The basic objective of the Industrial Policy pursued by the Tamilnadu Government is to achieve massive increase in employment by promoting Small Industries and Rural Industries. The Government are of the firm belief that given the magnitude of unemployment and the number of persons living below the poverty line, the touch stone of all industrial schemes and investments ought to be their employment potential especially in the short term.
For this purpose, a thrust has been given to establish, promote and develop the rural industries which are also called the Cottage Industries and Village Industries or Small Industries including tiny and house-hold sector, particularly in backward areas where it is essentially needed. The Government are also in active move in promoting Self-Employment opportunity In Urban and Rural areas by extending financial assistance through banking sector for the establishment and development of small industries
The policies and programme of Government for the development of rural industrialisation based on the utilisation of local resources and raw materials and locally available man power and skill are translated into action through the various agencies under the Industries Department which are primarily concerned with the promotion of Small and Rural Industries. Provisions have been made to provide infrastructure facilities. Assistance Is provided and growth centres have been promoted. Institutions like Tamilnadu Industrial Investment Corporation along with Small Industries Service Institute of the Government of India and Nationalised Banks assume the responsibility for providing necessary inputs to this sector. This will go a long way in reducing unemployment.
Since Agricultural sector has been fairly saturated, it is necessary to develop secondary sector of economic activity in order to improve the overall economy of the district, as well as to solve the mounting unemployment problem towards this objective. Hence a new scheme namely, NEW ANNA MARUMALARCHI THITTAM has been introduced with a very purpose of imparting thrust to the Agro based industries in each Block of this state.
The District Industries Centre is the institution at the district level, which provides all the services and support facilities to the entrepreneurs for setting up Small and Village Industries. This includes identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipment, provision of raw materials and extension services.
The District Industries Centre, Viluppuram has been pursuing the basic objectives by assisting for optimum utilisation in existing industries, faster promotion of new Small Scale Industries and Village Industries with a rural bias and by increasing the employment opportunities in industries sector.
The Small entrepreneur required various types of assistance right from the selection of an item for manufacture, inputs like credit, raw materials, power, land and building etc., Under the new scheme of District Industries Centre the entrepreneur can get all such assistance through one agency.
General Manager heads the District Industries Centre assisted by Manager (Economic Investigation) to look after the survey & statistical work, Cottage Industries and Village Industries and administration and Manager(Materials) to look after Materials and Infrastructure, Exports, Entrepreneurial Development Programme & Training, exclusively for Women. and of course, with other supporting staff.
The main functions of District Industries Centre are:
District Industries Centre identifies the entrepreneurs and renders all assistances by co-ordinate efforts with line departments to commission the small-scale industrial units chosen by them. The motivation conducted yields the result of desire by changing the students population as entrepreneurs. There are many agencies providing avenue for development of entrepreneurship including Government. The District Industries Centre, Pudukkottai conducts motivation campaigns in all the Blocks with the assistance of Panchayat Presidents and also for the final year students of colleges of Engineering and Arts, Polytechnics and also Industrial Training Institutes. Likewise seminars on specific areas namely Information technology, silk weaving, etc. are being arranged in co- ordination with the voluntary organisations. The motivation and seminars done at grass root level creates a desire among the student population to choose self-employment opportunity instead of waiting for wage employment.
Government of Tamilnadu has announced a scheme to train 5 Lakhs women in entrepreneurial skills for self-employment. The Tamilnadu Corporation for Development of Women Limited, Department of Industries and Commerce, Tahdco , and Departments of Agriculture, Backward Classes and Rural Development are the implementing agencies of this scheme. The Industries and Commerce Department has been allocated a target of 25,000 women per year for training in 5 years working out to 1,25,000 women in 5 years. This being the 3rd year of implementation , District Industries Centre ,Viluppuram, will impart training for 950 women.
It is planned to conduct the EDP training to 400 women under BPL (Below Poverty Line) from the credit rated SHG (Self Help Groups) and 360 technically qualified women. On completion of the EDP training, follow up may be done to provide them with credit linkages.
Small Scale Industries Registration is one of the main functions for recognition to obtain incentives and concessions from Government and Government Agencies. Initially, once a person thinks of starting an industry he should determine the activity and the location. Then he has to apply for a provisional registration certificate to District Industries Centre. This registration helps the entrepreneur to get the priority in getting the power connection from TNEB. Also the financial institution needs this certification where ever, the bank goes for refinances with major financial institutes such as SIDBI, ICICI, IDBI, NABARD ETC. This certificate is having validity of 5 years from the date of issue. The cost of the application is Rs. 20/- and is available at District Industries Centre, on cash payment. The certificate is issued within 3 days.
After commencing the production, this registration is converted into Permanent Registration. This certificate is issued to the industry within 30 days, after inspection. This registration helps the entrepreneurs in getting all the incentives / subsidies eligible to them. Further one can get priority in telephone connection, concession in duty while importing capital goods etc. Application can be had from District Industries Centre, free of cost.
An industrial unit is defined as Small Scale Industry, as long as the investment on Plant and Machinery does not exceed RS. 1 Crore The status of Tiny is given as long as the investment on Plant and Machinery does not exceed RS. 25 Lakhs. All industrial oriented business enterprises/ establishments and service industries are brought under SSSBE (Small Scale Service/ Business Enterprises) category. The investment on Plant and Machinery should not exceed RS.10 lakhs in this case.
After the introduction of Industrial liberlisation policy, Industrial licensing procedure was also liberalised to the maximum extent. Three categories of industries were formed to have separate procedure for starting the same.
