BANKING AND FINANCE – STATE AID TO INDUSTRIES:

The State provides financial assistance to industries through its various agencies and under various schemes of industrial development. The State assistance is disbursed through agencies such as the Industries Department of the State Government, the Co-operative Department of the State, co-operative societies, the Zilla Parishad, the National. Small Industries Corporation of the Central Government and the State Industrial Investment Corporation [The necessary statistics of financial aid given by these organisations are not available.] Since the beginning of national planning, the Government have launched upon a programme of development of small industries as well as cottage industries. The programme comprises financial aid as well as various facilities regarding land, approach roads, water supply, power supply, etc.

Under the industrial development programme, if co-operative industrial estate was established at Nasik. The Government rendered financial assistance to the tune of Rs. 8,19,821 to the same. The Government gives subsidy on electric consumption to small industrial units. During the third five year plan an amount of Rs, 1,39,259 was disbursed by way of such subsidy in the district. The small industrial units also get loans and advances for the establishment of plant and machinery, purchase of machinery and other financial necessities. During the third five year plan as many as 27 applicants were granted loans to the tune of Rs. 1,92,450 in the district. As many as 23 applications were forwarded to the Finance Corporations with the necessary recommendations.

An important aspect of the Government's programme for industrial development relates to the encouragement to cottage and village industries through financial assistance, provision of training facilities, supply of tools and equipment, and help for the marketing of their produce. During the third plan about two lakhs of rupees were disbursed by way of financial aid under the State Aid to Industries programme in the district. Financial assistance to the tune of Rs. 9,353 was also given to the cottage industries owned by backward class people.

Besides the aid from the State Government departments, cottage industries are entitled to financial assistance from the Zilla Parishad. After the inauguration of the Zilla Parishad in 1962, some schemes of industrial development were transferred to it. It is authorised to sanction a loan upto Rs. 3,000 to an individual artisan. The assistance from the Zilla Parishad covers loans to industrial co-operative societies, subsidy for equipment and common facilities, subsidy for the cost of management, and special assistance to the industrial co-operatives of Scheduled Castes, Scheduled Tribes, as well as Vimukta Jati. Besides, the Zilla Parishad renders financial assistance, not exceeding Rs. 3000, to small scale industries under the State Aid to Industries Rules. It also grants relief loans to goldsmiths affected by the Gold Control Order. The statistics of the financial assistance to cottage and village industries granted by the Nasik Zilla Parishad are furnished below:-

TABLE No. 11 - FINANCIAL ASSISTANCE TO COTTAGE AND VILLAGE INDUSTRIES

BY NASIK ZILLA PARISHAD

Name of Scheme		1961-62		1962-63		1963-64		1964-65
Name of Scheme		No. of Societies	Amount Rs.	No. of Societies	Amount Rs.	No. of Societies	Amount Rs.	No. of Societies	Amount Rs.
I	Financial assistance to industrial cooperatives-
	(1) Loan-cum-subsidy for equipment and common facilities:
	(a) Loan	..	..	3	6,000	2	04,000	4	6,700
	(b) Subsidy	..	..	3	2,500	2	2,000	4	3,750
	(2) Management subsidy to industrial cooperatives	39	8,500	13	5,000	16	6,169	18	5,982
	(3) Management subsidy to cooperatives of handicraft workers	2	2000	1	500	1	500	..	..
II	Special assistance (subsidy) to industrial co-operatives of backward classes-
	(1) Scheduled Castes	2	650	..	..	2	585	2	1,200
	(2) Scheduled Tribes	..	..	..	..	1	120	..	..
	(3) Other Backward	4	1,600	..	..	1	500	1	600
	(4) Vimukta Jati	..	..	..	..	..	..	..	..
III	Financial assistance, not exceeding Rs. 3,000, to small-scale industries under S. A. I. Rules	3	2,450	20	12,300	..	40,000	122	75,000
IV	Relief loans to goldsmiths.	..	..	..	..	31	25,250	19	9,8'75

State Aid to agriculture: The proverbial poverty of the Indian agriculturist is one of the most difficult problem with which the agricultural economy is beset since times immemorial. The average agriculturist is born in debt and has to live in debt. The extent of rural indebtedness had assumed serious magnitude during the last quarter of the nineteenth century. The Nasik Gazetteer of 1883 throws an important light on the state of indebtedness prevai1ing at that time. "Most classes of the community are at times forced to borrow. Few households keep their wedding and funeral charges within the limits of their available capital. But, as a rule, the expense is not beyond the power of the borrower to repay within a fair period, and is frequently in the case of the agricultural classes, liquidated within the next two season…. But in most cases, when the loan is for a large amount, lands and houses have to be mortgaged, or personal ornaments or other valuables pledged."

