10.2 village & small industries village and small ... · projects will be executed on a public...

10.2 VILLAGE & SMALL INDUSTRIES

Village and Small Industries continue to play a very important role in the country's economy. They are labour - intensive and provide employment to nearly 1.86 crore people in the country. There are 4.20 lakhs registered SSI units in Tamil Nadu. The small industries with a total investment of Rs.12500 crores are providing employment to 30 lakhs persons in the State. The value of production is Rs.21537 crores. Tamil Nadu is one among the few States that adopted the strategy of Industrial growth with emphasis on Small Scale Industries. The average annual growth in number of units was 12.8% and employment generation around 10.6%. Small Scale Industries account for 95% of Industrial units, 40% of output in manufacturing sector and 35% of exports. The Industrial policy of the Government has emphasised the importance and effectiveness of Small and Tiny Industries as a major vehicle for Industrial growth and generation of additional employment, particularly in backward and rural areas. The State has always laid stress on harmonious development of both large and small Industries to reduce disparities in sectoral stabilisation and uniform regional economic development.

The Village and Small Industries sector comprises 5 sub-sectors, viz., Small Industries, Handloom and Textiles, Khadi and Village Industries, Handicrafts development and Sericulture. Besides the departments concerned with the above sectors, the State owned Corporations for agencies like SIDCO, TIDCO, TANSI, Cooptex, Poombuhar Handicrafts Development Corporation, KVIB are functioning for the development / promotion of those Industries. In order to give impetus to the growth of small scale and rural Industries, Government has provided for protection / preference to items manufactured by the Governmental agencies in procurement by other Government departments or agencies. For 2002-03 as against the provision of Rs.4398.56 lakhs, the anticipated expenditure is Rs.12429.32 lakhs. A sum of Rs.10003.27 lakhs is proposed for the year 2003-04.

Some of the initiatives envisaged in the Budget for 2003-04 are indicated below:

For upgradation of Industrial Estates such as those at Guindy and Ambattur, the outlay proposed is Rs.6 crores for each of these Estates. This will enable provision of quality infrastructure such as roads, lighting, sewerage, drainage etc., and restoration to their premier position. It is proposed to encourage new units to be established in these Estates. The projects will be executed on a Public-Private Partnership model. A revenue sharing arrangement between the local body and SIDCO together with the Estates' Association will be worked out to facilitate the investment plan.

The Plan provides an outlay of Rs.2.00 crores for technology upgradation and modernisation of SSI units. Under this scheme, the Government will provide back ended interest subsidy in order to enable SSI units to upgrade their units and compete in the market. Likewise, for SSIs started under the National Equity Fund Scheme, back ended interest subsidy will be extended for which purpose the outlay proposed is Rs.1 crore. For the

10.2 Village and Small Industries 279

tiny sector, a similar scheme will be launched for which the outlay proposed is Rs.25 lakhs. Similarly, to enable SSI units to obtain ISO certification and engage in research and development initiatives, an outlay of Rs.25 lakhs is proposed.

Tiny sector with power connection upto 10 HP will be provided with concessional power tariff in the place address given in permanent SSI certificate functioning in own /rented /leased premises.

The policy of GOI on reservation of specified items for purchase from SSI sector will also be followed by the State. Supply orders for 358 items shall be placed with domestic SSI units only through open tender with effect from 1.12.2001.

New entrepreneurs who proposes to set up a small Industry shall get provisional certificate from the District Industries Centre. On line at a nominal fee of Rs.50.

During 2003-04, it is proposed to provide Rs.10.15 crores for capital subsidy for new SSI units under the new Anna Marumalarchi Thittam. Under this programme, so far 320 proposals covering 220 blocks with a project cost of Rs.267 crores are under process and sanctions for 33 units with an outlay of Rs.23.14 crores have been accorded.

I. Department of Industries and Commerce

Department of Industries and Commerce which is entrusted with the responsibility of implementing programmes intended to Small Scale /Tiny Sector Industries, registers small scale units, assists them in getting statutory approval and clearances, providing testing facilities for electrical, electronic and chemical industries. The Department is also organising and maintaining Industrial Estates for various activities such as chemical, ceramics, electrical, electronic and allied industries. The Department also extends financial support by sanction and disbursement of State subsidies besides technical and escort support.

A) Industrial Estate

1. Assistance for setting up of Industries

In order to promote Tiny and Rural Industries, 287 blocks in the State have been declared as Industrially backward / most backward and Small Scale Industries located there are being provided with State Capital Subsidy. These incentives and concessions are also available to Industrial Estates and Industrial Complexes sponsored by Government / Government Agencies. An outlay of Rs.10 crores was provided for 2002-03 and the expenditure is also likely to be the same. For 2003-04 a sum of Rs.970 lakhs is proposed.

2. Construction of Additional sheds in TACEL at Vridhachalam.

Government sanctioned construction of additional sheds in the TACEL Industrial Estate, Vridhachalam to cater to the needs of Ceramic Industries in that area. The construction of the sheds has been completed. The total area


of estate is 42.80 acres; at present there are 64 units within the Estate on rental basis. As against a provision of Rs. 1 lakh for 2002-03 for maintenance of the sheds, the expenditure anticipated is also Rs.1 lakh. An amount of Rs.1 lakh is proposed for 2003-04. 3. Technical Information Section in Industrial Estate.

The Technical Information sections disseminate information to the industrialists and prospective entrepreneurs. The sections have libraries containing technical books on various discipline including Project profiles on SSI and details of ISI specifications for various products. These sections are functioning at Guindy, Ambattur, Madurai, Pettai, Katpadi, Trichy, Coimbatore and Salem. The Technical centre, Guindy has a well-furnished auditorium for screening films on technical subject and conducting meetings and demonstrations for technical personnel.

4. Assistance to Tamil Nadu Industrial Investment Corpn., Ltd. (TIIC)

The TIIC, the one stop finance shop for Industries was set up as a first State Level Financial Institution in the country in 1949. It provides term loan/subsidy for acquiring fixed assets, land, building, plant & machinery and equipments for industrial units. The expenditure anticipated during 2002 - 2003 is Rs.800 lakhs and an amount of Rs.1700 lakhs is proposed for 2003-04.

B. Small Scale Industries

5. Expansion of Technical Training Centre

This Centre was established to provide necessary technical skills for workers to be employed in small scale industrial units. This training centre is also imparting training to the Diploma holders in the field of Dye Design. During the year 2002-03 as against a provision of Rs.1.96 lakhs the expenditure is anticipated to be Rs.1.70 lakhs and for the year 2003-2004, a sum of Rs.1.51 lakhs has been proposed to impart training to the students for the following courses namely:

S.No. Name of the Scheme (Rs. in lakhs) 1. Provision of Training in CAD/CAM 1.16 2. Provision of Training in English

Communication 0.25

3. Training in Thermal Engineering 0.10 Total 1.51

6. Central Electrical Testing Laboratory, Kakkalur. This laboratory was established to offer testing facilities to the entrepreneurs for their electrical products. At present, testing facilities have been created to conduct various types of test on 160 electrical products, as per Indian Standard specifications. An outlay of Rs.25 lakhs is proposed for expansion of the lab during 2003-04.


