ABSTRACT

NAMT - Subsidies - Capital subsidy for the projects which commenced production under NAMT with New and Second Hand machinery and Low Tension Power Tariff Subsidy to new units commenced with Second hand machineries / with mixture of both old and new machineries with new power connection - Eligibility for subsidy - orders issued.

SMALL INDUSTRIES (DEV.1) DEPARTMENT

G.O.(Ms).NO. 69                                                      DATED: 5.8.2005

READ:-

1) G.O.Ms.No.37, Small Industries Department, Dated 20.7.2000.

(2) G.O.Ms.No.32, Small Industries Department, dated 28.6.02.

READ ALSO:-

(3) From the Industries Commissioner and Director of Industries and Commerce Letter No.8644/NAMT/05-3 dated 10.2.05.

(4) From the Industries Commissioner and Director of Industries and Commerce Letter No.8644/NAMT 1/05 dated 7.4.05.

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ORDER:

In the Government Order Second read above, the Government announced New Anna Marumalarchi Thittam (NAMT) for the promotion of Agro based / Food Processing Industries with a minimum capital investment of Rs.1.00 Crore and above in each of the 385 blocks in the State to improve the rural economy. Special package of incentives have been announced to the units set up under the scheme comprising 15% Capital subsidy on investment in plant and machinery subject to maximum of Rs.15 lakhs; LTPT subsidy of 30%,20% and 10% of energy charges consumed in the first, second and third year respectively from the date of commencement of production or from the date of power connection whichever is later; Generator subsidy at the rate of 15% on the cost of generator with maximum ceiling of Rs.5 lakhs and additional 5% capital subsidy upto a maximum ceiling of Rs.5 lakhs for units employing women workers more than 50% of the total work force.

2. The Industries Commissioner and Director of Industries and Commerce in his letter third read above has stated that as on 4.2.2005, 207 units have commenced production under the scheme and of which some of the units have commenced their production using second hand machineries with new power connection and certain other units have commenced production with a mixture of both old and new machineries by obtaining new power connection. In such cases, the units which have commenced production with entire set of second hand machinery are not eligible to avail capital subsidy as the units which commenced production under New Anna Marumalarchi Thittam with new machineries are alone eligible to avail capital subsidy. But, these units shall be permitted to avail LTPT subsidy since they have obtained new power connection and commenced the projects as new. Similarly, the units which have commenced production using partly new machineries shall be permitted to avail capital subsidy to the extent on the value of new machineries installed and LTPT subsidy shall be permitted for the entire power load of the unit covering both old and new machineries subject to fulfilling usual terms and conditions, as these units have commenced production.

3. The issue for extending Low Tension Power Tariff subsidy for New Anna Marumalarchi Thittam Units commenced with new power connection using second hand machineries was discussed in the State Level Coordination Committee meeting held on 24.1.2005 and it was decided to recommend proposals to Government extending Low Tension Power Tariff subsidy to this kind of New Anna Marumalarchi Thittam units. The units which have commenced production with second hand machineries fulfilling other prescribed norms had availed Low Tension Power Tariff subsidy prior to New Anna Marumalarchi Thittam.

4. Therefore the Industries Commissioner and Director of Industries and Commerce requested the Government for issue of orders on the eligibility of the units which have commenced production using partly old machineries for availing capital subsidy and the units which have commenced production with old and new machineries to avail Low Tension Power Tariff subsidy for the entire power load of the unit covering both old and new machineries.

5. The Government have examined the proposal of the Industries Commissioner and Director of Industries and Commerce carefully and have decided to accept it. Accordingly, they do and hereby direct that

(a) the Units which commenced production under New Anna Marumalarchi Thittam using partly new and old machineries be permitted to avail capital subsidy to the extent of the value of new machineries subject to the fulfilling usual terms and conditions.

and

(b) the units which commenced production under New Anna Marumalarchi Thittam with entire set of 2 nd hand machineries or old and new machineries be permitted to avail Low Tension Power Tariff subsidy for the entire power load of the unit covering both old and new machineries since they have obtained new power connection and commenced the production as new, subject to fulfilling usual terms and conditions.

6. This order issues with the concurrence of Finance vide its UO No.55781/Ind/05-1 dated 4.8.05.

(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.

All District Collectors

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

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

The Pay and Accounts Officer, Chennai – 5

All the District Treasuries.

Copy to:

The Senior Personal Assistant to Minister (Finance), Chennai -9

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

The Secretary to Government, Finance Department, Chennai-9.

The Secretary to Government, Industries Department, Chennai-9.

All Departments in Secretariat, Chennai-9.

All Sections in Small Industries Department, Chennai-9.

SF/SC.