Cottage & Handicrafts Industries also play a vital role in relieving the unemployment burden among the rural youth. Apart from the local market, the products made under the heading also yield foreign exchange to some extent. The conventional and hereditary skills are en-cashed by the rural artisans by making cottage and handicrafts items. But most of the skilled artisans are uneducated and hence the direct exporters make use of them to mint money by paying a meager amount to the artisan for his labour and selling at a very high price in the foreign market. Now the days are gone and the Government has formed a number of organisations in state level such as Poombuhar, Khadi & Village Industries Board, etc., and in central level such as All India Handicrafts board, Khadi & Village Industries Commission etc., to look after these artisans by directly placing orders with them, avoiding the middleman.
District Industries Centre registers such cottage and handicrafts industries and issues certificate for getting assistances from different agencies and financial institutions. A number of Terracotta, handloom, papier machie toy, wood craft, art pottery etc., industries are in existence in this district which have generated employment in the rural areas.
This scheme was first introduced through out the Country by the Honble Prime Minister of India on the Independence Day of 1993 and implemented with effect from 2nd October 1993. The object of the scheme is to provide self-employment opportunities in the field of Industry, Service and Business sector to the educated unemployed youth. The scheme was further liberalized during the year 1999- 2000.
The following are the norms to qualify for assistance under this National Programme.
Co-operation in industry is increasingly important as a socio economic proposition paving the way for the participation of weaker sections in industrial and allied activities. Industrial co-operatives are those, which undertake manufacturing and processing activities and to provide service facilities to groups of entrepreneurs who may be artisans, technicians or others and will include central or apex institutions. As per the act no society shall be registered which does not consists of at least 25 persons who have attained the age of majority.
For the registration of the society a project report indicating the source of finance along with the bye law should be sent to the functional registrar. In the district level the General Manager, District Industries Centre, is the registering authority. The industrial co-op movement has its own financing bank, the Tamilnadu Industrial Co-op bank. The society generally has the power of borrowing ten times the paid up share capital plus the reserve fund. Further information and guidelines may be had from General Manager, District Industries Centre.
An Industrial Co-operative wing is functioning in this District Industries Centre.The following Industrial Co-operative societies are functioning here:
These societies extend the employment opportunities to about 350 members. It is also proposed to start new industrial co-operative societies to extend more employment.
A single window committee has been constituted under the Chairmanship of the District Collector, Viluppuram to redress the industrial units problems in getting power connection, local body plan approval, etc. The applicant has to send the petitions to District Industries Centre with the details of the problem and where the bottleneck is. The General Manager, District Industries Centre, will convene the committee meeting under the chairmanship of the District Collector will discuss the problems faced by the entrepreneurs once in a month with the officials concerned and try to solve the problem on the spot.
To encourage and appreciate the small industries for maintaining / improving their quality, production and export, Government of Tamilnadu is giving awards as follows :
The award is given every year and the same will be notified in the newspapers. The applications can be had from District Industries Centre. Filled up applications along with documentary evidences should be sent to the respective District Industries Centre. State Government will scrutinize the applications and select the best industry among them. The best industries are selected based on the performance, viz., investment, employment, production, quality, export achievement, diversification and introduction of new product, modernization of plant & machinery, safety measures adopted, etc. Generally three prizes are given as awards in each category, including cash prizes and mementoes.
The Small Industries Department of Government of Tamilnadu takes care of the developmental of Small Scale Industries by way of giving incentives and subsidies etc. to SSIs. As a part of it, it also intends to take care of the settlement of pending payments due to Small Scale Industries by major Government/Public/Corporations of Government of Tamilnadu for the supply of good/service made by the former. Accordingly, based on the request of Government of India, the Government of Tamilnadu vide G.O. No.(Ms) 13, Small Industries (E3) Department, dated 07-03-2000 have constituted Industry Facilitation Council as prescribed in the "Interest on delayed payments to Small Scale and Ancillary Industry undertakings (Amendment) Act 1998 (Central Act 23 of 1998)" and in the exercise of powers conferred by Section 7A of above act, the Government of Tamilnadu established Industry Facilitation Council region-wise as detailed below:
In the exercise of powers conferred in Sub-section (3) of Section 7B of the above act, the Governor of Tamilnadu makes Tamilnadu Facilitation Council Rules 2000 and accordingly the following are the members constituted.
As per the instructions laid down in the G.O. cited, any supplier may, for any amount due to him from a buyer, together with the amount of interest calculated in accordance with the provisions of sections 4 and 5 of the Act, file a petition to the council exercising jurisdiction over the area concerned, for the recovery of such due from the buyer concerned.
The procedures to be followed in conducting Regional Industry Facilitation Council are as follows:
The General Manager, DIC, in the Region shall scrutinise the petitions received along with full particulars viz. the amount due, together with the interest thereon duly calculated, the name and full address of the buyer, supported by an Affidavit duly affixing Court fee stamp of RS. 10/-. On satisfaction, the General Manager, DIC shall submit the petition before the Council for consideration.
On receipt of the petitions, the Council shall require the supplier and the buyer concerned to appear before it by issuing summons to both the parties in this behalf. On the appearance of both the parties, the Council shall first make efforts to bring out conciliation between the buyer and seller. Whenever such conciliation cannot be arrived at for any settlement, the Council shall act as an Arbitrator and proceed accordingly for the final settlement of the dispute, as per the provisions of the Arbitration and Conciliation Act 1996 (Central Act 26 of 1996).
There are so many reasons for a small industry to becomes sick. Mostly it was due to mismanagement or ineffective financial portfolio. If the unit could not be revived from its sickness, it can be declared a sick unit. For this purpose, State Government has formed a District Sick Unit Declaration Committee to declare the unit as sick, after studying various aspects in the financial position of the unit.