7. Common Facility Centre, Coimbatore.

This Centre was established for the implementation of quality control order for household electrical appliances in Coimbatore region.

8. Quality Control Order Enforcement Centre for Domestic Electrical Appliances, Chennai

The Centre had given wide publicity through seminars and advertisement media to create awareness of public, dealers and manufacturers regarding the need to have quality in electrical products and regarding action taken against the manufacture and sale of sub-standard electrical products under the quality control order 1981, 1988, 1989 and 1993.

9. Regional Testing and Analytical Laboratory, Madurai

The Regional Testing Laboratory at Madurai provides testing facilities to entrepreneurs located in and around Madurai, chemical industries, minerals, cattle feed, water, coir piths etc.

10. Data Bank for Chemical Industries

Data Bank for Chemical Industries helps the entrepreneurs in the collection of basic data for chemical and allied industries and also in the preparation of project profiles by those who are interested in setting up chemical and allied industries in small scale sector in Tamil Nadu. This was set up with a view to strengthen the statistical and consultancy services in the field of chemical and allied products. Prospective entrepreneurs are being given project profile and technical opinion by the Data Bank. A sum of Rs.0.15 lakh has been proposed for 2003-04. 11. Training of Officers and Technical Staffs

The programme for training of officers and Technical staff is to re-orient and equip the entire official machinery to the role of facilitator and co-ordinator rather than only as regulators. The training is also extended in Electrical/ Electronic wing to make available the sustained services of the technical staff to the clients and for educating the clients in evaluating the quality and performance of electrical/ electronic products by updating knowledge.

12. Data Bank Information Centre for Electrical and Electronic Industries.

Data Bank and Information Centre for Electrical and Electronic Industries provides comprehensive package of information and guidance to the needy entrepreneurs on electrical and electronic industries. This Centre also prepares project profiles on selected projects. A technical library with 1400 books and 100 journals had been developed for the use of entrepreneurs in this discipline inclusive of Communication, Instrumentation, Computer Engineering etc.


13. Power Tariff to SSI Units (LTPT Subsidy)

This subsidy is available to all registered SSI units situated in Tamilnadu outside the urban agglomeration areas of Chennai, Coimbatore, Trichy, Madurai and Salem at the rate of 40%, 30% and 20% of Energy consumption charges in first three years respectively. The Government has extended this concession making it available to even major and medium Industries having Low-Tension Power connection. This scheme is transferred to non-plan from 2002-03.

14. District Industries Centres

The District Industries Centres are functioning in 28 Districts in Tamil Nadu except Chennai District wherein Regional Joint Directorate is set up to render all help to the prospective entrepreneurs in starting Small, Rural and Tiny industries. The entrepreneurs are also assisted in getting clearances from Local Bodies, Town Planning, Pollution Control Board, Public Health, Factories and other Departments and getting timely power connection under the 'Single Window Scheme'. For 2002-03, the expenditure anticipated is Rs.100.01 lakhs. Rs.91.67 lakh is proposed for the scheme for 2003-04.

15. Entrepreneur Development Programme

Entrepreneur Development Programme is being conducted with adequate financial support and training given to entrepreneurs. On completion of the above training programme, necessary financial assistance will be tied up for the entrepreneurs through financial institutions to enable them to start their own industry. Under this Special Training Programme, 150 unemployed Graduates and Diploma holders will be trained for a period of 6 months. During 2002-03, it was programmed to train 11000 women under self help group and 9000 technically qualified persons under this scheme besides 5000 women under PMRY scheme. An amount of Rs.9.02 lakhs is proposed for 2003-04 for this scheme inclusive of Part-II Scheme.

16. Prime Minister’s Rozgar Yojana Scheme

The 'Prime Minister’s Rozgar Yojana Scheme', for Educated Unemployed Youth was launched by Government of India on 2nd October 1993. The scheme covers educated unemployed persons in the age group of 18 to 35 years who have passed VIII Standard. Preference is given to those who have been trained for any trade in Government recognised / approved institutions for a duration of at least 6 months. The age limit has been relaxed from 35 to 45 years for SC/ST, ex-servicemen, physically handicapped and women from 1.4.99 onwards. Neither, the income of the beneficiary along with spouse nor the income of the parents of the beneficiaries shall exceed Rs.40,000/- per annum and the minimum period of residency is 3 years. An amount of Rs.170 lakh was provided in 2002-03 and it is anticipated that the amount will be spent fully. A target of 20000 candidates was fixed for training for 2002-03, 35024 applications were recommended to banks and 14765 persons were sanctioned loan to a tune of Rs.66 crores. For the year 2003-


04, a sum of Rs.170 lakhs is proposed. This scheme is fully funded by Government of India.

17. Setting up of Nucleus Cell

The Nucleus Cell of this Department was created in the year 1977 to collect statistics from the registered SSI units through census and to update the data collected in the census by means of sample surveys. Besides this the DC SSI, New Delhi with effect from May 1998 has introduced a new scheme of collection of monthly production details from the selected sample Small Scale Industries Units for the purpose of computing Index of Industrial production so as to assess the growth of this Sector. In addition to the above, the DC SSI, New Delhi is conducting a sample survey of registered Small Scale Industries Units in the State to update data on various parameters of working of Small Scale Industries Units in Tamilnadu. For 2002-03, the expenditure anticipated is Rs.39.87 lakhs. Rs.40.81 lakhs has been proposed for the year 2003-04. The scheme is fully funded by Government.

18. Market Development Assistance (MDA)

The expenditure in provision of 20% coir rebate is shared equally by Government of India and the State and, under the scheme, 10% of the Annual turnover can be granted as MDA for all the coir products throughout the year. For the year 2002-2003, the expenditure anticipated is Rs.33 lakhs. For 2003-04 Rs.50 lakhs is proposed. Cost for implementing this scheme is equally shared by Government of India.

C. Industrial Cooperatives

19. Cooperative Industrial Estates

The Industrial Estates under Cooperative Sector have been organised with the object of providing developed plots / industrial sheds to small scale industrialists at reasonable rates on hire purchase basis. The estates also provide basic infrastructural facilities such as power, water, drainage, street lights, canteen, dispensary, labour welfare centres etc., and a congenial atmosphere for any industrial activity. The estates are responsible for maintenance of these services for which they collect service charges from the unit holders. Some of the new Industrial Co-operative societies established during 2002-03 are indicated below:

1.Silk Cotton Growers Industrial Cooperative Society, Theni District.

