policynote 2012 2013(english)

TAMILNADU SMALL INDUSTRIES DEVELOPMENT CORPORATION LTD

CHENNAI – 32 POLICY NOTE 2012 -2013 3.Tansidco

The Tamil Nadu Small Industries

Development Corporation Limited commonly

known as SIDCO, was established on

16.3.1970 by the Government of Tamil Nadu

with the main objective of assisting and

promoting the interests of Small Scale

Industries in the State by providing the

following services.

i. Formation and maintenance of Industrial Estates

ii. Assistance in Raw Material Distribution

iii. Assistance to small industries in marketing their products through Marketing Assistance Scheme.

2

Consequent to the enactment of the

MSMED Act 2006 on 16.6.2006, SIDCO has

been actively striving to achieve its goals,

viz.

i. To facilitate the promotion and development of the MSME Sector

ii. To enhance the competitiveness of

the MSME Sector

3.1 Sidco’s Vision

“To forge sustainable partnerships with

the MSMEs for enhancing their

Competitiveness”.

This will be achieved through its mandated mission of

i) Development of Industrial Estates and associated social infrastructure

ii) Promotion of Clusters and Common Facility Centres

3

iii) Enabling the access of MSMEs to

Technology

Inputs

Best Management and Manufacturing practices

Capital

Markets

3.1.1 Major line of activity carried-out

in the Industrial Estates Traditionally, SIDCO has been

performing the functions of maintenance of

35 Industrial Estates created by the

Government of Tamil Nadu and the 59

Industrial Estates established on its own,

thus maintaining 94 Industrial Estates as on

date. A total of 11,703 units are functioning

in these industrial estates, of which 303 units

are export oriented. The employment

generated in these units is approximately

2,18,248 persons. The industries functioning

4

in these estates are engaged in the following

manufacturing activities.

1. Auto Components

12. Milk Products

2. PVC / Rubber Products

13. Corrugated boxes

3. Forging / Casting units

14. Spinning Mills

4. Readymade Garments

15. Aluminium Caps

5. Textile units 16. Paints

6. IT & IT enabled services

17. Transformers

7. Leather Products 18. Chemicals

8. Electrical and Electronics spare Parts

19. Polythene Bags

9. General Engineering & Fabrication

20. Furniture

10. Drugs and Pharmaceuticals

21. Ceramics

11. Fly Ash Bricks

5

3.1.2 Industrial Estates so far developed

Sl. No

District

Industrial

Estate

Year of

formation

Total Extent

(in acres)