On the basis of the report of Nayak Committee and the views of the Small Scale Industries Association and experts in the field, Government direct that the following parameters be adopted (by the District Level Committee) for evaluating the Small Scale Industries and to declare them as sick:
A cluster can be defined as a sectoral and geographical concentration of enterprises faced with common opportunities and threats.
In both industrialized and developing countries there is increasing evidence that clustering and networking can help small and medium-scale enterprises (SMEs) boost their competitiveness. Groups of firms working together are better able than isolated firms to grow rapidly, develop product niches, access export markets and offer new employment opportunities.
At the basis of the cluster development concept is the establishment of cooperation linkages between firms, their raw material and equipment suppliers, subcontractors, customers and service providers. Cooperation of specialized firms enables collective efficiency and enhances the ability to innovate new processes and products.
SME clusters have been in existence in India for several decades. It is estimated that there are approximately 350 SME urban clusters and 2000 rural and artisan based clusters in India contributing almost 60% of Indias manufactured exports. Nevertheless very few of them are performing well. The Government of India in view of the enormous potential of these "under achieving clusters" has advocated the cluster development approach as one of the main pillars of its Small Enterprises Development Policy (Abid Hussain Committee Report on Small Enterprises, January 1997).
Government of Tamilnadu has already entered into the programme. Each and every district has identified one or more clusters to take up in the programme. In Viluppuram District, a cluster of wood carving industries has been identified in Kallakurichi Block under Rural Cluster Development Programme under National Rural Industries Programe (NRIP).
VRIKSHA ,a federation of 12 SHGs ,has been formed by Vallalar Grama Bank, NABARD,DRDA, DIC, and Department of Handicrafts, Pondicherry. A common facility center is under completion stage with the grant of these agencies.
VARSHA, another federation of rural cluster has been formed to function in Vanur Block for the welfare of artisans of various handicraft industries such as art potteries, stone sculpture etc
SCHEMES OF OTHER DEPARTMENTS/AGENCIES
. The scheme envisages that 25% of the project cost for the project up to Rs. 10 lacs will be provided as margin money. For project above Rs. 10 lacs, and up to Rs. 25 lacs, rate of margin money will be 25% of Rs. 10 lacs + 10% of the remaining cost of the project. Project cost will include one cycle of working capital. The scheme is applicable for viable village industries project (Khadi and Polyvastra are kept out of its purview). The bank will initially sanction 90% of the project cost in case of general category of the beneficiary/institution and 95% of the project cost in case of weaker section beneficiary/institution and disburse full amount suitably for setting up of the project.
Banks will ensure that each project fulfils the criteria of village industries, per capital fixed income, own contribution and rural area. Any industry located in rural area which produces any goods or renders any services with or without use of the power and in which the fixed capital investment per head of an artisan or a worker does not exceed Rs. 50,000. An area, which comprises any village or includes an area outside the Municipal limit, the population of which do not exceed 20,000 is termed as rural area.
Banks must ensure investment of own contribution of the entrepreneur/institution/co-operative society at the rate of 10% of the total cost of the project for general category and 5% in case of weaker section beneficiary/institution viz. SC/ST/OBC/women/ minorities/ ex-servicemen and physically handicapped persons are treated as weaker section areas.
Once the margin money is released in favour of loanee it should be kept in term-deposit receipt for two years at Branch level in the name of the loanee. Interest accrued on such deposit will be utilised to service partial interest burden on the loan disbursed to the beneficiary. Margin money will be one-time assistance from KVIC. For any enhancement of credit limit, the KVICs margin money assistance will not be available.
Further, subsidy is eligible only for the loan component plus the applicants minimum marginal requirement and not on the project cost, when the applicant can bring his margin money more than actually what he has to bring as per schme. ie.,5% or 10% respy..
A list of village industries under purview of KVIC and the list of industries not coming under the purview of KVIC are given under.
(1)Cottage Pottery Industry (2) Lime stone, lime shell and other lime products industry (3) Stone cutting crushing, carving and engraving for temples and buildings (4) Utility articles made out of stone (5) Slate and slate pencil making (6) Manufacture of plaster of paris (7) Utensil washing powder (8) Fuel briqueting (9) Jewellery out of gold, silver, stone, shell and synthetic materials (10) Manufacture of Gulal, Rangoli (11) Manufacture of Bangles (12) Manufacture of paints, pigments, varnishes and distemper (13) Manufacture of Glass toys (14) Glass decoration cutting, designing and polishing (15) Gem cutting.
(16) Handmade paper (17) Manufacture of Kattha (18) Manufacture of gums and resins (19) Manufacture of shellac (20) Cottage match industry, manufacture of fire works and agarbattis (21) Bamboo and cane work (22) Manufacture of paper cups, plates, bags and other paper containers (23) Manufacture of exercise book binding, envelope making, register making including all other stationery items made out of paper (24) Khus tattis and broom making (25) Collection, processing and packing of forest products (26) Photo framing (27) Manufacture of jute products (under fibre industry).
(28) Processing, packing and marketing of cereals, pulses,spices, condiments, masala etc (29) Noodles making (30) Power atta chakki (31) Daliya making (32) Mini rice shelling unit (33) Palmgur making and other palm products industry (34) Manufacture cane gur and khandasari (35) Indian Sweets making (36) Raswanti sugarcne juice catering unit (37) Bee-keeping (38) Fruits and vegetable processing, preservation and canning including pickles (39) Ghani oil industry (40) Menthol oil (41) Fibre other than coir (42) Collection of forest plants and fruits for medicinal purpose (43) Processing of maize and ragi (44) Pith work, manufacture of pith mats, and garlends, etc. (45) Cashew processing (46) Leaf cup making (47) Milk product making units (48) cattle feed, poultry feed making.
