Government of India Ministry of Micro, Small and Medium Enterprises

Government of India Ministry of Micro, Small and Medium Enterprises Office of Development Commissioner (MSME), 7th Floor, A Wing, Nirman Bhawan, Maulana Azad Road, New Delhi-110108

Agenda

for

48th Meeting of Steering Committee

Micro & Small Enterprises - Cluster Development Programme (MSE-CDP)

Date &Time : 12.11.18 at 3.30 PM

Venue : New Delhi

INDEX

Agenda Description Page No. Points 48.1 Confirmation of Minutes 1 48.2 Action taken report on previous meeting decisions 2 48.3 Proposals for In-Principle Approval Goa 48.3.1 CFC in Gold Jewellery Cluster, North Goa, Goa 3 Jharkhand 48.3.2 Setting up of new Industrial Estate at Gopalganj Village, P.O. Nirsa, 11 Dhanbad 48.3.3 Setting up of new Industrial Estate at Barhe Village, Chahno Block, 15 Bijupara, Ranchi Karnataka 48.3.4 CFC in Shivashakthy Foundry Cluster, Shivamongga District 19 48.3.5 CFC in Jaggery Processing Cluster, Jalalpur, Raibag Taluk, 26 Belgaum Kerala 48.3.6 CFC in Furniture Industry Cluster, Kozhikode 34 Maharashtra 48.3.7 CFC in Auto and Engineering Cluster, Nagpur 41 48.3.8 CFC in Silver Ornament Cluster, Hupari, Kolhapur 47 48.3.9 CFC in Tiny General Engineering & Allied Industries Cluster, 54 Aurangabad 48.3.10 CFC in Kolhapuri Chappal Cluster, Kolhapur 60 48.3.11 CFC in Auto Component Cluster, Waluj, Aurangabad 67 Manipur 48.3.12 CFC in Wood Carpentry Cluster, Churachandpur 74 Punjab 48.3.13 Up-gradation of Industrial Estate at Focal Point, Amritsar 83 48.3.14 Up-gradation of Industrial Estate at Focal Point, Goindwal Sahib, 87 Taran Taran 48.3.15 Up-gradation of Industrial Estate at Focal Point, Chanalon, SAS 90 Nagar 48.3.16 Up-gradation of Industrial Estate at Focal Point, Pathankot 93 Rajasthan 48.3.17 Up-gradation of Industrial Estate at Baran 97 48.3.18 Up-gradation of Industrial Estate at Ajeetgarh, Sikar 100 48.3.19 Up-gradation of Industrial Estate at Sirohi 103 48.3.20 Up-gradation of Industrial Estate at Sanwar, Udaipur 106 Tamil Nadu 48.3.21 CFC in Design Cluster, Tirupur 109 48.3.22 CFC in Lorry Body Building Cluster, Nammakkal 115 48.3.23 CFC in Home Furnishing Cluster, Karur 121

Agenda Description Page No. Points 48.3.24 CFC in Wooden Furniture Cluster, Salem 127 48.3.25 CFC in Printing Cluster, Salem 133 48.3.26 CFC in Powerloom Cluster, Palladam, Tiruppur 139 48.3.27 CFC in Powerloom Cluster, Namakkal, Rasipuram 147 47.4 Proposals for Final Approval Tamil Nadu 48.4.1 CFC in Knitting Cluster, Tirupur, Thiruvarur 153 48.4. 2 Up-gradation of Industrial Estate at Madurai District 162 48.4.3 Up-gradation of Industrial Estate at Hosur (New), Krishnagiri 165 District 48.4.4 Upgradation of Industrial Estate, Nanjikottai, Thanjavur District 168 48.4.5 Upgradation of Industrial Estate, Ranipet, Vellore 171 48.4.6 Upgradation of Industrial Estate, Nanjaiuthukuli, Erode District 174 48.4.7 Upgradation of Industrial Estate, Dindigul 177 Telangana 48.4.8 Setting up of new Industrial Estate at Armoor, Nizamabad 180 48.5 Ratification of Decisions

Karnataka 48.5.1 Time extension accorded to CFC in Electronic Industries Cluster, 184 Bangalore Kerala 48.5.2 Time extension accorded to CFC in Wood Furniture Cluster, 185 Taliparamba, Kannur Odisha 48.5.3 Time extension accorded to CFC in Pharmaceutical Cluster, Cuttack 186 47.6 Any Other Points

Minutes of 47th SCM 187

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Item No. 48.1. : Confirmation of Minutes of 47th Meeting of Steering Committee held on 25.07.2018.

Minutes of 47th Meeting of Steering Committee held on 25.07.18 were uploaded on the website and communicated to stakeholders on 08.08.18. Minutes are annexed at Annexure-I. Since no comments have been received from any of the members, minutes may kindly be confirmed.

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Item No. 48.2 : Action Taken Report on the action points of 47th Meeting of Steering Committee

Item No. Item Description / Decision taken Action Taken Decision Taken

47.3.1 to In-principle approval for various proposals. Accorded Communicated to all 46.3.34 (Except proposals at Item No. 47.3.30 (S), concerned. 47.3.31 (S) & 47.3.32 (S) 47.4.1 to Final approval for various proposals. Accorded Communicated to all 47.4.14 concerned. 47.5.1 to Ratification of time extension granted on Ratified Communicated to all 47.5.6 file for completion of Projects. concerned. 47.6.2 47.6.1 to Cancellation for setting up of CFC in Cancelled Communicated to Furniture Cluster, Kozhikode, Kerala concerned.

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48.3 Proposals for In-Principle Approval

Agenda No.48.3.1: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Gold Jewellery Cluster, North Goa, Mapusa, North Goa, Goa. Background

(i) MSME-DI, Mumbai forwarded online application vide ref. No. 7435 dated 30.06.17. (ii) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Goa vide letter dated 26.07.17. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) Director, MSME-DI and Officer from Technical Division, Office of DC (MSME) should visit a similar CFC at Madurai to study machinery and its cost and submit report with modified list of machinery for the proposed CFC by 14.08.18. (b) Machinery such as Hydraulic Press 120 MT, UPS, Solar Plant, etc. should be removed from the list. (c) To deliberate the modified proposal in its next meeting. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Goa was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (v) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal, subject to fulfilment of decisions taken during 59th TEAC, to place before Steering Committee for in-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Gold Jewelry Cluster, North Goa District : North Goa Location of Cluster : Mapusa Lok Sabha Constituency : North Goa Main Product : different types of Gold and Silver Jewelry Ornamen, Gold anklets, Gold Bangles, Gold Ear Rings , Necklace, Chain and Gold Rings, Mangalsutra No. of Enterprises including break Micro : 110 up (Micro, Small, Medium) : Turnover(Rs in Lakh) for the last Year Amount five years : 2011-12 6923 2012-13 8145 2013-14 9256 2014-15 9256

2015-16 12100 Exports for the last five years : Nil

Employment in Cluster : Direct - 410 Indirect - 2500 Technology Details : Majority of the cluster units follow Traditional methods and conventional technology in Manufacturing of jewelry. Whether DS Conducted : The diagnostics study has found that the cluster needs to be supported with new technology machinery for the promotion and progress of the cluster. The Diagnostic Study recommends Hard Interventions for improving the cluster performance. Main findings of DSR : Age of the Cluster: 450 years old Number of units: 110 (100% Micro units) The cluster has a progressive performance and turnover has been positive over the last five years. The growth trajectory of cluster is very slow due to the dominance of the big retail brands in the recent past. Main market of the cluster products: Domestic: Mapusa and surrounding districts of Goa National Market: through tourist and Traders International Market: through tourist and Traders. The DSR has not found any serious Drudgery Problems in the Cluster. No Serious pollution related activities were found. It is one of the fastest growing industries accounting for 14.57% of the India’s total merchandise exports during the financial year 2012-13 Main Problems of Cluster : (i) Inability to keep abreast of modern trends in product design, fashion and technological development (ii) Use of Traditional methods for casting leading to Improper Heating and improper mixing of material (iii) Loss of Gold due to open air charcoal based melting process (iv) Use of Handmade Dies leading to poor finish and aesthetic look (v) Lack of tube forming machinery (vi) Lack of ball processing machinery leading to outsourcing of work to Bombay (vii) Lack of CNC faceting Machinery (viii) Inability to keep abreast of modern trends in product design, fashion and technological development (ix) Over dependence on traders (x) Closed Marketing Behavior (xi) Low Product Diversification (xii) Poor forward integration with market (xiii) Lack of Design and Development facility (xiv) Lack of Testing and Hallmarking facility Other Information : Special features of the cluster The cluster industries are producing gold ornaments which are in great demand throughout the year. Nearest sea port is situated in Marmagoa which is 50 Kms away from the cluster region.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC The cluster lacks advance machineries -- and the cluster units are unable to expand their market potential. In order to support this industry, establishment of common facility centre in the region is very much needed for the cluster units to correct their production processes, reduce the time taken to 4