1 (1) Chennai Guindy (G) 1958 404.08

2 Arumbakkam (S) 1979 3.92

3 Villivakkam (S) 1979 2.04

4 Kodungaiyur(S) 1979 7.88

5 (2) Thiruvallur Ambattur (G) 1963 1167.00

6 Kakkalur (G) 1988 199.00

7 Kakkalur-Phase–II (G)

2009 84.01

8 Thirumazhisai (S) 1988 160.85

9 Gummidipoondi(S) 1988 25.24

10 R.K.Pet (S) 1996 8.15

11 Vichoor (S) 1994 59.16

12 Thirumullaivoyal (WIP) (S)

2001 225.88

6

13 (3) Kancheepuram

Kancheepuram(G) 1968 37.95

14 Maraimalainagar(S) 1981 39.50

15 Alathur (S) 1984 150.00

16 Thirumudivakkam(S) 1993 201.11

17 (4) Vellore Katpadi (G) 1968 19.48

18 Arakonam(G) 1968 11.09

19 Arakonam-Phase II (G)

2009 40.65

20 Ranipet (S) 1972 113.44

21 Mukuntharayapuram (S)

1980 86.19

22 Vannivedu(S) 1987 16.44

23 Vinnamangalam(S) 2009 10.49

24 (5) Thiruvannamalai

Thiruvannamalai(G) 1968 15.56

25 (6) Krishnagiri Krishnagiri (G) 1965 41.86

26 Uthangarai (S) 1995 41.28

27 Hosur(SIPCOT) (S) 1976 95.15

7

28 Hosur (New) (S) 1999 18.80

29 Bargur (S) 1995 13.05

30 Bargur–Phase-II (S) 2009 18.59

31 Pollupalli (S) 2009 60.96

32 (7) Dharmapurai

Dharmapuri(G) 1965 20.28

33 Kadagathur (S) 2009 7.02

34 (8) Salem Salem (G) 1967 19.55

35 Mettur(G) 1967 184.38

36 Karuppur(WIP)(S) 2004 51.70

37 Veerapandi(S) 1993 9.79

38 (9) Namakkal Namakkal (S) 1977 10.09

39 Thiruchengodu (S) 1980 9.18

40 (10)Erode Erode (G) 1959 25.13

41 Nanjaiuthukuli (S) 1995 13.05

42 (11) Coimbatore

Kurichi (G) 1972 88.43

43 Malumichampatti(S) 1994 36.14

8

44 (12) Tiruppur Ganapathipalayam

(S) 1993 17.10

45 Rasathavalasu (S) 2011 51.80

46 Tiruppur (S) 1978 10.14

47 Gudimangalam (S) 1992 6.74

48 (13) Nilgiris Ooty (S) 1981 10.65

49 (14) Cuddalore Cuddalore(G) 1971 15.60

50 Vadalur (G) 1972 26.22

51 (15) Villupuram Asanur (S) 2009 107.80

52 Venamaniathur(S) 2011 38.88

53 (16)Perambalur Elambalur (S) 2009 44.48

54 (17) Thanjavur Kumbakonam (G) 1968 32.30

55 Thanjavur (G) 1968 21.94

56 Pillayarpatti (S) 1974 10.96

57 Nanjikottai (S) 1996 26.30

9

58 (18) Nagapattinam

Nagapattinam(G) 1966

20.97

59 Mayiladuthurai (S) 2009 12.56

60 (19) Tiruchirappalli

Thuvakudi (G) 1974

478.38

61 Thiruvarambur(G) 1974 74.50

62 Ariyamangalam (G) 1974 17.64

63 Valavanthankottai(WIP) (S)

2003 51.70

64 Valavanthankottai(P- II) (S)

2008 87.18

65 Valavanthankottai(P- III) (S)

2009 26.84

66 Kumbakudy (S) 2009 24.46

67 (20) Karur Karur (G) 1974 26.63

68 Karur(Athur) ( S) 1993 36.29

69 (21) Pudukottai Pudukkottai (G) 1974 23.18

70 Pudukkottai(SIPCOT) (S)

1988 51.45

71 Mathur (S) 1975 26.00

10

72 (22) Theni Theni (G) 1963 26.59

73 Andipatty(S) 1994 22.34

74 (23) Dindigul Dinidigul (G) 1965 39.90

75 Batlagundu(G) 1965 16.26

76 (24) Madurai Madurai–K.Pudur (G) 1960 56.05

77 Kappalur (G) 1966 534.64

78 Kappalur- WIP (S) 2007 18.90

79 (25) Ramanathapuram

Paramakudi(S) 1976 10.00

80 Keezhanagachi (S) 1993 10.00

81 Urapuli (S) 1993 12.14

82 (26)Sivagangai Karaikudi (G) 1966 180.19

83 Sivagangai (G) 1966 70.61

84 Kirungakottai(S) 1993 21.85

11

85 (27) Virudhunagar

Virudhunagar (G) 1958 45.65

86 Rajapalayam (S) 1995 41.13

87 (28) Tirunelveli Pettai (G) 1959 50.55

88 Kadayanallur (S) 1992 10.00

89 Valliyur (S) 2005 16.75

90 Valliyur-Phase-II (S)

2010 23.16

91 (29) Thoothukudi

Kovilpatti (G) 1962 85.54

92 Thoothukudi (S) 1988 24.18

93 (30)Kanyakumari

Konam(G) 1964 20.70

94 Marthandam (G) 1964 7.50

TOTAL 6,576.86

(G)- Denotes Government Industrial Estates

(S) - Denotes SIDCO Industrial Estates.

