Grad IIF Exam
 Yellow
pages |
 |
Schemes
 Industrial
Infrastructure Upgradation Scheme (IIUS).
| 1. |
The
question of improving the global competitiveness of the
domestic industries situated in clusters in identified
industrial locations has been under consideration of the
Government of India for some time past. |
| 2. |
The
matter has been carefully considered by the Government
and it has now been decided to provide for quality infrastructure
initially in 20-25 functional clusters/ industrial locations
in the Tenth Plan so as to make industries in these clusters/
industrial locations globally competitive. |
| 3. |
Implementation
of the scheme will be through a Special Purpose Vehicle
(SPV) formed by the cluster/industry association which
will carry out the business of developing, operating and
maintaining the infrastructure facility created in the
industrial locations. SPV will be a Corporate Body/Association
registered under Companies/Societies Act. This arrangement
will also ensure the creation of the useful assets and
its sustainability through an appropriate revenue generation
mechanism
|
Illustrative
list of Eligible activities
|
| 4. |
The
illustrative list of eligible activities under the scheme
include: i) Physical infrastructure (water, transport,
road, communication), ii) Common Facilities for fuel/gas
supply system effluent treatment, solid waste disposal,
product design, captive power generation, iii) Information
and Communication Technology Infrastructure (ICT), iv)
R&D infrastructure, v) Quality Certification and Benchmarking
Center, vi)Common Facilities Center vii),Information dispersal
/ international Marketing Infrastructure, viii) ICT-induction
& process re-engineering & management consultancy
service center and any other physical infrastructure identified
by the cluster association, and approved by the Apex Committee.
|
| Financial
Assistance |
| 5. |
Central
assistance will be by way of one time grant-in-aid (not
equity) to the Special Purpose Vehicle (SPV) formed by
the cluster association for development of the infrastructure.
The assistance will be restricted to 75% of the project
cost subject to a ceiling of Rs. 50 crore. The remaining
25% will be financed by other stakeholders of the respective
cluster/location with a minimum industry contribution
of 15% of total project cost. Administrative expenses
will be restricted to 3% of the central assistance in
the project. |
| Stakeholders
|
| 6. |
The
stakeholders in the development of the cluster/ industrial
location could be the Private Companies, Industrial Association,
Financial Institution, Premier R&D Institution, Local
Authority (optional), Govt. of India - mandatory and State
Govt. (District Authority) - mandatory. |
| Formulation
of Project Proposal |
| 7. |
The
project proposal shall be formulated after diagnostic
study including requirement of common facilities and infrastructure
in the specified cluster/industrial location. The implementing
agency may actively involve support institutions like
R&D institutions, financial institutions as well as
local bodies where ever necessary for evolving a common
strategy. A detailed and exhaustive project proposal supported
by data, surveys, projections and feasibility on growth
potential of the cluster / locations will be submitted
to the Apex Committee in the prescribed performa. |
| Project
Appraisal |
| 8. |
The
project shall be appraised by Deptt. of Industrial Policy
and Promotion through reputed and independent financial
institutions/consultants on the structuring of SPV and
the financial viability of the project. |
| Selection
and approval of Cluster/Industrial location |
| 9. |
Selection
of Clusters/Industrial locations to be taken up for the
development will be decided and approved by the APEX Committee.
Composition of the APEX Committee is at Annexure-l
|
| Release
of funds |
| 10. |
The
release of funds will be project specific and on pari-passu
basis. Funds would be released directly to the implementing
agency on receipt of utilization certificate and actual
physical progress. Funds will be kept in a separate account,
which will be audited. However, initial contribution by
Central Government @ 20% of the central government share
will be released after sanction of the project. |
| Project
Monitoring and Evaluation |
| 11. |
Department
of Industrial Policy & Promotion will periodically
monitor and review the progress of the scheme, and carry
out an independent evaluation of the scheme for its continuance
in the Eleventh Plan. The guidelines of the scheme are
being issued separately. |
|
List of Clusters Approved and Central Grant Sanctioned
| |
|
|
Rs.
In Crores |
Rs.