Description Proposed by Implementation Agency Comments by (IA) Cluster Division produce the products and help them in overcoming their shortcomings and flourish in the market. (b.) Location of CFC Location of Cluster and CFC Mapusa -- town is about 13 kms away from Panjim city which is the capital of Goa. Nearest sea port is situated in Marmagoa which is 50 Kms away from the cluster region. The CFC will be established on plot registration No. 23927, vaddy, cunchelim, Mapusa % age of units in radius of 5km 90 -- % age of units in radius of 10 -- 10km (c.) Land for CFC i. Whether land acquired yes, land and building premises on lease Registered land for 15 years documents in the ii. Title is in name of Lease deed agreement executed name of SPV is required. iii. Valuation and its basis Rs. 85 Lakhs for 15 years lease + 5 (If land is on lease Lakhs processing cost basis, registered iv. Land is sufficient yes, 3200sqft lease deed for minimum 30 years v. Change of land use Land is NA Land is required). vi. If on lease, duration of lease 15 years vii Whether lease is legally yes tenable (d.) Total Building area(sq ft) 3200sqft -- (e.) Rate of construction of not applicable -- building (f.) Main Facility Proposed 1. CFC with modern equipment. -- 2 CAD/CAM set up. 3. Testing Facility. 4.Certification Center 5. Water Recycling Unit 6. Training Facility 7. Export and marketing facility (g.) Prod capacity of CFC 8.7 Revenue Generation Section

(h.) Major Outputs/ Deliverables S. Param Present interv After -- of CFC, Projected performance of No. eters Intervention the cluster after proposed 1 Employ Direct – 410 Direct - 660 intervention (in terms of ment Indirect- Indirect- 2500 4000 production, export/ domestic sales 2 Exports Nil 10 unit and direct/indirect employment, 3 Turnover Rs.121 crore Rs.160 crore etc.) within 2-3 years of CFC 4 Units 110 units 160 newer units (i.) Pollution clearance required or Not applicable Required not (j.) Man Power in CFC 54 persons of different skills and -- qualification (k.) Revenue generation Detailed revenue generation for -- mechanism for sustainability of individual section and machine is assets (service/user charges to be projected in page 63 onwards levied, any other-to be specified) 5

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Goa Gold Jewelry Cluster North Goa Shop -- No. 1, Subraya Chambers, Feira Baixa Road, Keni Wada Mapusa-Goa-403507 Phone: 8668952008, 8805727873, 9421192001, Email: [email protected] (b.) Nature of SPV(company or SPV is registered as a society under Document Society or Trust) Societies Registration Act 1860, Open type required. the registration number of the SPV is Reg. 484/Goa/2015 (c.) Name of the state Govt. and Director, Directorate of Industries, Trade -- MSME officials in SPV and Commerce Govt. of Goa (d.) Date of formation of SPV 23/12/2015 Document required. (e.) Number of Members executive members - 9 Life Members -30 -- Other Beneficiary Members-80 (f.) Bye Laws or MA and AOA Bye Laws or MA and AOA is attached at Document submitted annexure documents in the back of DPR required. (g.) Authorized Share Capital Rs. 100 Lakhs -- (h.) Paid up capital Rs. 5,50,000=00 -- (i.) Shareholding Pattern 3.33% Required. (j.) Commitment letter for The SPV is committed for the contribution Required. contribution and has collected commitment letters for individual members (k.) SPV specific A/c Bank: Oriental Bank of Commerce Branch: Document Mapusa, Goa A/C No.: 10821131001479 required. IFSC Code: ORBC0101082 (l.) Trust Building of SPV, The SPV is committed for social service -- Previous track record of co- and is associated in welfare activities of the operative initiatives pursued by gold jewelry artisan and are working SPV members need to be closely with state govt. and other NGO in highlighted with support the region for the upliftment of the gold documentation jewelry cluster units. (m.) Technical Institution Like in most industrialized districts / states, -- there are several support institutions, though not specific to the clusters. A list of the same including a brief of cluster - specific institutions is presented below:- Micro, Small and Medium Enterprise- Development Institute (MSMEDI) Margoan Goa:. Department of Industries, Trade and Commerce, Govt. of Goa The DPR is prepared by Intaglio Technical and Business Services, Bangalore (n.) CFC may be utilised by SPV the SPV has made a resolution that CFC Document members as also others in a will facilities will be made available to the Required. cluster. However, evidence SPV members, and other non members and should be furnished with regard prospective entrepreneurs to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 123.5 KVA -- 6

Description Proposed by Implementation Agency Comments by (IA) Cluster Division commercial/domestic purpose (b) Water The premises will have a borewell that will -- be sufficient for providing water required by the CFC. (c) Gas/Oil/Other Utilities NOT Applicable --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency Directorate of Industries, Trade and As per MSE-CDP Commerce (Govt. of Goa): will be the guidelines implementing agency, supervise and monitor the entire progress work. (b.) Fund receiving Agency Directorate of Industries, Trade and Commerce (Govt. of Goa) will be the fund receiving agency (c.) Implementation Period The Project will be implemented within 12 months from the date of Final Approval and release of Sanction order by the MSME New Delhi. (d.) Appraisal of DPR and main Project is approved by the State Level SIDBI Appraisal Recommendations Steering Committee Meeting headed by Report is required Secretary-Industries and Commerce, Govt. of Goa The DPR is forwarded to SIDBI Head Office in Panjim, Goa (e.) Comments of Technical Not yet received -- Division (f.) Approval of Technical Not yet received Recommended by Committee Technical Committee. (g.) Working capital(In-principle The proposal is submitted for approval to -- sanction of loan from a bank, if the bank, and will be approved shortly. applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 35% -- (b.) IRR, Payback period 34% -- (c.) DSCR not applicable -- (d.) Return on Capital employed 39% -- (ROCE) (e.) NPV 32% -- (f.) DER not applicable -- 7

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (g.) Sensitivity Analysis Available at IV. Summary of Financial -- Analysis in the executive summary section (h.) Status of CFCs approved in only one CFC approved and implemented -- the State for Cashew Industry-Morepilla Cancona, South Goa

6. Proposed Project Cost is as follow: (Rs. in lakh) S. No. Particulars Cost (i) Land and its Development 0.00 (ii) Building and other Civil Constructions 90.00 (iii) Plant & Machinery (including electrification) 729.81 (iv) Misc. fixed assets 18.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project 16.00 cost (vi) Contingency (2% building and 5% on plant and machinery) 36.49 (vii) Margin money for Working Capital 12.09 Total Project Cost 902.39

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars Amount 1 Grant-in-aid from Govt. of India 812.15 2 Government of Goa 0.00 3 SPV contribution 90.24 Total 902.39

8. Plant and machinery (with Brief Specification): (Rs. in lakh) S .No. Description No. Power Cost Requirement (HP/KW) 1. 3D Scanner 1 1 14.18 2. Computerised Geomagic Freeform Editing TOOL With 1 1 18.82 Haptic 3. Rapid Proto Typing Machine (3D Printer) Sharebot 1 2 31.27 (DLP)& and Romeda (SLA) and 3D Jewelry Software 4. 3D CAD Jewelry Design Software 3D DESIGN Jewel 1 1 5.37 Package 5. Casting Setup 1 25 76.60 6. Waste Gold Recycling and Gold Refinery Unit 1 5 11.62 7. Hallmarking Setup 1 5 113.52 8. CNC Machine for Bangles & Rings 1 5 88.50 9. Rolling Mill Single Head 1 3.5 1.77 10. Rolling Mill Combined Double Head With Gear Box 1 5.5 2.36

S .No. Description No. Power Cost Requirement (HP/KW) 11. 5x 2 ½ Rolling Mill Double Head & Electric 1 3.5 2.065 12. 18 x 8 Single Head Roll Press 1 7 14.16 13. Bangle Sizing Machine With Collet. 1 2 0.435 14. Ring Sizing Machine 1 2 0.45 15. Chain Processing Machine 1 4 73.66 16. Fly Press: FP.2 1 .5 0.44 17. Fly Press: FP.3 1 .5 0.64 18. NMR, Machine Design Roll, Computer Design Roll 1 1 0.38 For 3 x 15/8 19. CNC Vertical Ball Cutting 1 2.5 24.78 20. CNC Horizontal Ball Cutting 1 2.5 24.78 21. Power Press 3 TONS 1 2.5 1.00 22. Power Press 5 TONS 1 2.5 1.18 23. Tube Forming Machine 1 3.5 11.21 24. Hydrulic Press 300 Tons 1 7.5 14.16 25. Polish Setup 1 1 44.34 26. Emboss Dies 1 0 37.87 27. faceting machine with Tools 1 3 22.68 28. Silent Diesel Generating Set-160KVA 1 00 15.63 29. UPS/ Inverter with Batteries-10KVA 1 00 6.49 30. Voltage Stabilizer with Accessories-15KVA 1 00 3.68 31. Electrification Wiring, Electrical Installation, 1 00 19.12 Transformer, Changeover Switching System 32. Strong Room with Door 1 00 12.48 33. Steel Fabricated Non Fire Proof Safe 1 00 3.72 34. Steel Fabricated Staff Locker Cabinet 1 1 0.38 35. Steel Fabricated Safe Deposit Locker 1 00 1.57 36. Telecom Wireless Intrusion Alarm System 1 00 2.67 37. CCTV Camera 1 00 11.02 38. Door Frame Metal Detector 1 00 1.48 39. ESSL Bio-metric X990 1 00 0.73 40. Computers With Basic Software 8 2.5 4.53 41. Training and Teaching Aids Setup 1 12.5 8.07 Total 729.81

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Proof of SPV Formation and By Laws. (ii) Registered land documents in the name of SPV (if land is on lease basis, registered lease deed for a minimum period of 30 years is required). (iii) Commitment letter from SPV for their contribution. (iv) SIDBI Appraisal Report. 9

(v) SPVs bank account details. (vi) NOC from State Pollution Control Board. (vii) Commitment letter from State Government / IA to meet the escalation cost, if any, over and above the approved project cost. (viii) Certificate from State Government that more than 50% units in the cluster are Micro / SC/ST / Women Enterprises, as the case may be. (ix) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Gold Jewelry Cluster, North Goa, Mapusa, North Goa, Goa.

