather based 503






equipment

1926


16 Metal Based 3660

17 Others 201034

TOTAL 260578


26

1.12 Thane Belapur Industrial Belt (TBIB) in Navi Mumbai :

Thane Trance Creek Industrial area was established by MIDC in the year 1972. The

area is well developed with quality infrastructural facilities such as roads, water

supply and street lights. Many renowned industries are operating from this area.

MIDC had acquired 591 hectares of land for the area. Recently, MIDC opened a

software park for the IT industry and also constructed an IT Tower here. Besides,

MIDC has developed a residential zone for the employees and owners of the

companies.

Objectives of MIDC are:

1. Rapid and orderly establishment and growth of firms in the entire area to

achieve balanced industrialization.

2. To achieve balanced industrial development of Navi Mumbai with an

emphasis on developing parts and underdeveloped parts of the firms.

3. Facilitate entrepreneurs in setting up firms at various locations in MIDC.

4. Infrastructural development in setting up firms at various locations in MIDC.

Following are the activities efficiently carried out by MIDC:

5. Developing industrial areas through acquisition of appropriate land.

6. Planning and developing industrial parks, providing basic infrastructure such

as roads, drainage systems, power and water in the industrial parks.

7. Planning, implementing and managing water supply schemes.

8. Co-ordinating with other infrastructure providers for electricity, telecom,

connectivity, etc.

9. Establishing common facility centres by providing banks, post offices,

telecom facilities, police stations, fire stations, medical facilities, canteens, etc.

10. Establishing effluent collection and disposal systems for chemical zones.

11. Providing residential areas for housing industrial workers.

The TTC MIDC has been declared as an agent of the State Government for carrying

out the activities within the framework of the MID Act and the MID Rules.

27

1.13 Growth of Industries in Navi Mumbai:

In a span of 35 years from 1965 to 1999, the entire area was transformed from that of

a sleeping village, where fishery was the main occupation, into a large vibrant

industrial centre. The following table reveals the growth of industries in Thane-

Belapur Industries Belt (TBIB). A nature of cross section of the industries which are

set up here gives an idea about the major thrust areas for various countries to establish

business relations with the local industry, trade and commerce.

The classifications of industries are:

Table No.1.10

Sr. No Product Units %

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

Engineering

Chemicals

Pharmaceuticals

Food

Textile Processing

Petrochemical

Dyes & Intermediates

Steel & Allied

Electronics

Oil Processing

Paper

Plastics

Misc.

730

400

50

50

50

10

50

25

300

10

02

23

300

36.00

20.00

03.00

02.00

03.00

01.0

02.0

01.00

15.00

01.00

01.00

01.00

14.00

Total 2,000 100.00

( Source: Census Survey of industries in Navi Mumbai, CIDCO, 2008.)

28

These industries located here are of large multi-national and national industrial houses

along with medium and small scale industries set up by entrepreneurs.

They are has dedicated Chemical & Petrochemicals, Pharmaceuticals, Engineering

and Electronic Zone as well as InfoTech Park Millennium and Knowledge Park which

could cater to the needs of International Market and efficient business.

We have exclusive 100% export oriented units and there is a tremendous scope to

enhance the export because Government of India has a very lucrative incentive policy

for the same.

The quality consciousness and zeal for Total Quality Management along with best

business management practices has made this area a class different from other

industrial areas of the country.

TBIA in a way is narrated as the pulse of the Nation. It is an indicator of Techno-

Economic upheavals of the country and is pro-active in response to Ecological issues

while making an effort to achieve sustainable growth, focusing itself on propagating

cleaner technologies and processes instead of the end of pipe technologies.

1.14 Industrial Development in the Thane Belapur Industrial Belt (TBIB):

Thane-Belapur Industrial Belt (TBIB) also known as the Trans Thane Creek Area

(TTCA) is situated in Zone II of Mumbai Metropolitan Region Development

Authority (MMRDA). It is one of the major industrial belts in the country. TBIB

mainly covers a strip between Thane Creek on the west, reserved forest land on the

east; CBD, Belapur on the south and Thane city limit on the north admeasuring

approximately 162 sq.km. The industrial development in TBIB commenced in 1961,

along with declaration of Maharashtra Industrial Development Corporation (MIDC).

The objective was primarily to promote chemical, engineering and other auxiliary

industrial units. Subsequently MMRDA, along with City and Industrial Development

Corporation (CIDCO) has developed a number of residential and commercial zones

within this area, apart from a large number of villages that are situated in this belt.

