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equipment, provision of raw materials and other extension services are the
main activities undertaken by these centers.

Broadly DICs are trying to bring change in the attitude of the rural
entrepreneurs and all other connected with economic development in the rural
areas.

B. INCENTIVES

Special emphasis on the industrial development of backward, tribal and hilly
areas has been the concern of the Government of India expressed in all the Five
Year Plans and industrial policy statements. Realizing that backward areas
development is a long-term process, several committees were appointed to
identify the criteria for identifying backward areas.

Though the backward area development programmes varied from state to
state, they cumulatively represented a significant package of incentives to
attract industries in backward areas. Some of the common incentives offered
are discussed as below:

i. Land: Every state offers developed plots for setting up of industries.
The terms and conditions may vary. Some states don’t charge rent in
the initial years, while some allow payment in installments.
ii. Power: Power is supplied at a concessional rate of 50 per cent, while
some states exempt such units from payment in the initial years.
Water: Water is supplied on a no-profit, no-loss basis or with 50 per
cent concession or exemption from water charges for a period of 5
years.
iii. Raw materials: Units located in backward areas get preferential
treatment in the matter of allotment of scarce raw materials like
cement, iron and steel etc.
iv. Finance: Subsidy of 10-15 per cent is given for building capital
assets. Loans are also offered at concessional rates. Industrial
estates: Some states encourage setting up of industrial estates in
backward areas.

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