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Agenda No.48.3.2: Proposal for In-principle approval for setting up of new Industrial Estate at Gopalganj Village, P.O. Nirsa, District Dhanbad, Jharkhand.

Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 18.09.18. (ii) Proposal was received from Jharkhand Industrial Infrastructure Development Corporation Ltd. (JIIDCO) vide application ref. No. 13493 dated 29.09.18 & recommended by MSME-DI, Ranchi. (iii) Proposal along with recommendations was forwarded by MSME-DI, Ranchi vide letter dated 08.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Jharkhand Industrial Infrastructure Development Corporation Ltd (JIIDCO) State : Jharkhand District : Dhanbad Industrial Estate : Development of Leather and Footwear Industrial Area

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with No approved layout plan Total Area of Industrial Estate/ area 30.00 acres Area to be developed 30.00 acres Number and sizes of plots to be 112 plots developed Implementing Period 24 months Other ID projects sanctioned in NA same district: year of sanction, number of plots allotted, units set up etc. Performance of ID projects in State NA

3. Details about proposal:

Description Proposed by Implementing Agency Remarks (IA) Implementing Agency (IA) Jharkhand Industrial Infrastructure As per MSE-CDP Development Corporation (JIIDCO) guidelines Track Record of the IA Satisfactory -- Appraisal by SIDBI This Proposal is being submitted for 'in- Yet to be received. (Observations and principle' approval. After getting the 'in- 11

Description Proposed by Implementing Agency Remarks (IA) recommendations). principle' approval, SIDBI shall be Attach SIDBI report. approached for Appraisal. Whether sufficient facilities Yes, the proposed site for leather & -- available at site. (Proximity footwear industrial area is well connected to railway stations / state with road, rail and air connectivity and is highways, availability of strategically placed to cater the needs of water supply, adequate the Eastern India. power supply, telecom facilities, dwelling places of workers) Whether land is in Yes Land document possession in the name of with Zoning IA with Clear Title regulations and non-agricultural Whether Zoning regulations Yes conversion in the and non-agricultural name of JIIDCO is conversion etc complied required. with): Whether State Level Yes, State level steering committee is Constituted Committee to coordinate functional and monitor progress has and is headed by Director, Industries and been Constituted Members as GM-DICs, Deputy Director (industries), Joint Director (Industries), Cluster Directors, Director MSME-DI, Ranchi and nominee from Planning and Finance Department to coordinate and monitor progress. Whether confirmation Yes, After the grant under MSE-CDP Required received form IA that it will scheme, Government of Jharkhand will meet the cost in excess of meet the project approved project cost and cost/escalation cost through contribution any escalation in cost and it would be infused through Jharkhand Industrial Area Development Authority (JIADA). Basis of elements of project . Site Development & Compound Wall -- Cost with fencing. . Roads . Road Side Greenery & Social forestry . Water Supply System with water storage tanks, pump houses, pumps and all required infrastructure . Water Harvesting . Sewage System & Treatment plant . Electrical Infrastructure - Power Sub- station with electrical line from main station, distribution net-work including street light. . Storm Water Drainage . Administrative Office Block . Telecommunication system . Conference Hall/Exhibition Centre . Bank/Post Office . First Aid Centre, Creche, Canteen Facility . Pre-operative Expenses & Contingencies @ 5% . L-Cess @ 1%

Description Proposed by Implementing Agency Remarks (IA) . GST @ 12% All above mentioned component are considered for calculating project cost. Tangible Outcomes of the Before After -- project Spinoff 30 112 (Units)/Growth in cluster Aggregate 24 100 Investment by Cluster Firms (cr.) Aggregate 90 280 Production levels in the cluster (cr.) Aggregate Business 108 350 Turnovers of Cluster Firms (cr.) Aggregate 750 2500 employment in the cluster (no.) Indirect investments 45 150 expected to be triggered(no.) Indirect employment 1500 5000 expected to be triggered (no.) Incremental average 20% 25% incomes spinoff

anticipated (%) Justification of the Proposal The Government of Jharkhand has -- focused leather and footwear sector since it is more labour oriented sector among all other sectors and announced one of the best policy for attracting investment in the footwear sector. Footwear entrepreneurs have already started exploring opportunity for setting up of the manufacturing facility in the State. Few of them have already started their manufacturing unit and based on the demand, it is proposed to develop an industrial area for leather and footwear manufacturing industries. There is a huge market potential in eastern India as well as demand supply gap. This project will give ready infrastructure to the investors for setting up their leather and footwear units.

4. Project Cost: (Rs. in lakh) S. No. Particulars As per IA (i) Land filling/levelling including boundary wall and fencing 152.09 (ii) Laying roads 445.33 (iii) Road side greenery & social forestry 24.81 (iv) Water supply including overhead tanks, and pump houses 465.62

S. No. Particulars As per IA (v) Water harvesting 34.00 (vi) Drainage 220.96 (vii) Power distribution, Street light arrangements, etc. 864.66 (viii) Administrative Office Block including Conference Hall/ 153.24 Exhibition Centre, Bank/ Post Office, First Aid Centre, Creche and Canteen Facility (ix) Telecom/Cyber/Documentation centre 10.48 (x) Raw material storage facility, Marketing outlets 81.57 (xi) Effluent Treatment Facilities 186.98 (xii) Contingencies & Pre operative expenses 149.15 (xiii) Other (L-Cess@1% and GST@12) 343.17 Total 3132.06

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars As per IA (i) GoI Grant under MSE-CDP 800.00 (ii) Government of Jharkhand 1166.03 (iii) Jharkhand Industrial Area Development Authority (JIADA) 1166.03 Total 3132.06

6. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents with clear title, signed by Competent Authority and complying with zoning regulations and non-agricultural conversion etc. in the name of Implementing Agency. (ii) Copy of approved layout plan. (iii) SIDBI Appraisal Report. (iv) Commitment letter from IA to meet the cost escalation, if any, over and above the approved project cost. (v) Undertaking from State Government that more than 50% units in the cluster are Micro / SC-ST / Women Enterprises, as the case may be. (vi) Certificate from State Government for compliance of GFR/CVC guidelines. (vii) JIIDCO, Ranchi should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Jharkhand / JIIDCO, Ranchi.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Industrial Estate at Gopalganj Village, P.O. Nirsa, District Dhanbad, Jharkhand.

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Agenda No.48.3.3: Proposal for In-principle approval for setting up of Industrial Estate at Barhe Village, Chahno Block, Bijupara, Ranchi, Jharkhand.

Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 18.09.18. (ii) Proposal was received from Jharkhand Industrial Infrastructure Development Corporation Ltd. (JIIDCO) vide application ref No. 13490 dated 28.09.18 & recommended by MSME-DI, Ranchi. (iii) Proposal along with recommendations was forwarded by MSME-DI, Ranchi vide letter dated 08.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Jharkhand Industrial Infrastructure Development Corporation Ltd. State : Jharkhand District : Ranchi Industrial Estate : Pharmaceutical Park

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with No approved layout plan Total Area of Industrial Estate/ 35.08 acres area Area to be developed 23.90 acres Number and sizes of plots to be 54 plots developed Implementing Period 24 months Other ID projects sanctioned in NA same district: year of sanction, number of plots allotted, units set up, etc. Performance of ID projects in NA State

3. Details about proposal:

Description Proposed by Implementing Agency (IA) Remarks Implementing Agency Jharkhand Industrial Infrastructure As per MSE-CDP (IA) Development Corporation (JIIDCO) guidelines Track Record of the IA Satisfactory -- Appraisal by SIDBI This Proposal is being submitted for 'in- Yet to be received. 15

Description Proposed by Implementing Agency (IA) Remarks (Observations and principle ' approval. After getting the 'in- recommendations). principle' approval, SIDBI shall be Attach SIDBI report. approached for Appraisal. Whether sufficient Yes, the proposed location for the -- facilities available at site. Pharmaceutical Park is well connected with (Proximity to railway road, rail and air connectivity and is stations / state highways, strategically placed to cater to the needs of availability of water the Eastern India. supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in No Land document possession in the name with Zoning of IA with Clear Title regulations and non-agricultural Whether Zoning No conversion in the regulations and non- name of is JIIDCO agricultural conversion required. etc complied with) Whether State Level Yes, State level steering committee is Constituted Committee to coordinate functional and is headed by Director, and monitor progress has Industries and Members as GM-DICs, been Constituted Deputy Director (industries), Joint Director (Industries), Cluster Directors, Director MSME-DI, Ranchi and nominee from Planning and Finance Department to coordinate and monitor progress. Whether confirmation Yes, After the grant under MSE-CDP Required received form IA that it scheme, Government of Jharkhand will will meet the cost in meet the project cost/escalation cost through excess of approved equity. The equity would be infused through project cost and any Jharkhand Industrial Area Development escalation in cost Authority (JIADA). Basis of elements of The cost of Administrative and Utility (Post -- project Cost Office & Bank) Building, Canteen, PCC Road, Main gate, Boundary wall, Sewerage system, sewerage Treatment Plant, Deep Boring, Recharging Pit, Drain, Electric Distribution System, Solid waste management, Street light, plantation, Effluent Treatment Plant (100 KLD), Water Supply System, Basic Site & Land Development and Levelling, Contingencies & Pre-Operative Expenses @ 5% & 3% respectively are taken into account for calculating the Project Cost. Tangible Outcomes of Sr No Spinoff Year of implementation After -- the project 4-5 years 1.Growth in Cluster Firms(In Nos) 20% 35% 2.Aggregate Investment by Cluster Firms(Rs in Cr) 247 370 3.Aggregate Production levels in the cluster(Rs in Cr) 1854 3709 4.Aggregate Business Turnovers of Cluster Firms(Rs in Cr) 2473 4945 5.Aggregate Employment in the Cluster(In 16

Description Proposed by Implementing Agency (IA) Remarks Nos) 1236 1730 6.Indirect investments expected to be triggered(In Nos) 742 1113 7.Indirect employment expected to be triggered (In Nos) 3708 5192 8.Incremental average incomes spinoff anticipated(in %) 20% 35% Justification of the Jharkhand state has identified -- Proposal Pharmaceutical as a focus sector to attract the investors into the state. Best Incentives, Exemption and Concessions for Pharmaceutical units have been proposed in the Jharkhand Industrial promotion Policy 2016. 4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars As per IA (i) Land filling/levelling including boundary wall and fencing 245.20 (ii) Laying roads 273.36 (iii) Road side greenery & social forestry 10.48 (iv) Water supply including overhead tanks, and pump houses 216.94 (v) Water harvesting 6.55 (vi) Drainage 85.84 (vii) Power distribution, Street light arrangements, etc. 1167.79 (viii) Administrative and Other Services Complex 476.49 (ix) Bank/Post office 73.21 (x) First aid centre, Crèche Canteen 142.52 (xi) Effluent Treatment Facilities 50.00 (xii) Contingencies & Pre operative expenses 238.69 (xiii) Other (Sanitary Conveniences) 180.12 Total 3167.19

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars As per IA (i) GoI Grant under MSE-CDP: 800.00 (ii) Government of Jharkhand 1183.59 (iii) Jharkhand Industrial Area Development Authority (JIADA) 1183.60 Total 3167.19

6. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents with clear title, signed by Competent Authority and complying with zoning regulations and non-agricultural conversion etc in the name of Implementing Agency. (ii) Copy of approved layout plan. (iii) SIDBI Appraisal Report. (iv) Commitment letter from IA to meet the cost escalation, if any, over and above the approved project cost. (v) Undertaking from State Government that more than 50% units are Micro / SC-ST / Women Enterprises, as the case may be. (vi) Certificate from State Government for compliance of GFR/CVC guidelines. (vii) JIIDCO, Ranchi should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Jharkhand / JIIDCO, Ranchi.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Industrial Estate at Barhe Village, Chahno Block, Bijupara, Ranchi, Jharkhand.

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Agenda No.48.3.4: Proposal for In-principle approval for setting up of Common Facility Centre in Shivashakthy Foundry Cluster, Shimoga District, Karnataka.

Background:

(i) The proposal received from Government of Karnataka, vide online application Ref. No. 8600 dated 16.09.17, which was also recommended by MSME-DI, Bangalore. (ii) The proposal was approved by State Level Steering Committee in its meeting held on 15.06.17 at Bangalore. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) Conventional Weigh Bridge with reduced capacity in place of digital one with 60 MT. (b) One Surface Crane in place of Over Head Crane (c) Justification for 400 KVA DG set (d) Recommendation of Technical Division for reduction of few machines as agreed by SPV. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Bangalore was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (v) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal, subject to fulfilment of decisions taken during 59th TEAC, to place before Steering Committee for in-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Shivashakthi Foundry Cluster District Shimoga Location of Cluster : Shimoga Lok Sabha Constituency : Shimoga Main Product : Engineering Components (clutch plates, brake shoes, liners), valves bodies, (petro & hydro Chemical plants), Wind power products, volute castings, actuator products of casings, power generation products and machine tools castings. No. of Enterprises including Micro 20 break up (Micro, Small, Small 6 Medium) Medium 0 Turn over for the last five Year Amount years : 2012-13 250.00 (Rs. in Crore) 2013-14 310.00

2014-15 430.00 2015-16 550.00 2016-17 600.00

Exports for the last five years : Nil (Rs. in Crore)

Employment in Cluster : 12000 Nos. (Direct - 3000 and Indirect - 9000) Technology Details :  Cluster units adopt sand moulding method that uses silica sand / grey sand as well as green sand for making moulds which is procured from Gudur Mines, Nellore Dist., Andhra Pradesh.  Due to Govt. policies and rules there is less availability of new sand which has to be procured in every alternative weeks. As of now sand procured by the cluster units in which heaps of waste sand is being disposed in lands, which leads to environmental pollution.  As individual units cannot afford for sand reclamation plant, there is necessity to set up used mould sand reclamation plant in CFC. Whether DS Conducted : Yes. Main findings of DSR : A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the molten metal in a mould cavity, break away the sand mould and remove the casting as metal solidified as it cools. Most common metals processed are aluminium and cast iron. However, other metals, such as bronze, brass, steel, magnesium, and zinc, are also used to produce castings in foundries. In this process, parts of desired shapes and sizes can be formed. Main Problems of Cluster :  Used sand disposal problem and recycling methods.  Lack of proper moulding system.  Lack of modern shot blasting and heat treatment.  Lack of facilities for casting simulation, design, finishing and testing.  There is no R&D centre. Other Information :  The cluster falls under Government recognition and gets maximum attention since the units are very active in manufacturing Castings for many automobile industries all over India.  It facilitates job creation which aims to support the entrepreneurs and make in India concept, especially youth who are innovative and interested in technology.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC  To develop capability of the cluster to -- perform as leader actor in the domestic as well as global market.  To adopt a realistic and flexible action plan with real thrust on technology up gradation marketing, net-working, improvement in infrastructural including Common Facility Centre and modernization.  To make a socially environment sustainable development model of metal casting cluster at Shimoga. (b.) Location of CFC The proposed land (Plot Number 37-B,3 -- acres) Nidige Industrial Area, KIADB Industrial Estate, Machenahalli, Nidige post, Shimoga. % age of units in radius of 5km 16

% age of units in radius of 10 10km (c.) Land for CFC i. Whether land acquired Yes, the total extent of the land is 3 acres Land is on lease 20

Description Proposed by Implementation Agency Comments by (IA) Cluster Division in Machenahalli, Nidige post,Shimoga. basis for 16 ii. Title is in name of SPV, Shivashakthi foundry Cluster. years. The lease iii. Valuation and its basis Land on lease basis for 16 years. deed submitted is not registered from Revenue Department of Government of Karnataka. The lease period should be fairly long duration of 30 years or more. iv. Land is sufficient Yes -- v. Change of land use NA -- vi. If on lease, duration of lease Land on lease basis for 16 years. -- vii Whether lease is legally Yes. The lease deed is tenable not registered from Revenue Department of Government of Karnataka. (d.) Total Building area(sq ft) The SPV proposes to construct the -- building 51,580 sq ft. for CFC (e.) Rate of construction of Building with the estimated cost at 238 building lakh. -- (f.) Main Facility Proposed  Common sand reclamation. --  Thermal reclamation and moulding facility.  Common shot Blasting and Heat treatment facility.  Shell core shooter and shell moulding.  Common Universal Testing Machine.  R & D facility. g.) Prod capacity of CFC 40,000 tons of sand is required. -- (h.) Major Outputs/ Sl. Paramete Present After Deliverables of CFC, Projected No. rs intervention Intervention performance of the cluster after 1. Units 26 units 70 units proposed intervention (in terms 2 Employment Direct – 1000 Direct – 2000 of production, export/domestic Indirect- 3000 Indirect- 6000 sales and direct/indirect 3 Exports Unit is doing Export Export to employment, etc.) indirectly international markets 4 Turnover Rs. 65.00 crore Rs. 100.00 crore. 5 Profits Low profit margin Increase in (10%). profit margin, upto 40% 6 Marketing Domestic and national Marketing to market urban, national and international

markets. (i.) Pollution clearance SPV has applied for NOC from PCB. NOC required. required or not (j.) Man Power in CFC 39 -- (k.) Revenue generation Service charges are levied for the -- mechanism for sustainability of availing CFC services. The charges assets(service/user charges to proposed are lesser than the current rates. 21

Description Proposed by Implementation Agency Comments by (IA) Cluster Division be levied, any other-to be The service charges are adequate for specified) maintenance and surplus generated can be utilized for further additions to the CFC.