29

Navi Mumbai's economic base was expected to be unique - more dependence on

private sector activities like wholesale trading and processing activities in agricultural

produce, iron and steel stockyards and wholesale markets, port based commercial and

industrial activities, private and public sector offices, training and R & D centers in

selected District Business Centers (DBCs) and Central Business District (CBD) and

last, but not the least, the fast emerging industrial belts along Thane - Belapur Road

and at Taloja. In fact, at the time of formation of CIDCO in 1970-71, the only

economic input available was about 16,000 industrial jobs in the Thane - Belapur belt;

huge amounts of money were being spent by each company in transporting their

workers to and from Mumbai.

1.15 Contribution of MIDC in the development of SME in Navi Mumbai

1. Acquisition & disposal of land: The land for industrial areas is acquired by the

Government of Maharashtra under Chapter VI of the MIDC Act. 1961 and handed

over to the Corporation for further disposal. Likewise, wherever available, the

Government land is also handed over to the Corporation as an industrial area. The

Government pays for the compensation for the private land from its own fund. The

Corporation in turn plans the area and disposes the land in suitable plots by leasing

out for 95 years. For this purpose the Corporation recovers the premium lease money

at different rates for different industrial areas. Also the Corporation constructs built-

up accommodations like Sheds and Flatted units and sale them out to the prospective

industrialists together with the land there under on lease basis. As on 31.3.2002 the

Corporation has planned 673.72 (Hectares) of land against which 591.02 Hectares of

land has already come in possession of the Corporation.

2. Provision of infrastructure facilities: In terms of the provision of the MID Act, 1961

and the relationship prescribed by the government in that regard, the corporation is

required to provide infrastructure facilities like roads, streetlight, drainage, water

supply schemes and buildings for common facilities like post & telegraphs, canteen,

bank, and telephone etc. The corporation meets the expenditure on such works

(facilities) generally from the premium lease money received by it from the allottees.

The relationship further prescribes that the industrial area, after it is fully developed,

should be returned back to the Government/handed over to such agency or authority

as the State Government may directs, after striking out the account of the industrial

30

area concerned. The surplus/deficit generated out of such operations is to be made

good to or recovered from the state government as the case may be.

As the development of an industrial area is a long process and instant

objective, the government has prescribed certain scale of interim annual payments

which are termed as on account advance payment to government. In this connection it

may stated that the powers to fix the rates of premium for land for different industrial

areas rest with the corporation. Since it is the aim of the government and the

corporation to achieve a balanced development of the entire State with special

emphasis on the development of backward regions of the state, the Corporation

follows a policy of cross subsidization rate structure on A B C D zones pattern, in that

the rates of land premium in developed and semi developed parts of the State are

higher compared to the rates in developing and backward regions.

3. Providing of services:

The Corporation provides the following services to the units in its industrial

areas:-

a) Assured Water Supply: From among the various services provided by the

Corporation, an assured pure water supply can be regarded as a unique specialty of

the MIDC. The investment on the water supply scheme (Head works) made by MIDC

as on 31st March, 2002 is over Rs.5 crores with installed capacity of water supply of

25 MLD. For the purpose of regulating the water supply operations of the Corporation

the Government of Maharashtra has prescribed a legal and financial relationship

between the Government and the Corporation.

b) Maintenance of Industrial Areas: This is a municipal function requiring the

Corporation to maintain the Roads, Street lights, Fire stations (in few areas) during

the transitory period up to handing over of the industrial area either to Government or

other agency as the Government may decide. The MIDC Act, vide Section 56,

provides for the exits policy after the purpose of industrial development as

contemplated in the Act is fulfilled. However, this has seldom become possible in the

absence of a substitute agency to take over the responsibility, except in few cases like

that of Marol, Wagale Estate, Pimpri Chinchwad etc. where the Corporation could

hand over only the roads and street lights to local Municipal Corporations. In other

31

areas, the Corporation carries on this function as a committed obligation. For this

purpose the Corporation recovers service charges to defray the expenditure on such

services.

c) Drainage (effluent disposal) and CETP Schemes: The Corporation has effluent

disposal (drainage) schemes only in selected Industrial areas having chemical

industries. Such schemes are designed to collect and discharge the treated effluent

only. In such areas the Corporation recovers drainage cess to defray the expenditure

on maintenance and to partially recover the capital cost. Also with a view to arrest

pollution, the Corporation has started the operations like Hazardious waste

Management and common effluent plants on Joint venture basis with the help of local

industries associations.

d) Other Services: Theses include providing and maintaining Common Facility

Centers like P&T, Banks etc. Though the Corporation does not levy any specific cess

for the purpose, the C. F. C. building is subject to rentals. Such rental together with

other miscellaneous income from the area covers the maintenance cost of such CFCs.