(WIP)-Denotes Women Industrial Estates

12

3.1.3 Stake-holders involved in the Development of MSMEs

Considering the 15% share of Tamil

Nadu, in the total number of MSMEs in India,

SIDCO is undertaking an active engagement

for the development of this sector with the

other stake-holders like

1. Government of Tamil Nadu

2. Commissionerate of Industries & Commerce

3. Micro, Small and Medium Enterprises Department

4. Government of India

5. Micro, Small and Medium Enterprises Development Institute

6. Small Industries Development Bank of India

7. Other Financial Institutions

13

8. Producers of key Raw Materials viz., Steel Authority of India Ltd., Rashtriya Isput Nigam Ltd, Chennai Petro Chemicals Ltd., Indian Oil Corporation, Tamil Nadu Papers Ltd., etc.,

9. National Productivity Council

10. Industries Association like TANSTIA,CODISSIA, MADISIA, etc.,

3.1.4 Formation of Industrial Estates

It was announced during the last

Budget session that New Industrial

Estates would be established at the following

locations.

Sl. No.

Locations District Area

(acres) 1 Rasathavalasu Tiruppur 51.80

2 Venmaniathur Villupuram 38.88

3 Vaniyambadi Vellore 7.08

4 Marikundu Theni 79.43

5 Pidaneri Thuthukudi 108.23

14

6 Mathur Pudukottai 19.92

7 Palayapatti Thanjavur 103.03

8 Virudhunagar (Urban)

Virudhunagar 37.54

Total 445.91

Out of the 8 locations, Industrial

Estates have been established in 2 places

viz. Venmaniathur and Rasathavalasu. With

regard to the remaining 6 locations,

possession has been taken and development

work will commence during the course of this

year.

In addition to these, it is proposed to

establish new Industrial Estates at the

following sites:

15

Sl.

No. Name of Indl.

Estate District

Area (acres)

1 Kurukkalpatti Tirunelveli 68.77

2 Minnur Vellore 10.00

3 Pattnam Villupuram 60.55

4 A.Sathanur Villupuram 219.52

5 Ponnukudi Tirunelveli 82.18

6 Chengarai Thiruvallur 36.53

7 Asanur(Phase-II) Villupuram 143.94

Total 621.49

Apart from this, in Kurichi an extent of

1.51 acres will be utilized for a Common

Facility Centre under the MSE–CDP Scheme.

Proposals for sanction of grants under

the MSE-CDP Scheme have been sent to

Govt. of India for the development of

Industrial Estates at Vaniyambadi,

16

Virudhunagar (Urban), Mathur and

Palayapatti and proposals for Pidaneri,

Marikundu and Kurukkalpatti will also be

forwarded shortly . With a view to sustain the

growth of SIDCO in the years to come, the

creation of a credible Land Bank has been

planned. Towards this end, action has been

taken to acquire 1257.53 acres in 15

locations in the State as indicated:

Sl.

No Village /Taluk District

Extent (in

Acres )

1 Kalakurichi, Aravakurichi

Karur 70.79

2 Vazhkai, Nannilam

Thiruvarur 50.43

3 Sedapatti, Peraiyur

Madurai 50.91

4 Kattamaduvu, Chengam

Thiruvannamalai

83.78

5 SadayampalayaDharapuram

Tiruppur 67.86

17

6 KandiyanKoil, Tiruppur

Tiruppur 252.44

7 Nanjaiuthukuli (Ph-2), Erode

Erode

56.50

8 Thandarai, Chengelpattu,

Kancheepuram 43.90

9 Vaipur, Tiruvarur Thiruvarur 58.21

10 Mulluvadi, Allalacheri and Nagaleri, Arcot

Vellore 25.53

11 Kaverirajapuram

Uthukkottai

Thiruvallur 135.18

12 Enambakkam, Uthukkottai

Thiruvallur 200.00

13 Pappambadi&Murugapadi, Polur

Thiruvanna malai

60.83

14 Kasthuripatti,Sangagiri

Salem 51.71

15 Vadamugam Kangeyam palayam, Perundurai

Erode 49.46

Total 1257.53

18

3.1.5 Allotment of Plots /Sheds

Sites are developed into Industrial

Estates with industrial plots of various sizes

ranging from 0.15 acre to 1.00 acre and

above as per the requirements of the

manufacturing units and the industrial plots

are allotted to them either on Outright sale

or Hire Purchase based on the demand

existing in the area.