2.Cashew Processing Servic Industrial Cooperative Society, Theni District.

3.Gold Jewellery Manufacturing Industrial Cooperative Society,

Coimbatore.

4.Cashew Processing Industrial Cooperative Society, Jayamkondam,

Perambalur District.

5.Copper Jewellery manufacturing Industrial Cooperative Society,


Chidambaram.

D. Other Programmes / Schemes

20. New Anna Marumalarchi Thittam

New Anna Marumalarchi Thittam is being implemented for the promotion of Agro based / Food Processing Industries in each of the 385 blocks of the State with minimum investment of Rs. 1 crore and above with special package of incentives as mentioned below:

1. 15% subsidy on investment in Plant and Machinery limited to Rs. 15 lakhs per block in all the 385 blocks for investments made by the entrepreneurs under this Scheme.

2. Power Tariff Subsidy (LTPT) of 30%, 20%, 10% of energy charges in the first, second and third year respectively from the date of commencement of production or date of power connection, which is later.

3. The units set up under this scheme will be eligible for Generator subsidy of 15% on the cost of the generator with a maximum ceiling of Rs. 5 lakhs.

4. The units employing more than 50% of their work force from women will be eligible for additional 5% capital subsidy subject to a limit of Rs. 5 lakhs.

A new scheme, viz. “Interest Subsidy under Technology Upgradation Scheme” to supplement the 12% back-end subsidy given by Government of India for technology upgradation of selected categories of industries is implemented through SIDBI. For the implementation of Capital Subsidy Scheme, a sum of Rs. 50 crores is provided for Tenth Plan. In the first year of the Tenth Plan (2002-03) Rs.510 lakhs will be the likely expenditure. For the year 2003-04 Rs.1015 lakhs is proposed which is inclusive of Part-II scheme of Rs.15 lakhs.

There has been no significant adoption of innovative technology in small industries. Technological Upgradation / transfer of technology is the need of the hour in the context of globalisation. The availability of well developed technological information, dissemination of services backed up with consultancy has to be provided to Small Industries. SSI are facing financial constraints for such transformation to superior technology. In order to help SSI an amount of Rs.505 lakhs is set up for the year 2003-04 to take up the following programmes:

S.No. Name of the Scheme Rs. in lakhs

1 Technology Upgradation and Modernisation 225 2 Assistance to New Small Industrial Units under

National Equity Fund. 100

3 Strengthening of Existing Infrastructure in Industrial Estates

180

Total 505


New Schemes

1. Common Facility Centre Modern Tool Room Centre, Coimbatore.

There is a cluster of 9000 precision Engineering units in Coimbatore. It is proposed to establish modern tool room cum training centre at Coimbatore under the cluster development scheme of GOI for public / private partnership of Government of Tamil Nadu for manufacture and supply high precision tools to the precision engineering industries and also provide skill development training. 75% of cost of scheme is borne by GOI, 13.5% by Coimbatore Small Scale Industries Association and the balance 11.5% I.e. Rs.1.21 crores is to be provided by State Government.

1 acre land for the proposed Modern Tool Room Centre, will be given free of cost, cost of building will be Rs.90 lakhs and other new assets will Rs.960 lakhs. Total project cost is Rs.1050 lakhs and funding sources for the programme is as follows:

Sl. No. & Name of the Scheme (Rs in lakhs) 1) Government of India grant under Cluster Development

Schemes – 75% of cost of the project. 788

2) Contribution by the Shareholders i.e. Coimbatore Small Scale Industries Association (13.5%)

141

3) Government contribution - 11.5% 121 Total 1050

An amount of Rs.121 lakhs is provided for 2003-04 towards

Government contribution.

2. Product Display and Quality Testing Centre at Ambattur, Chennai.

There is cluster of nearly 700 small automobile component manufacturing units in and around Ambathur. It is proposed to set up a product display cum testing centre at Ambathur to provide service for testing of quality of raw material and also display of products for marketing under Cluster Development Scheme of Government of India. 75% of the cost is borne by the Government of India, 15% from the association and the balance 10% is to be provided by the State Government.

The product display centre will be established in 0.5 acres of SIDCO land in Industrial Estate at Ambattur, cost of building will be Rs.15 lakhs and Plant and Machinery and other fixed assets of the display centre will be Rs.55 lakhs. Thus, the tot al cost will be Rs.100 lakhs which will be met as follows:


Sl.No. & Name of the Scheme (Rs. in lakhs)

1) Grant Government of India under Cluster Development Scheme 75%

75

2) Contribution by Ambattur Industrial Estate Manufacturers Association (15%)

15

3) Government contribution (10%) 10 Total 100

Rs.10 lakhs is provided in 2003-04 towards Government contribution

for the establishment of Product Display Centre.

3. Raw Material and Fertilizer Bank at Trichy.

This scheme is set up to provide a Common Facility Centre under Co-operative Sector to provide services such as Raw Material Bank, Fertilizer Bank and Modern Agricultural implements, to help the Agro Based Food Processing Unit under NAMT. The cost break-up is as follows:

Name of the Scheme Rs. in lakhs Land (3 acres) 15 Buildings & Storage godowns 60 Equipments & Agriculture Equipments 25 Total 100

The cost will be met as follows:

25% cost subsidy from NABARD, 12.5% venture capital fund at 3% interest, 2.5% a share by 50 Agri. Graduates at Rs.5,000 each, 10% share (Rs.10 lakhs) participation by State Government and 50% from Banks as loan.

To provide services under this units a Consortium on Industrial Cooperative Society will be fixed with 50 unemployed B.Sc. Agricultural graduates and trained on "Agriclinic" by NABARD at Trichy. Funding for the above programme will be as follows:

Sl.No. & Name of the Scheme (Rs. in lakhs) 1) Share contribution by members (50) at Rs.5000 each 2.50 2) Share participation by Government 10.00 3) Venture capital fund at 3% by NABARD 12.50 4) 25% subsidy from NABARD 25.00 5) Loan from financial Insitutions 50.00

Total 100.00 A sum of Rs.10 lakhs is proposed as share capital contribution by

Government in the year 2003-04.


4. Technology and Financial Consultancy Support

The scheme is to subsidise fees up to Rs.1 per unit charged by consultants / experts in rendering assistance / expertise to100 SSI units in Thrust Sector to go for modernisation and financial management, improvement not exceeding Rs.1 lakhs per unit, to make them competitive in the Global Market in the present WTO scenerio.