Such a state of affairs compelled the Government to adopt certain measures to provide for tagai loans. A number of Acts were passed between 1871 and 1879, but no actual assistance was given till the enactment of the Land Improvement Loans Act of 1883 and the Agriculturists' Loans Act of 1884. The former Act is mainly concerned with long term loans, whereas the latter deals with short term assistance.

Land Improvement Loans Act of 1883: Loans under this Act are granted to cultivators for works of improvement in land such as, construction of wells and tanks, irrigation facilities, drainage, reclamation, enclosures, etc. These tagai loans are granted under the authority of the Collector, Prant Officer and Mamlatdar upto specified limits and bear 8½ per cent rate of interest. The Government is empowered to reduce or remit the rate of interest under certain circumstances. Loans are granted against security in the form of immovable property.

Agriculturists' Loans Act, 1884: Under this Act loans are granted to holders of cultivable land for purposes, such as, (a) purchase of seed, fodder, cattle, agricultural stock, implements, etc., (b) rebuilding of, houses destroyed in fire, flood or any other natural calamity, (c) maintenance of cultivators while engaged in sowing or tilling their land prior to the next crop, and (d) any other purpose not specified in the Land Improvement Loans Act of 1883, connected with agricultural cultivation. The Collector, Prant Officers as well as Mamlatdars are authorised to' grant loans upto a certain limit. Loans above Rs. 2,500 have to be referred to the Government for sanction. The rate of interest is 8½ per cent per annum but the Government, on the recommendation of the Collector, is competent to reduce the rate or charge no interest at all. The terms as regards the security against loans are the same as under the Land Improvement Loans Act of 1883.

The table Nos. 12, 13, 14, 15 and 16 furnish the statistics of tagai loans to agriculturists in Nasik District.

TABLE No. 12-GOVERNMENT TAGAI LOANS TO AGRICULTURE, NASIK DISTRICT,

1960-61 TO 1966-67

Particulars	Loans under Land Improvement Loans Act, 1883
Particulars	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. Applications pending at the beginning of the year	432	731	317	817	35	142	531
2. Amount involved in 1 (Rs.)	3,89,750	5,07,325	9,11,325	56,250	39,775	1,19,725	4,78,535
3. No. of applications received during the year.	3,879	4,645	2,713	35	1,968	5,406	1,556
4. Amount applied for by these applications (Rs.)	26,28,094	28,12,108	10,94,452	1,97,070	13,92,312	29,35,218	10,66,790
5. No. of applications sanctioned	2,459	4,212	1,506	144	1,313	4,880	1,793
6. Total amount asked for in 5 above (Rs.)	1,67,465	15,39,700	19,45,660	12,305	11,92,425	31,10,040	13,67,150
7. Total amount actually sanctioned (Rs.)	16,68,991	12,76,888	15,62,327	7,175	5,31,497	23,92,306	7,08,000
8. Total amount actually disbursed during the year (Rs.)	16,68,991	12,76,888	15,62,327	7,175	5,31,497	23,92,306	7,08,000
9. Total loans repaid during the year (Rs.)	7,77,141	6,15,715	15,14,126	5,34,895	3,20,487	17,69,738	3,22,779
10. Total loans outstanding (Rs.)	48,25,870	55,94,314	28,58,369	10,50,009	2,44,086	30,95,412	23,31,827

Particulars	Loans under Agriculturists' Loans Act, 1884
Particulars	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. Applications pending at the beginning of the year	781	493	802	919	1,007	477	121
2. Amount involved in 1 (Rs.)	3,37,950	2,09,575	7,47,950	57,775	2,57,910	3,79,000	86,700
3. No. of applications received during the year.	4,202	7,132	3,263	2,003	2,935	11,893	5,821
4. Amount applied for by these applications (Rs.)	26,67,718	29,54,315	3,73,473	12,02,670	18,25,816	42,17,276	47,89,499
5. No. of applications sanctioned	3,271	6,102	2,354	1,678	2,736	11,457	4,658
6. Total amount asked for in 5 above (Rs.)	22,00,675	22,43,375	12,19,950	11,71,250	10,97,725	44,20,000	33,34,500
7. Total amount actually sanctioned (Rs.)	21,58,138	18,96,415	9,37,673	8,92,825	7,67,151	42,26,076	27,07,524
8. Total amount actually disbursed during the year (Rs.)	21,58,138	18,96,415	9,37,673	8,92,825	7,67,151	42,26,076	27,07,524
9. Total loans repaid during the year (Rs.)	2,51,840	2,17,237	2,31,604	11,82,259	5,86,883	1,23,431	17,89,815
10. Total loans outstanding (Rs.)	14,01,399	18,64,386	22,37,293	50,89,697	10,51,411	17,75,227	39,11,286