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Shivashakthi Foundry Cluster. -- 37-B Nidige Industrial Area, KIADB Industrial Estate, Machenahalli, Nidige post, Shimoga. (b.) Nature of SPV(company Society, registered under Karnataka Society -- or Society or Trust) (Registration) Act, 1960. (c.) Name of the state Govt. Official from MSME and state government -- and MSME officials in SPV as per government Norms. (d.) Date of formation of 11.01.2016 -- SPV (e.) Number of Members 26 --

(f.) Bye Laws or MoA and Yes. -- AOA submitted (g.) Authorized Share Capital 10% of project cost Rs. 149.641 lakhs (h.) Paid up capital NA (i.) Shareholding Pattern Submitted. Shareholding pattern of 9 members received. Shareholding pattern of 26 members is required. (j.) Commitment letter for Submitted. -- contribution (k.) SPV specific A/c Name of the Bank: Corporation Bank -- Account Number: 0000601601000251 (l.) Trust Building of SPV, The cluster members have completed -- Previous track record of co- majority of the soft interventions activities operative initiatives pursued like trust building and capacity building by SPV members need to be activities. Exposure visits to other highlighted with support industries. documentation. (m.) Technical Institution Intaglio Technical and Business Services, Bangalore (n.) CFC may be utilised by - Document SPV members as also others required. in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity.

(o) (a) Power requirement for 300 KVA -- commercial/domestic purpose (b) Water 4000 LPD -- (c) Gas/Oil/Other Utilities Not required --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency Karnataka Council for Technological -- Upgradation (KCTU), Bangalore, Govt. of Karnataka. (b.) Fund receiving Agency Karnataka Council for Technological -- Upgradation (KCTU), Bangalore, Govt. of Karnataka. (c.) Implementation Period 24 months 24 Months from date of final approval. (d.) Appraisal of DPR and DPR will be submitted to SIDBI for Required prior to main Recommendations appraisal final approval. (e.) Comments of Technical  The proposal was discussed in detailed during 59th & 60th Division meeting of Techno Economic Appraisal Committee (TEAC) (f.) Approval of Technical held on 31.07.18 & 28.09.18 and deliberations were made by Committee the members.  Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal for placing before Steering Committee for in-principle approval. (g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP. Development Division: (h.) Working capital(In- The SPV will avail working capital -- principle sanction of loan from bank. from a bank,if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 37% (b.) IRR, Payback period IRR – Pre tax 25% IRR Post – tax - 21% (c.) DSCR N/A (d.) Return on Capital 43% As per MSE-CDP employed (ROCE) guidelines. (e.) NPV 1.11 (f.) DER N/A (g.) Sensitivity Analysis Yes, the figures are positive as required by guidelines a) IRR- 21% b) NPV 1.11 c)Breakeven Point - 37 % d)ROCE - 43% (h.) Status of CFCs approved a) Cluster Implemented -- in the State 1. Auto components Cluster, Hubli 2. Readymade Garment Cluster, Hubli 3. Food Cluster, Gulbarga 4. Raisin Processing Cluster, Bijapur. 5. Auto Cluster, Bidar 6. Raisin Processing Cluster, Athani, Belgaum b) Clusters Under implementation 1.ELCIA Cluster, Bangalore. 2. Heat Treatment & Engg Cluster Hubli, 3. Printing Cluster Bangalore 4. Utopia Cashew Cluster, Kumta, Uttara Kannada. 5.Global Puffed Rice Cluster, Chitradurga.

6. Proposed project cost: (Rs. in lakh) S. No. Particulars Total Cost 1 Land and its Development 60.00 2 Building and other Civil Constructions 238.00 3 Plant & Machinery(including electrification) 1113.00 4 Misc. fixed assets 15.00 5 Preliminary & Pre-operative expenses, maximum 2% of project cost 10.00 6 Contingency (2% building and 5% on plant and machinery) 60.41 Total Project Cost 1496.41

7. Proposed means of finance: (Rs. in lakh) S. No. Particulars Percentage Amount (i) SPV contribution 10 149.64 (ii) Grant-in-aid from Govt. of India 80 1197.13 (iii) Grant-in-aid from Govt. of Karnataka 10 149.64 Total 100 1496.41

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost requirement (HP/KW) 1. Moulding System 1 15.32 20.90 Silica sand moulding system HP/11.43KW Spartan 210P Pivotal Single Arm Continuous 12 TPH Sand Mixer for Sodium, Silicate Process with 2 pumps, 4 way pneumatic sand gates.

Vibratory Compaction Table 7.41 Model AA – 975 X 610 MM – 1.0 tons max load 2. Resin sand moulding (No bake and method) 1 17.33HP 42.23 Spartan 220 AB – Double Arm Continuous 10- /12.93KW 20TPH Sand Mixer for furan process with 2 pumps & 4 sand gates.

Vibratory Compaction Table Model J – 900X1590 – 2.7 Ton Load 11.66 H3000 Mould Manipulator for Moulding 15.02

3. Sand REC Plant for Resin System 1 - 106.45 Non discharging Vibratory Shakeout 2500x2000 MM, Vibratory Feeder 4 meters long, Over band Magnetic separator, Attrition Unit Gamma 12HL Level, G12 Cooler Classifier, Pressure Vessel, PV 12 for cold sand & Electrical Control Cabinet 4. Thermal REC plant for resin system 1 53.6HP/40 203.44 KW/Gas24kg/t on 5. Sand REC plant for Silicate System 1 15HP/11.2KW 107.62 Non discharging Vibratory Shakeout 2500x2000 MM, Vibratory Feeder 4 meters long, Over band Magnetic separator, Attrition Unit Model BD10, G6 Cooler Classifier, Pressure Vessel PV 6 New & 1 PV 6 for hot 24

S. No. Description No. Power Cost requirement (HP/KW) sand, & Electrical Control Cabinet Service tax 12.5%, C form 2% Total commissioning 3 lakh + service tax 15%-45,000=3,45,0000 6. Silicate Washing Plant with ETP, Engineering - - 133.18 fee and E & C charges inclusive of labour (including all taxes) 7. Hoppers, Dust Collectors & Cooling towers 109.07 with water pumps, service tax 12.5% , C form 2% 8. Overhead Crane (inclusive all tax) 1 20HP/14.9KW 20.85 One Surface Crane (inclusive all tax)* 1 9. Shot Blasting* 1 60HP/44.7KW 85.49 Service tax 12.5%, C form 2% 10. Shell core shooter & shell moulding machine 2 2HP/1.49KW 21.23 Service tax 12.5%, C form 2% 11 Heat Treatment Furnace with Electrical Coil 2 - 47.48 12 Conventional Weigh Bridge* 1 - 8.03 13. Air Compressor 500 CFM & Refrigerated Air - - 18.73 Drier 14. Universal Testing Machine (inclusive Tax + 1 - 20.09 Commissioning 10,000 + Service Tax) 15 Cast Designer for both sand casting and mould 1 - 33.364 casting (inclusive of taxes). 16. DG Set* 1 - 21.52 Total 1033.76 * Cost of the machines need to be changed by SPV, as per decision taken during TEAC meeting.

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) List of SPV members along with shareholding pattern. (iii) Layout plan of the site duly authenticated by Competent Authority. (iv) Commitment letter with regard to SPV members’ ability to utilize at least 60 percent of installed capacity. (v) NOC from State Pollution Control Board. (vi) Certificate from State Government regarding compliance of GFR/CVC guidelines. (vii) Certificate from State Government stating that more than 50% units in the cluster are Micro. (viii) Registered land documents in the name of SPV (if land is on lease basis, registered lease deed for a minimum period of 30 years is required).

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common Facility Centre (CFC) in Shivashakthy Foundry Cluster, Shimoga District, Karnataka.

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Agenda No.48.3.5: Proposal for In-principle approval for setting up of Common Facility Centre in Jaggery Processing Cluster Jalalapur, Raibag, Belagavi, Karnataka.