(49) Flaying, curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry (50) cottage soap industry (51) manufacture of rubber goods (dipped latex products) (52) products cut of rexin, PVC, etc. (53) horn and bone including ivory products (54) candle, camphor and sealing wax making (55) manufacture of packing items of plastics (56) manufacture of bindi (57) manufacture of mehandi (58) manufacture of essential oils (59) manufacture of shampoos (60) manufacture of hair oil (61) detergent and washing powder making (non-toxic).
(62) carpentry (63) blacksmithy (64) manufacture of household aluminium (65) manufacture and use of manure and methane (66) vermiculture and waste disposal (67) manufacture of paper pins, clips, safety pins, stove pins, etc. (68) manufacture of decorative bulbs, bottles, glass (69) Umbrella assembling (70) solar and wind energy implements (71) manufacture of handmade utensils out of brass (72) manufacture of handmade utensils out of copper (73) manufacture of handmade utensils out of bell-metal (74) other articles made out of brass, copper and bell-metal (75) production of radios (76) production of cassette player whether or not fitted with radio (77) production of cassette recorder whether or not fitted with radio (78) production of voltage stabilizer (79) manufacture of electronic clocks and alarm time pieces (80) carved wood and artistic furniture making (81) tin smithy (82) motor winding (83) wire net making (84) iron grill making (85) manufacture of rural transport vehicles such as hand carts, bullock carts, small boats, assembly of bicycles, cycle rickshaw, motorised carts, etc. (86) manufacture of musical instruments.
(87) polyvastra which means any cloth woven on handloom in India from yarn handspun in India from a mixture of manmade fibre with either cotton, silk or wool or with any two or all of them or from a mixture of manmade fibre yarn handspun in India with either cotton, silk or woolen yarn handspun in India or with any two or all of such yarn (88) manufacture of lokvastra cloth (89) hosiery (90) tailoring and preparation of readymade garments (91) batic works (92) toys and doll mak ing (93) thread balls and woolen balling, lacchi making (94) embroidery (95) manufacture of surgical bandages (96) stove wicks (97) embroidery of fabrics.
(98) Laundry (99) barber (100) plumbing (101) servicing of electronics wiring and electronics domestic appliances and equipment (102) repairs of diesel engines, pumpsets, etc. (103) tyre vulcanizing unit (104) agriculture servicing for sprayers, insecticides, pumpsets, etc. (105) hiring of sound system like loud speakers, amplifier, mike, etc. (106) battery charging (107) Art board painting (108) cycle repair shops (109) masonary (110) band troupe (111) motorised local boat (fibre glass) for Goa only (112) motor cycle to fly as taxi (for Goa only) (113) musical instruments (for Goa only) (114) dhabas (not serving liquor) (115) Tea stall.
Of late, KVIC is allowing any industry other than the above, if suits the village, if otherwise alright.
Any industry/business connected with meat slaughtered, processing/canning and/or items made of it as food production/manufacturing or sales, industrial items like Beedi, Pan, Cigar, Cigarette, etc. Any hotel engaged as sales outlet, serving liquor, preparation or producing of Tobacco as raw material, dating of paddy for sale.
Any industry/business connected with cultivation of crop/plantation like Tea, Coffee, Rubber, etc. sericulture or cookery rearing. Activities related to coir/horticulture, floriculture, fishiculture, piggery, poultry, animal husbandry and production/processing of yarn and cloth.
Manufacturing of polythene carry bags below 20 microns. Any other items which cause environmental problem.
1. TIIC extends loans up to Rs. 300 lacs for a single industrial project for acquiring fixed assets like land, building, plant and machinery and equipments for new projects and for expansion, modernisation, diversification, etc. of existing units. The branches empowered to sanction loans up to Rs. 30 lacs and loans above Rs. 30 lacs by head office. However documentation, disbursement and monitoring are done through branches.
2. List of eligible activities for financial assistance is given below.
(1) Food processing (2) Paper and paper products (3) Printing and publishing (4)_ Textiles (5) Chemicals (6) Leather and leather products (7) Manufacturing of machinery, metal products, rubber and rubber products (8) Stone crushing, brick tiles etc. (9) Agro based industries (10) Plastic and PVC units (11) Bulk drugs and formulation and pharmaceuticals (12) Automobile ancillaries (13) Electronic (14) Software development and data processing (15) photo labs (16) Service stations (17) Cold storage (18) Information Technology.
Eligibility: New projects in tiny/small scale sector and for units undertaking expansion, modernisation. Technology up gradation and diversification by existing tiny, SSI and service enterprises and for rehabilitation of viable sick units.
SSI units including ancillary units, which are going for modernnisation/technology up gradation, the outlay on the land, and building should not exceed 25% of the outlay on the programme. The unit should be in operation at least for a period of 3 years.
Hardware and software units and associated IT enabled services, existing units in the IT field and working result of the unit for the last 3 years should be satisfactory. New entrepreneurs/promoters setting up a new IT project, the main promoter should be technically qualified professionals or should have at least 5 years practical experience or should employ experienced computer professionals.
New units and existing units with or without expansion of capacity, existing units can modernise the technology and/or expand their capacity with the state of art technology.
Eligible for new proposals only. Separate working capital term loan under the scheme to the units, which were sanctioned term loan on or after 1.1.92. Project cost inclusive of working capital should not exceed Rs. 200 lacs.
Assistances given for installation of power generator for captive use of the industrial units.
Applicable to women entrepreneurs for all new projects up to a project cost of Rs. 10 lacs under SSI sector. Minimum promoters contribution is 10%
Existing and financially viable units with good proven track record can avail HP assistance for purchase of machinery and equipments. Assistance ranges from a minimum of Rs. 5 lacs and maximum of Rs. 300 lacs.