In Lakhs |
| Sl |
Name of the cluster |
State |
Project Cost |
Central Grant |
Amount Released |
Appraisal Fee sanctioned |
DPR Fee sanctioned |
| 1 |
Textiles Cluster |
Tirupur, Tamil Nadu |
143.50 |
50.00 |
25.00 |
10.80 (IL&FS IDC) |
Nil |
| 2.
|
Chemical cluster |
Vapi, Gujarat |
54.31 |
40.49 |
12.50 |
10.80 (IL&FS IDC) |
Nil |
| 3.
|
Auto Cluster |
Vijayawada A. P. |
31.08 |
23.50 |
7.80 |
11.02 (IDBI) |
8.00 (APITCO) |
| 4.
|
Metallurgical Cluster |
Jajpur, Orissa |
62.50 |
47.00 |
15.66 |
10.80 (IL&FS IDC) |
6.21 (IDCO) |
| 5.
|
Auto Ancillary Cluster |
Chennai, Tamilnadu |
47.20 |
35.00 |
11.70 |
Nil |
Nil |
| 6.
|
Chemical Cluster |
Ankleswar, Gujarat |
152.83 |
50.00 |
16.70 |
Nil |
Nil |
| 7.
|
Auto Components cluster |
Pune, Maharashtra |
59.99 |
44.99 |
15.00 |
11.02 (IDBI) |
Nil |
| 8.
|
Cereals, Pulses & Staples cluster |
Madurai, Tamil Nadu |
39.96 |
29.97 |
10.00 |
Nil |
Nil |
| 9.
|
Textiles Cluster |
Ludhiana, Punjab |
17.19 |
12.69 |
4.21 |
Nil |
Nil |
| 10.
|
Marble Cluster |
Kishangarh, Rajasthan |
36.80 |
27.60 |
9.20 |
11.02 (SBI Caps) |
Nil |
| 11. |
Auto Cluster |
Pitampura, M.P. |
73.29 |
49.94 |
16.65 |
Nil |
Nil |
| 12.
|
Foundry Cluster |
Belguam Karnataka |
24.78 |
18.54 |
6.19 |
11.02 (IDFC) |
Nil |
| 13.
|
Machine Tools Cluster |
Bangalore, Karnataka |
135.55 |
49.12 |
16.37 |
Nil |
Nil |
| 14.
|
Coir Cluster |
Kerala |
56.80 |
42.60 |
14.20 |
Nil |
Nil |
| 15.
|
Textile Cluster, Panipat |
Haryana |
54.53 |
40.90 |
13.63 |
10.80 (IL&FS IDC) |
Nil |
| 16.
|
Gem & Jewelery Cluster, Surat |
Gujarat |
85.80 |
50.00 |
16.70 |
Nil |
Nil |
| 17.
|
Pharma Cluster |
Hyderabad |
66.168 |
50.00 |
-Nil- |
11.02 (IDFC) |
Nil |
| 18.
|
Ispat Bhoomi Cluster |
Raipur, Chattisgarh |
54.11 |
19.96 |
-Nil- |
Nil |
Nil |
|
19. |
Leather Cluster |
Kanpur, Uttar Pradesh |
27.34 |
9.747 |
1.95 |
11.02 (IL&FS IDC) |
11.02 (IL&FS IDC) |
| 20.
|
Foundry Park |
Howrah, West Bengal |
119.74 |
40.40 |
8.48 |
Nil |
Nil |
| 21.
|
Multi Industry Cluster |
Haldia, West Bengal |
67.25 |
36.97 |
7.39 |
Nil |
Nil |
| 22.
|
Rubber Cluster |
Howrah, West Bengal |
29.74 |
15.72 |
3.14 |
Nil |
Nil |
| 23.
|
Textile Cluster |
Ichalkaranji, Maharashtra |
65.07 |
32.70 |
6.54 |
Nil |
Nil |
| 24.
|
Chemical Cluster |
Ahmedabad, Gujarat |
69.86 |
41.39 |
8.30 |
Nil |
4.59 (E&Y) |
| 25.
|
Leather Cluster |
Ambur, Tamil Nadu |
67.34 |
43.94 |
8.70 |
Nil |
Nil |
| 26.
|
Pump, Motor & Foundry cluster |
Coimbatore Tamil Nadu |
67,50 |
30.44 |
8.00 |
Nil |
Nil |
|
SIDO SCHEMES
SIDO
operates a number of schemes for the SSI sector. At a glance
these are:-
| 1. |
Credit
Linked Capital Subsidy Scheme for Technology Upgradation
- Capital subsidy @ 15% upto Rs. 15 lakhs on
loans taken for technology upgradation - for individual
SSIs. |
| 2. |
Credit
Guarantee Scheme - Collateral free loans upto
a limit of Rs.25 lakhs - for individual SSIs. |
| 3. |
ISO
9000/ISO 14001 Certification Reimbursement Scheme -
Incentive Scheme of Reimbursement of expenses for acquiring
Quality Management System (QMS) ISO 9000 certification/environment
management (EMS) ISO 14001 certification to the extent
of 75% or Rs.75,000/- whichever is lower.