Background:

(i) The proposal received from Karnataka Council for Technological Upgradation (KCTU), Bangalore vide online application Ref. No: 8725 dated 30.11.17, which was recommended by MSME-DI, Hubli. (ii) The proposal was approved by State Level Steering Committee in its meeting held on 15.06.17 at Bangalore. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) Deputy Director (I/c) should visit to study similar facilities that are available in Maharashtra and submit report by 08.08.18 justifying suitability of proposed machinery along with written response to queries raised by Technical Division. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Hubli was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (v) The TEAC in its 61st meeting held on 18.10.18 recommended the proposal, subject to fulfilment of decisions taken during 59th TEAC, to place before Steering Committee for in-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Jaggery Processing Cluster District Belagavi Location of Cluster : Jalalapur Village, Raibag Taluk, Karnataka. Lok Sabha Constituency : Chikkodi Main Product : Granular Jaggery, Jaggery based Snacks Items, Liquid Jaggery, Powder Jaggery, Solid Jaggery No. of Enterprises Micro 45 including break up (Micro, Small 0 Small, Medium) Medium 0 Turn over for the last five Year Amount years : 2012-13 38.26 (Rs. in Crore) 2013-14 49.29

2014-15 50.79 2015-16 66.80 2016-17 78.59

Exports for the last five Nil years : (Rs. in Crore)

Employment in Cluster : 4810 nos. (Direct – 810 and Indirect – 4000) Technology Details : The Cluster Members are using Traditional Methods mostly Conventional Technology. Whether DS Conducted : Yes, the DSR is conducted by Intaglio Technical and Business Services, Bangalore. The DSR is validated. The DSR recommends the Hard Interventions for the Cluster. The SPV members have accepted the Proposed Interventions and the State Government and the MSME-DI Hubli has supported the proposed interventions as need based and support worthy. Main findings of DSR : The DSR found that the Cluster Members are havind good market and are using conventional technology. the technological level of the cluster is to be improved. The DSR recommends the Establishment of CFC for the Cluster. Main Problems of Cluster :  The improper Moulding and Packaging of Jaggery is imposing problems of reduced shelf life and poor aesthetic.  Non homogenous granular and powder jaggery with improper drying due to lack of automatic dryers has reduced shelf life  Improper packaging of the powder and liquid jaggery leads to reduced shelf life, and poor aesthetic look.  The product is facing stiff competition from sugar industries.  The cluster members are not scientifically equipped with the testing machineries as a result is not able to upgrade the quality of the product to match the BIS and EU standards for export.  The dominance of traders is resulting in reduced profit to the cluster units.  The lack of storage facility locally in the cluster region is leading to degradation of the jaggery.  There is very little value addition taking place, though there is good scope of value added products that can be produced using the jaggery.  There is no branding taking place.  There is no training and skill upgradation taking place in the Cluster as a result there is continuous migration of work force. Other Information :  Belgaum district within it play a predominant role in production of sugarcane. In India Karnataka stands 3rd in cane production next to Uttar Pradesh and Maharashtra States and 2nd with respect to sugar recovery after Maharashtra. The Cluster Jaggery Huge Domestic and International Market demand as jaggery is regarded as ayurvedic medicine and is better substitute to sugar. The Demand for Gur/Jaggery in African, European, and Gulf Countries are rapidly increasing. But international market, need high quality jaggery qualifying the EU/BIS Standards, with standard and uniform size, aesthetic packaging.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC  The issues of productivity and efficiency of -- production needs to be addressed in a systematic manner.  There could be scope for direct supplies to bulk jaggery for segments such as organized large retail, confectionery industry, and also ayurvedic and health foods industry among others.  The potential for direct exports and futures trading has also to be considered in the growth plan.  Promotion of product quality-testing and certification facilities could be a useful intervention contribution both to quality and marketing efforts.  With the support of technology upgradation 27

Description Proposed by Implementation Agency (IA) Comments by Cluster Division the jaggery industry in the cluster will be able to compete globally and will be able to further progress and provide huge employment.  The Establishment of CFC is expected to bring about holistic change in the cluster and will be a factor of Socio economic Development of Region. (b.) Location of CFC Jaggery Processing Cluster Jalalpur is located -- in Jalalpur village of Raibag. Jalalpur is located 7 Km away from Raibag taluk of Belgaum district, 120 kms away from Belgaum and 40 kms from Sangli (the main jaggery mandi of Maharashtra). % age of units in radius of 80 5km % age of units in radius of 20 10km (c.) Land for CFC i. Whether land acquired Yes. Lease deed for a period of 30 years has been submitted. ii. Title is in name of Land on Lease for 30 years iii. Valuation and its basis Rs. 60 lakhs for 30 years lease, as per guidance - value and market value. iv. Land is sufficient Yes -- v. Change of land use Yes. -- vi. If on lease, duration of 30 years -- lease vii Whether lease is legally Yes. -- tenable (d.) Total Building area(sq 9300 sq. ft. -- ft) (e.) Rate of construction of 1018.00 building -- (f.) Main Facility Proposed  Automatic closed chamber Jaggery -- solidification and chemical balancing facility.  Automatic Solid Jaggery Molding and Packaging unit.  Liquid and Powder Jaggery Packaging Unit.  Clean room with Humidification and De- humidification Chamber.  Testing Laboratory.  Clean Room / Cold Storage for Jaggery.  Common Marketing and Export Centre.  Training and Research Centre.  Captive power generation facility for CFC. g.) Prod capacity of CFC Presently, the production capacity of CFC is 1 to 1.5 ton /day -- (h.) Major Outputs/ Sl. Paramet Present After Deliverables of CFC, No. ers intervention Intervention Projected performance of 1. Units 45 units 70 units the cluster after proposed 2 Employme Direct – 810 Direct – 1500 intervention (in terms of nt Indirect- 4000 Indirect- 6000 production, 3 Exports Nil Direct export likely by 5 units export/domestic sales and 4 Turnover Rs. 78.59 crore Rs. 100 crore in 2-3 years of direct/indirect CFC. 28

Description Proposed by Implementation Agency (IA) Comments by Cluster Division employment, etc.) 5 Profits Inconsistent Consistent and 20-25% higher profit margins. profits for producers due to better quality and price and increased production efficiencies. 6 Marketing Domestic and Urban, National and international village / local market. market

7. Capacity 1 to 1.5 ton /day 2 to 2.5 tons/day (i.) Pollution clearance -- Submitted. required or not (j.) Man Power in CFC 42 (k.) Revenue generation Total revenue generation from training section is mechanism for Rs. 41.20 lakh from 125 participants. sustainability of assets(service/user charges to be levied, any other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Shri Mallikarjun Jaggery Processing Cluster -- Association, Jalalpur, Taluk: Raibag, District – Belgaum, Karnataka. (b.) Nature of Registration under the Karnataka Society -- SPV(company or Society or Registration Act, 1960. Trust) (c.) Name of the state Govt. Representatives from DIC Belgaum, , KCTU -- and MSME officials in SPV Bangalore Government of Karnataka and MSME-DI Hubli/Bangalore Government of India. (d.) Date of formation of 17/02/2014 -- SPV (e.) Number of Members 45 units have joined the SPV --

(f.) Bye Laws or MoA and Yes. -- AOA submitted (g.) Authorized Share Details available in Annexure Document -- Capital Attached at section 9 (h.) Paid up capital as Details available in Annexure Document -- on...... Attached at section 9 (i.) Shareholding Pattern Submitted. Shareholding pattern of 45 members received. (j.) Commitment letter for Submitted. Commitment contribution letter received from SPV vide their letter dated 12.01.18. (k.) SPV specific A/c State Bank of Mysore -- A/c No: 64138879678 (l.) Trust Building of SPV, The Cluster members have completed majority -- Previous track record of co- of the Soft Interventions activities like Trust operative initiatives pursued Building and capacity building activities. Visits by SPV members need to be of other Cluster Awareness about cluster highlighted with support development and other Schemes /Policies. documentation. Hence the Diagnostic Study recommends the 29

Description Proposed by Implementation Agency (IA) Comments by Cluster Division Hard Interventions for the cluster. (m.) Technical Institution Intaglio Technical and Business Services, Bangalore (n.) CFC may be utilised by The SPV is an open type and has provision for -- SPV members as also others incorporation of newer members. The capacity in a cluster. However, proposed is as per the requirement of SPV and evidence should be members will be able to use the required furnished with regard to capacity. SPV member ability to utilise at least 60 percent of installed capacity. (o) (a) Power requirement 149 KW for commercial/domestic purpose (b) Water The water require by the CFC is estimated to be about 5000 liters per day and the same will be made available through borewell as the cluster region has very good ground water availability. (c) Gas/Oil/Other Not required Utilities