A transparent procedure is followed in

allotting the sheds / plots by advertising the

availability of sheds/ plots in newspapers. A

Screening Committee constituted with the

officials of SIDCO, Commissionerate of

Industries & Commerce, TIIC and

representatives of TANSTIA as members,

scrutinizes the applications and the eligible

applicants are selected on merit. Plots are

allotted by way of a lot system, in a

transparent manner.

19

As per G.O.(Ms) No.7, Micro, Small and

Medium Enterprises Department, dated

31.01.2009, 30% of the saleable area of the

industrial estates are earmarked for Micro

Enterprises.

To ensure participation of all sections

of the society in the industrial development

of the state, priority is given in allotment as

follows:

i) 30% for Women Entrepreneurs.

ii) 10% for Ex-servicemen

iii)10% for SC/ST and Transgenders.

If sufficient numbers of the applicants

are not available in these categories, these

reserved plots/sheds will be taken up for

allotment to other categories.

20

3.1.6 Creation / Up-gradation of Infrastructure facilities in new / existing Industrial Estates

Government of India and Government

of Tamil Nadu, are extending their support

for creation and up-gradation of

infrastructure facilities in new / existing

Industrial Estates through various schemes

like Micro, Small Enterprises-Cluster

Development Programme (MSE-CDP)

Infrastructure Development Scheme,

Industrial Infrastructure Up-gradation

Scheme (IIUS), Assistance to States for

Infrastructure Development of Export and

Allied Activities (ASIDE) and the Part II

Scheme of Government of Tamil Nadu by

sanctioning of grants.

3.1.7Micro and Small Enterprises – Cluster Development Programme(MSE–CDP)

Prior to October 2007, the Government

of India, MSME was implementing the

21

Integrated Infrastructure Development (IID)

Scheme, under which a 40% grant subject to

a ceiling of Rs.200 Lakhs (Project Cost

Rs.500 Lakhs) was being sanctioned for the

creation / Up-gradation of infrastructure in

new / existing industrial estates. Similarly, a

separate Cluster Development Scheme titled

the “Small Industries Cluster Development

Programme (SICDP) was also in operation.

In October 2007, this SICDP was renamed as

the Micro and Small Enterprises – Cluster

Development Programme (MSE–CDP). The

Integrated Infrastructure Development (IID)

Scheme was also subsumed in the MSE–CDP

for providing developed sites for new

enterprises and up-gradation of existing

industrial infrastructure. These two schemes

are now being implemented in the name

(i) MSE–CDP(Infrastructure Development)

(ii) MSE–CDP (Common Facility Centre)

22

SIDCO has been availing assistance

from the Government of India under these

two schemes.

3.1.8 Infrastructure Development under the MSE–CDP Scheme

Under this Scheme, the Government of

India sanctions 60% of the project cost

subject to a ceiling of Rs.6 Crores as grant

(i.e. maximum of Rs.6 Crores) for the

creation and up-gradation of infrastructure in

new and existing Industrial Estates

respectively.

The Government of India have

approved projects up to 2011-12 worth Rs.

4074.12 Lakhsfor the creation of

infrastructure facilities in 12 new Industrial

Estates. Of the sanctioned projects, eight

have been completed, three (Asanur,

Arakkonam and Pollupalli), are under

implementation and for one project at

23

Karaikudi, work will be taken up, on the

receipt of the Government of India’s sanction

order.

Further, the Government of India has

approved projects worth Rs. 2389.15

Lakhsfor the up-gradation of Infrastructure

facilities in 12 existing industrial estates. Of

these, in 6 existing industrial estates up-

gradation works have been completed, and in

6 industrial estates (Alathur, Kakkalur,

Kovilpatti,Athur(Karur), Mettur and

Ganapathipalayam, up-gradation works are

in progress.

In 2012-13, SIDCO has proposed to

take up infrastructure works in seven new

Industrial Estates and upgrade the

infrastructure facilities in two existing

Industrial Estates as indicated.

24

Details of Creation of Infrastructure in Industrial Estates proposed in 2012-13

(Rs. in Lakhs)

Sl.

No.

