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ABSTRACT Small Industries - Subsidies - Other than New Anna Marumalarchi Thittam units - Grant of subsidies for pipeline cases - Orders Issued. SMALL INDUSTRIES (DEV.2) DEPARTMENT. G.O.Ms.No.69 Read: 1) G.O.Ms.No.37, Small Industries Department, Dated 20.7.2000. 2) G.O.Ms.No.32, Small Industries Department, Dated 28.6.2002. 3) G.O.Ms.No.12, Industries (MIF) Department, Dated 18.3.2004. Read also:- 4) From the Industries Commissioner and Director of Industries and Commerce, Letter No.RC.59839/KC1/2002 Dated 6.9.03. 5) From the Industries Commissioner and Director of Industries and Commerce, Letter No.RC.22217/KC1/04 Dated 2.4.04. … ORDER:- In the Government Order first read above, the Government have issued consolidated instructions regarding the incentives available to Small Scale Industrial Units. Subsidies were paid as per that Government Order till the Orders were issued in the Government Order second read above. 2. In the Government Order second read above, the Government have sanctioned implementation of ‘New Anna Marumalarchi Thitttam’ to start agro based, food processing etc., industries with minimum capital investment of Rs.1.00 Crore and above in each of 385 Blocks to generate rural employment, sanctioned package of incentives superceding all earlier orders on subsidies. In view of this, the units other than New Anna Marumalarchi Thittam which have taken effective steps prior to 28.6.02 to promote industries and in pipeline were not given subsidies. 3.The Government have been examining for quite sometime for the payment of subsidies to the pipeline cases. This subject was placed before the Standing Committee on Incentives for Industrial Promotion (SCIIP) at its meeting held on 24.2.03. The Committee felt that the cases which were in pipeline on date of issue of Government Order second read above i.e. on 28.6.02 need to be protected and hence for pipeline cases it was decided to adopt the norms issued to identify Interest Free Sales Tax pipeline cases while withdrawing of Sales Tax incentives to Industrial Units. Based on the proposals sent by the Tamilnadu Industrial Investment Corporation in the Government Order third read above, the Government have directed that the Capital subsidy / Generator subsidy / LTPT subsidy / Women Workers subsidy / Special capital subsidy applicable to leather/ pharmaceutical / electronic industries may be sanctioned to eligible Small / Medium/ Large Scale Industries in pipeline on the date of issue of Government Order second read above as per orders in force at that time subject to the usual conditions and following pipeline conditions subsisting on 28.6.02:- a) The Unit should be registered with the industrial agency of the State / Central Government. b) Land should have been allotted or purchased for the factory. c) The industry should have applied for finances from a regular financial institution; and d) The industry should start production within two years from the date of issue of G.O.Ms.No.32, Small Industries Department, dated 28.6.2002 (i.e. on or before 27.6.2004). 4. Based on the orders issued in the Government Order third read above, the Industries Commissioner and Director of Industries and Commissioner has sent the proposals in the letter fourth and fifth read above to issue of Government Orders on the following points:- (i) To sanction and disburse subsidies (i.e) Capital Subsidy, Generator subsidy and LTPT Subsidy including issue of Eligibility Certificate for LTPT Subsidy as per earlier Government Order G.O.Ms.No.37 Small Industries (EIII) Department dated 20.7.2000 to all eligible new and expansion of Small Scale Industrial units which satisfy the pipeline conditions as stipulated by the Government. (ii) Orders for sanction and disbursement of LTPT subsidy in respect of some Small Scale Industrial Units for which LTPT Eligibility Certificate had already been issued prior to issue of G.O.Ms.No.32, Small Industries Department, dated 28.6.2002 and for which the claims had been received by the District Industries Centres after issue of G.O.Ms.No.32, Small Industries Department, dated 28.6.2002, since such units were entitled for LTPT subsidy for 3 years period specified in the Eligibility Certificate already issued to them on the basis of principle of promissory estoppel. (iii) To issue specific orders for sanction and disbursement of LTPT subsidies for the balance left out period out of 3 years in the