Small Industries Department

Policy Note 2005 - 06

Demand No. 42

The Small Scale Industrial (SSI) Sector is one of the most vital sectors in the economic growth of our country with sustained employment potential. The SSI sector has a major share in production and serves as a nursery for development of entrepreneurial talents. This sector, which accounts for 95% of the industrial units, accounts for 40% of manufacturing output and contributes 35% of the exports. As on 31.12.04, there are 4.85 lakh registered SSI units in Tamilnadu having an investment of Rs13,515 Crores, providing employment to 35.11 lakh persons.

Industrial units having investment of not exceeding Rs.100 lakhs on Plant & Machinery is defined as Small Scale Industry and the Industrial units with an investment on Plant & Machinery not exceeding Rs.25 lakhs, as Tiny Industry. With the liberalisation Policy, the global competition is intensifying and there is a danger of local markets being swamped by imports. It is imperative that the SSIs should have the ability to respond effectively to this changing trend. The thrust on the SSI Sector must therefore be on enhancing competitiveness through continued technology upgradation and at the same time retaining employment generation.

During an era where, employment in Agricultural sector has become stagnant and the large industrial sector is passing through "Zero Employment Growth", the Hon'ble Chief Minister of Tamilnadu with her visionary thought has focused the Government policy towards the promotion of Agro-based and Food Processing Industry which has a three pronged advantage, namely, promotion of SSI in rural areas by utilising local resources, creation of rural employment and upliftment of rural economy by way of value addition to the area specific produce.

Government of Tamilnadu is implementing New Anna Marumalarchi Thittam for the promotion of Agro based/ food processing and other related industries in rural areas to generate rural employment and thereby improve the rural economy.

As on 28.2.2005, 213 projects with a total project cost of Rs.138.43 crores have commenced production giving employment opportunity to 8335 persons of which 5638 are women. In addition, 165 projects are under various stages of implementation with own funds and financial assistance from Banks /TIIC etc.

The projects which have commenced production includes food products like mango pulp, fruit pulp, edible oil refining, chips and Agro based projects like modern rice mill using polisher and colour sorter etc. The other projects include cold storages, manufacturing of eco-friendly products of coir such as coir pith block, Herbal products like aloe vera gel, herbal medicines, eucalyptus oil, Export oriented aqua-culture items like shrimp, fresh water prawns, flori-culture products like flower concentrates from jasmine, export oriented horticulture produces like cut flowers, etc.

In order to enthuse the potential investors in the District to take up industrial venture in Agro based and food processing sector in rural areas, the Government has ordered a Special Entrepreneurship Development Programme through reputed training institutions like Central Food Training and Research Institute, Mysore, Tamil Nadu Agriculture University, Coimbatore, National Institute of Small Industries Extension Training, Hyderabad etc. The Government has also sanctioned 25% training cost, not exceeding Rs.2500/- per participant for imparting training to the potential investors.

The issue of online provisional SSI Registration Certificate is the first milestone of this department towards e-governance. The scheme was inaugurated by Hon,ble Chief Minister on 12.9.2002, which has become a boon to the entrepreneurs to have a hassle free registration of Provisional Certificate through approved Browsing Centres on payment of a nominal service charge of Rs.50/- on all days. These Provisional Registration Certificates will enable the entrepreneurs to avail Bank finance, statutory clearance and power supply on priority basis. From the date of inauguration upto 28.2.2005, 65,596 Provisional SSI Registration Certificates have been issued through 266 Browsing Centres.

13, 067 units have been issued with permanent SSI Certificates upto 28.2.2005. These units, with an investment of nearly Rs.223.26 Crores provide additional employment to 45,606 persons.

The globalisation has accelerated the process of opening up of economy and competition in the market. Difficulties in marketing of SSI products have always been a major problem for small scale manufacturers .The SSIs should have access to the export potential for expanding the marketing network. Towards this initiative, the government have formed Export Guidance Cell in all the District Industries Centres.

Export Guidance Cell provides information on existing export activities to the entrepreneurs and necessary assistance on procedural matters for export. In order to render service effectively, the Export Guidance Cells have been strengthened by providing Computers with internet and Portal connectivity.

Towards broadening the knowledge base of the officials working in the District Industries Centres on the import and export procedure and other peripheral areas relating to Exports, 90 Officers of the Department of Industries and Commerce were given training on Export Promotion and Guidance at National Institute of Small Industry Extension Training, Hyderabad at a cost of Rs.9.00 lakhs.

