GOVERNMENT OF TAMILNADU 

ABSTRACT 

Anna Marumalarchi Thittam - New scheme - Implementation of - Orders issued.

SMALL INDUSTRIES(DEV.1)DEPTT.

G.O.Ms.No. 32                                                              Dated: 28.6.2002

Read:

G.O.Ms.No.37, Small Industries ,dated 20.7.2000.

ORDER:

The Government of Tamil Nadu is keenly intent on promoting industrial investment, employment and output in the rural areas in the small scale sector. The Government takes note of the fact that the engine of industrial growth lies in the Agri - business sector. Accordingly in the Governor’s Address 2002, and in the Budget Speech 2002-2003, it was announced that the existing Anna Marumalarchi Thittam will be restructured with the aim of giving a special thrust to agro-based rural industries in the State.

2. Accordingly the Government direct that "New Anna Marumalarchi Thittam" in 385 Blocks in the State shall be implemented from the date of the order. Small Scale Industrial units not exceeding three Agro-based economic activity with a minimum capital investment of Rs.1 Crore and more with the capacity to generate employment would be encouraged in each of the 385 blocks in the State under this scheme.

3. The Small Industries Department will be the Nodal Department at the Secretariat level and Tamil Nadu Industrial Investment Corporation Ltd. will be the principal financing agency. Nationalised Banks and Cooperative Banks will also take part in this scheme as feasible.

4. The following incentives will be granted as a "Special Package Scheme" to the units set up under New Anna Marumalarchi Thittam.

1. Agro based Industries including processing of Horticulture Produce, flower based extracts, Coir and Food Processing will be eligible for

2 subsidy and support under this scheme. The incentives will be granted as detailed below:

(a) There will be a special Capital Incentive Scheme which provides for a 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. TIIC will be the Nodal Agency for giving the subsidy.

(b) The unit set up under this scheme will be entitled to Low Tension 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 whichever is later.

(c) 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.

(d) The units employing more than 50% of their work force as women will be eligible for additional 5% capital subsidy subject to a limit of Rs.5 lakhs. The existing provisions in B.E. 2002-2003 shall be utilized and suitably enhanced to meet the needs of the special package scheme to TIIC. This order supercedes all earlier orders on subsidies.

(e) The units set up under this scheme will be eligible for an Interest rate of Prime Lending Rate (PLR)+ 4% (The PLR at present is 11.25 %).

(f) The entrepreneurs will be eligible for priority in power supply, allotment of plot / industrial sheds of SIPCOT, SIDCO and other Government / Cooperative institutions.

(g) The units will be eligible for market development assistance for products to be given by TIIC and reimbursed from Government of India Agencies. Where the subsidy is made available only after implementation of the project by Government of India. The units will be provided with subsidy bridge loan by TIIC to complete the implementation of the project and obtain reimbursement from the Central Agencies. TIIC will accommodate the project under National Equity Fund Scheme(NEFS) wherever eligible.

(h) The entrepreneurs will be allowed as part of the project cost to avail of reimbursement of consultancy charges for preparation of detailed project report upto 1% of the project cost subject to a maximum Rs.1 lakh to be paid directly by TIIC on approved projects.

(i) Entrepreneurs availing the special package scheme will be given priority over other schemes in the disbursement of subsidy and other incentives above stated.

(j) The District Collector will ensure the priority for infrastructure in the Blocks for access to water supply, roads and power under the regular Plan schemes.

(k) The promoter shall contribute a minimum of 20% of the project cost. The entrepreneur will have the option to choose between the State and Central subsidy to avoid duplication. The Standing Committee on Incentives for Industrial Promotion will determine the eligibility criteria for subsidies from time to time under the Scheme wherever required.

5. To converge the efforts of all the concerned departments at the District level, Government constitute a District Level Committee under the Chairmanship of District Collector with the General Manager, District Industries Centre as the Nodal officer. The Project Officer, District Rural Development Agency(DRDA), Joint Director, Agriculture, Deputy Director, Horticulture and the Regional Manager, Tamil Nadu Industrial Investment Corporation(TIIC) will be other Members of the Committee. The Committee will

(a) take all necessary measures to implement the programme.

(b) to identify a shelf of projects that could be promoted in each block of the respective districts.

(c) provide escort support to the entrepreneurs in the preparation of project report, market survey and access to funding ; and

(d) organise for contract farming, wherever possible, linking up the Waste Land Development Programme.

(e) The District Committee shall, promote feasible projects for implementation identified by the Centre for Agricultural and Rural Development Studies (CARDS) of Tamil Nadu Agricultural University for various districts, NABARD, District Industries Centres, District Level Small Industries Associations, State Level Small Industries Associations and the Small Industries Service Institute of the Government of India and also the Local Bodies.

6. The Government direct that a State Level Monitoring Committee be constituted headed by Hon’ble Minister for Finance with Hon’ble Minister for Rural Industries, Chief Secretary, Secretary, Finance, Secretary, Industries, Secretary, Agriculture, Director of Industries & Commerce, Managing Director, Small Industries Development Corporation(SIDCO) and Managing Director, Tamil Nadu Industrial Investment Corporation as Members to monitor the programme periodically atleast once a month. The Secretary, Small Industries will be the Convenor of the Committee.

7. The Director of the Industries and Commerce, the Chairperson, Tamil Nadu Industrial Investment Corporation Ltd., the Chairman, Small Industries Development Corporation Ltd., and the District Collectors are instructed to give wide publicity for the successful implementation of the scheme.

8. This order issues with the concurrence of Finance Department vide its U.O.No.1935/FS/P/2002-2 dated 28.6.2002.

(BY ORDER OF THE GOVERNOR)

K.SKANDAN,

SECRETARY TO GOVERNMENT.

To

The Director of Industries and Commerce,Chennai-5.

The Managing Director, TIIC, Chennai.

The Director of Rural Development, Chennai.15.

The Director of Horticulture.

All District Collectors.

The Accountant General, Chennai-18/6/35/By name.

All Pay and Account Offices / District Treasuries.

Copy to:

Secretary II to the Chief Minister, Chennai.9.

Senior Personal Assistant to Minister(Finance),Chennai-9.

Senior Personal Assistant to Minister(Rural Industries),

Chennai-9.

The Chief Secretary to Government, Chennai-9.

The Secretary to Government, Finance / Small Industries /Industries / Agriculture / Rural Development Departments, Chennai-9.

All other Departments of Secretariat,Chennai.9.

All sections in Small Industries Department,

Chennai-9.

/FORWARDED BY ORDER/

SECTION OFFICER.