Eligibility Certificate for LTPT subsidy already issued prior to 28.6.02 to the above category of the Small Scale Industrial Units. (iv) To issue orders for grant of Capital / LTPT/ Generator Subsidy to some units which would have commenced production before issue of G.O.Ms.No.32, Small Industries Department, dated 28.6.2002 (Whose application would have been received by the concerned General Managers, District Industries Centres after 28.6.2002 but within the permitted period of one year from the Date of Commencement of Production, since, such units are eligible for subsidy’s as per the earlier Government Order G.O.Ms.No.37, Small Industries (EIII) Department dated 20.7.2000. (v) The Government Order on pipeline cases issued by Industries Department in the Government Order third read above are applicable for Small/ Medium/ Large Scale Industries in pipeline under the category of Leather / Pharmaceutical / Electronics only and assisted by the Financial Institutions only as on the date of issue of Government Order second read above as per the orders in force at that time, subject to the usual conditions and the certain pipeline conditions stipulated by the Government. In the above circumstances, the Government Order third read above could not be made applicable to the other category of units like self-financing ones and all the remaining Industrial Sectors that would have taken effective steps and would have been set up in Backward / Most Backward areas and also other activities coming under priority sector qualifying for Special Capital Subsidy. 5. The Government have carefully examined the proposals of Industries Commissioner and Director of Industries and Commerce referred to in para 4 above. For payment of subsidies to pipeline cases started with own funds, additional particulars have been called for from the Industries Commissioner and Director of Industries and Commerce. Orders for the payment of subsidies to own fund cases will be issued separately. 6. The Government direct that Capital subsidy, Generator subsidy, LTPT Subsidy shall be paid as per orders in Government Order first read above to Small Scale Industrial Units which have taken effective steps as detailed below on the date of issue of Government Order second read above to start new units and expansion of existing Units. a) The Unit should be registered with the industrial agency of the State / Central Government. b) Land should have been allotted or purchased for the factory. c) The industry should have applied for finances from a regular financial institution; and d) The industry should start production within two years from the date of issue of G.O.Ms.No.32, Small Industries Department, dated 28.6.2002 (i.e. on or before 27.6.2004). The subsidy shall be paid subject to the procedures prescribed in the Government Order first read above. 7. The Government also permit the Industries Commissioner and Director of Industries and Commerce to issue eligibility certificate to grant LTPT subsidy subject to the condition that the Units have taken effective steps as mentioned above. Since LTPT subsidy has to be paid for 3 years at the rate of 40%, 30% and 20% the Government also permit the Industries Commissioner and Director of Industries and Commerce to pay LTPT subsidy for the remaining period based on the eligibility certificates issued prior to 28.6.02 by the General Managers, District Industries Centres. The Government direct that the Units which have commenced production prior to 28.6.02 and applied for subsidy within the stipulated period of one year from the date of commencement of production and kept pending are also eligible for subsidies. 8. This Order issues with the concurrence of Finance Department vide its U.O.No. 209 / SS / AKG / 04, dated 20.9.2004. (BY ORDER OF THE GOVERNOR) D.
RAJENDRAN, To The Industries Commissioner and Director of Industries and Commerce, Chennai-5. The Managing Director, Tamilnadu Small Industries Development Corporation Limited (SIDCO), Chennai-16. The Chairman and Managing Director, Tamilnadu Leather Development Corporation Limited (TALCO) Chennai -12 The Managing Director, Tamilnadu Industrial Investment Corporation Limited (TIIC), Chennai-35. The Accountant-General, Chennai-18.(By Name) The Accountant-General, Chennai-35.(By Name) The Accountant-General, Chennai-6.(By Name) Copy to: The Finance Department, Chennai-9. //FORWARDED BY ORDER// SECTION OFFICER.
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