Development of Entrepreneurship Culture and Quality Business Development Services are the major requirements for the industrial growth. The State Government is implementing Entrepreneurship Development through the Directorate of Industries and Commerce and through Entrepreneurship Development Institute. Apart from imparting training to the PMRY beneficiaries, a massive Entrepreneurship Development Programme for women towards self-employment is implemented by this Department.

Every year nearly 25000 women are trained under the Entrepreneurship Development Programme for women, which include training for the technically qualified women also. The training programmes are conducted through the Entrepreneurship Development Institute, Chennai, Centre for Entrepreneurship Development, Madurai and other approved NGOs. During the year 2001-02 to 2003-04, the Department had trained 75535 women against the target of 75000. During the current year, upto 28.2.2005, totally 20487 women have been trained to set up Micro Enterprises, comprising of 10154 women from self-help groups 6311 women from technically qualified sector and 4022 women through PMRY.

In addition to the above programmes, Entrepreneurs who have set up SSI units under NAMT are also given Entrepreneurship Development training so that they are fully geared up to take up the Entrepreneurship. Out of the training cost of Rs.5000/- per participant, Rs.1500/- is borne by the State Government, Rs.1500/-by the participating Bank and Rs.2000/- by the individuals.

In addition to the above, during 2004-05 the Entrepreneurship Development Institute (EDI) had provided entrepreneurship training to 60 women beneficiaries sponsored by Tamil Nadu Industrial Investment Corporation Limited.

Entrepreneurship Development Institute has recently started a 3 month skill development programme focusing on the unemployed and under employed diploma holders to set up micro enterprises on servicing modern white goods, floated by the multi-national companies, especially split A/C, Washing machine, cell-phones, mixie, colour TV etc. This is aimed at elevating the employability status of these diploma holders, who are at present poorly paid. They could also bridge the gap in demand for Service Engineers required by the multi-national companies.

Entrepreneurship Development Institute is also organizing Entrepreneurship Development Programmes for tribals located at Nilgiris and Yercaud in cultivation of Anthurium, Ericulture etc. .

During the current year, Entrepreneurship Development Institute has organized 3 days Entrepreneurship Awareness Camp for the benefit of final year students of engineering college and polytechnic to take up self-employment ventures.

The Information Technology has created notable awareness among the employees to adopt the new technology to benefit the common public and facilitate the Industrial growth in urban as well as rural areas.

The Information Technology Task Force Committee has been formed under the Chairmanship of Secretary to Government, Small Industries Department, to implement and monitor the Government schemes through e-Governance.

The setting up of Electronic Auction Centre ("TEA SERVE" at Coonoor) and issue of On-line Provisional SSI Registration Certificate and market access through internet in the Export Guidance cells are notable e-Governance initiatives of the Department.

The staff of the department are trained on e-Governance in a phased manner to enable them to monitor schemes like New Anna Marumalarchi Thittam, Prime Minister Rozgar Yojana, etc.,

In the present WTO scenario, the capability of SSI units can be improved only when the infrastructure of the existing industrial clusters are strengthened. The State Government accordingly has sent the following proposals under the scheme to Government of India.

1. Auto Ancillary Cluster, Chennai.

2. Hosiery Cluster, Tirupur.

3. Cereals, Pulses and Staples Milling Cluster, Madurai.

4. Pump, Motor, Foundry and Allied Industries Cluster, Coimbatore.

5. Coir and Allied Products Cluster, Krishnagiri.

6. Mango Pulp Cluster, Krishnagiri.

7. Leather Cluster, Ambur.

8. Printing Cluster, Sivakasi.

9. Pharmaceutical Cluster, Chennai.

Under this scheme, the following three projects have been approved by Government of India and are under Implementation

1. Auto Ancillary Cluster, Chennai.

2. Hosiery Cluster, Tirupur.

3. Cereals, Pulses and Staples Milling Cluster, Madurai.

To create more employment avenues for the rural youth in the non-farm sector and thereby discourage their migration to urban areas, a new scheme of National Programme on Rural Industrialisation (NPRI) with a grant of Rs.5 lakhs per naturally grown cluster was announced by Government of India. Totally 15 rural clusters have been identified. 5 Clusters namely Bell-Metal cluster, Thanjavur District, Grass Weaving Cluster at Tirunelveli District, Fire proof and long lasting thatches manufacturing cluster at Thiruvarur District, Soap industries and Ready made garments clusters at Madurai were forwarded to Government of India for approval and sanction.