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Karnataka Council for Technological -- Agency Upgradation (KCTU), Bangalore, Govt. of Karnataka. (b.) Fund receiving Karnataka Council for Technological -- Agency Upgradation (KCTU), Bangalore, Govt. of Karnataka. (c.) Implementation 18 months 24 Months from Period date of final approval as per guidelines. (d.) Appraisal of DPR and The State Government has approved the Project Required prior main Recommendations in the State Level Steering Committee Meeting to final and has already submitted the Proposal for SIDBI approval. appraisal. (e.) Comments of  The proposal was discussed in detailed during 59th & 60th Technical Division meeting of Techno Economic Appraisal Committee (TEAC) (f.) Approval of Technical held on 31.07.18 & 28.09.18 and deliberations were made by Committee the members.  Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal for placing before Steering Committee for in-principle approval. (g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP. Development Division: (h.) Working capital(In- The SPV will avail working capital from bank. -- principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 41% As per MSE- CDP guidelines. (b.) IRR, Payback period 30% -- (c.) DSCR N/A -- (d.) Return on Capital 32% -- employed (ROCE) (e.) NPV 30% -- (f.) DER Not Applicable -- (g.) Sensitivity Analysis Yes, the figures are positive as required by -- guidelines The ratios with sensitivity of 5% reduction in revenue: a)IRR 27% b)NPV 29 % c)Breakeven Point 43 % d)ROCE 29% The ratios with sensitivity of 10% reduction in revenue: a)IRR 25 % b)NPV 25 % c) Breakeven Point 46 % d)ROCE 26 % . (h.) Status of CFCs a) Cluster Implemented -- approved in the State 1. Auto components Cluster, Hubli 2. Readymade Garment Cluster, Hubli 3. Food Cluster, Gulbarga 4. Raisin Proce4ssing Cluster, Bijapur. 5. Auto Cluster, Bidar b) Clusters Under implementation 1. ELCIA Cluster, Bangalore. 2. Heat Treatment & Engg Cluster Hubli, 3. Printing Cluster Bangalore 4. Raisin Processing Cluster, Athani, Belgaum 5. Utopia Cashew Cluster, Kumta, Uttara Kannada.

6. Proposed project cost: (Rs. in lakh) S. No. Particulars Total Cost 1 Land and its Development 60.00 2 Building and other Civil Constructions 102.75 3 Plant & Machinery(including electrification) 803.11 4 Misc. fixed assets 16.00 5 Preliminary & Pre-operative expenses, maximum 2% of project 18.00 cost 6 Contingency (2% building and 5% on plant and machinery) 43.24 7 Margin money for Working Capital 11.84 Total Project Cost 1054.94

7. Proposed means of finance: (Rs. in lakh) S. No. Particulars Percentage Amount (i) SPV contribution 10 105.49 (ii) Grant-in-aid from Govt. of India 80 843.96 (iii) Grant-in-aid from Govt. of Karnataka 10 105.49 Total 100 1054.94

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost Requirement (HP/KW) 1. Steam Generator Boiler and Setup 1 76.62 5000kgs/Hour 2. Turbo Alternator and Power Generation Setup 1 300 KW 58.51 3. Slurry Jaggery-Steam Treatment-Purification- 1 11.325 KVA 74.18 150KLD Tubular Slurry Heater, Gravity Settler, Floation Clarifier, Micro – Filter 4. Slurry Concentrator Setup for Jaggery 18.625 KVA 47.48 Molding/Powder Jaggery/Liquid -150KLD Evaporator – Boilers, Jaggery Concentrator for Small Jaggery Injection Molding Vapour Extractor, Receiving Tanks with accessories 5. Powder Jaggery Processing Equipments-5 tons/day 1 14.9 KVA 74.81 Jaggery Powder Miller, Powder Jaggery Jacketed Tray, Jaggery powder dryers, Re-circulation conveyors, Air Heaters, Blower Fan, Instrumentation and Control 6. Jaggery Hygenic Storage Setup: Cold Storage/Clean 1 22.35 KVA 95.63 Room – 1000 tons capacity. Clean Room Storage with HVAC System 7. Automatic Jaggery Injection Moudling, 1 6.7 KVA 103.03 Demoulding and packing machine- 18tons/day 8. Automatic Liquid Jaggery Bottle Filling setup with 1 1.76 KVA 67.80 rotary capping system 9. Liquid Jaggery Bottle Labeling Machine and 1 2.2 KVA 38.22 Sealing Setup-2 tons/day 10. Automatic Powder Jaggery Packing Machine-5 2 2.425 KVA 73.44 tons/day 11. Testing Machinery and apparatus 1 7.45 KVA 20.17 12. Jaggery Enrober-Machine for Jaggery Coated Dry 1 7.265 KVA 21.60 Fruits processing-1Ton/day 13. Pillow pack machine for coated dry fruits 1 2.59 KVA 7.20 14. Chikki Roller and Cutting Machine-4 tons/day 1 11.36 KVA 5.40 15. Chikki packing machine 1 2.95 KVA 7.20 16. Computers, Windows Software 5 4.61 KVA 2.70 17. Digital Interactive Classroom Board 1 1.92 KVA 1.75 18. High Resolution Projector with Auto Lock Screen 1 1.16 0.58 Projector with Auto Lock Screen 19. Audio System Amplifier, Speakers with Cordless 1 4.49 KVA 0.63 and Podium Mic-set 20. All in One Laser Colour Printer Scanner and Copier 1 2.72 KVA 0.56 21. Accounting Software-Tally 1 00 3.42 22. Website and ERP Software Design 1 00 2.22 23. CCT Camera and DVR and EPABX Intercomm 1 3.49 KVA 0.79 setup 24. Fire fighting Equipment-set 1 00 0.90 25. Air conditioner A/C 2 10.35 KVA 1.48 26. DG Set 1 160 KVA 16.79 Total 803.11

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) Certificate from State Government regarding compliance of GFR/CVC guidelines. (iii) Details of authorized Share Capital and Paid up capital.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common Facility Centre (CFC) in Jaggery Processing Cluster Jalalapur, Raibag, Belagavi, Karnataka.

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Agenda No.48.3.6: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Furniture Industry Cluster, Mandankavu, Kozhikode, Kerala.

Background:

 The proposal was received from Government of Kerala vide online application Ref. No: 11897 dated 31.01.18, which was recommended by MSME-DI, Thrissur.  The proposal was approved by State Level Steering Committee in its meeting held on 13.11.17.  Technical Committee in its 59th meeting held on 31.07.18, recommended the proposal to place before Steering Committee.

Details of the proposal are as under:

1. Basic Information of Cluster Name of Cluster : Furniture Industry Cluster District Kozhikode Location of Cluster : Mandankavu, Kozhikode Lok Sabha Constituency : Kozhikode Main Product : Wooden Furniture Designing and Value addition, Wooden Furniture & Board Furniture of all verities, No. of Enterprises including break Micro 3030 up (Micro, Small, Medium) Small 23 Medium 5 Turn over for the last five years : Year Amount (Rs. in Crore) 2012-13 950.00 2013-14 11200.00

2014-15 13400.00 2015-16 15500.00 2016-17 16486.00

Exports for the last five years : Year Amount (Rs. in Crore) 2011-12 110.00 2012-13 130.00 2013-14 140.00 2014-15 150.00 2015-16 165.00

Employment in Cluster : 39,191 nos. Technology Details : While a large amount of manufacturing activity is being taken place in unorganised sector & their products are not competitive enough in the domestic as well as Global market, the market is slowly moving towards the technology advancement with growing number of organised players stepping in. Whether DS Conducted : Yes. Main findings of DSR : The cluster is lacking the following facilities:  Design Development and Furniture Product performance Testing Laboratory Facility.  Value Addition and Furniture Sampling Testing Facility.  Ultramodern polish booth facility.  Product Display and Marketing Facility. Main Problems of Cluster :  Technological obsolescence of Cluster units with fragmentation.  Poor market information on demand/ requirement trends.  Inconvenience in direct market linkages in the National and Global Value Chain. (Export/ 34

Corporate/ Retailers/ Consumers)  Inadequate Design Development and Poor product development.  Escalated raw materials cost and process cost such as seasoning, special treatment etc.  High fluctuations in procurement of Raw material price affecting capacity utilization and value accruals to all Micro enterprises of the Cluster.  Absence of Modern Polish Booth, Value added Facility, Furniture Sampling Facility with Display Centre.  Difficulties in accessing of Testing adequate instruments for checking the quality of wood, Components etc and other technical services such as QMS, Lean manufacturing, Social/Eco Product Compliances.  Lack of credit availability, low HRD skill levels, poor infrastructure facilities.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC The Common Facility Centre is to undertake -- primary processing of various raw material and particularly soft wood species. It will also offer facilities for skill development of manpower, for design development, testing and value-added component development. Also, it will facilitate finger joint board making and provide basic machine shop facilities. Basically, the CFC is envisaged as one that will facilitate competitive import substitution and help produce quality products competitively. The scope for directly accessing large institutional buyers and markets will also be enhanced. (b.) Location of CFC Mandankavu, Naduvannur Panchayath Dist. -- Kozhikode. % age of units in radius of 2300 units (75%) -- 5km % age of units in radius of 3030 Units (99%) -- 10km (c.) Land for CFC i. Whether land acquired Yes. -- ii. Title is in name of SPV, Zamorians Furniture Consortium Land document is Private Limited required iii. Valuation and its basis Rs. 76.36 lakh -- iv. Land is sufficient Yes -- v. Change of land use NA -- vi. If on lease, duration of NA -- lease vii. Whether lease is Yes. -- legally tenable (d.) Total Building area(sq 44,235 sq. ft. -- ft) (e.) Rate of construction Rs.598.41 per sq. ft. of building -- (f.) Main Facility  Design deelopment and furniture -- Proposed product performance Testing Laboratory Facility.  Value adding and furniture sampling 35