The policy decisions taken by TTC MIDC certainly changed the social economic

scenario of the city as its activities spread in the interior. The important policy

decision of setting up "independent filtered /potable water supply system of adequate

capacity" as essential infrastructure for industrial development was the most

intelligent step taken by TTC MIDC right in the beginning. It stabilized the

population base near the industrial areas. The strategically wise decision taken

simultaneously to provide water supply to nearby domestic population from the

capabilities created by TTC MIDC of their own water supply system resulted in a

phenomenal urban growth in the nearby small towns and villages.

1.16 Research Idea in making:

Small and Medium Enterprises (SME) always plays an important role in providing

employment to masses ,increasing production in a country, encouragement for exports

in India and many others. A research idea to be conducted with reference to SME

seems to be a subconscious and conscious call. In the process, the review of literature

was conducted to know more and more about SME. Lots of material has been found

with reference to the history, evolution and with regards to the development and

32

problems of SME. In the process it is observed that there is lack of empirical study

with reference to SME in Navi Mumbai at Thane Belapur Industrial Belt which is

second node of industries in a country. This revealing fact triggered the idea to

conduct an empirical, descriptive and analytical study with references to SME in Navi

Mumbai. the individual limitations of resources in command the research idea got

crystallized to focus on the contribution of Maharashtra Industrial Development

Corporation(MIDC) in the development of SME in the Navi Mumbai with special

reference to Thane Belapur Industrial Belt(TBIT).

1.17 Statement of the problem:

It is clearly noticed that in emerging world and rapid change in the industrialization in

Navi Mumbai contributed steady and impressive growth in India‟s GNP. Role of

MIDC in the process of Industrialization especially in small and medium enterprises

is significant. MIDC has changed the lifestyle of the people in Navi Mumbai at high

extent. Thane-Belapur Industrial Belt(TBIB) gaining lot of significance due to high

spresd of I.e.80% industrial unites are small and medium enterprises which provides

employment opportunities to people.There was very limited study on contribution of

MIDC in the development of small and Medium enterprises in Navi Mumbai. Thus

this situation attracted the research student for conducting surveys and interviews for

knowing how small and Medium enterprises in Navi Mumbai are developed due to

the high support of MIDC.

Thus the exact problem of study is –

“STUDY OF CONTRIBUTION OF MIDC IN THE DEVELOPMENT OF SMALL

AND MEDIUM ENTERPRISES IN NAVI MUMBAI-A CASE STUDY OF THANE

BELAPUR INDUSTRIAL BELT, THANE DISTRICT”

1.18 Objectives of the study:

1. To ascertain the role of MIDC in terms of employment generation to the SME in Navi

Mumbai

2. To study the role of MIDC in promoting the SME in Navi Mumbai.

3. To identify the role of MIDC in terms of infrastructure to the SME in Navi Mumbai.

4. To identify the role of MIDC in terms of waste disposal to the SME in Navi Mumbai.

33

5. To identify the role of MIDC in terms of consultancy and incentives to the SME in

Navi-Mumbai

6. To provide measures and suggestions.

1.19 Hypothesis and Null Hypothesis:

Hypothesis:

“Proper planning and execution of infrastructure development policy and programme of

MIDC can contribute in development of SME and enhance economic development of that

region”

“Null Hypothesis”:

Null Hypothesis with reference to the employability in SME in Navi Mumbai

1. There is no significant increase in employability in Navi-Mumbai MIDC over

a period of interval (2000-2013).

2. There is no association between type of SME and year of existence with

respect to year 2000

Null Hypotheses with reference to contribution of MIDC in the development of

SME:

A) Null Hypotheses with reference to Land acquisition and allotment:

1. There is no association between level of satisfaction of land acquisition and

allotment for SME and type of organisation of the respondent.


allotment and type of SME of the respondent.


allotment and type of industry of the respondent


allotment and annual turnover of the respondent.

5. There is no association between satisfaction of land acquisition of allotment

by policy of MIDC in Navi Mumbai and development of SME.