Name of the Industrial

Estate

Project cost

Funding Pattern

Stage Grant from GOI

(60%)

SIDCO (40%)

1 Palayapatti Phase-I Thanjavur District

770.00 462.00 308.00 Sanction order awaited from Government of India

2 Vaniyambadi, Vellore District


3 Mathur (New), Pudukottai District


25

4 Virudhunagar (Urban) Virudhunagar District

330.00 198.00 132.00 Proposals sent to Govt. of India for sanction

5 Pidaneri, Thoothukudi District

805.00 483.00 322.00 Proposals will be sent to Government of India

6 Marikundu, TheniDistrict

720.00 432.00 288.00 Proposals will be sent to Govt. of India for sanction

7 Kurukkalpatti, Tirunelveli District

890.00 534.00 356.00 -do-

Total 3813.00 2287.80 1525.20

26

Details of Up-gradation of Industrial Estates proposed in 2012-13

(Rs. in Lakhs)

Sl. No.

Name of the Industrial

Estate

Project cost

Funding Pattern

Grant from GOI 60%

Grant from GOTN 30%

Beneficiaries Contri-

bution

10%

1 Malumichampatti, Coimbatore District

200.00 120.00 60.00 20.00

2 Thiru-verumbur, TiruchirappalliDistrict

368.00 220.80 110.40 36.80

TOTAL 568.00 340.80 170.40 56.80

3.2 Common Facility Centres (CFCs) under the MSE – CDP Scheme

The Ministry of Micro, Small and

Medium Enterprises (MSME), Government of

India (GOI) has adopted the cluster

development approach as a key strategy for

enhancing the productivity and competitive-

27

ness as well as capacity building of Micro and

Small Enterprises (MSEs) and their

collectives in the country.

Given the diverse nature of the MSEs in

terms of both geographical location and

sectoral composition, the Micro and Small

enterprises–Cluster Development Programme

(MSE–CDP) Scheme aims at addressing the

needs of the industries, through well defined

clusters and geographical areas.

This will enable achieving the

economies of scale in terms of deployment of

resources as well as focusing on the specific

needs of similar industries. The capacity

building of associations, setting up of special

purpose vehicles (SPVs), consortia, etc which

are integral part of the scheme would enable

the MSEs to leverage their resources and

also to have better access to public

28

resources, linkages to credit and enhance

their marketing competitiveness.

A Cluster is a group of enterprises

located within an identifiable and as far as

practicable, contiguous area and producing

same / similar products / services.

The essential characteristics of

enterprises in a cluster are

a) Similarity or complementarities in the

methods of production, quality control

and testing, energy consumption,

pollution control etc.

b) Similar level of technology and

marketing strategies / practices

c) Channels for communication among

the members of the cluster

d) Common challenges and opportunities.

29

3.2.1 Objectives of the Scheme

1. To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital etc.

2. To build capacity of MSEs for common supportive action through formation of self help groups, consortia, Up-gradation of associations etc.

3. To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc.)

SIDCO has been nominated as the

implementing Agency for Establishing

Common Facility Centres in Tamil Nadu

under MSE-CDP scheme vide

G.O.Ms.No.24(MSME) Dept. dated 09.08.11.

In total, 50 Projects have been identified in

Tamil Nadu for implementation. Out of these,

15 projects at a total project cost of Rs.57.39

30

Crores have been sanctioned by the

Government of India with a maximum of

70% grant for a sum of Rs.36.89 Crores. The

Government of Tamil Nadu has sanctioned

a grant of (maximum 10%) Rs.4.97 Crores.

Out of the above 15 projects, 7 projects have

already been completed. The remaining 8

Common Facility Centres are under

implementation. The expected total

employment generation from the 50 clusters

will be 10,000.

In 2012-13, SIDCO has proposed to

take up 20 CDP’s. This will be the highest

number ever to be taken up for

implementation. The status of the Cluster

programme is summarized as follows:-

31

Sl.No

Description Nos.

1 Projects Implemented 7

2 Projects under implementation 8

3 Sanctioned and orders awaited 1

4 Clarification sought from SIDBI by Govt. of India

1

5 To be taken up by the Steering Committee

8

6 Under process with Govt. of India

6

7 Under process with Govt. of Tamil Nadu

4

8 Projects ready for State Steering Committee

10

9 DPR’s under preparation 5

Total 50

32

Projects Implemented

Projects under implementation

Sl. No.

