CITIZEN'S CHARTER

DEPARTMENT OF INDUSTRIES & COMMERCE

 BRIEF NOTE ON THE ACTIVITIES OF THE DEPARTMENT OF INDUSTRIES AND COMMERCE

INTRODUCTION:

The Department of Industries and Commerce is the Nodal Agency for development of Industries in general and Small Scale Industries in particular in the State of Tamil Nadu. The role of this Department is to plan and implement various schemes for the promotion of Industries. The various activi ties undertaken are enumerated as follows :-

1. Providing entrepreneurial guidance through Data Bank and Information Centres and Technical Information Sections attached to various District Industries Centres.

2. Registration and promotion of Small Scale Industries and Industrial Cooperative Societies.

3. Assistance for Import of Capital Goods, Machinery and scarce raw materials.

4. Offering various testing facilities for Chemicals, Metals, Metallurgical, Electrical, Electronic Gadgets and appliances.

5. Implementation of Quality Control Act on House hold Electrical appliances etc.

6. Implementation of Centrally sponsored schemes like self employment programme for the educated unemployed youth under Prime Minister's Rozgar Yojana Scheme.

7. Creating awareness of the various policies and programmes of the Government through seminars and dissemination meets.

8. Conducting of entrepreneurs development programmes. 

9. Sanction and disbursement of various subsidies and incentives such as State Capital Subsidy, Generator Subsidy, Power Tariff Subsidy, Interest Free Sales Tax Deferral/Waiver, Margin Money Assistance for sick units.

10. Export Promotion.

11. Conducting of Techno-economical Surveys.

12. Setting up of Industrial Estates with necessary Infrastructure facilities.

13. Providing Escort Services to the entrepreneurs.

14. Conducting Sample and comprehensive surveys.

15. Development and promotion of Cottage and Handicrafts Industries.

16. Training facilities in the field of light engineering, tool and die designing.

DISTRICT INDUSTRIES CENTRES :

The District Industries Centres are functioning in all the Districts of Tamil Nadu except Chennai District to render all help to Small Scale Industry of their own. In respect of Chennai District the same assistance is provided by Regional Joint Director, Chennai. The entrepreneurs are also assisted in getting clearance in Local Bodies, Town Planning, Pollution Control Board, Public Health Factories and other Departments and getting power connection under Single Window Scheme. Also the Escort Cell have been set up in District Industries Centres which takes care of providing necessary assistance in arranging technical inputs to newly emerging SSI Units.

PRIME MINISTER'S ROZGAR YOJANA SCHEME :

PMRY for Educated Unemployed Youth covers the persons of age group of 18 to 35 years having qualification Metric/S.S.L.C. passed or failed or I.T.I. Passed or having undergone Government sponsored Technical Course with minimum duration of 6 months.

The family income should not exceed Rs.24,000 p.a. and the applicant should have a period of residency for 3 years. The scheme envisages 22.5% reservation of SC/ST and 27% for other Backward Classes. Project upto Rs. 1 lakh are covered under the scheme in the case of individuals. If two or more persons join together, the project for higher cost also considered provided the share of each person the project cost is Rs. 1 lakh or less. The beneficiaries should contribute 5% of the project cost as margin money and the Government would provide subsidy at the rate of 15% subject to ceiling of Rs.7,500/- per entrepreneurs. The projects under industry/service and business sectors are covered under this scheme. The scheme envisages training programme for the beneficiaries after the sanction of loan.

SSI REGISTRATION :

The Small Scale Industrial Unit, is one, in which the investment on fixed assets (i.e.) Plant and Machinery, whether held in ownership or lease or by higher purchase does not exceed Rs.60 lakhs. The Department is providing SSI Registration Certificates for the entrepreneurs who come forward to start SSI unit Tamil Nadu through District Industries Centres in Districts and Regional Joint Director, Chennai.

CENTER FOR ENTREPRENEURSHIP DEVELOPMENT :

To encourage educated unemployed men and women and also other needy persons, the present Government have established a Entrepreneurship Development Centre at Guindy. The Centre will help the entrepreneurs in identification of project, tie up for financial assistance and will conduct continuous training programme on EDP.