B) Null Hypotheses with reference to Power Supply:

1. There is no association between level of satisfaction of Power Supply for SME

and type of organisation of the respondents.

34

2. There is no association between level of satisfaction of Power Supply and type

of SME of the respondent.

3. There is no association between level of satisfaction of Power Supply and type

of industry of the respondents.

4. There is no association between level of satisfaction of Power Supply and

annual turnover of the respondents.

5. There is no association between satisfaction of Power Supply by policy of

MIDC in Navi Mumbai and development of SME.

C) Null Hypotheses with reference to Water Supply:

1. There is no association between level of satisfaction of Water Supply for SME

and type of organisation of the respondents.

2. There is no association between level of satisfaction of Water Supply and type

of SME of the respondents.

3. There is no association between level of satisfaction of Water Supply and type

of industry of the respondents.

4. There is no association between level of satisfaction of Water Supply and

annual turnover of the respondents.

5. There is no association between satisfaction of Water Supply by policy of


D) Null Hypotheses with reference to Fire Prevention Measures:

1. There is no association between level of satisfaction of Fire Prevention

Measures for SME and type of organisation of the respondent.


Measures and type of SME of the respondent.


Measures and type of industry of the respondent.


Measures and annual turnover of the respondent.

5. There is no association between satisfaction of Fire Prevention Measures by

policy of MIDC in Navi Mumbai and development of SME.

35

E) Null Hypotheses with reference to Safety and Security Measures:

1. There is no association between level of satisfaction of Safety and Security

Measures for SME and type of organisation of the respondent.


Measures and type of SME of the respondent.


Measures and type of industry of the respondent.


Measures and annual turnover of the respondent.

5. There is no association between satisfaction of Safety and Security Measures

by policy of MIDC in Navi Mumbai and development of SME.

F) Null Hypotheses with reference to Waste Management:

1. There is no association between level of satisfaction of Waste Management for

SME and type of organisation of the respondent.

2. There is no association between level of satisfaction of Waste Management

and type of SME of the respondent.


and type of industry of the respondent.


and annual turnover of the respondent.

5. There is no association between satisfaction of Waste Management by policy

of MIDC in Navi Mumbai and development of SME.

G) Null Hypotheses with reference to Consultancy:

1. There is no association between level of satisfaction of Consultancy for SME

and type of organisation of the respondent.

2. There is no association between level of satisfaction of Consultancy and type

of SME of the respondent.

3. There is no association between level of satisfaction of Consultancy and type

of industry of the respondent.

4. There is no association between level of satisfaction of Consultancy and

annual turnover of the respondent.

36

5. There is no association between satisfaction of Consultancy by policy of


H) Null Hypotheses with reference to Marketing Research:

1. There is no association between level of satisfaction of Marketing Research

for SME and type of organisation of the respondent.


and type of SME of the respondent.


and type of industry of the respondent.


and annual turnover of the respondent.

5. There is no association between satisfaction of Marketing Research by policy

of MIDC in Navi Mumbai and development of SME.

I) Null Hypotheses with reference to Incentives:

1. There is no association between level of satisfaction of Incentives for SME

and type of organisation of the respondent.

2. There is no association between level of satisfaction of Incentives and type of

SME of the respondent.

3. There is no association between level of satisfaction of Incentives and type of

industry of the respondent.

4. There is no association between level of satisfaction of Incentives and annual

turnover of the respondent.

5. There is no association between satisfaction of Incentives by policy of MIDC

in Navi Mumbai and development of SME.

1.20 Research Methodology:

As the requirement to have research methodology in conducting any research, the

study in hand had adopted the popular Research Methodology normally adopted in

conducting social research. The research adopted is tuned to „Descriptive and

Analytical method‟. The Research Methodology considered popular methods for

understanding the population, sample and sampling, collection of data, editing,

classification and interpretation of data. The standard practice of conducting social

37

research was adopted as Research Methodology. The objectives and Hypothesis of the

study were kept in mind to develop a supportive Research Methodology.

Population of the study

The population of the study covered the 100 SME unites in Thane Belapur Industrial

Belt in Navi Mumbai covering engineering, chemical, pharmaceuticals, Textile and

others enterprises in a size of small and medium enterprises.

Sampling and Sample size

All the 100 SME Unites in the local of the study are covered as shown in Annexure-

II. The original idea is to go on census method which will cover all the units, MIDC

officials. When the research reached the practical side of the activity it was found that

the response given to the data collection process does not fulfill the claim having

census method of research. By consistent persuasion and personal contacts the

research could have response determining a favorable sample size. The sample size

thus arrived is stratified sample based on response received from the respondents.