It is proposed to extend assistance in the form of loan at the rate of 1 lakh per SSI unit to meet the consultation charges and an amount of Rs.100 lakhs is provided for 2003-04 as loan for this programme.

5. Entrepreneurship Training including Resource Management Techniques for

New Anna Marumalarchi Thittam Beneficiaries.

This scheme is to provide training to 600 entrepreneurs selected under NAMT by reputed Institutions in the field of financial accounting, management, marketing, labour laws etc. after grouping the applicants selected State wise as per the Govt. guidelines under NAMT. 30% of the cost, i.e., Rs.9 lakhs will be borne by financial institutions, 40% i.e. Rs.12 lakhs (@ Rs.2,000 per beneficiary) by entrepreneurs and 30% (i.e. Rs.9 lakhs) by State Government.

The cost of training per beneficiary will be Rs.5000/- and one batch consists of 20 persons. 30 such batches will be given training at total cost of Rs.30 lakhs. The source of funding will be as follows:

Sl. No. & Name of the Scheme (Rs. in lakhs)

1) Government contribution 30% 9 2) Sponsors from financial institution such as SIDBI,

NABARD, Banks, etc. 30%. 9

3) Balance amount to be borne by the beneficiaries at the rate of Rs.2000 (Rs.2000 x 600)

12

Total 30 An amount of Rs.9 lakhs is proposed during 2003-04 for the above

scheme.

6. Providing Internet connectivity / Linking with Portal for Industrial Information Harnessing and Export Guidance Cell formed at 28 DICs, RJD, Chennai and the Directorate.

This scheme is to provide computer accessories with internet connectivity in 28 DICs., RJD Chennai and to the Directorate to harness industrial / export information to disseminate to the entrepreneurs information pertaining to exports in the interest of setting up of Export Guidance Cell in the DICs to promote exports in the State.

Rs.1 lakh is proposed to give internet connectivity to District Industries Centre in the year 2003-04.


7. Provision of Xerox Machine to the Directorate of Industries and Commerce.

It is proposed to provide one Xerox machine at a cost of Rs.2.10 lakhs since the machine available in the Department was purchased five years back and has lost its utility. The cost of xerox machine at Rs.1.50 lakhs, 0.60 lakhs is towards consumables & maintenance. The amount of Rs.2.10 lakhs is provided for the purchase of xerox machine and stationery.

8) Modernisation of Central Electrical Testing Laboratory, Kakkalur and

strengthening by providing Additional testing facilities for energy meter.

The CETL, Kallalur is engaged in evaluation of quality and performance of various electrical products by testing as per ISO specification. It is proposed to provide and augment facilities for testing of energy meters so as to have all facilities in one place. 50% of the cost of machinery and equipment is proposed to be obtained as grant from GOI and the balance 50% cost and the recurring expenditure has to be borne by the State. It is also informed that the State Government is required to enclose certificate confirming the fact that its department has incurred expenditure from its own sources. The total cost of equipments is Rs.100 lakhs and the State has to bear Rs.50 lakhs for equipment cost and Rs.7 lakhs towards recurring expenditure on maintenance.

The CETL, Kakkalur is accredited by NABL and recognised by BIS. Therefore, Government of India extends over 50% assistance as grant. The Government is required to certify the expenditure from own resources. The funding will be met as follows:

Sl.No. & Name of the Scheme (Rs. in lakhs)

1) State Government contribution 50+7 recurring expenditure

57

2) Government of India grant 50 Total 107

The expenditure has to be met initially by the State. An outlay of Rs.50

lakhs is proposed for 2003-04 for this scheme.

9. Training Scheme for Manufacture & Quality System Personnel at Central Electrical Testing Laboratory, Kakkalur.

It is reported that most of manufacturers have been representing to provide training in testing electrical products, so as to maintain international standards. For implementing the training programme a well furnished conference hall with communication equipments and accessories is required besides giving course materials. Rs.11 lakh is proposed for the scheme with same ultimate cost.

An outlay of Rs.11 lakhs is proposed for implementing the scheme during 2003-04.


10. Setting up of Calibration Centre in Chemical Testing & Analytical Laboratory, Guindy, Chennai - 32.

It is reported that there is demand for calibration test which is mandatory for getting accredition. Therefore it is proposed to set up a calibration centre with required machinery and instruments under Part II scheme. This in addition to this present facility available in the Chemical Testing and Analytical Laboratory, Guindy, the calibration work for certain glassware items used in labs to get accredition as per norms of NABL, BIS, ISO. Rs.20 lakhs is proposed for 2003-04 for provision of calibration facility for the lab.

11. Construction of Laboratory Building at Institute of Ceramic Technology,

Vridhachalam.

It has been proposed to construct a Laboratory building with an extent of 2500 sq.ft. at a cost of Rs.12.50 lakhs. The institute is offering diploma course in Ceramic Technology. The existing building is reported as not having sufficient space to establish two labs. A sum of Rs.12.50 lakhs is provided for the year 2003-04 for the construction of lab building at Institute of Ceramic Technology, Virudhachalam.

12. Implementation of Revised Syllabus at Institute of Ceramic Technology,

Vridhachalam.

It is reported that the Institute of Ceramic Technology has introduced new syllabus (new subjects such as Physics & English communication lab and workshop practicals) and the institute has no facility to teach students the practical aspects of new subjects. Therefore, important essential accessories such as computers, xerox copiers and lab equipments etc. are proposed to be provided to teach the practical aspects. A sum of Rs.10 lakhs is provided for 2003-04 for the above purpose.

13. Setting up of New Auction Centre for Welfare of Small Tea Growers in

Nilgiris District.

To ensure reasonable and remunerative prices to tea manufacturers and small tea growers a separate Industrial Co-operative society to act as an auction centre has been formed. To establish an auction centre the department has proposed to provide equipment and furniture to a total cost of Rs.150 lakhs. The society was formed on condition that the centre will be formed with contribution by Government to an extent of Rs.5 lakhs. The financing pattern is indicated as follows:

Name of the scheme Rs. in lakhs

Share capital from members 37.70 From Government 5.00 Deposits from buyers 10.00 Assistance from Tea Board 25.00 Term loan 72.30 Total 150.00


An amount of Rs.5 lakhs is proposed for 2003-04 as Government

contribution to establish the auction centre.

II. Handlooms and Textiles

Handlooms play an important role in providing large scale employment to rural areas next only to agriculture. It is labour intensive and capital output ratio is lower than most of the other Village Industries. It is the policy of both Centre and State Governments to give fillip to the handloom sector by devising various welfare schemes for the development of the industry. Determined efforts are also being taken to ensure uninterrupted supply of raw materials and to improve the production of spinning mills.