WOMEN ENTREPRENEURS DEVELOPMENT PROGRAMME :

Women's development has been given top priority in 1997--98. The Government of Tamil Nadu has stressed the need to augment resource for such programmes. Women Entrepreneurs particularly, the first generation women entrepreneurs, face many constraints particularly paucity of margin money assistance to start their ventures by getting finance from the financial institutions. To overcome the difficulties experienced by these entrepreneurs, Government have sanctioned a sum of Rs.30.00 lakhs to give the first generation women entrepreneurs a subsidy of 10% Margin Money support to the project cost subject to a ceiling of Rs.50,000/-. The margin Money assistance will be distributed through the financial Institutions at the time of disbursal of loan by them.

CAPITAL INVESTMENT SUBSIDY/SPECIAL CAPITAL SUBSIDY/ADDITIONAL CAPITAL SUBSIDY/LOW TENSION POWER TARIFF SUBSIDY :

The subsidy is 15% on the total investment subject to maximum of Rs.15 lakhs and 20% on the total investment subject to a maximum of Rs.20 lakhs made available to all the eligible SSI units engaged in manufacturing or non manufacturing activity except Iron and Steel smelting, Aluminum Smelting and Calcium Carbides in Backward and Most Backward Blocks respectively. The subsidy will also be available for substantial expansion and diversification of existing SSI units subject to norms and eligibility being satisfied.

A. SPECIAL CAPITAL SUBSIDY :

This subsidy is 20% of the total investment subject to a maximum of Rs.15 lakhs irrespective of the location of units in Tamil Nadu for the following Industries only.

1. Auto Ancillaries.

2. Drug and Pharmaceuticals.

3. Food Processing Industries.

4. Solar Energy Equipment.

5. Gold and Diamond Jewellery for Export only

6. Pollution Control Equipment.

7. Sports Goods and Accessories and

8. Cost effective building material like Aluminum.

The Subsidy is also available to Electronic Industries subject to a maximum of Rs.20 lakhs and 20% of total investment and for Leather Industries subject to a maximum of Rs.20 lakhs and for Solar Energy Equipment and Solar Energy Devices used by SSI Units subject to 10% of the cost.

B. SUBSIDY FOR UNITS PROVIDING EMPLOYMENT FOR WOMEN :

A Special Subsidy of 5% on total investment is available to the SSI Units providing employment for Women at least to the extent of 30% of the total strength.

C. GENERATOR SUBSIDY :

Units installing Generator sets for captive power will be eligible for subsidy at 15% of the cost of new Generator purchased and installed subject to a maximum of Rs.5 lakhs.

D. LOW TENSION POWER TARIFF SUBSIDY :

This subsidy is available to all Registered SSI Units situated in Tamil Nadu 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 have modified this concession making available to even major and medium industries having Low Tension Power Connection.

E. INTEREST FREE SALES TAX LOAN/DEFERRAL/WAIVER :

The SSI Units set up before 22-5-1989 are eligible for Interest Free Sales Tax Loan for a period of 6 years on the basis of the actual taxes paid to Government subject to a maximum of 8% of the investment made on the fixed assets or Rs.1.25 lakhs per year. The Interest Free Sales Tax Deferral are given to SSI Units set up anywhere in Tamil Nadu at 60% of total investment for a period of 5 years. The units set up in the Most Backward Blocks are eligible for total waiver of tax up to a period of 5 years or for deferral of tax for 9 years. The units set up in the Backward Blocks are eligible for deferral of Sales Tax for 9 years.

Government have declared the Backward area of 216 Blocks into Industrial Backward Blocks and Most Backward Blocks applicable to all Industries, Major, Medium and Small in G.O. 41, Industries dated 18-3- 96.The existing units taking up expansion/diversifications are also eligible to avail themselves of the concessions.

ELECTRICAL AND ELECTRONICS WING :

The Electrical and Electronic Wing of this Directorate have set up Electrical Industrial Estates at the following places to promote Electrical and Electronic Industries in Tamil Nadu.

1. Dr. Vikram Sarabai Instronic Estate, Chennai-41.

2. Developed Plots Industrial Estate, Perungudi, Chennai-96.

3. Electrical and Electronic Industrial Estate, Kakkalur, Tiruvellore Dist.

4. do  Hosur

5. do  Coimbatore

6. do  Salem

7. do  Madurai

8. do  Thuvakudi, Trichy District

Allotment of plots/sheds in the above Estates are made from this Directorate as recommended by the Selection Committee.

CENTRAL ELECTRICAL TESTING LABORATORY, KAKKALUR :

This unit provides a wide range of testing facilities for Electrical and Electronic products in the State. This Laboratory has recognized by the Bureau of Indian Standards, Directorate General of Supplies and Disposals, Ministry of Railway under I.S. Specifications. Recognition by National Accreditation Board for Laboratories is under final stage.