- For individual SISIs/Ancillary/tiny/SSSBE units |
| 4. |
Participation
in International Fairs - Full subsidy on space
rent and shipment of exhibits of SSI units - for individual
SSIs |
| 5. |
Purchase
and Price Preference Policy - This is administered
through the Single Point Registration Scheme of NSIC.
Under this, 358 items are reserved for exclusive purchase
from SSI by Central Government. Other facilities include
tender documents free of cost, exemption from earnest
money and security deposit and 15% price preference in
Central Government purchases - for individual SSIs |
| 6. |
Prime
Minister's Rozgar Yojana-PMRY (Scheme of Ministry of ARI)
- Project limit upto Rs. 1 lakh for business
and Rs.2.00 lakhs for other activities, subsidy and margin
money upto 20% of project with balance as loan. Subsidy
for NE twice that of rest of India - for entrepreneurs.
SSIs |
| 7. |
Small
Industry Cluster Development Programme - For
promoting technology upgradation in clusters for a group
of SSI units of one industry. |
| 8. |
Integrated
Infrastructure Development (IID Scheme) - Assistance
upto 40% or Rs.2.00 crores, whichever is less for setting
up industrial estates for SSI units. For NE, assistance
is 80% or Rs.4.00 crores - for State Governments/industry
associations/ NGOs. |
| 9. |
Mini
Tool Rooms - Assistance upto 90% or Rs.9.00 crores,
whichever is less for setting up new Mini Tool Rooms.
For upgradation of existing Tool Rooms, assistance is
75% or Rs.7.5 crores - for State Governments. |
| 10. |
Testing
Centres - Assistance upto a 50% or Rs.50 lakhs, whichever
is less for setting up Testing Centres - for industry
associations. |
| 11. |
Sub-Contracting
Exchanges - One time grant for procurement of
hardware and thereafter matching grant on tapering basis
at 50%, 30% and 10% of running expenses, not exceeding
Rs. 1.25 lakhs, Rs. 0.75 lakhs and Rs. 0.25 lakhs respectively
during the initial three years, subject to a ceiling of
Rs. 1.57 lakhs per exchange - for industry associations.
|
| 12. |
SSI
MDA - The scheme offers funding upto 90% in respect
of to and fro air fare for participation by SSI Entrepreneurs
in overseas fairs/trade delegations. The scheme also provide
for funding for producing publicity material (upto 25%
of costs) Sector specific studies (upto Rs. 2 lakhs) and
for contesting anti-dumping cases (50% upto Rs. 1 lakh)
- for individual SSIs & Associations. |
| 13. |
Assistance
to Entrepreneurship Development Institutes -
For strengthening training infrastructure in EDIs, assistance
upto 50% or Rs. 50 lakhs whichever is less - for State
Governments. |
| 14. |
Scheme
of Micro Finance Programme |
Other SSI Schemes
Schemes for SSIs are operationalised by other agencies:
OTHER SIDO PARTNERS SCHEMES
| NSIC
Schemes |
Bill
Financing |
| |
Working
Capital Finance |
| |
Export
Development Finance |
| |
Equipment
Leasing |
| SIDBI
Schemes |
Technology
Development & Modernisation Fund Scheme for providing
finance to existing SSI units for technology upgradation/modernisation. |
|
Central
Schemes
| General
|
|
| Tax
Holiday Scheme |
Tax
holiday has been granted for new industrial undertakings
located in all of the North Eastern States. |
| Composite
Loan Scheme |
Scheme
envisages sanction and disbursement of working capital
and term loan together from a single agency. |
| Industrial
Estate Schemes |
The
main objective of the programme is to encourage and support
the creation, expansion and modernisation of SSI |
| Excise
Exemption Scheme |
General
Excise Duty Exemption Scheme for small Industries. |
| Factoring
Services |
Factoring
services make available the much needed working capital
to Small Scale Enterprises |
| Funding |
|
| |
Venture
Capital |
| |
NEF
Scheme |
|
New NSIC’s Performance &
Credit Rating Scheme :
1.NSIC provides 75% subsidy for meeting the cost of credit rating.Small
enterprises pay the balance 25% only
All Major rating agencies like CARE,CRISIL,FITCH,ICRA
& ONICRA are empanelled for rating
|
Financial
Assistance by Technology Development Board
Loan Assistance: TDB provides loan assistance
to industrial concerns. The industrial concern may be an on-going
one or a new one. The loan carries a simple interest of five
percent per annum. TDB does not levy processing,administrative
or commitment charges.