For revival of the textile industry, a separate Mission for the textile industry will be set up to examine all aspects of the industry and undertake programmes to facilitate the revival of the industry. This would include the following initiatives:

• Focus on quality cotton production to improve availability and ensure backward integration of the industry.

• Establishment of a Textile Industrial Training Institute in association with SIMA, to focus on training programmes and techniques in modern upgraded production systems. This facility will also be used to retrain labour so that they can be absorbed again in the industry.

• Making arrangements with technical institutions to launch a retraining programme so that trained labour are available for the modernised industry.

• Encouraging entrepreneurs to go in for new technology based weaving capacity.

• Modernisation of the existing spinning capacity.

• Encouraging power loom complexes with shuttleless weaving looms.

• Establishing Apparel Parks at Irungattukottai near Chennai and Tiruppur.

It is proposed to implement in 2003-2004 a major scheme to modernize the production processes employed by the handloom weavers and shift them to better value added products with an outlay of Rs.83 crores for marketing incentives and handloom rebate.

Measures for the Welfare and Development of Handloom Industry

• Introduction of Low cost Sarees and Dhothies scheme in order to provide alternative employment to weavers who were engaged in production of cloth required for the discontinued free distribution of Sarees and Dhothies scheme.


• Improving the quality of the low cost Sarees and Dothies by introducing new designs and by introduction of Polycot Salwar Kameez

• Allowing Special discount for liquidation of stock of silk sarees over one

or two years and also on the sale of cotton handloom goods produced by the primary weavers co-operative societies. Besides the primary weavers co-operative societies were permitted to resort to auction for disposal of goods over three years.

• Thrust has been given to handloom exports by encouraging Weavers

to weave export oriented products. • Providing interest subsidy to Handloom Weavers Co-operative

Societies in order to improve the flow of working capital and thereby improve the financial viability of the societies

• Payment of old age pension and family pension at the rate per month

of Rs.200 and Rs.350 respectively.

• Imparting training to weavers for up gradation of skills and designs at National Institute of Fashion Technology. The women weavers will be given training in tailoring and other vocational fields.

• A Committee constituted to formulate scheme for upgradation of

Technology of handloom weavers. Based on the committee's recommendations, production diversification is ordered to take up production of value added products in 5000 looms and to produce export oriented varieties in another 5000 looms.

• Other measures envisaged are setting up of All Women Pre-loom and

post-loom societies, handing over of 45 Primary Health Centres set up in Health Package Scheme to Health / Municipal Administration dept., providing bore-well and overhead tank in the weavers' housing colonies, upgradtion of power looms, setting up Apparel Parks and free supply of uniforms to SC /ST /BC /MBC/ Denotified communities etc.

Programme for 2003-04

Special efforts will be taken to address structural constraints restricting the growth of the secondary sectors especially Textile sector. A Textile Mission for the industry will examine all the aspects for the revival of the industry to meet the global and domestic challenges. The Government will assume the role of the facilitator and catalyst to promote a balanced growth of the sector. Some of the important measures proposed for the promotion of the industry for the current year are outlined below:

• Increasing operational efficiency and labour productivity of the Textile Industry.

• Revival of Spinning Mills by modernising and technology up gradation.


• Restoring the cost effective measures by scrapping obsolete and excess spindlege.

• Using Information Technology in all functions from cotton to fabric in quality control, customer feed back and market intelligence.

• Setting up of Market Research Cells to facilitate closer link with manufacturer and consumer.

• Special efforts will be taken to develop Power Loom Clusters as centre of excellence with technological upgradation. The promotion of shuttleless weaving park will be encouraged. The main funding would be from from Technological Upgradation Fund (TUF)

• Assistance for popularising 'Loom World' concept.

• Conduct of Exhibitions /Events at district level.

• A project under Gram Swarogar Yojana devised for monitoring the activities of the weavers and motivate them to produce Commercially viable Textile Products.

• To increase Deemed Export Turn over the weavers would be encouraged to resort to export oriented production.

Some of the welfare and developmental schemes being implemented

by the Department of Handlooms and Textiles are as follows:

1. Market Development Assistance

The most important item of Assistance in Marketing of Handloom Products is "Rebate" for the sale of Handloom Cloth. This scheme is intended to promote the sale of handloom cloth by reducing the cost to enable to compete with Mill and Powerloom Sectors. The State Government permitted the Primary Weavers Cooperative Societies and Cooptex to allow rebate at the rate of 20% for the sale of handloom cloth throughout the year for the retail and wholesale sales from 12.5.98 onwards. This scheme was dispensed w.e.f. 1.4.2000.

2. Deendayal Hathkargha Protsahan Yojana (DHPY)

The rebate scheme was interlinked with Government of India's scheme of Market Development Assistance from the year 1989-90. As the Market Development Assistance Scheme was discontinued from 1.4.2000, the rebate share of Government of India has been merged in the "Marketing Incentive" Component of the Centrally Sponsored new scheme called "Deendayal Hathkargha Protsahan Yojana Scheme" with effect from 1.4.2000. The various components under the scheme are as follows:

1. Basic Inputs 4. Publicity


2. Infrastructure support 5. Marketing Incentive / Rebate 3. Design input 6. Strengthening of Handloom Organisations

The expenditure is shared between Centre and State Governments. Under State Plan the likely expenditure would be in the order of Rs.1422.51 lakhs. The centre will provide Rs.220.01 lakhs against same outlay for 2002-03 and the same amount is expected from Government of India for 2003-04 also for Component Basic Inputs. For Market Incentive / Rebate the expenditure is likely to be Rs.5250 lakhs for 2002-03. For 2003-04 Rs.5700 lakhs is provided in the Plan head besides Rs.26 crores provided under Non-Plan head 3. Weavers House-Cum-Workshed Scheme

The Weavers' House-Cum-Workshed Scheme was implemented from 1979-80 onwards with financial assistance of State Government subsidy and HUDCO loan to the Handloom Weavers. From the year 1985-86, the Government of India has also participated in the scheme and sanctioned subsidy under the Weavers' House-cum-Workshed Scheme.

The present pattern of assistance for a unit of House-cum-Workshed is as follows: Rural Urban

(Rs.) (Rs.) 1. HUDCO Loan 40,000 40,000 2. State Subsidy 7,000 7,000 3. Central Subsidy 18,000 20,000 4. Beneficiary contribution 3,000 5,000

Total 68,000 72,000

The scheme will enable the Handloom Weavers to have a better standard of living and get more earnings.

The expenditure for 2002-03 is likely to be Rs.87.46 lakhs for construction of House - cum - Worksheds. For 2003-2004, a sum of Rs.100.00 lakh has been proposed which will be shared equally with Government.of India.


4. Group/ Self Insurance Scheme for Handloom Weavers

The Government of Tamilnadu is implementing Insurance Scheme for the Handloom Weavers with financial assistance from Government of India.