To strengthen the infrastructure and to create common amenities for the product based industrial clusters, Small Industry Cluster Programme is implemented by the Government of India.

Under the above scheme, a proposal for creation of common Facility Centre to benefit Wet Grinder Manufacturing Units in Coimbatore at a total project cost of Rs.288.20 Lakhs has been forwarded to the Government of India for approval.

The SSI Sector is a powerful instrument for realising the twin objectives of accelerated industrial growth and creating productive employment potential in rural areas. Liberalisation and globalisation have become the order of the day and to remain competitive, the SSIs must constantly upgrade technology and make fresh investments. The thrust of the SSI sector must be towards enhancing the competitiveness and promoting job creation.

In the present global scenario, SSI units should setup Research & Development activities and obtain ISO certification resulting in registration of patent right and intellectual property right. For the SSI units going for credit supports for the above schemes, 3% back ended interest subsidy is extended by the Government.

In addition to upgrading the technology and modernising the equipments, the worker’s skill need to be upgraded. The Government had provided financial assistance at the rate of 50% of the training cost limited to Rs.500/- per worker for imparting skill upgradation training in CNC machines to 500 workers during the year 2004-05 to enable them to produce quality items with precision.

The PMRY Scheme, which provides self employment to the educated unemployed youth is successfully implemented in the state through banks. During the current year upto 28.2.2005 loans to the tune of Rs.7523.22 lakh were sanctioned to 18127 cases.

The Single Window Clearance Committee constituted in each district under the Chairmanship of District Collector provides necessary escort service to the Small Scale Entrepreneurs for getting speedy clearances from various statutory authorities like Tamilnadu Pollution Control Board, Town & Country Planning, Fire Service, Public Health, Electricity Board etc. A common application for getting clearances from various statutory authorities are filed with the General Manager, District Industries Centre who in turn obtain the reports of the concerned departments. The Single Window Committee meets once a month and takes follow up action on the applications filed by the Small Scale Entrepreneurs.

The Environmental Engineer, Tamilnadu Pollution Control Board, the Deputy Director, Town & Country Planning and Superintending Engineer, Tamilnadu Electricity Board have been made as members of the District Level Committees. A time frame of 7 days for clearance from Tamilnadu Pollution Control Board and 21 days for issue of clearance for reclassification of land use by the Director of Town & Country Planning has been prescribed. The units coming under the New Anna Marumalarchi Thittam will be given priority for providing power supply.

Inadequate working capital in a small scale or an ancillary industrial undertaking causes serious and endemic problems affecting the health of such undertaking. The prompt payment of money by buyers to Small Scale Industries/Ancillary Industrial undertakings needs to be ensured.

The prompt payment of dues and payment of interest on the outstanding money in case of default is ensured by the mandatory provisions of Interest on delayed payments to Small Scale & Ancillary Industrial Undertakings Act 1993. The Government of Tamil Nadu which is a pioneer in the industrial growth in the country has constituted 4 Regional Industry Facilitation Councils under the Chairmanship of the Industries Commissioner & Director of Industries & Commerce with headquarters at Chennai, Tiruchirapalli, Madurai and Coimbatore. During 2004-05, the Council had disposed off 147 cases of delayed payment, thereby facilitating 124 SSI units in sorting out the dispute.

The development work of the Small Scale Sector involves several Departments / Ministries and several agencies of Central / State Government. The Policy related issues posed by various SSI Associations are placed before the State Level Small Scale Industries Board headed by Hon’ble Minister for Rural Industries as Chairman and the Chief Secretary as Vice Chairman. The SSI BOARD provides an effective platform for inter departmental coordination and inter-institutional linkages.

Index of Industrial Production has national importance in the over all assessment of the economic growth. Till June 2004, the collection of monthly production details through selected sample units for the purpose (Index of Industrial Production) was carried out covering only 11 districts. The new basket for IIP in respect of Tamilnadu covers 3366 units representing 185 products of the State.

Based on the large-scale scope for establishment of Electrical & Electronics Industries and to meet the growing demand for both common type of Electrical Goods such as Lamps, Transmission lines, Accessories, Motor Starters, Control Equipment, Overhead Conductors, Domestic Appliances and Heavy Electrical Equipment like Transformers, Circuit breakers, etc., Government established 8 Functional Industrial Estates at Thiruvanmiyur and Perungudi in Chennai, Kakkalur in Tiruvallore, Coimbatore, Salem, Hosur, Tiruchirappalli and Madurai.