The quantum of loan will be, normally, limited up to 50 per
cent of the approved project cost. The duration of the project
should not generally exceed three years. The loan is payable
in installments that are linked to risk-associated milestones
in accordance with the terms and conditions of the loan agreement.
The refund of the loan and payment of interest commence one
year after the project is completed and the full loan amount
is recoverable in five years thereafter. In some cases, TDB
may have nominee director(s) on the Board of Directors of the
assisted industrial concern.
Equity Subscription: TDB may also subscribe by way
of equity capital in an industrial concern, on its commencement,
start-up and/or growth stages. The equity subscription is decided
by the full Board of TDB. It is up to 25 per cent of the approved
project cost provided such investment does not exceed the capital
paid-up by the promoters. The pre-subscription conditions include
that the promoters should have subscribed and fully paid up
their portion of the share capital.
TDB has a right to have nominee director(s) on the Board of
Directors of the company. TDB, in its discretion, may divest
its shareholdings in the company after three years of completion
of the project or after five years from the date of subscription.
The first option to buy back the shares rests with the promoters.
TDB has recently joined hands with two major private equity
investors, ie APIDC VCF and UTI to invest in the equity of startups
and companies in the growth phase. TDB has contributed Rs. 30
crores to the APIDC VCF (BioTech fund) and Rs. 75 crores to
the UTI Ascent India Fund.
Grants by TDB: TDB may also provide financial
assistance by way of grants and/or loans to industrial concerns
and R&D institutions engaged in developing indigenous technology.
TDB is not to be considered a substitute for funding by the
Government or other appropriate institutions. The sanction of
grants is decided by the full Board of TDB and is sanctioned
in exceptional cases. Royalty may be levied in case of grant
assistance. |
Industrial R&D Promotion Programme
(IRDP)
Introduction
Department of Scientific & Industrial Research (DSIR) is
the nodal department for granting recognition to in-house R&D
units in Industry, Scientific and Industrial Research Organizations
(SIROs); and registration to Public funded research Institutions,
universities, IIT’s, IISc, Regional Engineering College
(RECs), other than hospitals.
Secretary, DSIR is the prescribed authority vide Gazette notification
No.S.O.85 (E) dated 31st January, 2001 issued by Department
of Revenue, Ministry of Finance for granting approval to commercial
R&D companies Under Section 80IB (8A) of I.T. Act, 1961;
also approval to in-house R&D Centres under Section 35(2AB)
of I.T Act 1961 for Weighted Tax Deduction.
In-house R&D units recognized by DSIR in the area of pharmaceutical
and bio-technology sector are eligible for duty free import
of specified goods (comprising of analytical and specialty equipment
as per list 28) for R&D as per notification No. 26/2003-customs
dated 1st March, 2003 (item at Sl. No. 248(1); and duty free
import of specified goods (comprising of analytical and specialty
equipment as per list 28) for production as per notification
No.26/2003-customs dated 1st March, 2003 (item at serial No.248(2);
and duty free import of pharmaceutical reference standards as
per notification No.26/2003-Customs dated 1st March, 2003 (item
at serial No.138); and also the in-house R&D units engaged
in the research and development in the area of chemical, drugs
pharmaceuticals, (including clinical trials), bio-technology,
electronic equipments, computers, telecommunication equipments,
aircrafts and helicopters are eligible for weighted tax deduction
of a sum of equal to one and one-half times of any expenditure
incurred on scientific research (not being expenditure in the
nature of cost of any land building) as approved by the prescribed
authority i.e. Secretary, DSIR. In case of dispute, Secretary,
DSIR is also prescribed authority in concurrence with Director
General of Income-Tax (Exemption) for deciding cases of R&D
expenditure made on Capital Equipment and related R&D activities
under Section 35 of Income-Tax Act, 1961 referred by Central
Board of Direct Taxes.
A few more incentives introduced by the Government to encourage
R&D by industry include write off of revenue and capital
expenditure on R&D, weighted tax deduction on sponsored
research programmes of industry with National Laboratories/Universities
/IITs; accelerated depreciation allowance on plant and machinery
set up indigenous technology, custom duty exemption on goods
imported for use in Government funded R&D projects, excise
duty waiver for 3 years on goods produced based on indigenous
technologies and duly patented in any two of the countries out
of India, European Union(One Country), USA and Japan.