ELECTRO MEDICAL EQUIPMENT CENTRES :

There are 4 Electro Medical Equipment Centres under the control of this Directorate at Chennai, Thanjavur, Madurai and Coimbatore. These centres were established with a view to provide repairing and servicing of Electro Medical Equipments in and around their location and neighboring Districts.

QUALITY CONTROL ORDER ENFORCEMENT CENTRE :

This centre is now functioning at Dr. Vikram Sarabai Instronic Estate, Chennai-41 to enforce quality control order for House hold Electrical Appliances. The Deputy Director, Quality Control Enforcement Centre is the Enforcement Officer.

DATA BANK AND INFORMATION CENTRE :

This Centre is at Dr. Vikram Sarabai Instronic Estate, Chennai-42. This centre provides a comprehensive package of basic information and guidance to needy entrepreneurs proposing to start new electronic units. The package of information and guidelines are as follows:-

1. Selection of Project

2. Government Policy etc.

3. Technical know-how

4. Financial Assistance

5. Machinery, Raw Materials etc.

6. Subsidies, Incentives etc.

7. Marketing etc.

CHEMICAL WING:

The Chemical Industries Wing of the Department of Industries and Commerce caters to the needs of various type of Industries in Tamil Nadu for speedy development by

1)  Offering testing facilities in the Laboratories attached to this wing.

2)  Extending facilities for Laboratory investigation on problems relating to Chemical Industries in Chemical Engineering Wing.

3)  Providing project profiles and answering technical enquiries on chemical and allied industries.

4)  Assisting Chemical Industries in getting scarce raw materials both indigenous and imported.

5)  Offering practical training in testing to technically qualified persons sponsored by industries as well as to unemployed graduates who desire to have such training and training fee of Rs.250/- per month is collected.

6)  Offering of export opinion for import of chemicals.

7)  Furnishing technical and industrial information on chemical and Allied Industries.

8)  Offering expert opinion on Alcohol based Industries as and when referred by Commissioner of Prohibition and Excise. Co- ordinate the Commissioner of Prohibition and Excise in witnessing trial run to assess the performance and capacity of the unit and surprise inspection etc.

INDUSTRIAL COOPERATIVES:

There are several functional Registrars for various types of Cooperative Societies. As far as Industrial Cooperatives are concerned, the Industries Commissioner and Director of Industries and Commerce is the functional Registrar. There are various types of Industrial Cooperative Societies such as Tea Services, Tea Factories, Match Service, Tea Factories, Match Service, Match Workers, Sago, Leather Finishing, Leather Workers, Coal and Coke, Engineering, Polythene, Coir, Printing, Handicrafts etc. under the administrative control of this directorate. At present there are twenty trades in Industrial Cooperative Sector.

There is vast scope for organizing more number of Industrial Cooperative Societies. The move should come voluntarily from the beneficiaries. The Registration and functioning of various types of Cooperative Societies are governed by the Tamil Nadu Cooperative Societies Act 1983 and the Tamil Nadu Cooperative Societies Rules 1998. The procedure for organization of Industrial Cooperative Society minimum number of artisan/members required etc. are common to all type of Cooperative Societies.

There are three types of societies viz.

    i) Primary societies

    ii) Central Societies and

    iii) Apex Societies.

The object of forming the society is for the up liftment of economic condition of Artisans/Skilled persons of a particular trade and general welfare of its member. There is a prescribed application form for registering the society, the specimen of which is as well available in the Tamil Nadu Cooperative Societies Rule, 1998.

To form a Cooperative Society at least 25 independent persons qualified for admission is necessary. On among them should be the chief Promoter of the society. The General Managers of District Industries Centres are now empowered to register the society by the Registrar. After Registration, Registration Certificate and approved Bylaws of the society will be issued. The society will come into existence from the date of registration.

The Bylaw is the charter of the society. The society has to carry out activities as per the provisions of Bylaws, Act and Rules and various circulars issued by the functional Registrar from time to time.

FINANCIAL ASSISTANCE:

Financial assistance form various Financial Institutions like TABCEDCO/THADCO/NBCDC/TIIC etc. are available for organizing the society depending upon the admission of members like Backward Class/SC/ST etc. and the trade. Members should also to contribute a minimum subscription towards share capital.

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NO  ITEMS OFFICERS  TO  WHOM  APPROACH

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1. SSI Registration Permanent- General Managers, District Industries /provisional Centers in the Districts. For Chennai, Regional Joint Director,Chennai-2

2. Prime Minister's Rozgar General Managers, District Industries Yojana Scheme Centers in the Districts. For chennai Regional Joint Director,channai-2.