In the event of death of a member before attaining the age of 60 years, the State Government sanctions Rs.50,000/- for the nominees of the deceased Handloom Weavers towards Insurance Amount apart from Co-optex contribution of Rs.10,000/-. The Government of India's share towards premium is being claimed every year @ Rs.40/- per weaver. The ex-gratia amount paid by the Co-optex has been enhanced from Rs.10,000/- to Rs.15,000/- with effect from 15.09.2001.

For the year 2002-2003 the anticipated expenditure is Rs.150.00. A sum of Rs.150 lakhs is proposed for 2003-04 which will be shared equally with Government of India. 5. Central Thrift Fund Scheme / Weavers’ Savings and Security Scheme

The Central Thrift Fund Scheme is a scheme parallel to the Savings and Security Scheme. Under this scheme, apart from the contribution of 8 paise per rupee of wages earned by a weaver, the Government of India's share of 4% is also deposited into the Savings and Security Scheme Fund Account which earns 12% interest.

For 2002-03 the expenditure is likely to be Rs.281.23 lakh. Rs.290.00 lakh has been proposed for the year 2003-2004 for this centrally sponsored scheme. 6. Health Package Scheme for Handloom Weavers

With a view to ameliorating some of the health problems related to the profession of handloom weaving, a scheme namely, "Health Package Scheme for Handloom Weavers" with 100% Central subsidy, which is inclusive of providing infrastructure for Primary Health Centre, was introduced by the Government of India from 1992-93.

The assistance under Health Package Scheme is doubled by providing assistance from the 5% interest earned under Savings and Security Scheme fund account of Government of Tamilnadu in respect of following items:

a) Medical Expenses Rs.1500/- per year has been increased to Rs.3000/-

b) Eye testing and spectacle cost Rs.190/- per year has been enhanced to Rs.380/-

c) Maternity benefit of Rs.500/- has been enhanced to Rs.1000/-

d) Assistance for Family Planning of Rs.100/- has been enhanced to Rs.200/-.


The expenditure anticipated during 2002-03 is Rs.92.90 lakhs. Rs.60.00 lakhs is proposed for the year 2003-2004 for implementation of this scheme. 7. Workshed Scheme

Apart from House-cum-workshed scheme, the Government of India has also been extending financial assistance for construction of worksheds to the dwellings of the Weavers from the year 1997-98.

Details Rural(Rs.)

Urban(Rs.)

Central Subsidy 7,000 10,000 Beneficiary Contribution 2,000 4,000 Total 9,000 14,000

The expenditure likely during 2002-03 is Rs.54.82 lakhs. Rs.60 lakhs has been proposed for the year 2003-2004 for implementation of this scheme.

8. Establishment of Enforcement Machinery

To protect Handloom Weavers and the Handloom Industry, the Government of India has enacted the Handlooms (Reservation of Articles for Production) Act, 1985 for implementation by all States in the country. To implement the Handlooms (Reservation of Articles for Production) Act, 1985 effectively, a separate Enforcement Machinery in Tamilnadu had been formed with a Deputy Director / Enforcement Officer at Head Quarters, Chennai and 5 Subsidiary Offices at Salem, Tiruchengode, Erode, Thiruppur and Madurai each headed by an Assistant Enforcement Officer.

A sum of Rs.87.86 lakh was provided for 2002-03 and expenditure is likely to be Rs.84.26 lakh. It is proposed to provide Rs.96.20 lakh for the year 2003-2004.

9. Low cost Sarees and Dhothies Scheme

While efforts are on to motivate and train the weavers engaged in the production of low cost Sarees and Dhothies, it has been proposed to continue and implement the low cost Sarees and Dhothies Scheme during the year 2003-04 to facilitate the weavers during their transition period and to give continuous employment while they have been trained for diversification of their products. An amount of Rs. 27.67 crores has been proposed for the year 2003-04. New Schemes

(1) Creation of Data Cell and Creation of Market Intelligence Cell in the Department of Handlooms and Textiles

It has been proposed to create 3 Data Cells, for Handlooms, Powerlooms and others. In the absence of a Data Cell, the department is unable to forecast the Market Trend and is facing difficulties in marketing the goods produced by the Weavers Cooperative Societies resulting in huge


accumulation of stock. In order to compete with the World Market and to improve the export competitiveness, the department intends to build up a reliable information system by engaging a professional agency and purchasing a Directory of Foreign Buyers and preparing a Directory of country profiles, Directory of Exportable products. A computer is also intended to be purchased. A sum of Rs.5 lakhs is provided for the year 2003 - 2004 for creation of Data Cell and Market Intelligence Cell in the Department of Handlooms and Textiles.

(2) Assistance for conduct of Exhibitions including Advertising and Publicity for popularising "Loom World".

As a part of marketing strategy, Cooperative Societies have been encouraged to market their products under the brand name "Loom World" which has been performing well at Chennai Anna Nagar, Coimbatore and Erode. To publicise the loom world concept, exhibitions have to be conducted by giving advertisement and publicity. It is proposed to conduct a minimum of 5 exhibitions every year at a cost of Rs.4 lakhs per exhibition. The cost for the scheme for 2003-04 is Rs.20 lakhs and the ultimate cost may be taken as Rs.80 lakhs (20 x 4) for Tenth Plan. Rs.20 lakhs is proposed for the scheme during the year 2003-04 under Non-plan.

(3) Purchase of computers and laser printers

It is proposed to computerise some of the Sections in the Office of the Commissioner of Handlooms and Textiles. Hence, purchase of 10 Computers with Dot Matrix Printers and 4 Laser Printers for the use of the Office of the Commissioner of Handlooms and Textiles has been proposed. For the purchase of 2 Computers, Dot Matrix Printers and Laser Printers, a sum of Rs.1.75 lakhs is proposed for the year 2003-04. III. Khadi & Village Industries Board

Tamil Nadu Khadi and Village Industries Board was formed in 1960 to accelerate promotion and development of the Khadi and Village Industries in the State with a view to providing employment to rural people utilising locally available raw material, and thereby improve their economic condition. The schemes relating to Khadi and Village Industries in the State are being implemented through the Boards units and Cooperative Societies registered under the Khadi and Village Industries Board. The major activities are production of Cotton and Silk. Village Industries include leather and leather products industry, hand made paper industries, bee keeping industry, pottery, non-edible oil & soap industry, service sectors and gem cutting industries etc. The Board has 201 Khadi krafts, 10 Grama Shilpas and 8 Leather Sales Depots to popularise and market the products produced by the units of the Board and the Cooperative Societies.