Financial assistance can be had from Tabcedco and Tamco for setting up of SSI, petty shops, Service Industries, Transport Vehicles, Agriculture and allied industries, Handicrafts and conventional industries.
The applicants should belong to Backward Class/Most Backward Class / Denotified tribes / minorities. Annual Income of the applicant should not exceed Rs.42,412/- and Rs.31,982/- in the case of Urban areas and rural areas, respectively Individual can get Rs.1 lakh as loan and Rs.3lakhs as transport Vehicle loan. A loan of Rs.5lakhs is sanction on the approval of head Office, Delhi. Interest is closed @ 7% up to a loan of Rs.2 lakhs and 10% up to Rs.5 lakhs , for the portion of85% of the loan. The balance is charged @ 13.5%.
NSIC offers financial assistances for the production and marketing activities under one roof with prompt clearance of the proposals with minimum processing time in addition to the on the spot assistance in preparing the proposals and completing the formalities.
NSIC arranges raw material on credit as per specific needs of the SSI units for a maximum period of 90 days.
Bill drawn by SSI units for the supplies made to the reputed and well-established enterprises will be financed/discounted for a maximum of 90 days.
Finance for augmenting working capital of viable units on selective basis. to enable them to pay off their purchases of the consumable stores and production related overheads etc.
Finance for export development to EOU for meeting their emergent requirements. Pre and post shipment finance shall also be provided to such units.
SSI units can procure industrial equipments for modernisation, expansion and diversification under equipment leasing scheme.
Similarly the supply of machines on hire purchase is effected through an offer of funds, an offer of foreign exchange facility, and guidance on adopting modernised technology.
Composite term loan to the tune of Rs. 25 lacs is offered to new/existing units.The repayment is 5 years with a gestation period of 6 months.
The unit registered with the NSIC under single point registration scheme is eligible to obtain tenders on free of cost and DGST&D will issue advance intimation to tenders. Further the units are exempted from payment of EMD.
To ensure fair margin to producers and to ensure quality control, marketing facilities is given by NSIC. Further NSIC introduce the common brand name and give publicity to the SSI products.
For Viluppuram district, the needs are taken care by NSICs branch at Pondicherry.
This scheme is known as the credit guarantee fund scheme for Small Industries (CGFSI) and will cover eligible credit facility extended by the lending institutions to eligible borrowers effective from 1st June, 2000.
Scope and extent of the scheme is to extend credit facilities to an eligible borrower by an eligible institutions which has entered in to the necessary agreement for this purpose with this trust, to provide a guarantee an account of the said credit facilities.
The trust shall cover credit facilities extended by eligible lending institutions in respect of a single eligible borrower not exceeding Rs.25 lacs, by way of term loan and or working capital facilities on or after entering into an agreement in the trust to the SSI units without any collateral security and or third party guarantees. Provided the dues to the lending institutions have not become bad or doubtful and the business or activity has not ceased.
The lending institution shall evaluate credit applications by using banking judgement and shall use their business discretion in selecting commercially viable proposals and conduct the accounts of the borrowers with normal banking prudence. The lending institution shall closely monitor the account and safeguard the primary securities taken from the borrower in respect of the credit facility.
An one time guarantee fee at 2.5% of the credit facility sanctioned comprising term loan and working capital shall be paid upfront by the eligible institution availing the guarantee and the annual service fee at 1% per annum and outstanding amount to the debit of the borrowers account as on March 31st of each year shall be paid by the lending institution within 60 days.
The trust shall provide guarantee cover of up to 75% of the amount in default of the credit facility to a borrower subject to a maximum of Rs.18.75 lacs per borrower. The guarantee cover will commence from the date of payment of guarantee fee and shall run through the agreed tenure of the term credit. Where working capital loan is extended to the eligible borrowers, the guarantee cover shall be for a period of five years or a block of five years.
The Government appealed SSI sector to come out with quality products with International standards for which the Government has announced a package on 30th August 2000 viz. Technology Up gradation Fund which will attract 12% backend subsidy for the loans obtained for the purposes irrespective of area of location of the units. 12% backend subsidy would be admissible on the loan advanced by the Scheduled Banks/Specified State Finance Corporations to the selected category of Small Scale Industries Sectors, viz.
Government has ear-marked RS.600 crores towards this cause and the scheme has come into operation from 01-10-2000 and will remain till 30-09-2005 i.e. for 5 years period (or) till the sanction of Capital Subsidy by nodal agency i.e. SIDBI - Small Industries Development Bank of India, reaches 600 crores whichever is earlier.
According to the procedure of the scheme, the primary lending institution viz. the Scheduled Banks and NSIC would be required to lodge claims of Capital Subsidy from SIDBI on a quarterly basis. SIDBI will settle the claim expeditiously. Subsidy is eligible for the loans sanctioned on or after 01.10.2000.
The scheme has been so devised that the lending institution/SIDBI would ensure preference to TINY sector for loans for Technology Up gradation. The entrepreneurs availing credit linked Capital subsidy for Technology Up gradation shall not avail any other benefit including interest subsidy, under any other scheme of Central Government.
In this scheme, freedom has been given to lending institution, to fix scale of promotion contribution, security, debt-equity ratio, up-front fee etc. also lending institution can ascertain whether the borrowing unit has made necessary arrangement for working capital upon availability of adequate working capital.
Technology up gradation mean a significant step taken to improve productivity, or/and improvement in quality of products or/and improved environmental conditions including work environment of unit. It would also include installation of improved packaging techniques as well as anti-pollution measures and energy conservation machinery.
Mere replacement of existing equipment/technology with the same equipment/technology will not qualify for the benefit under the scheme, nor the scheme would be applicable for up gradation with second hand works.