Cluster Location

1 Sago &Starch Salem

2 Safety Matches Gudiyatham

3 Safety Matches Virudhunagar

4 Safety Matches Srivilliputhur

5 Safety Matches Sathur

6 Safety Matches Kazhugumalai

7 Safety Matches Kovilpatti

Sl. No.

Cluster Location

1 Wet Grinder Coimbatore

2 Brick Tirunelveli

3 Ceramic Virudhachalam

33

Sanctioned and orders awaited

Clarification sought from SIDBI by Govt. of India

4 Coir Sivaganga

5 Engineering Ranipet, Vellore

6 Printing Sivakasi

7 Rice Mill Keelapavoor

8 Auto Components Hosur

Sl. No.

Cluster Location

1 Printing Krishnagiri

Sl. No.

Cluster Location

1 Rice Mill Alangulam

34

To be taken up by the Steering Committee

Sl. No.

Cluster Location

1 Rice Mill Thanjavur

2 Engineering Dindigul

3 Refractory Virudhachalam

4 Stainless Steel Vessels Kumbakonam

5 Engineering Ambattur

6 Plastic Madurai

7 Engineering Paramakudi

8 Rice Mill Kangeyam

Being processed by theGovt. of India

Sl. No.

Cluster Location

1 Pharma Indian System of Medicine

Kavangarai

35

2 Plastic Kancheepuram

3 Lorry Body Building Namakkal

4 Engineering Perungudi

5 MICAL Pharma Chennai

6 Sago & Starch (Phase II)

Salem

Being processed by the Govt. of Tamil Nadu

Sl. No.

Cluster Location

1 Coir Erode

2 Gold Jewellery Madurai

3 Gate & Grill products Thirumullaivoyal

4 Electronic Products Coimbatore

36

Projects ready for scrutiny by the State Steering Committee

Sl. No.

Cluster Location

1 Auto and Power Loom Salem

2 Power Loom Rasipuram

3 Cement Pipes Chinnadharapuram

4 Lime Tirunelveli

5 Gold Jewellery Tiruchirappalli

6 Rice Mill Tiruchendur

7 Garment Thalavaipuram

8 Corrugated boxes Thiruvallur

9 Coir Pollachi

10 Garment exclusively for women

Thalavaipuram

37

DPRs under Preparation

Sl. No.

Cluster Location

1 Cashew Kanyakumari

2 Jewellery Coimbatore

3 Pharma Alathur

4 Readymade Thoothukudi

5 Rubber Madurai

Sector wise classification

Sl. No.

Cluster Location

1 Safety Matches 6

2 Agro 3

3 Ceramic & Bricks (Building materials)

5

38

4 Coir 3

5 Engineering& Auto 10

6 Printing 2

7 Rice Mill 5

8 Plastics 2

9 Pharmaceuticals 3

10 Jewellery 3

11 Electronics 1

12 Corrugated Boxes 1

13 Garment / Textiles / Looms

5

14 Rubber 1

Total 50

39

3.2.2 Cluster Development Programme in Tamil Nadu - Road Map

Projects implemented / sanctioned during 2006-2007 to 2011-2012

15

Projects to be Implemented in 2012- 2013

20

Projects to be taken up during 2013 – 2014 to 2015 –2016

65

Total

------

100

------

3.2.3 State Government’s Part-II

Schemes

SIDCO has been availing grants from

the Government of Tamil Nadu under the

Part II Schemes towards the strengthening

of infrastructure in the existing industrial

estates and has so far availed Rs.100.00

Lakhsas indicated:

40

(Rupees in Lakhs)

In 2012-13 it has been proposed to

strengthen infrastructure facilities of four

Industrial Estates at a total project cost of

Rs.210.00 Lakhs.

Sl. No

Year

No. of Industrial

Estates Benefitted

Approved project

cost

Govt. of

Tamil Nadu Grant

Remarks

1 2006-07 3 101.50 25.00 Completed

2 2007-08 3 114.00 25.00 Completed

3 2008-09 3 120.00 20.00 Completed

4 2011-12 5

(Marthandam, Gummidipoondi, R.K.Pet, UrapuliThiurmudi -vakkam)

150.00 30.00 Under implementation

Total 485.50 100.00

41

(Rs.in Lakhs)