Table No 1.11

Sample units for conducting surveys

Engineering Chemical Others Textiles Pharmaceutical Total

Small

Enterprises

29 15 28 04 01 78

Medium

Enterprises

10 07 04 01 01 22

Total 39 22 32 05 02 100

(Other Enterprises includes Paint(01), Fabrications(03), Food(02), Packaging(02), Ice

Sheet(01), Printing(03), Mineral water(02), Furniture(01), Spare parts(07)

,Plastic(01), IT(01), Promotion(01), Logistic(01),Peper(01), Rubber(02),Electronic

Component(01).)

38

Area of the study

Research student has selected location at Industrial belt includes Trans Thane Creek

(TTC) . The TTC area spread over 2,562 Ha and number of plots in TTC is 3824.TTC

is a main concentration point by Industries for their set up in New Mumbai.

Data collection and Processing

The study relied upon both primary and secondary data

Primary Data is collected by use of methods like structured questionnaires to the SME

unit (Annexure –II), Structured questionnaires to MIDC officials (Annexure-III) and

along with discussion and interview with the respondents. Before finalizing the

structured questionnaires the draft questionnaires were prepared which can facilitate in

achieving required data for the study. While preparing the questionnaires detail

consideration of review of literature, the objective of the study and Hypothesis were

considered, in all two set of questionnaires were prepared. The Questionnaires become

the tool to collect data from the SME unites, entrepreneurs and MIDC officials. Each

Questionnaire consisted of classified set of questions which can generate classified

data with reference to Questionnaires.

In the process of collecting data through structured questionnaires it could facilitate

healthy environment of understanding which lead to fruitful interaction, discussion

and interviews of the respondents. This could help in having insight to the existing

facts required for the study.

Secondary data sources will include research reports published by CIDCO and

MIDC, District Industrial Development Corporation (DIDC), Regional development

offices, articles published in national journals, magazine, and newspapers, Reports of

various government departments, consultancy firms, published and unpublished

Research work at various institutions.

The Secondary data consisted of annual reports of SME covered in the study as well

as review of literature, publish articles by different authors and experts in the area of

Industrial location. Development of SME, plant location theories.The unpublished

data of SME that came to the knowledge during conduct of the study was considered

as a part of secondary data.

39

Analysis of Data

During the research, research student will use the statistical techniques for analysis like SPSS

Package, T-test, Chi-Square test and ANOVA etc.

Data Processing

The collected data subject to editing process by which purification of data could be achieved.

Incomplete questionnaires and irrelevant answered questionnaires were edited from the

collected data and constituted for Classification of data, Tabulation, Analysis of data and

statistical Methods.

Statistical Methods

Statistical Methods used for data analysis consist of Quantitative and Qualitative analysis.

T-test, ANOVA and Descriptive statistics are used in the study. The SPAA package was used

for statistical analysis

Reporting method

The study gets reported in a „Popular Method‟ of reporting. The statistical part of the report is

in „Technical Method of Reporting‟. Over all the reporting consist of use of tables, diagrams

(pictograms, pie-diagramme, histograms etc.), photographs and other visual presentations.

1.21 Scope of the study:

Temporal Scope:-

For the purpose of data collection and study, the data has been collected from the

present 100 SME unites in Thane-BelapurIndusrial Belt(TBIB) in NaviMumbai.To

calculate the trends in development of SME in Navi-Mumbai,14years data (Calender

year 2000 to 2014) is considered..For review and other purpose reference have been

made about the history of MIDC and SME in NaviMumbai in other domains.

Functional Scope:-

The purpose of the study is to go in depth for contribution of MIDC in development

of SME in NaviMumbai at Thane Belapur Industrial Belt (TBIB). The study also

intends to obtain further suggestions for improving existing MIDC support and

facilities for the development of SME in Thane Belapur Industrial Belt (TBIB) in

Navi Mumbai. The important factors considered for development of SME in TBIB in

40

Navi-Mumbai study include Infrastructure facility, Land acquisition Policies, Water

Supply, Safety and Securities measures and Disposal management.

The SME respondent‟ opinion on the problems faced by them with respect to MIDC

support, Also their view on significance of major benefits of MIDC in Navi-Mumbai.

