ABSTRACT

Small Industries Department - Announcement made by Minster (Rural Industries) in the Legislative Assembly on 24.3.2005 regarding granting Special subsidy on power consumption charges to cold storage units under New Anna Marumalarchi Thittam - Implementation of - Sanction of Rs.60 lakhs - Orders - Issued.

SMALL INDUSTRIES (DEV. 1) DEPARTMENT

G.O.(Ms).NO. 50                                                      DATED: 1.6.2005

READ:-

1) G.O.Ms.No.32, Small Industries (Dev.1) Department, dated 28.6.2002.

2) From the Industries Commissioner and Director of Industries and Commerce, Rc.No.22640 / NAMT1 / 2005, dt. 22.4.2005.

-----------

ORDER:

The New Anna Marumalarchi Thittam provides several incentives to establish food processing / agro based industries in rural areas in the State. By establishing cold storage facilities, raw materials required for the above new industries can be procured during the season and preserved and can be utilised as per the requirements of these industries. Further, the agro produces harvested during the season can be preserved and sold during the off season at high prices. In addition to this, perishable products can be preserved for a longer period. Hence, it is felt that encouragement of cold storage facilities in rural areas will boost the food processing and agro based industries and thereby benefit farmers by and large considering the above aspects and to encourage setting up of cold storages for storing the agro and food products produced by the units set up under New Anna Marumalarchi Thittam, Hon'ble Minister (Rural Industries) announced on the floor of the House on 24.3.2005 that a sum of Rs.3.00 lakhs or 50% of the electricity charges whichever is less, will be granted after a period of four years as a special incentive for cold storage units. Accordingly, each unit will be granted a maximum sum of Rs.12 lakhs for a period of four years. A sum of Rs.60.00 lakhs will be allocated for this scheme for 2005-06.

2. Now, the Industries Commissioner and Director of Industries and Commerce in his letter second read above stated that already in the Government Order first read above, special package of incentives to New Anna Marumalarchi Thittam units were announced wherein among other things, Low Tension Power Tariff subsidy of 30%, 20% and 10% of energy charges for the first, second and third year respectively was announced. Hence, the cold storage units promoted under New Anna Marumalarchi Thittam are having option to choose between the two. Therefore, such units may be given one month time limit from the date of commencement of production to exercise their option as to whether they propose to avail Low Tension Power Tariff subsidy for their units as per package of incentives announced in Government Order first read above at the rate of 30%, 20% and 10% of energy charges for first, second and third year respectively or to avail subsidy as per the new announcements of 2005-06 at the rate of 50% of annual power charges or Rs.3 lakhs per annum whichever is less for 4 years. In this regard, in order to safeguard the interest of the cold storage units which have already commenced production under New Anna Marumalarchi Thittam, a similar time limit of one month from the date of issue of Government order for the new scheme shall be given to enable them to exercise their option for availing subsidy under any one of the schemes. He has further stated that in case of units which have already started availing subsidy as per Government Order first read above and now opting to avail subsidy as per new announcement, the difference of subsidy already paid will be adjusted before disbursement of subsidy as per the new scheme. He has requested the Government to sanction a sum of Rs.60/- lakh for the new scheme.

3. The Government have examined the proposal of the Industries Commissioner and Director of Industries and Commerce and decided to approve it. Accordingly, sanction is accorded for incurring an expenditure of Rs.60/- lakh (Rupees sixty lakh only) towards special subsidy on power consumption charges to cold storage units set up under New Anna Marumalarchi Thittam for the year 2005-06. They also direct that a sum of Rs.3.00 lakh per annum or 50% the electricity charges, whichever is less shall be granted for a period of four years with a ceiling of Rs.12 lakh per unit set up under New Anna Marumalarchi Thittam. In order to safeguard the interest of the cold storage units which have already commenced production under New Anna Marumalarchi Thittam, one month time limit is allowed from the date of issue of this order to exercise their option for availing subsidy under any one of the schemes. In case of units which have already started availing subsidy as per the Government Order first read above, and now opting to avail subsidy as per new scheme, the difference of subsidy already paid will be adjusted before disbursement of subsidy as per the new scheme.

4. The expenditure sanctioned in paragraph 3 above shall be debited to "2851-00-Village and Small Industries-102. Small Scale Industries II. State Plan LM. Assistance to Small Scale Industries Unit under New Anna Marumalarchi Thittam -09. Grants in aid - 03. - Grants for specific Scheme". (D.P.Code 2851 - 00 - 102 - LM - 0935)

5. The Industries Commissioner and Director of Industries and Commerce is authorised to draw and disburse the amount sanctioned in para 3 above to the General Managers concerned for disbursement of Special subsidy on power consumption charges to cold storage units under New Anna Marumalarchi Thittam. The Industries Commissioner and Director of Industries and Commerce is also directed to issue suitable instructions to the subsidy disbursing authorities to release the amount to the concerned beneficiary units only after thoroughly verifying the eligibility parameters.

6. This order issues with the concurrence of Finance Department vide its U.O.93/DS/AV/2005-1, Finance (Ind), dated 30.5.2005.

(BY ORDER OF THE GOVERNOR)

D. RAJENDRAN

SECRETARY TO GOVERNMENT

To

The Industries Commissioner and Director of Industries and Commerce, Chennai -5.

The Managing Director, Tamilnadu Industrial Investment Corporation Limited, Chennai -35.

The Pay and Accounts Officer, Chennai - 5.

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

The Accountant General, Chennai - 6/18/35(BN)

Copy to:

The Chief Accounts Officer, Chennai -5.

All Collectors, Except Chennai.

The Finance (BG / Ind) Department, Chennai -9.

The Small Industries (OP.II / SIB) Department, Chennai -9.

The Senior Personal Assistant to

Minister (Rural Industries), Chennai -9.

SF/SC.

//FORWARDED BY ORDER//

SECTION OFFICER