1. Rebate on Sale of Khadi and Silk varieties

The Khadi & Village Board offers rebate of 30% for Khadi Cotton and Polyvastra and 20% for Khadi Silk including the rebate offered by Khadi


Village Industries Commission along with 10 to 20% rebate by the Government of Tamil Nadu to promote the sale of khadi produced in Tamil Nadu. For this an amount of Rs.700 lakhs is provided for the year 2002-03 and the expenditure anticipated will be roughly the same. For 2003-04, it is proposed to provide a sum of Rs.700 lakhs.

2. Scheme for Tribals in the Tribal Sub Plan areas under Integrated Tribal Development Programme

Khadi & Village Industries Board identified some schemes to diversify the occupational pattern of Tribals and to improve their economic standards. Bee- keeping has proved to be a good source of income for the Tribal families. It has been proposed to instal a Honey processing plant at Jawadhu Hills to adopt scientific method of honey processing.

3. Western Ghat Development Programme

The beehives and other allied equipments, tools and mat-weaving equipment are being distributed to tribal offices under WGDP.

Tamilnadu Palm Products Development Board

The main objective of the Tamilnadu Palm Products Development Board which has been functioning with effect from 6.1.95, is to introduce modern concepts, to promote research for the development of Palm Products industry and better utilisation of Palm products with the social objective of uplifting the economic condition of rural palmgur artisans. Six lakhs artisans are engaged in various activities such as tapping of Neera, production of Palm jaggery, Palm candy and other edible items out of palm sugar and extraction of Palm fibre, manufacturing of Palm leaf articles, manufacturing of brush varieties and other activities under non edible items. One State Level Palmgur and Fibre Marketing Federation, 8 District Palmgur Federation and 1008 Primary Jaggery Cooperative Societies are functioning under this Board. The palm products produced are marketted through their own units as well as through the Khadi Krafts all over the State. During the year 2002-03, a sum of Rs.6.60 lakh was provided to implement various schemes of the Palm Board under W.G.D.P. and the anticipated expenditure will be around Rs.7 lakhs.

New Schemes

1) Providing of one Pre-Packing Machine, Air Compressor and Cooler for Neera Catering Unit at Palm Project, Madhavaram, Chennai.

The main object of this project is collection of Neera from the Palmyrah trees located in and around the Madhavaram areas, preservation and marketing during the season. At present, during season (January to June) the Neera is being collected, processed and sold in bottles. Neera is to be packed and cooled in polythene pouches for marketing through sales outlets and other private vendors. It is, therefore, proposed to provide one Pre-Packing Machine with Air Compressor and Cooler. A sum of Rs.5 lakhs is


proposed for 2003-04 for the purchase of Packing Machine, 2 coolers and one Air Compressor.

2) Modernisation of Confectionery Unit at Palm Project,Madhavaram,Chennai-51.

The Confectionery Unit at the Palm Project was started during 1960 and the machineries, vessels and other implements were purchased at the time of establishment of the unit. In order to improve the performance of unit and to give continuous employment to the artisans with new machineries and equipments it is proposed to provide a sum of Rs.2 lakhs in the year 2003-04.

3) Distribution of Tools and Equipments to the Palmgur Artisans to process

palm Jaggery out of Neera in Dharmapuri District.

At present, the Palmgur artisans follow a crude method for processing of Palm Jaggery. In order to introduce improved method in the processing of Palm Jaggery it is necessary to provide Tools and Equipments to the Palmgur Artisans. It is proposed to distribute Tools and Equipments to 200 Palmgur Artisans at a cost of Rs.1500/- per set in Dharmapuri District to process the Palm Jaggery out of Neera by improved method. Rs.3 lakhs is proposed for the supply of tools and equipments to 200 Palmgur Artisans during the year 2003-04.

IV. Sericulture

Sericulture Industry has a high employment and income generation potential for farmers especially women in Tamil Nadu. Women are involved in garden maintenance, Silk Worm rearing, Cocoon harvesting, Silk realing etc. 60% of the works are carried out by women. To increase productivity, technological and skill development of illiterate, semi illiterate people and information on Research and Development in Silk production are provided to them. The main activities of the Department are:

(1) Motivating farmers to plant high yielding varieties, imparting training in mulberry cultivation and silkworm rearing and realing process.

(2) Extending assistance in procurement of improved equipments and construction of rearing houses.

(3) Ensuring quality disease from Silkworm sectors for increased cocoon productivity and prevention silkworm diseases.

(4) Providing assistance for establishing small realing units under private sector.

(5) To propagate judicious use of water by introducing drip irrigation. (6) To maintain the flow of funds to SC/ST beneficiaries. (7) To provide marketing facilities.

i) Seri-2000 Schemes

In order to increase the quality and quantity of cocoons produced by the sericulturists, Externally Aided Project schemes are proposed to the tune


of Rs.39.50 lakhs under SERI-2000 during the year 2003-04. Under this programme Sericulture Quality Clubs will be strengthened by equipping them with compressed power sprayer (Rs.25000 shared equally), working capital fund to procure consumables (Rs.20000 equally shared) and the members will be taken to other States and intensive areas of the State for skill improvement. To reduce drudgery, charka reelers will be provided with motor to turn the charka (Rs.10,000 each) and reelers will be trained to process by-products of silk reeling for value addition. A sum of Rs.73.85 lakhs was provided for 2002-03 against which the expenditure is anticipated to be Rs.102.89 lakhs and Rs.39.50 lakhs is proposed for 2003-04.

ii) Catalytic Development Programme

Central Silk Board supports certain programmes, viz. Drip Irrigation to conserve irrigation water under which 50% subsidy is shared on 10:90 ratio by the State and the Central Silk Board. To produce quality cocoons and to strengthen infrastructure assistance, separate rearing houses (value Rs.50,000), improved rearing equipments for shoot rearing to save labour cost and improve crop performance (Rs.20,000 unit cost) and chawkie rearing centres to supply chaki worms for success of crop specially for bivoltine crops (at a cost of Rs.3.00 lakhs each) are provided where 50% of subsidy is shared between State and Central Silk Board equally.

iii) Hill Area Development Programme

Sericulture schemes are being implemented in Nilgiris District under the Hill Area Development Programme. During the year 2003-04, it is proposed to cover 60 farmers planting with 15 acres of mulberry. Each farmer will be provided with mulberry saplings for taking up plantation and training in the art of mulberry garden maintenance and silkworm rearing in addition to exposure visit and supply of basic rearing appliances, costing Rs.3925/- per farmer. The expenditure anticipated during 2002-03 is likely to be Rs.2.36 lakhs and the same amount is proposed for 2003-04.

iv) Western Ghat Development Programme

Sericulture schemes are being implemented in Erode, Coimbatore, Dindigul, Theni, Virudhunagar and Tirunelveli districts under the Western Ghat Development Programme.