In order to conform the products to international safety and quality standards and to maintain regular quality, it is necessary to test every batch of production. The Central Electrical Testing Laboratory, Kakkalur in Tiruvellore District and Common Facility Centre at Hosur in Krishnagiri District are providing necessary testing facilities to the industrial units in the estate at nominal charges. The Central Electrical Testing Laboratory, Kakkalur has been accredited by National Accreditation Board for Laboratories, New Delhi and also recognised by the Bureau of Indian Standards. CETL, Kakkalur is equipped to test nearly 150 Electrical products. Apart from providing testing facilities to the units in the Estate, the Laboratory also undertakes quality testing for the products referred by Bureau of Indian Standards. The samples collected from the market by the designated Officers of the Quality control order enforcement centre is also tested in the laboratory. This ensures safe and standard products being available to the public in the market.

The CETL, Kakkalur is also providing training in testing and calibration to the electrical product manufacturers/dealers .

Quality goods find ready market in fetching remunerative price. Directorate of Industries and Commerce has set up Testing Laboratories at Chennai, Madurai, Coimbatore, Salem and Thoothukudi to cater to the testing needs of Industries by undertaking testing and analysis of all types of Raw-materials and Finished Industrial Products. These Laboratories offer 50% concession on testing fees for the registered Small Scale Industrial Units.

The Chemical Testing and Analytical Laboratory, Guindy and Regional Testing Laboratories, Madurai, Coimbatore, Salem and Thoothukudi offer testing facilities for Iron, Steel, Alloy Steel, Cast Iron, Copper, Aluminium, Zinc, Tin and other Alloys, Paints, Primers of all types, Cement, Brick, Concrete Cubes, Water, Coarse and Fine Aggregates, Petrol, Diesel, Furnace Oil and Other Petroleum Products, Ores and Minerals of all types Bio and Chemical Fertilizers, Pesticides, Insecticides, Vegetable Oils and Water.

Industrial Cooperatives have an important role to play in the upliftment of weaker sections including rural artisans, workers and labourers who own nothing except inherited skills. They help the farmers in growing crops like green tea and tapioca which form the raw materials for the ultimate industrial product and also help the small scale industries to develop their industries. Tiny and small scale industries suffer due to the disadvantages of economies of scale owing to small size, less finance, employment of small machineries, high cost due to their inability to make bulk purchase and ineffective marketing. These deficiencies are overcome in a substantial way through the cooperative form of organization.

There are 314 Industrial Cooperative Societies in Tamilnadu with a total membership of 62225. During the year 2004-05 upto 28.2.2005 the Industrial cooperative societies have achieved sales to the value of Rs.317.57 Crores providing employment to 1,01,298 persons.

There are 15 Industrial Cooperative Tea Factories with a membership of 20,258 small tea growers functioning in the Nilgiris District to ensure reasonable price to the green leaf supplied by the members. The annual production capacity of the Indco tea factories is 17% of the total production of tea in the district. During the current year (upto 28.2.2005) the indco tea factories have produced 136.19 lakh kgs. of made tea and sold made tea to the value of Rs.5527.73 lakh. "Indcoserve", an apex organisation was established at Coonoor to help the member Indco Tea Factories.

When the prices of Green Tea leaf crashed down drastically, the Government took up various steps to solve the problems faced by the Small Tea Growers of Nilgiris District. One step towards the redressal of grievance of small tea growers is the introduction of Ooty Tea Scheme launched by the Hon'ble Chief Minister of Tamilnadu on 28.8.2001. As per the scheme, the INDCOSERVE participate in the auction, procure made tea and market the same after blending and packaging under the Brand name "Ooty Tea" through Public Distribution System Fair Price Shops in Tamilnadu. So far 2676 M.T. of Ooty Tea to the value of Rs.2007 lakh has been sold during the current year.

Considering the deficiencies in the private Auction Centres, the Government have established "Teaserve", an Electronic Auction Centre at Coonoor for the benefit of small tea growers and other producers of Tea. The Electronic Auction Centre, first of its kind in the country was inaugurated by Hon'ble Chief Minister of Tamilnadu on 13.9.2003. This Auction Centre ensures reasonable and remunerative price to the Tea manufacturers and thereby ensure reasonable realisation to the small Tea growers. The Auction Centre also ensures fair and transparent business and maintain stability in prices of Tea, avoiding speculation. During this year upto 28.2.2005, Teaserve has effected sale of 25,163 M.T. of tea to the value of Rs.9876.73 lakh.