Existing Registered SSI units which upgrade with State of Art Technology with or without expansion.
Newly SSI registered units which set up their facilities only with appropriate eligible and proved technology duly approved by GTAB (Governing & Technical Advisory Board of GOI).
NABARD (National Bank for Agriculture and Rural Development)
Proprietary, partnership, private, public limited companies and state level corporations are eligible to avail loan facilities under the scheme to set up new units and modernization and renovation, expansion diversification of existing units (other than agro industries).
The following items are eligible for investment.
The loan should be repaid within three to seven years with moratorium of 12 months.
Viable/potential industrial cooperatives by the State Governments are eligible to avail this loan for the following items.
Proprietary/partnership firms, public /private limited companies and state owned societies and corporations are eligible to avail this loan.
The following items are eligible for investment.
The loan should be repaid within three to seven years with moratorium of 12 months.
Entrepreneurs having necessary talent / skills but lack monitory resources to meet the margin requirements are eligible to avail the soft loan. The scheme is applicable to all non-farm sector schemes and innovative hi-tech agro processing projects. Quantum of assistance will not be more than 20% of project cost subject to a limit of Rs.5 lacs. Assistance in excess of Rs.5 lacs may be considered by H.O.
Re-finance interest free and the banks may levy a service charge of 3% per annum.
Loan for margin money will be recovered along with the term loan in suitable installments.
Refinance is provided for the ISB component of SGSY, PMRY and to the SEMFEX II scheme to the Ex-serviceman/Widows.
NABARD has launched a scheme called DRIP in Viluppuram District on 19.03.2003, with an intensive motive of improving the district by creating more number of Village, Rural and small industries in the district by extending a liberal cash flow, training programmes etc.
TAHDCO was set up in 1974 to take up the construction of houses for the SC/ST people. It is now implementing a number of schemes for the economic development of the SC/ST peoples as follows:
Projects which involve a unit cost up to Rs.50000 is considered under this scheme, with 5% promoters contribution, 30% of the project cost is given as subsidy. Automobile workshop, Bakery, Carpentry, Beauty Parlour, TV/AC/ Refrigerator service Centres are eligible under this Scheme.
Any income generating project is considered under this scheme including transport sectors, with promoters contribution as 5% , a subsidy of 30% is given to the beneficiary along with a Margin money assistance of 20% of project cost at 4% interest .
Apart from the above TAHDCO offers vocational training from 6 months to 1 year, EDP Training for a period up to 12 months and computer training for 1 year all with nominal stipend.
Educated unemployed youth residing in Municipalities with educational qualification of 9 Standard.
SGSY is a holistic programme covering all aspects of self employment such as organisation of the poor into Self-help Groups, training, credit, technology, infrastructure and Marketing. The scheme is funded by the Centre and State Governments in the ratios of 75:25. Under this scheme the beneficiaries who need additional skill development, up gradation of skills, appropriate training would be organised in groups through Government Institutions.
The Tamil Nadu Pollution Control Board was constituted by the State Government on 27.2.1982. It enforces the following legislations in the matter of Control of Pollution.
Guidelines have been evolved for siting New Industries prescribing the distance from sensitive areas and restricting certain industries within 1KM from specified water sources.
Industries are classified either as Red, Orange and Green on the basis of their potential for causing pollution.
Red - Highly Polluting
Orange - Medium Polluting
Green - Less Polluting
The Ministry of Environment and Forests, Government of India, have classified the following 17 category of Industries as highly polluting industries which are to be closely monitored:
Consent of the board has to be obtained for both establishment and operation of the industry (new and existing industries), as required by the provisions of the Water / Air Acts. The industries which commissioned before 27.2.1982 are considered as existing industries and the industries which have commissioned on or after 27.2.1982 are considered as new industries.
The TNPCB enforces the Water (Prevention and Control of Pollution) Act, 1974 as amended, Air (Prevention and Control of Pollution) Act, 1981 as amended and the Environment(Protection) Act, 1986.
Under the Water (P&CP) Act, 1974 as amended and under the Air( P&CP)Act, 1981 as amended , the industries has to obtain the consent of the board for the establishment and operation of the industry.
As per section 25 of the Water(P&CP)Act, 1974 as amended no person shall without the previous consent of the State Board, establish or take any steps to establish any industrial plant or process or any treatment and disposal system or any extension or addition the thereto which is likely to discharge sewage or trade effluent into any stream or well or sewer or on land
As per Sub Section 2 of Section 25 of the said Act, an application for consent of the State Board under Sub Section (1) shall be made in such form containing such particulars and shall be accompanied by such fees as may be prescribed. Also as per section 25 of the Air (P&CP)Act 1981 as amended no person shall without The previous consent of the state board , operate any industrial plant for the purpose of any Industry in an air pollution control area, As per sub section (2) of section 21 of the said Act. An application for consent of the state board under sub section (1) shall be accompanied by such fees as may be prescribed and shall be made in the prescribed form and shall contain the particulars of the industrial plant and such other particulars as may be prescribed.
The application forms can be had from the office of the District Environmental Engineer on payment of Rs.200\- per set of four forms, under water / Air Acts through a Demand Draft drawn in favour of the District Environmental Engineer concerned.
The application forms are to be completely filed in and the first three copies are to be submitted to the District Environmental Engineer Concerned with all the required enclosures and Demand Draft for appropriate consent fee under water /Air Act. The fourth copy of the applications and water /Air Act are to be retained by the industry for their office purpose.
For the project costing less than Rs.10 crores, the application forms will be verified and scrutinised and the site will be inspected by the concerned District Environmental Engineer and then sent along with Inspection Report with his specific recommendations of the projects to Tamilnadu Pollution Control Board Head Office in case of Red category industries and to the respective Joint Chief Environmental Engineers Office in case of the Orange category industries. In case of Green category industries, the District Environmental Engineer will issue the consent.