During the year 2003-04, it is proposed to cover 500 farmers with 125 acres. Each farmer will be provided with mulberry saplings, training and basic rearing appliances which will cost Rs.3000/- per farmer. For 2002-03, a sum of Rs.25.41 lakhs was provided and the expenditure is anticipated to be Rs.11.70 lakhs. Rs.25.41 lakhs is proposed for the year 2003-04.

New Schemes

1) Incentive for propagation of improved mulberry varieties.

In order to achieve the objectives of increasing the quality and quantity of mulberry leaves and thereby to enhance cocoon quality & yield level, the farmers have to plant improved varieties of mulberry like V1, S36, MR2, etc. to rear new & highly productive silkworm breeds. It is proposed to provide


Rs.500/- as incentive per acre to promote planting of new high yielding mulberry varieties to the farmers, during the year 2003-04, and cover 1000 acres with improved varieties of mulberry in the State. 20% farmers will be covered from SC/ST population & 30% farmers will be covered from women population and 50% farmers will be covered from oppressed classes like BCs / MBCs. Thus totally 5,000 persons additionally will get employment opportunity in rural areas. A sum of Rs.5 lakhs is provided for the year 2003-04 for the purpose.

2) Imparting training to Sericulturists to take up Bivoltine crops

The department is implementing the project for strengthening extension system for bivoltine sericulture to transfer the technologies developed by Central Sericulture Training & Research Institute, Mysore in collaboration with Japan International Cooperation Agency (JICA). Every year farmers who shift from conventional rearing of crossbreed layings to bivoltine layings are to be trained on care to be taken with improved practices at spinning stage and in cocoon harvesting and transporting the same for marketing. The farmers will also be taken to areas to see the practices for adoption. Besides training the farmers to take up bivoltine crops, it is proposed to conduct awareness compaign to popularise technologies developed. The expenditure proposed for 3 days training and awareness meet covers distribution of leaflets, disinfectants, refreshments, and honorarium for faculties. Totally 1000 farmers will be covered under training programme and this will enhance their capability. For the year 2003-04, a sum of Rs. 2.20 lakhs is proposed for skill upgradation.

V. Tamilnadu Handicrafts Development Corporation

The Tamil Nadu Handicrafts Development Corporation was set up with the objective of providing regular market for handicrafts produced by artisans, upgrading their skill through proper training, promoting innovation and developing appropriate technology to improve productivity. The Corporation is also engaged in activities like marketing and production. The Corporation is presently running with 15 showrooms in Tamil Nadu and 4 showrooms in other States. For the year 2003-04 Rs.27 lakhs is proposed under Part-II scheme towards matching grant for construction of Showroom at Erode and Swamimalai.

New Schemes

1) Matching grant for construction of building for showroom at Erode.

The Corporation has proposed to construct its own building for the use of show room at Erode. The total cost of land, construction cost and interior decoration works out to Rs.32.25 lakhs. During 1998-99 a sum of Rs.4.50 lakhs was sanctioned by the State Government under Part - II and a sum of Rs.12.65 lakhs obtained from Development Commissioner (Handicrafts) Government of India. Still a sum of Rs.15.10 lakhs is required for the above work. A sum of Rs.12 lakhs is provided for the year 2003-04 as matching


grant for completion of the construction work of the proposed Showroom building at Erode.

2) Matching grant for opening a showroom at Swamimalai.

Corporation has proposed to construct a composite building consisting of 1) production centre, 2) sales outlet and 3) design cum training centre at a cost of Rs.74.25 lakhs. The State Government had sanctioned Rs.20 lakhs under Part-II during 1998-99 & 1999-00. The Development Commissioner, Government of India had sanctioned a sum of Rs.15 lakhs for the above work. The Corporation requires Rs.45.25 lakhs to complete the work. Rs.15 lakhs is provided for the year 2003-04 as matching grant for the above work.

VI. Small Industries Development Corporation Ltd (SIDCO)

This is a Government of Tamil Nadu undertaking established with the objective of promoting and developing Small Scale Industries in Tamil Nadu and proliferating Small Scale Industries in backward and underdeveloped areas of the State. SIDCO is implementing the scheme of provision of infrastructure facilities for construction of conventional sheds and developing plots. A sum of Rs.25 lakhs is provided as assistance to new tiny Industries under NSIC - SIDCO Consortium for the year 2003-04.

Measures proposed during 2003-04:

• The women Industrial Parks at Thirumulaivoyal will be established.

• To ensure a common affordable price for women entrepreneurs 50% of land value will be waived by Government wherever Government pormobokes alienated to SIDCO in respect of 5 Women Industrial Parks.

• Three Micro Industrial estates will be established for Tiny Industries in Theni, Vellore and Nagapattinam District to popularise Composite Loan Scheme undertaken by SIDCO and NSIC.

• For establishing Common Effluent Treatment Plant in SIDCO industrial estate under PPP concept 25% subsidy will be provided.

• SIDCO will act as Optional Procurement Agency (OPA) for Tiny /Small Scale units by participating in tender process.

VII. Tamil Nadu Leather Development Corporation Ltd (TALCO)

TALCO was set up to give a thrust to the development of leather industry with particular emphasis in the small sector and to provide infrastructure facilities such as Common Facility Centre for Leather Finishing and Leather goods, Material Bank etc. The programmes of TALCO were as follows:-

1. To create an Industrial Estate at Madhavaram and Nilakottai for the benefit of more entrepreneurs,

2. To increase sales, conducting of exhibition and fairs and opening of new showrooms for providing ready market for more Artisans,


3. To help Artisans engaged in manufacture of footwear and leather goods by promoting Common Facility Centres and

4. Establishment of Procurement Centre at Madurai. Based on the recommendations of SVS Raghavan Committee,

Government have issued orders transferring the production units of TALCO along with assets to Tamil Nadu Khadi and Village Industries Board with effect from 1.12.2000. Hence the Company is in the process of winding up and liquidation as per the provision of Companies Act, 1956.

Outlay for Annual Plan 2003-04

The Annual Plan Outlay for "Village and Small Industries for the year 2003-04.

(Rs. in lakhs) Scheme heads Outlay 2003-04

1. Industrial Estates 1713.51 2. Small Industries 1955.42 3. Handlooms & Textiles 4452.04 4. Handicrafts 27.00 4. Khadi & Village Industries 700.00 5. Sericulture 32.49 6. Composite Village & Small Industries 5.24 7. Other Expenditure 1089.52 8. Tribal Sub-plan 0.01 9. Powerloom Census 0.25 10. HADP 2.36 11. WGDP 25.43 Total 10003.27

10.2 village & small industries village and small ... · projects will be executed on a public...

Documents