The Government of Tamilnadu has also extended concessional rate of sales tax at 4% TNGST and 2% CST for the Tea sold through Teaserve from 29.5.2003.

Due to market vagaries and instability in the price for their produce, the growers of plantation crop face frequent crisis. To mitigate the sufferings of the plantation growers, the Ministry of Commerce, Government of India, has come out with Price Stabilisation Fund Scheme. The people of Nilgiris District mainly depend on tea cultivation. The small tea growers having land holding upto 4 hectares are eligible to become the members under the scheme. Out of 46,490 small tea growers in the state, 23,000 small tea growers are covered by the scheme.

Under the scheme, each participating grower has to contribute Rs.500/- as entry fee. In the normal years, when the price remains within the price spectrum band, each grower has to contribute Rs.500/- every year and the Government of India will also contribute Rs.500/- to the growers account. When the price pierces the upper band, the grower has to contribute Rs.1000/- and the Government of India will not make any contribution. When the price falls below the lower band, the grower need not contribute any amount but the Government of India will contribute Rs.1000/- per account. When the price falls below the lower band, the subscriber grower will be allowed to draw upto Rs.1000/- from their account under the Scheme.

Since the farmers could not pay even the initial deposit, Government of Tamilnadu have sanctioned Rs.115 lakh towards initial subscription on behalf of 23000 small tea growers at the rate of Rs.500/- per member to this scheme.

A proposal for Industrial Infrastructure Up-gradation Scheme for Tea Cluster in Nilgiris District is under examination. This Cluster will provide Product Promotion, Quality Control through Testing Laboratories, Agriclinic, Networking, Warehousing, Blending and Packaging and Research and Pilot projects for fuel efficiency. The Common facilities created under this cluster will help the member units to improve the quality of their product and minimize the cost of production.

Tamil Nadu State is the largest producer of brown fibre with a production of 1.33 lakh MT per annum. It is envisaged that the present level of husk utilisation which stands at 47% could be increased to 60% thereby increasing, the fibre production to 1.69 lakh MT per annum. There are 5491 Coir units in Tamil Nadu of which 67 units are under Cooperative sector with a total membership of 9901. The Coir activities in Tamil Nadu are mainly at primary level i.e. Fibre production and Yarn spinning. The State Government is actively coordinating with Coir Board in the development of Coir sector in Tamil Nadu with the objective of creating additional employment, improving the wages, increasing higher exports etc.,

During 2004-05, two Coir Societies, one at Veppalampatty Village in Burgur Panchayat Union and another at Kallur Village in Uthangarai Panchayat Union of Krishnagiri District have been established with the Government share participation of Rs.1.00 lakh in each Society. To promote Coir based industries, the State Government in association with Coir Board is implementing an Action Plan at an outlay of Rs.42.36 crores during the period 2004-2006. During the year 2004-05, the State Government has contributed its share of Rs.41.40 lakhs towards the implementation of the following schemes in association with the Coir Board.

• Financial assistance of Rs.13.40 lakhs for the purchase of motorized traditional coir ratts to 2000 coir trained women workers under Mahila Coir Yojana Scheme.

• Margin Money assistance of Rs.20.00 Lakh to 30 New Coir SSI units to encourage manufacture of value added products such as mat and mattings.

• Training in Skill upgradation to 200 coir workers in the production of mat and mattings at a cost of Rs.5.00 lakh.

• Conducting 4 demonstrations on the application of Coir Geo Textiles at a cost of Rs.2.00 lakh.

• Coir Exposure tour to the Entrepreneurs of Tamilnadu to Kerala at a cost of Rs.1.00 lakh

"SAGOSERVE", an Industrial Cooperative Society was formed to provide Marketing Assistance to the Sago & Starch processing units by providing godown facilities, advancing money at cheaper rate of interest and organising marketing through daily tender system. This has facilitated nearly 800 Sago & Starch processing units to get remunerative price for their products which in turn help nearly 1 lakh farmers to get remunerative prices for their agricultural produce.

The Government of Tamil Nadu have ordered for collection of concessional rate of Sales Tax at 2% with effect from 7.5.2003 in respect of sale of Sago & Starch through SAGOSERVE, Salem. During the current year, upto 28th Feb 2005, SAGOSERVE has achieved a sales turnover of Rs.166.12 crore and earned a profit of Rs.2.65 crore.