Projects costing more than Rs.10 crores the application forms will be sent to Joint Chief Environmental Engineer concerned for verification, scrutiny and inspection report of the site and then sent to TNPC Board Head Office along with his specific recommendations in the Inspection Report furnished by the DEE.
The application forms along with Inspection Report will be again scrutinised in the head office or the Joint Chief Environmental Engineers Office as the case may be and the application which satisfies all the requirements will be cleared for the issue of consent for establishment Joint Chief Environmental Engineers and District Environmental Engineers are empowered to issue consent in respect of orange and green category of industries respectively.
As per EIA Notification 1994 as amended, 29 categories of industries have to obtain environmental clearance from Ministry of Environment and Forests, Government of India. Of these, industrial projects of 17 types costing more than Rs.50 crores and another 12 types of industries manufacturing products not reserved for Small Scale Industrial Sector and those Small Scale Industries manufacturing products reserved for Small Scale Industrial Sector with Investment more than Rs.1 crore falling under Schedule of EIA Notification dated 27.1.94 as amended have to obtain Environmental; Clearance from Ministry of Environment and Forests, Government of India by submitting rapid EIA Report after conducting EIA study for one season other than monsoon.
As per Schedule 4 of EIA Notification,1994 as amended, public hearing has been made mandatory as per the list of projects mentioned in Schedule 1 of this notification. TNPC Board shall issue notice for conduct of environmental public hearing mentioning the date, time and place of public hearing which shall be published in at least two News Papers widely circulated in the region around the project, one of which shall be in the vernacular language of the locality concerned.
After conducting public hearing and as required in the G.O.ms.No.134,E&F Department,dt,14.5.98,No objection certificate issued by the Board along with Public hearing panel report and copies of filled in questionnaire along with application in schedule II of Environmental Impact Assessment Notification,1994 as amended and Environmental Impact Assessment report have to be sent to Govt. of India for onward transmission to Ministry of Environment and Forests, Govt. of India. On receipt of Environmental Clearance from Ministry of Environment & Forests, Govt. of India, the TNPC Board will issue consent to Establish under Water and Air Act to the Industry.
In case of thermal power projects, all co-generation plants irrespective of the installed capacities, separate captive power plants up to 250 MW (both coal and Gas/Naphtha based), and utility projects such as coal based plants up to 500MW using fluidized bed technology, coal based power plants up to 250MW using conventional technologies, Gas/Naphtha based plants up to 500MW and which are not located within the radius of 25 KM boundary of reserve forests, ecologically sensitive area which may include National parks, Sanctuaries, Bio-sphere Reserves critically polluted area and within 50 KM of interstate boundary, the state Govt. can issue Environmental clearance under Environmental Impact Assessment Notification 1994 as amended. The TNPCB after conducting public hearing as mentioned in para (6) above, the public hearing panel report along with NOC issued by TNPCB and copies of filled in questionnaire along with application in schedule II of EIA Notification 1994 as amended, and Environment Assessment Report, will be forwarded to Govt. to the E&F Dept. for issuing Environmental Clearance.
In case of projects which are covered under Coastal Regulation Zone Notification, dt. 19.2.91, clearance shall be obtained from Coastal Zone Management Authority at District level constituted as per G.O. Ms. 163 E&F(EC III)Dept, dt.9.6 98 through Deputy Director of Town and Country Planning concerned before applying for Consent of TNPCB.
Before selecting a site for the construction of factory building an approval from the local body is necessary. The site so selected should be in industrial area demarcated by the local body. The local body should be approached for the following approvals:
At present , machines can be imported under Open General License. Most of the Capital Goods can be imported under OGL except some items mentioned in the Restricted List of The Import-Export Policy.
This license is needed for the industry which runs with power and employing 10 persons and above / without power and employing 20 persons and above, from the Inspector of Factories.
Approval from Chief Inspector of Boilers should be obtained for the usage of Boilers in the industry .The license should be renewed every year. Repairs/ services should be got done by the experts in the field with the permission of the department.
Manufacture and sale of all medicines including Siddha, Homeopathy, Ayurvadic and Unani needs a license from the State Drug Controller. Also all cosmetic items need such a license on par with the drug license.
Manufacture of processed, pre cooked, and dried meat for the human consumption needs this license.
Manufacturing / processing Jam , Jelly, Fruit Juice, Dry fruits, Pickles and vegetables require this license. This can be obtained from Deputy Director,(Food & Vegetable Preservation), Ministry of Agriculture, Sasthri Bhavan, Chennai
Cold storage where food products are stored with specific machinery requires this license.
This license is to be obtained from the local body authorities for the manufacture, stock, sales, and distribution of specified food products. This should be renewed every year.
Clearance is to be obtained for the industries which involves hazardous process , form the Station Fire Officer within the Municipal Limit and from the Divisional Fire Officer in other areas.
Manufacture of Matches and explosives need a license from the Deputy Chief Controlling Officer (Explosives), Sasthri Bhavan, Chennai.
A license has to be obtained from the District Revenue Officer for stocking the above chemical.
A declaration is to made to the District Revenue Officer, in the proper format, before commencing the printing operation of a press.
For the manufacture and import of insecticides this license is to obtained from the authority at Haryana.
