ABSTRACT

Small Industries – Quality Upgradation Scheme in Six Indco Tea Factories - Sharing of assistance by State Government to match the Tea Board's 25% subsidy – Rs.27.80 lakhs sanctioned – Orders – Issued.

SMALL INDUSTRIES ( SIA ) DEPARTMENT

G.O.(Ms).NO. 35                                                        DATED: 4.5.2005

READ:-

From the Industries Commissioner and Director of Industries and Commerce letter Rc.No.56996 / ICM2 / 04 dated 10.12.2004. .

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ORDER:

The Tea Board was providing 50% subsidy for bought leaf factories both in public and private sector to go for quality up-gradation of the machineries under Quality Upgradation Scheme. During the year 2003, the Government of India through Tea Board sanctioned Rs.115.88 lakh to 11 "Indco Tea Factories as 50% subsidy under Quality Upgradation Scheme" to tide over the tea crisis without any share of assistance from State Government. Out of the 11 Indco Tea Factories, the scheme was fully implemented only in 8 Indco Tea Factories. After implementation, there has been all round improvement in the quality of made tea, sale average, cost of production and green leaf rate paid to small tea growers. Consequently the arrival of green leaves to the Indco tea factories has also increased.

2. Now the Tea Board continues the scheme but with reduced subsidy at 25% of the Cost of the Scheme. Under this scheme the tea factories are unable to pay interest on 75% of the loan portion which would increase the cost of production and no factory is prepared to utilise the scheme. The Industries Commissioner and Director of Industries and Commerce has stated that the assistance from the State Government to the Indco Tea Factories for modernisation of the machinery under the "Quality Upgradation Scheme" in association with Tea Board is quite essential so as to enable the factories to reduce its loan portion and thereby interest burden.

3. In order to reduce the loan burden and to match the Tea Board's subsidy, the Industries Commissioner and Director of Industries and Commerce has requested the Government to sanction Rs.32.30 lakh being the 25% of the total project cost of Rs.129.18 lakhs for the benefit of 7 Indco Tea Factories as detailed below.

4. The Government have examined the proposal of Industries Commissioner and Director of Industries and Commerce in para 3 above. It has been indicated that in the event of implementing the Quality Upgradation Scheme in the ICTF it is expected that the quality of the made Tea will improve and the cost of production will be reduced in the range of 2 to 7 paise per kg. The Government have therefore decided to grant a matching subsidy of 25% to the tune of Rs.27.80 lakhs to six Indco Tea Factories mentioned in para 3 above leaving the Salisbury ICTF as detailed below:

5. Sanction is accorded for incurring an expenditure not exceeding Rs.27,80,000 (Rupees twenty seven lakhs and eighty thousand only) for implementation of the quality upgradation scheme in the Six Indco Tea Factories mentioned in para 4 above.

6. The expenditure sanctioned in para 5 above shall be debited to a new sub head of account under Demand No.42, Small Industries Department as detailed below:

"2851.00 Village and Small Industries – 102. Small Scale Industries – I Non Plan – CV. Matching grant to Indco Tea Factories for implementing Quality Upgradation Scheme – 09. Grants – in-and – I. Grants for Current Expenditure" [DPC 2851 00 102 CV 0918)

7. The Industries Commissioner and Director of Industries and Commerce is the estimating, reconciling and controlling authority for the above new head of account. The PAO / Treasury Officers concerned is requested to open the above head of account on their accounts.

8. The Expenditure sanctioned in para 5 above shall constitute an item of new service and approval of the Legislature will be obtained in due course. Pending approval of the Legislature the expenditure will be met by an advance from the Contingency Fund, orders regarding this will be issued by the Finance (BG I) Department seperately. The Industries Commissioner and Director of Industries and Commerce shall apply to the Government in the (BG I) Department in the prescribed proforma along with this order for the sanction of an advance from the Contingency Fund. The Industries Commissioner and Director of Industries and Commerce shall also send necessary draft Explanatory Notes for the inclusion of the above expenditure in the First Supplementary Estimate 2005-2006 without fail.

9. The Industries Commissioner and Director of Industries and Commerce is authorised to draw and disburse the amount sanctioned in para 5 above as explained in para 8 above to the Six Indco Tea Factories. He shall ensure that the matching share of 25% subsidy is obtained from the Tea Board and also 50% loan availed from Bank so as to implement the scheme in full in all the 6 Indco Tea Factories. The Industries Commissioner and Director of Industries and Commerce shall send a report on the implementation of the scheme to Government.

10. This order issues with the concurrence of Finance Department vide its UO No.29093 / Fin (Ind) / 05-1 dated 26.4.2005 and additional sanction ledger No. 60 (Sixty).

(BY ORDER OF THE GOVERNOR)

D. RAJENDRAN

SECRETARY TO GOVERNMENT

To

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

The Accountant General, Chennai-6/18/35

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

The Pay and Accounts Officer (E), Chennai-5.

Copy to:

Indcoserve, Coonoor

The Finance (Inds / BG I / BG II) Department, Chennai-9

All Sections in Small Industries Department, Chennai-9.

Stock File / Spare Copy

/FORWARDED BY ORDER/

SECTION OFFICER