Sl.No. Location

Year of Establish

-ment

Extent in

acres

Project Costimproveme

nt

SIDCO’s contri-bution7

5%

Govt. of

Tamil Nadu

Grant25%

1. ThoothukudiPhase I, Tuticorin Dist.

1988 9.72 50.00 37.50 12.50

2. Keelanagachi, Ramnad Dist.

1993 10.00 25.00 18.75 6.25

3. Gudimangalam Tiruppur Dist.

1992 6.74 35.00 26.25 8.75

4. Vichoor, Thiruvallur Dist.

1994 59.16 100.00 75.00 25.00

Total 210.00 157.50 52.50

42

3.2.4 Assistance to States for Infrastructure Development of Export and Allied Activities(ASIDE)

The Special Purpose Vehicle (SPV)

called the Guindy Industrial Estate

Infrastructure Up-gradation Company

(GIEIUC) which was formed for the purpose

of up-gradation of infrastructure facilities in

Thiru-vi-ka Industrial Estate, Guindy is

implementing the project at a project cost of

Rs.2794.50 Lakhs sanctioned under the

Govt. of India’s ASIDE scheme in 2005-06.

The project is nearing completion.

3.2.5 Industrial Infrastructure Up-gradation Scheme (IIUS)

The ongoing up-gradation works at

Ambattur, Thirumudivakkam and

Thirumazhisai Industrial Estates under the

“Industrial Infrastructure Up-gradation

43

Scheme” was sanctioned by the Government

of India at a project cost of Rs.49.00 Crores

in 2004-05. A Special Purpose Vehicle called

M/s. Chennai Auto Ancillary Industrial

Infrastructure Up-gradation Company

(CAAIIUC) has been created for the purpose

of implementing the project which is nearing

completion.Further, a sum of Rs.12.10 Crores

has been sanctioned under the Govt. of India

ASIDE scheme as gap funding for the project.

3.2.6 Raw Material Distribution

Due to decontrol, open market

conditions and the changed economic

scenario, the Raw Material Distribution and

Marketing Assistance undertaken by SIDCO

has considerably declined and efforts are

being taken for a new strategy which would

enable SIDCO to compete in the open

market.

44

SIDCO distributes raw material from its

depots situated at Ambattur, Coimbatore,

Madurai, Trichy, Sattur, Sivakasi and from

its branch offices located at Erode, Salem,

Thanjavur, and Vellore. The details of raw

materials supplied are:-

1. Iron & Steel 2. Wax 3. Potassium Chlorate and 4. TNPL Paper

The details of target and achievements

for the year 2011-12 and Target for the year

2012-13 are as follows:-

Sl. No

Name of the

Material

Target for 2011-12

Achievement for 2011-12

Target for 2012-13

Qty. in

MTs.

Value Rs. in lakhs

Qty. in

MTs.

Value Rs. in lakhs

Qty. in

MTs.

Value Rs. in lakhs

1. Iron & steel

9800 3920.00 4348.96 1904.00 4981.07 2169.71

2. Wax 6000 5220.00 4344.92 3741.36 5300.86 4646.30

3. TNPL (Direct Sales)

400 210.00 212.91 121.48 242.09 147.00

TNPL (Agency Sales)

1119 548.20 487.65 266.21 494.44 269.60

45

4. Pot. Chlorate

50 34.00 4.00 2.80 5.00 3.34

5. Essar Steel *

87.13 37.84 200.00 70.00

Total 17369 9932.20 9485.57 6073.69 11223.46 7305.95

* Supply started during the month of November 2011

3.2.7 Assistance rendered under Marketing

Under this scheme, SIDCO approaches

the Government Departments / Local Bodies

on behalf of Micro and Small Entrepreneurs

units which are registered with SIDCO. The

orders received are distributed among Micro

and Small Enterprises and the execution of

these orders is monitored to effect quality

and timely supply. Payments are received

from the Departments / Undertakings / Local

Bodies for the supplies effected and payment

released to Micro and Small Enterprises after

deducting 3% Consultancy fees.

46

SIDCO has executed orders worth

Rs.164.36 lakhs upto March, 2012. For

2012-13 target has been fixed as Rs.197.87

lakhs to make substantial progress.

