G.O Ms No. 64 Dated 26.9.2001

Small Industries-Industrial Cooperatives-Setting up of an industrial cooperative society for processing Cashewnut/Cashew oil at Panruti under Part II Schemes 2001-2002-Government share participation of Rs.22.12 lakhs-Sanctioned.

From the Industries Commissioner and Director of Industries and Commerce Lr.No.41513/PDB1/2001 dated 14.6.2001.

The Industries Commissioner and Director of Industries and Commerce in his letter read above has sent proposals to Government for organisation of an Industrial Cooperative Society for processing Cashewnut/Cashew oil at Panruti with State share participation of Rs.22.12 lakhs under Part II Schemes for the year 2001-2002.

2. He has stated that in Cuddalore District more than 12000 farmers are engaged in Cashew cultivation covering an area of 24753 hectares. The annual production of Cashew shells is estimated as 8980 M.Ts. per year. At present the Cashew farmers are being exploited by the private merchants by forming syndicate dictating the price of the Cashew shells. Therefore it has been proposed to form a society at Panruti in Cuddalore District for the welfare of the cultivators.

3. The total cost of the scheme is Rs.88.47 lakhs. The activities of the society is to procure Cashew kernels (Raw materials) from the farmers and produce export quality Cashewnuts and also its by-products such as Cashew shell oil, oil cake etc. The scheme is proposed with National Cooperative Development Corporation/Tamil Nadu Industrial Investment Corporation assistance. The financial pattern for the proposed society is as follows:

Members’ contribution	5% of project cost
Government share participation	25% of project cost
National Cooperative Development Corporation/Tamil Nadu Industrial Investment Corporation Ltd Loan	50% of project cost
Bank loan	20% of project cost

COST OF THE PROJECT SOURCE OF FINANCE (RS. IN LAKHS)
Non-recurring expenditure
Building 24.42	Members contribution 4.43 5% on cost of the scheme.
Machinery 8.25	Loan from National Cooperative Development Corporation Ltd./ Tamil Nadu Industrial Investment Corporation Ltd. 50% 44.24
Pre-operative expenditure 3.00	25% of State participation 22.12
Working capital 52.80	20% Bank loan 17.68
Total 88.47	Total 88.47

4. The Industries Commissioner and Director of Industries and Commerce has therefore requested the Government to sanction a sum of Rs.22.12 lakhs as State share participation for setting up of an Industrial Cooperative Society for processing Cashewnut/Cashew oil at Panruti for the welfare of the cashew kernel cultivators.

5. The Government after careful examination accept the proposal of the Industries Commissioner and Director of Industries and Commerce. The Government sanction a sum not exceeding Rs.22.12 lakhs (Rupees twenty two lakhs and twelve thousand only) as State share participation towards setting up of an industrial cooperative society for processing Cashewnut/Cashew oil at Panruti under Part II Schemes 2001-2002.

“4851.00 Capital outlay on Village and Small Industries.102. Small Scale Industries Schemes in the Ninth Five Year Plan-II-State Plan KS. Share Capital Assistance to Industrial Cooperative Society for processing Cashewnut/Cashew oil 22 Investments.

7. The Industries Commissioner and Director of Industries and Commerce is authorised to draw and disburse the amount to the proposed society.

8. This order issues with the concurrence of Finance Department vide its U.O.No.63884/Ind/2001 dated 10.9.2001.