Industry & Energy Sector
    
- Industry
- Energy

- Electricity

IndustryIndustry  

 Punjab is primarily an agrarian state, the  future lies in the development of industry  by harnessing the synergies in agriculture and industry through the development of agro based industry by further strengthening base of manufacturing industries. Keeping this in view, the State Govt. has already notified new industrial policy from 1st April, 2003. This new policy, therefore, has to address itself to the two basic issues, i.e. to promote investment and development in the growth areas of agro based and knowledge based industries, and to rejuvenate and strengthen existing industries, particularly the small and medium enterprises. This policy has also facilitated the private sector participation in industrial parks, multiplexes and tourism projects.

Large and Medium Scale Units

During 2003-04 a number of 551 large and medium units were working in the state with a fixed investment of Rs.21089 crores, employing 2.33 lakh persons with a production value of Rs. 31972 crores. This number increased to 562(P) with a fixed investment of Rs. 21508(P) crores, providing employment to 2.37(P) lakh persons with the production value of Rs. 32610(P) crores during 2004-05. It is expected that the number of these units will increase to 580(P) in 2005-06 with a fixed investment of Rs. 22197(P) crores, generating employment for 2.45 (P) lakh   persons with the production value of Rs. 33655(P) crores.

Small Scale Units

     Small Scale units are the backbone of the industrial structure in the state. These units are manufacturing a variety of goods ranging from tiny needles to sophisticated electronic goods. During the year 2003-04 there were 2.03 lakh working units with a fixed investment of Rs.4816 crores generating employment to 9.30 lakh persons with the production value of Rs.24984 crores. For the year 2004-05 these units increased to 2.04(P) lakh with a fixed investment of Rs.4835 (P) crores and providing employment to 9.34(P) lakh persons with the turnover of Rs.25095 (P) crores. It is expected that number will increase to 2.05(P) lakh  units with a fixed investment of Rs.4855 (P) crores providing employment to 9.38(P) lakh persons with the production value of Rs. 25200(P) crores during the year 2005-06.

The Punjab State Agro Industries Corporation

     The Punjab State Agro-Industries Corporation (PAIC) is a nodal agency for developing agro-based Industries in the state. The Corporation has set up two projects based on agriculture and allied activities with an investment of Rs. 13.87 crores providing employment to 150 persons up to Sept., 2005. Two more new projects are likely to be set up in the State by the assistance of the corporation with a cost of Rs.34.75 crores providing employment to 175 persons during the remaining period of the year 2005-06.

The Punjab Information & Communication Technology Corporation

    The Punjab Information & Communication Technology Corporation Ltd. (Punjab Info-Tech), a State Govt. under taking working as nodal agency engaged in the promotion of information technology, information technology enabled services (ITES), electronics and communication industry in the state of Punjab. The Corporation has implemented four projects during the year 2004-05 involving the cost of Rs. 493.99 crores providing employment to 2296 persons. The Corporation is likely to implement ten projects during 2005-2006 with an investment of approximately Rs.894.50 crores which would provide employment to 9905 persons. Up to September, 2005, the Corporation has implemented two projects costing Rs.3.00 crores providing employment to 1550 persons.  

Punjab State Industrial Development Corporation

    The Punjab State Industrial Development Corporation (PSIDC) plays an important role for the promotion of large and medium scale industries. One project of fresh frozen meat which was partially commissioned during the year 2004-05 has started commercial production during the year 2005-06 with a total investment of Rs. 25.00 crores providing employment to 100 persons by the corporation. One more project of fresh frozen meat is likely to be set up during the year 2005-06 with an investment of Rs. 27.00 crores which would provide employment to 100 persons.

     The state government   with the help of Govt. of India is also setting up an   Export Promotion Industrial Park at Dhandari Kalan in district Ludhiana having a cumulative expenditure of Rs. 1620.54 lakhs up to 31.10,2005 against a Central assistance of Rs. 1030.00 lakhs.