3.2.8 e-Governance

SIDCO has initiated action to

computerize its activities so as to enhance

productivity. At present downloading of

application forms for allotment has been

made available on its website. A software is

being developed with the assistance of the

National Informatics Centre to enable

entrepreneurs file their applications for

allotment of plots on-line.

47

3.2.9National Manufacturing Competiveness Programme (NMCP)

The Ministry of Micro and Small and

Medium Enterprises Govt. of India have

launched the National Manufacturing

Competiveness programme (NMCP) to

improve the competiveness of all the Micro,

Small and Medium Enterprises (MSME)

sectors. It was formulated, with a view to

increase the productivity, upgrading

technology and conserving energy in the

manufacturing processes, as well as

expanding domestic and global market share

of Indian MSME products. Under this

programme 10 components have been

conceptualized, viz.,

• Lean Manufacturing Competiveness Schemes

• Enabling manufacturing sector to be competitive through Quality Management Standards / Quality Technology “Tools (QMS/QTT)

48

• Promotion of ICT (Information & Communication Technology) in MSME sector

• Technology and Quality Up-gradation Support to MSME’s (TEQUP)

• Marketing Assistance and Technology Up-gradation Scheme

• Marketing Support / Assistance to SME’s (Bar Code)

• Design Clinic Scheme for Design Expertise to MSME sector

• Setting up of Mini Tool Rooms

• National campaign for building awareness on Intellectual Property Rights (IPR)

• Support for Entrepreneurial and Managerial Development of SMEs through Incubators

SIDCO will take proactive steps in

partnership with the MSME–DI, the National

productivity Council and the National

Institute of Design etc. to implement NMCP

among the MSMEs of Tamil Nadu.

49

3.2.10 Lean Manufacturing Competitiveness Scheme

SIDCO will strive to consolidate the

pre-eminence of Tamil Nadu in the

manufacturing sector. As a part of this drive

it will implement the Lean Manufacturing

Competitiveness Scheme (LMCS) of MSEs

under the National Manufacturing

competitiveness Programme (NMCP). This

scheme envisages reducing the

manufacturing costs, through proper

personnel management, scientific inventory

management, improved processed flows,

reduced engineering time etc., LMCS also

brings improvement in the quality of

products and lowers the production costs,

which are essential for competing in domestic

and international markets. The main

objective is to increase productivity by 20%.

The larger enterprises in India have been

50

adopting LMCS to remain competitive, but

MSMEs have not been able to benefit from

these programmes, as they are not fully

aware of the benefits. Also, experienced and

effective Lean Manufacturing Councellors or

Consultants are not easily available and are

expensive to engage, hence most MSMEs

have been unable to afford LMCS.

Lean Manufacturing Competitiveness

Scheme of NMCP will be implemented in 25

clusters this year at five clusters each in the

five major manufacturing hubs of Chennai,

Coimbatore, Madurai, Tiruchirappalli and

Hosur.The implementation will be in

partnership with the National Productivity

Council and the MSME-DI, Chennai.

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3.2.11 Economic Activity Atlas (EAA)

SIDCO in partnership with TANSTIA

FNF and IFMR, Chennai will develop a

Geographical Information System (GIS)

based Economic Activity Atlas for the MSMEs

in the State, on a cluster based approach in a

phased manner. Creation of an Economic

Activity Atlas will lay the foundation for

understanding the various dynamic of the

economic geography of a particular region

and planning for future development. Some

of the potential benefits of this EAA are

a. Better economic governance

b. Better understanding of the

emerging infrastructure and

planning requirements

52

c. Value addition – The technologies

used in an industrial cluster, will be

mapped and then based on intra

cluster synergies higher value

adding options for the cluster be

planned.

d. Value from waste: One of the

important aspects of this atlas will

the availability of resource map.

When the raw materials, finished

goods and by products along with

effluents are mapped, there will be

scope to build value from waste

models through resource

optimization techniques.

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3.3 SIDCO Corporate Office

The Government in G.O.Ms.No.12

MSME (F) Department, dated 20.2.2009

accorded its administrative approval for the

construction of a Corporate Office building at

Guindy. Accordingly, work on the building

has been taken up at an estimated cost of

Rs.44.40 Crores. The structure comprises of

a basement, stilt and 9 floors. The work

commenced in June 2010 and is expected to

be completed by January, 2013.

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policynote 2012 2013(english)

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