Geographical Scope:-

The study is in-depth study with special reference Small and Medium Enterprises

(SME) at Thane-Belapur Industrial Belt (TBIB) in Navi-Mumbai. Small and Medium

Enterprises (SME) includes the category of Engineering unites, Chemical unites,

Pharmacutical unites, Textile unites and other unites in Navi Mumbai

1.22 Limitations of the study:

1. The study only deals with Small and Medium Enterprises (SME) in Navi Mumbai

at Thane-Belapur Industrial Belt (TBIB).

2. The study deals specifically with 100 Small and Medium Enterprises (SME)

unites in a category of Engineering, Chemicals, Pharmaceuticals, Textile and

Others.

3. The study also deals with some unites which are existed after 2000 but which are

now functioning in MIDC area in Navi-Mumbai.

4. The study does not include Large Scale Enterprises (LSE) in Thane-Belapur

Industrial Belt (TBIB) in Navi-Mumbai.

5. As the study requires data from SME unites all over the Thane-Belapur Industrial

Belt (TBIB) in Navi-Mumbai region, the cost and time constraints have put

certain limitations including sample size. But every attempt is made to keep spirit

of the objectives and research methodology.

6. The reliability of the study may depend on authenticity of the data supplied by the

SME respondents.

41

1.23 Organisation of Chapters:

Chapter 1: Introduction and Research Design.

The introduction and importance of Small and Medium Enterprises in general and of

MIDC in particular gets incorporated in this chapter.

History of SME in general and MIDC in particular gets incorporated in this chapter.

Industrial Development, Brief of Thane District and SME in it, Thane Belapur

Industrial Belt in Navi Mumbai and nature of industries gets reflected in this chapter.

Statement of problem, Objectives of the study, Hypothesis of the study, Null

Hypothesis with reference to contribution of MIDC in the development of SME in

Navi Mumbai with special reference to Thane Belapur Industrial Belt..

Research Methodology, scope of the study, span of the study, limitations of the study

and the organization of the chapters gets reflected in this chapter.

Chapter 2: Review of Literature

The published and unpublished literature gone through for this research study which

found the base of fair understanding and support to conduct the research gets

highlighted in this chapter.

Chapter 3: Overview of SME in Thane Belapur Industrial Belt

This chapter covers brief introduction and definitions of SME, Role of SME,

Development in Maharashtra, Performance in India and overview of SME in Thane

Belapur Industrial Belt in Navi Mumbai.

Chapter 4: MIDC in practice in Navi Mumbai.

This chapter covers the concept and the areas of functioning and services of MIDC in

general and in Thane Belapur Industrial Belt in Navi Mumbai with reference to land

acquisition policy, Infrastructure, Power supply support services, Safety and Security

measures, Water supply, Waste disposal mechanism, CEPT service, Consultancy and

incentives to SME in Navi Mumbai.

42

Chapter 5: Profile of SME unites –TBIB in Navi Mumbai.

The chapter covers the profile of selected SME unites from engineering, chemical,

pharmaceutical, Textile and others category in TBIB in Navi Mumbai.

Chapter 6: Perception of SME unites at Thane Belapur Industrial Belt(TBIB) in

Navi Mumbai.

The chapter covers the Perception of SME unites towards Land acquisition and

allotment, infrastructure, Water supply facilities, Safety and Security measures, Waste

Management, Consultancy and Incentives provided by MIDC in Navi Mumbai.

Chapter 7: Findings and Testing of Hypothesis.

The chapter covers the findings, Quantitative and Qualitative analysis of the collected

data from the SME respondents in NaviMumbai.Chapter also covers the physical

observation of MIDC services in the jurisdiction of the study. The quantitative

analysis gets reported by usage of T-test, ANOVA, chi-square test and Descriptive

statistics.

Chapter 8: Suggestions and Conclusion.

In these chapter suggestions, significance of the study, areas are open for further

research and a concluding remark gets incorporated. The study was conducted

keeping in mind the objectives and hypothesis sets for study.

The Research Methodology was formulated to conduct the research study that could

arrive at findings of the study.

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1.24 Conclusion

The research was conducted as per the objectives; Hypothesis and Research

Methodology mentioned in this chapter. The history of SME and MIDC gets reviewed

and incorporated in this chapter. The information incorporated in this chapter not only

sets platform for the research study in hand but shall provide required literature

support for the other researcher who intend to initiate research study with reference

SME. The books and literature that gave the information in the spread of this chapter

are cited and given in Bibliography of this Thesis.

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