Tamil Nadu Industrial Cooperative Bank Limited established in 1961 with a paid up Share Capital of Rs.20.22 lakh, has been steadily growing and as on 28.2.2005, the Bank has a paid up Share Capital of Rs.407.55 lakh. At present, the Bank has 27 branches spread over the State. During the current year upto 28.2.2005, TAICO Bank has disbursed Loans & Advances to the tune of Rs.170.74 crore and mobilized deposits worth Rs.223.16 crore.

Apart from providing credit facilities to the Industrial Cooperative Societies, the Bank has also extended loan assistance to SSI/Tiny Sector, Small Road Transport Operators and Traders.

The Reserve Bank of India has recognized the TAICO Bank to provide credit facilities to the Industrial Cooperative Societies under NABARD Refinance Scheme.

The Tamil Nadu Small Industries Development Corporation Limited, (SIDCO) a Government of Tamil Nadu Undertaking, was established in October 1970 with the specific objective of promoting and developing Small Scale Industries (SSIs) in the State. SIDCO has developed 41 Industrial Estates and manages 35 Government Industrial Estates on agency terms. So far, SIDCO has developed 4972 Plots and constructed 4222 Sheds. Further, 1841 Tiny Sheds with sizes of 200 Sq. ft. to 600 Sq. ft. have also been constructed.

2. TARGET AND ACHIEVEMENT OF SIDCO

During the year 2004-05, SIDCO has developed 316 Plots at Vichoor Industrial Estate Phase II, Kumbakonam Industrial Estate Phase II and Karuppur Industrial Estate, [Salem] at the cost of Rs.338.00 Lakhs For the year 2005-06, SIDCO proposes to develop 584 Plots in Kappalur Women Industrial Park, Thirumullaivoyal (Tiny Plot for Women Entrepreneurs), Mayiladuthurai, Vinnamangalam, Kumbakudi, Kakkalur Phase II, Theni and Kurichi at a total estimated cost of Rs.652.30 Lakhs. SIDCO has till February 2005, sold 201 plots and will be selling another 241 plots by the end of this financial year. SIDCO has also sold 84 Sheds up to February 2005 against the Target of 90 Sheds for the year 2004-05. During the year 2005-06, SIDCO proposes to sell 670 developed plots and 60 sheds.

One of the strategies announced by the Hon’ble Chief Minister, for women empowerment is to establish 5 Women Industrial Parks in Tamilnadu exclusively for women entrepreneurs which is the first of its kind in the country. As a special incentive to Women entrepreneurs, 50% of basic land cost has been waived, if Government poramboke lands are alienated for Women Industrial Parks. SIDCO will also waive the processing fee for these Women Entrepreneurs on their application for NOC to mortgage lands to any financial institutions, to get term loan assistance & working capital. SIDCO has also reduced the administrative charges from 15% to 10% on the land cost for these parks, except in estates in and around Chennai. Two new Industrial Parks for women entrepreneurs at Thirumullaivoyal near Chennai and Vazhavanthankottai near Tiruchirappalli have been completed and allotments are being made to women entrepreneurs. At Thirumullaivoyal, a further extent of 33.7 acres will be developed as tiny plots for women entrepreneurs during 2005-06. The third Women’s Industrial Park at Karuppur near Salem has been completed and applications have been received and the allotment process is on. During 2005-06, the Corporation will establish the remaining two women’s Industrial Parks at Madurai and Coimbatore.

During 2004-05, the Corporation proposed to establish three ‘Techno Parks" for Tiny entrepreneurs in the semi urban areas. For this, lands have been identified at 2 locations. At Vinnamangalam near Vaniampadi, Vellore District SIDCO has entered upon the land belonging to the Industries Department. SIDCO has also obtained enter-upon permission from HR&CE for Mayiladuthurai in Nagapattinam District. At Theni, land is being identified. The further works would be taken up and completed in 2005-06.

The Corporation has undertaken the supply of Raw Materials to Small Scale Industries at competitive rates. SIDCO is distributing the following raw materials.

[1] Iron and Steel

[2] Wax

[3] Potassium Chlorate

[4] Printing Paper*

• The printing papers from Tamil Nadu Newsprint & Papers Limited are being supplied to Government departments, educational institutions and also printers, xerox copiers.