3. Subsidies General Managers, District Industries Centers in the Districts. For chennai Regional Joint Director,channai-2.

4. Project Profiles General Managers, District Industries Centers in the Districts. Technical Information Libraries at Guindy, Ambattur, Madurai, Coimbatore, Trichy, Triunelveli, salem and katpadi. Data Bank for Chemical Industries at Guindy. Data Bank for Electronic Industry, Thiruvanmiyur.

5. Training for Women General Managers, District Industries Entrepreneurs Development Centers in the Districts. For chennai  Programme Regional Joint Director,channai-2. and Special Officer, Women Entrepreneurs Development at Central Office.

6. Allotment of sheds in Administrative Officer of the respective Electrical and Electronic Estates and Joint Director (Electrical  Estates. and Electronics) Central Office.

7. Organization of Industrial The General Managers of District Industries Cooperatives. Commissioner and Director of Industries and Commerce.

8. Chemical Testing Facili- 1) Chemical Testing and Analytical Laboties ratory, Guindy, Chennai032. 2) Regional Testing Laboratory, Madurai/Coimbatore/Salem/Tuticorin.

9. Electrical Testing Faci- 1) Central Electrical Testing Training lities Laboratory, Kakkalur.

10. Training in Die and Tool 1) Superintendent, Technical Training Design Centre, Guindy, Chennai-32. 2) Superintendent, Die and Tool Design Making Centre, Dindigul.

11. Scientific Glass Train- 1) Superintendent, Government Scientificing  Facilities Glass Training Centre, Guindy,Chennai-32

INCENTIVE SCHEMES TO SMALL SCALE INDUSTRIES IN TAMILNADU

SSl. Scheme Location Percen Maxi Time limit Ineligible Status No. tage mum for making Industries eligi applicationble to G.M., (Rs. DIC/R.J.D In Chennai lakh)

1. Normal 71 most 20% 20 Within one Iron and New/ State Backward year from Steel Expansion Capital Blocks the date of Smelting  Subsidy SIPCOT- commencement Aluminium /Diversification for Most Pudukottai  of Smelting  Backward , Manamadurai Production Calcium  Bio- Date of Carbidecks and Tuticorin Expansion and Small  SIDCO- Diversification Service TUTICORIN  establishments

2. Normal 216 15% 15 -do- -do- -do- State Backward Capital Blocks subsidy SIPCOT for Backward Gummidipoondi Blocks Hosur, Ranipet, Cuddalore other Industrial Estates promoted by SIDCO, TACID and other Government Agencies.

3. Special Anywhere -do- Not do Subsidy in applicable for the TamilNadu Industries 20% 20 Electronics 20% 20  2.Leather

4. Special do 20% 15 do do Subsidy for 9 Select Industries

5. Addi- do 5% 5 do Matches, New national Garments, only Capital Leather Subsidy Goods, for employing Hosiery and Food Women Processing Workers

6. Uses of do 10% 10 do Not do Solar applicable Energy Equipments and Renewable energy equipments

7. Setting do 10% 2 Within one do do up of year from Effluent the date of Treatment completion plant by of installation existing  of plant Tanneries

8. New do 15% 5 Within one Conventional  New/ Generator year from  Expansion for cap- the date of Resources  use purchased based and ate of in- power tallation intensive whichever Industries is later

9. L.T.P.T All yr. 40% Application New/ Subsidy places II yr. should be Expansion except 30% III made for ULC/ULT yr. 20% eligible Certificate within 3 months from the date of commencement of production or from the date of Electric connection whichever is later

10. IFST Most New Within one Iron and New/ Waiver/ Backward 100% year from Steel Expansion Deferral Block Expansion the date of Smelting  (5 years  commence Aluminum Diver waiver  of smelting  or 9 production Calcium  years /Date of Carbidde deferral) Expansion Small Service establishment

11. IFST Backward New do do do Deferral Blocks 100% (9 years Expansion Deferral)  80%

12. IFST Other New/ do  Deferral Areas 60% Years Expansion Deferral)  50%

Note: 1) For LTPT percentage on consumption charges and for other subsidies percentage on fixed assets.

2) Auto Ancillaries, Drugs and Pharmaceuticals Solar Energy Equipment, Gold and Diamond Jewellery for Export Jute Processing Industry, Pollution Control Equipments, Sports Goods and Accessories.