The Punjab Small Industries and Export Corporation

    The Punjab Small Industries & Export Corporation (PSIEC) has so far developed 38 Industrial Focal Points where in 10777  plots have been developed of various sizes out of which 9101 plots have been allotted up to 31.3.05. The development work of Amritsar Phase-III is in progress.  Apart from this under industrial housing scheme, a total number of 2842 residential plots of various sizes have been developed out of which 1987 plots have been allotted up to 31.3.05 at existing focal points namely Bathinda, Naya Nangal, S.A.S. Nagar, Amritsar new, Growth Centre Pathankot, Goindwal, Jalandhar Extn., Patiala, Ludhiana Phase-V, Ludhiana Phase- VIII, Chanalon etc.

     Exports from the state were to the tune of Rs. 10729.00 crores in 2004-05 as against Rs.8933.00 crores in 2003-04 showing significant increase of 20.11 percent over the previous year. It is anticipated that exports from the state will be more than Rs.14000.00 crores during the year 2005-06.

Industrial Finance

     The Punjab Financial Corporation (PFC) provides medium and long term loans to the entrepreneurs for assisting small, medium and large scale units for the creation of the fixed assets. For this purpose during the year 2004-05 an amount of Rs.0.26 crores was disbursed. The target for  sanctioning and disbursing amount of Rs.60.00 crores and Rs.40.00 crores respectively for the year 2005-06 has been fixed by the corporation.

Industrial Production

    The production items such as baby food, sugar, vanaspati ghee, coffee, cattle feed, milk all kinds, rice bran oil, Indian made foreign liquor, ginned and pressed kapas, urea ‘ N’ content, cycle/ rickshaw tyres, auto parts and footballs showed an increase in 2003-04 over the previous year. However, production items viz.milk powder all kinds,  mustard oil, woolen hosiery, acid oil, ammonium choloride,rims,handles, bars and rolls, polyester yarn, paper all kind and oil cakes recorded a fall during 2003-04 over the previous year.

General Index of Industrial Production

The General Index of Industrial Production (IIP) for registered working factories for the year 2003-04(base 1993-94) has been prepared for the State. The general index of Industrial Production has recorded a marginal increase of 0.90(P) percent over the previous year.  


Energy

Energy known as power is one of the prime movers of a economy. Adequate and reliable availability of power is indispensable for sustained growth of the economy. Renewable and non-renewable sources of energy are the two constituents of energy. Renewable sources of energy include hydro-power, fuel wood, bio-gas, solar, wind, geo-thermal and tidal power. Non-renewable sources of energy include coal, oil and gas. As there are no coal mines or oil wells, geo-thermal and tidal power available in the Punjab, the state is dependent mainly on thermal, hydel and solar power.

Energy in the form of electricity is crucial input in the process of economic development. The performance of all important sectors in the economy ranging from agriculture to commerce and industry depends on the availability, cost and quality of power. The demand for electricity is increasing day by day. To meet this demand, the optimum utilization of the power generated, substantial reduction of transmission and distribution losses, maximizing generation from the existing capacity is utmost necessary. The main source of power in the State all along has been hydro electric power and thermal power. Three perennial rivers flow through the State and these along with falls on the canals are being exploited to generate electricity. For thermal power, the state had three power stations at Bathinda, Ropar and Lehra Mohabbat.Rice straw plant of 10 MW at Jalkhari has been leased out w.e.f. 24.7.02.  For thermal power, coal has to be transported from distant places. . The scope for solar energy is very wide in the State. Bio-gas can meet the requirements of rural people to a limited extent. So there is a need to develop new plants like nuclear power plant and strengthening of solar power system to generate energy.

Electricity

Installed Plant Capacity

The installed plant capacity for electric power generation in the State is 4450 MW, in 2005-06.

Plant Load Factor

Thermal power plants are expected to generate a plant load factor of 74.69 percent during 2005-06 as against 77.45 percent during 2004-05.

