ABSTRACT

Small Industries Department - Part II Scheme 2005-06 State Government participation in providing common facilities to Small Scale Industrial units in product based cluster under the Small Industries Cluster Development Programme (SICDP) - Sanction of Rs.50.00 lakhs - Orders - Issued.

SMALL INDUSTRIES (DEV.1) DEPARTMENT

G.O.(Ms).NO. 47                                                       DATED: 24.5.2005

READ:-

From the Industries Commissioner and Director of Industries and Commerce Rc.No. 24489/ PDK5/05, dated 20.4.05.

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ORDER:

In the announcements pertaining to Small Scale Sector for the year 2005-06, it has been proposed to give assistance for providing basic common facilities for product based clusters which are approved under Small Industries Cluster Development Programme operated by Ministry of Small Scale Industries, Government of India. The assistance to such product based clusters in the form of participation by State Government in the above programme has become imperative in view of the WTO regime where the demand is driven by market forces and where due to liberalisation, privatisation and globalisation, every Small Scale Industrial Unit will have to achieve global competitiveness in quality and costs. The assistance for provision of common facilities like raw material godown, cold storage, common testing lab, quality certification, facility, common display centre etc. is envisaged to enable the Small Scale Industrial Unit to capture the domestic up country and global market potential.

2. As the product clusters are given approval and grant under the agencies of small Industries Cluster Development Programme operated by Ministry of Small Scale Industries, Government of India, it is envisaged that the State Government may also participate in the above project for which the contribution / share of the Government of Tamilnadu shall not exceed 20% of the project cost or the combined share of both Government of India and Government of Tamilnadu on the approved project cost shall not exceed 40% of the total project cost. The balance 60% of the project cost shall be borne by the stake holders.

3. Based on the Government of India share, the Government of Tamilnadu share will be determined and sanctioned on a case by case basis and may be released proportionately based on the actual release of Government of India's share. The State Government's contribution / share to be sanctioned to such product based clusters will be released by Industries Commissioner and Director of Industries and Commerce to the Special Purpose Vehicle of the Cluster of the Product based Cluster. The Industries Commissioner and Director of Industries and Commerce has sent the above proposal for approval under Part II Scheme for 2005-06.

4.The Government have examined the proposal of the Industries Commissioner and Director of Industries and Commerce. They consider that the part II scheme envisages State Government's Participation in providing Common Facilities Centres to Small Scale Industrial units under Small Industries Cluster Programme. It will be appropriate if sanction orders against provision made for Rs.50.00 lakhs is issued on case by case basis after confirming the receipt of the Government of India share and Stake Holders share.

5.Therefore the Government, hereby accord approval for the participation of the Government in the projects for providing common facilities to Small Scale Industrial units under Small Industries Cluster Development Programme for which the contribution / share of the Government of Tamil Nadu shall not exceed 20% of the project cost or the combined share of both Government of India and Government of Tamil Nadu on the approved project cost shall not exceed 40% of the project cost. The balance 60% of the project cost shall be borne by the Stake holder. They also direct that the State Government share will be determined and sanctioned on a case by case basis and released proportionally based on the actual release of Government of India's share and Stake holders share. The amount will be released to the Special Purpose Vehicle of the cluster of the respective product based clusters through Industries Commissioner and Director of Industries and Commerce.

6. This order issues with the concurrence of Finance Department vide its U.O.No.36880 (Inds.) / 2005-1 dated 20.5.2005.

(BY ORDER OF THE GOVERNOR)

D. RAJENDRAN

SECRETARY TO GOVERNMENT

To

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

The Pay and Accounts Officer, Chennai-5.

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

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

Copy to:

The Senior Personal Assistant to Minister (Rural Industries), Chennai-9.

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

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

sf/sc.

//FORWARDED BY ORDER//

SECTION OFFICER.