This is a Govt. of India organisation dedicated to the industrial development by means of Economic investigation, Modernisation, etc. The office is at Chennai and it has got extension centers also. This body offers the following services:
Every body knows that marketing is a difficult task, that too for a non-branded product. Such product can be moved in the market if there is a quality assurance. For this purpose, Government of India has formed an institution in the name of Indian Standard Institute, which was subsequently renamed as Bureau Of Indian Standards. This institution has released so many volumes of books containing quality standards to different products, considering safety, durability etc. These books tell the manufacturers about the standards to be maintained from the selection of raw materials, machinery to be used ,the process to be adopted and the tests to be made. On nominal charges, a product can be registered with BSI. The product manufactured as per the specifications of BSI, will have the label / seal of BSI for the quality assurance. In fact, there are some items for which BSI labeling is mandatory. For this region, Bureau of Indian Standards is functioning at, Tharamani, Chennai.
ISO 9000 registration means the certification of company quality systems by third party through their mechanism of registration. Of all the questions about the ISO 9000 series, this is probably the one that causes the most concern. Increasingly, European customers expect Indian companies to have their quality systems registered to ISO 9001, 9002 and 9000. This is generally done by having an accredited independent third party onside audit of your companys operation against the requirements of the appropriate standard. Upon successful completion of this audit, your company will receive a registration certificate that indicates your qualify systems as being in compliance with ISO 9001, 9002 and 9003. your company will also be listed in a register maintained by the accredited third party registration organisation. You may publicise your registration and use the third-party register standardisation certification mark on your advertising, letterheads, and other publicity materials (but not on your products).
The International Organisation for Standardisation (ISO) is the specialized international agency for standardisation, at present comprising the national standards bodies of 91 countries including India. ISO is made up of approximately 180 Technical Committees. Each Technical Committee is responsible for one of the many area of specialization. The object of ISO is to promote the development of standardisation and related world activities with a view to facilitating international exchange of goods and services and to develop co-operation in the sphere of intellectual, scientific, technological and economic activity.
The results of ISO technical work are published as international standards.
A subsidy up to Rs.75000/- is given to the industry which has got an ISO certification to compensate a part of its expenditure in getting the certification. For details please contact DIC or SISI,chennai.
Exporting is supplying the goods manufactured in a country to another country. Exports constitute an essential part of nations economic activity. Export promotion is a policy and a practice by which the exports of the country can be increased to maximum possible extent to bridge the balance of payment deficits as early as possible. Export promotion is particularly important for developing countries, so that, they may obtain all their development requirements besides their external debits.
The exports from this country are classified as consumer goods, agricultural by- products and semi processed goods. The consumer goods exported are tea, cotton cloth, black pepper, kernels, tobacco, readymade garments etc. Among the raw materials and intermediate goods exported are jute, height and metallic wares, raw and waste cotton, vegetable oils and oil seeds. The others include wool, lubricants, art silk, machinery and transport equipment
The government of India has taken a number of measures to promote exports in the post liberlisation era as institutional assistance to the export sector, incentives to encourage marketing assistance and assistance for export production. It has sponsored a number of organisation to provide different types of assistance to the exporters.
To carry out the task of promotion effectively, India has developed a fairly elaborate institutional framework, to assist the export sector apart from the organisations which were established specially for export promotion. Some of them are :
Any person applying for an export license or any other benefit or concession under Import- Export policies of Government of India, shall require to furnish his Registration Cum Membership Certificate (RCMC) Number. This certificate can be obtained from any of the Export Promotion Council related to his main line of business. The following are the EPCs whose objective is to promote and develop the export of the country:
The following agencies also regarded as Export Promotion Councils:
Most of the above organisations have got regional offices in India to help the exportes.
Export guidance cells have been formed in each of the District Industries Centres to guide the new entrepreneurs who wishes to export his products or find out the possibilities of exporting some goods.
Export guidance cell for District Industries Centre, Viluppuram was inaugurated by the District Collector, Viluppuram, on 20.03.2003.On the same day a District level Export Promotion Cell has also been formed to monitor the exports needs of the district under the chairmanship of the District Collector, Viluppuram.
Central Excise Duty is an indirect tax levied on goods manufactured in India. The tax is administered by the Central Government. It is a tax, leviable on the manufacture of a commodity and is payable on the clearance from the place of its manufacture. It is essential to find out whether the product manufactured by the unit is subjected to payment of central excise from the central excise office within whose jurisdiction the proposed industry will fall. The jurisdiction of the central excise offices are at times fixed on the basis of geographical area and at times fixed on the basis of specific commodities. The liability of Central Excise duty arises as soon as the goods are manufactured. In 2001, the new procedures are simplified. There are less numbers of rules ,ie. only 32 as compared 234 earlier.
The Central Excise law is administered by the Central Board of Excise and Customs (CBEC or Board) through its field offices. In order to assist the public, the following directions have been issued to the Central Excise field formations:
The following category of persons are required to register with jurisdictional Central Excise Officer in the Range office having jurisdiction over his place of business/factory :
Small Scale units availing the slab exemption, based on value of clearances under a notification is exempted from the registration. However, such units will be required to give a declaration once the value of their clearances touches Rs.90 lakhs.
The application has to be made to the jurisdictional Central Excise Officer. When a manufacturer who is exempt from the registration is required to file a declaration, the same will be filed with the Assistant Commissioner of the jurisdictional Central Excise Division.. The issuing authority should make every effort to complete all formalities and grant the Registration Certificate within 7 days of receipt of application in this office.
Once Registration Certificate is granted, it has a permanent status unless it is suspended or revoked by the appropriate authority in accordance with law or is surrendered by the person or company concerned.
The Central Excise assessees and registered dealers have to obtain New Excise Control Code Number (New ECC Number.).This Number is based on the principles of Common Business Identifier and will ultimately replace the existing registration number, all persons requiring registration must obtain the New ECC Number. ,
Every dealer or person intending to commence business may get himself registered under this Act. But compulsory registration is necessary in the following cases:
Statutory Requirements To Start A Small Industry