Scientific & Industrial Research Organizations in the area
of Medical Agriculture, Natural and Applied Sciences and Social
Sciences recognized by DSIR are eligible for notification under
Section 35 (1) (ii)(iii) of I.T Act 1961 and also for availing
Custom and Excise duty exemption.
Commercial R&D companies approved by DSIR before 1st April,
2004 are eligible for 10 years tax holidays.
Public Funded R&D Institutions registered by DSIR are eligible
for availing custom duty exemption on import of equipment, spares
and accessories and consumables as per notification No.51/96-Customs
dated July, 23, 1996 and also for availing Central Excise Duty
Waiver on purchase of indigenously manufactured items as per
notification No. 10/97- Central Excise dated March 1, 1997 for
scientific research purposes.
Objectives
The broad objectives are to:
 |
Bring
in-house R&D into sharper focus; |
|
Strengthen
R&D infrastructure in industry and SIROs; |
|
Promote
R&D initiatives of the industry and SIROs ; |
|
Ensure
that the contributions made by the in-house R&D centres
and SIROs dovetail adequately in the overall context of
technological & industrial development |
Technology Development and Innovation
Program
A. Technology Development and Demonstration Program
Introduction
The Erstwhile “Programme Aimed at Technological Self-reliance”
(PATSER) is a plan scheme of DSIR to promote industry’s
efforts in development and demonstration of indigenous technologies,
development of capital goods and absorption of imported technologies.
Objectives
PATSER has addressed itself for following broad objectives to
achieve self-sufficiency in industrial growth :
|
Supporting
industry for technology absorption, development and demonstration
|
|
Building
indigenous capabilities for development and commercialisation
of contemporary products and process of high impact. |
|
Involvement
of national research organisations in joint projects with
industry |
Activities
To achieve the above objectives, the Department undertakes the
following activities under PATSER :
Financial support to Research, Development, Design and Engineering
(RDDE) projects of industry.
The Department provides on a selective basis
partial financial support to research, development, design
and engineering (RDDE) projects to be proposed by industry
in the following areas :
|
Development
and Demonstration of new or improved product and process
technologies including those for specialized capital goods,
for both domestic and export markets. |
|
Absorption
and upgradation of imported technology |
The partial financial support by DSIR is primarily meant for
covering expenditure involved in prototype development and pilot
plant work, test and evaluation of products flowing from such
R&D, user trials etc. Bulks of costs of the project are
from the industry’s resources.
In general, proposals for RDDE projects such
as the following are considered for partial financial support
|
Projects
undertaken solely by in-house R&D units of industrial
firms |
|
Projects
undertaken jointly by Industry and National R&D Organisations
and Institutions. |
|
Collaborative
projects of common interest to the concerned sector/area,
proposed by a group of industries/users, national research
organisations etc. |
|
Projects
may cover products and processes in various important
industries such as metallurgy, electrical, electronics,
instrumentation, mechanical engineering, earth moving
and industrial machinery, chemicals & explosives etc. |
Customs Duty Exemption
In pursuance to notification No.50/96-customs dated July 23,
1996 for Customs Duty Exemption on components, consumables,
equipment etc. used in R&D projects supported by Government
under PATSER, the DSIR issues relevant essentiality certificates
to the industrial units for availing such benefits.
Who can make a proposal
The proposals in the areas of “Technology Development
and Demonstration”, Indigenous Development of Capital
Goods” and “Technology Absorption” projects
can be made by the industrial firms having well established
in-house R&D jointly with a good track record of R&D
achievements or even jointly with national research organisations.
If the projects involve collaboration with assistance from
identified research laboratories, the scope of work and responsibilities
of each participating establishment in the project should
be highlighted. Preference will be given to proposals from
in-house R&D units of industry recognised by DSIR.
The proposals should be duly forwarded by
the Chief Executive/Director (Technical)/Director (R&D)
of the industrial units / collaborating agencies.
|
|
^
Top |
|
Home
 Activities
of IIF Bulletin
Board Centres
of Excellence
Head
Office & Branches
Indian
Foundry Journal
Congress,Workshop
Library
IIF
Publications
National
Committees and Task Forces
Commercial
Information
Membership
Criteria and application
Technical
Information Links
Feedback
FAQ
|
|
©
Copyright, Institute of Indian Foundrymen. All Rights Reserved.
Powered by ONTRACK
SYSTEMS LTD.
This site is best viewed in 800 X 600 resolution. |
|