TABLE No. 13 - STATISTICS OF TAGAI LOANS BY PURPOSE, NASIK DISTRICT,

1960-61 TO 1966-67

Year	Loans under Land Improvement Loans Act		Loans under Agriculturists’ Loans Act.
Year	Land improvement	Digging of wells and other irrigation projects	Land improvement	Seed	Fodder
1. 1960-61	2,61,176	14,07,815	15,02,474	....	6,55,664
2. 1961-62	2,06,938	10,69,950	15,94,171	....	3,02,244
3. 1962-63	5,04,752	10,57,575	8,39,193	....	98,480
4. 1963-64	6,375	800	8,84,425	....	8,400
5. 1964-65	5,00,197	31,300	6,74,971	18,180	74,000
6. 1965-66	15,37,976	8,54,330	31,76,508	13,731	9,12,258
7. 1966-67	57,000	6,51,000	26,22,375	6,399	78,750

TABLE No. 14-GOVERNMENT TAGAI LOANS TO AGRICULTURE, NASIK DISTRICT, 1960-61 TO 1966-67

Time lag between date of application and date of Sanction	Number of applications
Time lag between date of application and date of Sanction	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. On the same day - less than one month.	2,433	9,134	1,138	1,123	644	7,863	1,944
2. 1-2 Months	1,460	427	2,017	215	332	3,926	579
3. 2-3 months	1,216	452	364	352	1,565	3,661	3,687
4. 3-4 months	204	50	171	54	410	366	119
5. 4-5 months	180	78	83	21	56	217	30
6. 5-6 months	96	72	22	10	999	30	45
7. 6-7 months	24	73	20	12	....	....	12
8. 7-8 months	25	8	15	10	8	8	10
9. Over 8 months, not ascertainable	92	20	30	25	35	266	25
Total	5,730	10,314	3,860	1,822	4,049	16,337	6,451

Time lag between date of application and date of Sanction	Amount Applied for
Time lag between date of application and date of Sanction	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. On the same day-less than one month.	12,01,283	9,13,875	8,54,225	5,39,325	3,97,600	20,75,145	15,34,700
2. 1-2 Months	16,58,805	8,63,700	9,67,050	2,36,005	9,78,450	30,46,995	18,66600
3. 2-3 months	2,06,500	9,22,000	10,73,450	2,63,675	3,20,650	8,89,200	8,73,800
4. 3-4 months	3,72,600	7,26,400	1,73,050	1,25,350	4,36,600	6,231	2,55,200
5. 4-5 months	2,44,800	2,43,900	30,175	11,500	1,25,150	1,92,000	4,650
6. 5-6 months	1,26,500	21,800	56,660	1,500	29,900	5,05,000	11,500
7. 6-7 months	5,917	70,600	8,000	2,200	....	....	1,51,200
8. 7-8 months	25,500	400	1,200	2,500	600	51,200	2,500
9. Over 8 months, not ascertainable	31,235	400	1,800	1,500	1,200	1,47,400	1,500
Total	38,73,140	37,83,075	31,65,610	11,83,555	22,90,150	75,30,040	47,01,650

Time lag between date of application and date of Sanction	Number of applications
Time lag between date of application and date of Sanction	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. On the same day-less than one month.	11,67,641	7,60,660	5,21,793	3,79,630	3,52,025	20,10,765	14,18,725
2. 1-2 Months	16,58,755	7,65,930	9,40,481	1,74,830	4,56,575	28,80,472	13,36,330
3. 2-3 months	2,05,850	8,62,430	9,21,345	2,60,820	2,11,820	8,87,420	5,73,523
4. 3-4 months	3,71,000	6,93,850	86,422	71,895	2,02,091	5,43,692	30,925
5. 4-5 months	2,38,400	54,458	18,450	7,275	48,382	1,31,910	2,455
6. 5-6 months	1,24,050	15,500	3,930	800	25,955	26,800	8,895
7. 6-7 months	5,558	19,975	5,329	1,500	....	....	41,000
8. 7-8 months	24,800	200	750	2,000	600	3,900	2,421
9. Over 8 months, not ascertainable	31,075	300	1,500	1,250	1,200	1,33,423	1,250
Total	38,27,129	31,73,303	25,00,000	9,00,000	12,98,648	66,18,382	34,15,524