Electrical Energy Availability

During 2005-06 the generation of electricity from hydro and steam /thermal plants has been targeted at 9324 million KWH and 13870 million KWH respectively. By including the anticipated purchase of 10293 million KWH from other power plants, the total energy availability in the State is estimated to be   33487 million KWH during 2005-06(P) as compared to 32197 million KWH during 2004-05(A)

Hydel power development constitutes a major thrust area in the energy development programme. In this sector, micro hydel power development is not only economical but also the most environment friendly renewable energy Programme. State is taking advantage of the available mini falls on the canals to tap this source to good effect. During 2005-06, the target for generation of 10 million KWH of electricity from micro hydel power has been fixed.

 Energy Sales and Revenue Realised per Unit

66.29 percent of the total energy sold was consumed by the industry   and   agriculture sectors during 2004-05; where as about 65.57 percent of the total energy sold is expected to be consumed by the Industry and agriculture sectors during 2005-06. While comparing the cost of generation of electricity per unit with the average revenue per unit, it is evident that the Punjab State Electricity Board is facing per unit losses   as per given in the table:

 

Year                  Average revenue  per unit                 Average cost per unit
                                 (Rs.)                                               (Rs.)  

1991-92                          0.60                                             0.88
1995-96                          1.25                                             1.59
1996-97                          1.36                                             1.68
1997-98                          1.48                                             1.96
1998-99                          1.57                                             2.07
1999-2000                       1.62                                             2.36
2000-01                          2.07                                             2.93
2001-02                          2.16                                             3.26
2002-03                          2.36                                             3.16
2003-04                          2.62                                             2.96  
2004-05(A)                      2.49                                             3.37
2005-06(P)                      2.59                                             3.37

                                                           

The average revenue per unit in Punjab was Rs. 2.49 during 2004-05 which is likely to be increased to Rs. 2.59 during 2005-06.The average revenue per unit for domestic was Rs 2.56, for industrial was Rs.3.48, for public lighting was Rs 4.18, whereas it was Rs 4.20 for commercial consumption during 2004-05 and it is estimated to be Rs 2.80 for domestic, Rs.3.80 for industrial, Rs. 4.17 for public lighting and Rs 4.59 for commercial consumption during 2005-06(P)

Tubewells Energized

High yielding varieties of seeds and use of chemical fertilizers have placed a great demand for irrigation facilities. The increasing demand is being met by energising more tubewells/pumping sets. As many as 31212 tubewells were energised during 2004-05(P) thus bringing the progressive total of energised tubewells to 912889 in the state.

Transmission and Distribution Losses

Transmission and distribution is an another area where special focus is needed. As per estimates of financial resources of Punjab State Electricity Board, transmission and distribution losses (Technical & Non Technical) were 25.35 percent during 2003-04, 24.27 percent during 2004-05 and are estimated to be 24.00 percent during 2005-06. There is a scope to curb these losses in the state. The energy saved from such losses will increase its availability. 

Consumption of Petroleum Products

The consumption of petrol in 2004-05 (p) was 433069 MTs which was 3.48 percent lesser than that of 2003-04. The consumption of high speed diesel in 2004-05 was 2286343 MTs which was 7.99 percent more than that of 2003-04. The consumption of kerosene oil decreased in 2004-05 by 4.85 percent as compared to previous year. The number of LPG connections as on 31st March has increased from 33.27 lakh in 2003-04 to 36.94 lakh in 2004-05 reflecting an increase of 11.03 percent.

Bio-gas Plants

Bio-gas plants not only provide energy in a clean and non polluted form in rural areas but also produce nitrogen enriched manure for increasing crop production. During 2004-05, Department of Agriculture Punjab has installed 477 and Punjab Energy Development Agency has installed 1000 Bio gas plants.   

Solar Thermal System:

Solar Energy Programme is aimed at supplementing thermal energy requirements by harnessing solar energy at different temperature by directly converting it into heat energy. 80 Solar cookers, 310 domestic home light system (one fan and one light), 250 solar street lights were installed by Punjab Energy Development Agency during 2003-04