TABLE No. 15 - DURATION OF GOVERNMENT TAGAI LOANS, NASIK DISTRICT,

1960-61 TO 1966-67

Duration of Loan	Number of applications
Duration of Loan	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. Less than 3 months	....	....	....	....	....	....	....
2. 3-6 months	....	....	....	....	....	....	....
3. 6-9 months	....	....	....	....	....	....	....
4. 9-12 months	....	....	....	....	....	....	....
5. 1-2 Years	794	200	950	860	956	3,661	322
6. 2-3 Years	....	....	....	....	....	....	....
7. 3-4 Years	....	....	....	....	....	....	....
8. 4-5 Years	1,227	3,900	855	927	3,050	11,089	5,350
9. 5 Years and above	3,709	6,214	2,055	35	43	1,587	779
Total	5,730	10,314	3,860	1,822	4,049	16,337	6,451

Duration of Loan	Amount Rs.
Duration of Loan	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
10. Less than 3 months	....	....	....	....	....	....	....
11. 3-6 months	....	....	....	....	....	....	....
12. 6-9 months	....	....	....	....	....	....	....
13. 9-12 months	....	....	....	....	....	....	....
14. 1-2 Years	3,09,009	15,783	2,38,660	1,41,500	2,98,048	15,33,740	3,21,772
15. 2-3 Years	....	....	....	....	....	....	....
16. 3-4 Years	....	....	....	....	....	....	....
17. 4-5 Years	8,17,000	14,35,200	10,85,790	6,72,800	9,63,100	28,98,085	24,78,902
18. 5 Years and above	17,01,120	17,22,320	11,75,550	85,700	37,500	21,86,557	6,14,850
Total	38,27,129	31,73,303	25,00,000	9,00,000	12,98,648	66,18,382	34,15,524

TABLE No. 16 - GOVERNMENT TAGAI LOANS REJECTED, NASIK DISTRICT,

1960-61 TO 1966-67

Reasons for rejection	Number of applications
Reasons for rejection	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
1. Lack of security or adequate security	638	716	1,017	330	387	550	321
2. Purpose of loan not approved	473	325	155	50	156	85	55
3. Old dues to Government	830	285	91	84	245	150	151
4. Other reasons	369	242	236	577	489	144	297
Total	2,340	1,568	1,499	1,041	1,277	929	824

Reasons for rejection	Amount Rs.
Reasons for rejection	1960-61	1961-62	1962-63	1963-64	1964-65	1965-66	1966-67
5. Lack of security or adequate security	3,24,533	12,59,425	1,71,850	1,37,575	1,92,675	2,12,727	1,43,675
6. Purpose of loan not approved	1,76,950	1,18,925	1,48,220	20,500	30,900	42,500	15,13,600
7. Old dues to Government	7,85,515	69,450	40,000	39,000	12,97,100	75,500	90,700
8. Other reasons	1,92,475	2,02,945	1,53,105	1,19,005	1,97,765	1,36,875	1,38,400
Total	14,79,483	16,50,745	5,13,175	3,16,080	17,18,440	4,67,602	18,86,375

Agricultural Debtors Relief Act: This Act was enacted with a view to reducing the aggregate indebtedness of agriculturists so as to bring it reasonably within the compass of their capacity to repay swelling debts. Under this Act the term debtor is applicable to the indebted person who holds land and cultivates it personally. Income from land leased to tenants is to be regarded as non-agricultural income under the Act. The income from sources other than agriculture should not exceed a certain maximum limit.

This Act was first applied to one or two selected talukas of a few districts of the State, in 1942. In the light of its working in those areas, the Act was amended in 1945, and was applied to selected talukas of all districts except Bombay, and in February 1947, it was applied to the whole of the State. In 1947, radical amendments were introduced, one of which was the transfer of its administration to Civil Courts.

The application of the Act has been restricted to debts not exceeding Rs. 15,000 in any individual case. The rate of interest in case of awards should not exceed 6 per cent or the rate agreed upon between the parties when the debt was originally incurred or the rate allowed by decree, whichever is less. For the years 1948-49 and 1949-50 (co-operative year), Government had fixed 4 per cent per annum as the rate of interest for purposes of the awards passed under section 32(2). However, a rate of 6 per cent was allowed for purposes of the awards passed under section 33(3) of the Act, during the same years.