Description Proposed by Implementation Agency (IA) Comments by Cluster Division testing facility.  Ultramodern Polish Booth Facility.  Product display and marketing facility. g.) Prod capacity of CFC 1800 --

(h.) Major Outputs/ Sl. Parameters Before- After Deliverables of CFC, No. intervention Intervention Projected performance of 1. Units 3058 units -- the cluster after proposed 2 Employment 45190 nos. (in five intervention (in terms of 39191 nos. years) production, 4 Turnover Rs. 16486.00 Rs.20000.00 crore export/domestic sales and crore direct/indirect

5 Investment Rs. 13880 crore - employment, etc.) (i.) Pollution clearance NA NOC required required or not from PCB. (j.) Man Power in CFC 65 nos. (k.) Revenue generation Total revenue in flow, works out to Rs. mechanism for 828.63 lakh per annum on the basis of sustainability of operating capacity (on continuous shift assets(service/user basis) of 80%. For projection purposes, charges to be levied, any operating capacity of 80% is considered for other-to be specified) the first year of operations and 85% subsequently.

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Zamorians Furniture Consortium Private -- Limited Venneyatt Paramba, Bilathikulam, Eranhipalam, Kozhikode -673006, Kerala. (b.) Nature of Registered under Companies Act, 1956 (No. -- SPV(company or Society 1 of 1956). or Trust) (c.) Name of the state DIC, Kozhikode, MSME-DI, Thrissur -- Govt. and MSME officials in SPV (d.) Date of formation of 01.06.2011 -- SPV (e.) Number of Members 41 --

(f.) Bye Laws or MoA and Yes. -- AOA submitted (g.) Authorized Share 144.67 lakh Capital (h.) Paid up capital NA (i.) Shareholding Pattern Submitted. Shareholding pattern of 41 members received. (j.) Commitment letter for NA Document contribution required.

(k.) SPV specific A/c Name of the Bank: Union Bank Document Account Number: 605401010020121 required.

(l.) Trust Building of SPV, SPV members who include key office -- Previous track record of bearers of some related industry association co-operative initiatives have already taken the lead to pursue several 36

Description Proposed by Implementation Agency (IA) Comments by Cluster Division pursued by SPV members joint and co-operative initiatives. need to be highlighted with support documentation. (m.) Technical Institution CAPEXIL, Institute of Wood Science and -- Technology, Bangalore and ITI, Kozhikode. (n.) CFC may be utilised - Document by SPV members as also required. others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity.

(o) (a) Power requirement for 450 KVA -- commercial/domestic purpose (b) Water 900 liters / day -- (c) Gas/Oil/Other About 75 liters/ months -- Utilities

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency Kerala Bureau of Industrial Promotion As per MSE-CDP (K-BIP), Thiruvananthapuram. guidelines. (b.) Fund receiving Agency Kerala Bureau of Industrial Promotion -- (K-BIP), Thiruvananthapuram. (c.) Implementation Period 12 months 24 Months from date of final approval. (d.) Appraisal of DPR and - Required prior to final main Recommendations approval. (e.) Comments of Technical Technical Division of this Office recommended the proposal for Division in-principle approval subject to clearance from Technical Committee. (f.) Approval of Technical Technical Committee during its 59th meeting of held on 31.07.18, Committee agreed to the views of Technical Division and recommended the proposal to place before Steering Committee.

(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP. Development Division: (h.) Working capital(In- Total Working Capital requirement is Rs. -- principle sanction of loan 12.70 lakh, SPV applied for the Bank loan from a bank, if applicable of Rs. 9.52 lakh as working capital after arrangement made) In principle sanction.

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 23.79% As per MSE-CDP guidelines. (b.) IRR, Payback period Over 34.35% (project viable) -- 3 year and 5 month with Grant-in-aid assistance from GoI. (c.) DSCR N/A -- (d.) Return on Capital 28.06% (project viable) -- 37

Description Proposed by Implementation Agency Comments by (IA) Cluster Division employed (ROCE) (e.) NPV NPV is positive and high (Rs.1769.03 -- lakh) at a conservative project life is 10 years. (f.) DER N/A -- (g.) Sensitivity Analysis Yes, the figures are positive as required -- by guidelines a) IRR- 34.34% b) NPV - Positive c)Breakeven Point – 23.79% d)ROCE – 28.06% (h.) Status of CFCs approved 12 CFCs have been approved in the State. -- in the State 8 Nos of CFCs have been operationalised and 4 CFCs are ongoing.

6. Proposed project cost: (Rs. in lakh) S. No. Particulars Total Cost 1 Land and its Development 76.35 2 Building and other Civil Constructions 264.70 3 Plant & Machinery(including electrification) 1039.00 4 Misc. fixed assets 7.00 5 Preliminary & Pre-operative expenses, maximum 2% of project cost 17.00 6 Contingency (2% building and 5% on plant and machinery) 29.95 7 Margin money for Working Capital 12.70 Total Project Cost 1446.70

7. Proposed means of finance : (Rs. in lakh) S. No. Particulars %age Amount (i) SPV contribution 10.00 144.67 (ii) Grant-in-aid from Govt. of India 70.00 1012.69 (iii) Grant-in-aid from Govt. of Kerala 20.00 289.34 (iv) Total 100.00 1446.70

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description Qty. A Design and Development Facility 1. Wood carving Designing software inbuilt IMAC system. 1 2. System with Furniture Designing Software 1 3. Digital Press Machine with Plotter 1 4. Mood Board, Story Board, Illustrative Board Equipment 1 5. Timber Moisture Tester 1 6. Timber Morphology Testing Machine 1 7. Furniture Performance Testing Equipment 1 8. Eco Polish Chemicals Testing Equipment 1 9. Other Testing Accessories like relative humidity meter, breaker vessels, 1 Burners Assorted. B Value Adding Facility

S. No. Description Qty. 1. Automatic vertical bandsaw (wheel dia 42”or 48”) 1 2. Band re saw vertical manual 30” or 36” 1 3. Radial arm saw 1 4. High speed double surfase planner 24 spiral type spindle 1 5. CNC copy band saw (wheel dia 18”) 1 6. Heavy duty automatic copy shaper double cutter head & single sanding unit 1 7. 4 sides sanding machine for curved profile sander 1 8. Precision sliding table saw 1 9. CNC Ocsilating double end tenoner 1 10 CNC Ocsilating Mortiser 1 11 CNC router machine 5 axis 1 12. CNC auto copying turning lathe centauro (7 foot length). 1 13. Hudrolic semi automatic wind type clamp carrier 1 14. Roundrod milling machine 1 15. Dual milling machine 1 16. Dual cross cut & chambring machine 1 17. Profile grinder / universal tool grinder 1 18. Bandsaw blade grinder 1 19. Bench drilling machine 25 mm 1 20. Double ended bench grinder 1 21. Bandsaw joiner 22. Vacuam pressure impregnation treatment machine (250 cft) trolly 3 nos. 1 C Furniture Sampling Facility 1. Zigzag splicer (vineer stiching machine) 1 2. Hydrolic vineer packgullotine (vineer cutting machine) 1 3. Glue spreader machine size 56 ?(top pressure roller) 1 4. Panel sizing cutter (beam saw) 4 sheet 75 mm 1 5. Hydrolic hot press size 8x4 120 ton capacity (2 board pressing) 1 6. Hydrolically operated single day light cold press 1 7. Automatic edge bander with pre milling and corner trimming 1 8. Manual edge banding machine 1 9. Auto wide belt planer sander (spiral type spindle) 1 D Ultra Modern Polishing Booth 1. Auto spraying 1 2. Water curtain (water wall) 1 3. In built dust extractor 1 4. Dryer system 1 39

S. No. Description Qty. E Product Display and Marketing 1. Online work station for marketing 1 2. Dummy display racks, mannequins 1 3. Project Screener, Systems with software 1 F Supporting Equipment 1. Generator set 500 KVA 1 2. Centralized dust collection system 1 3. Compressor (100 hp) with air dryer 1 4. Timber silan drayer capacity 1000 cft with boiler & chimminy 8 5. Distribution Transformer - 6. Control Panels – 7. UPS -

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) Registered land documents in the name of SPV (if land is on lease basis, registered lease deed for a minimum period of 30 years). (iii) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (iv) Commitment letter from SPV members to utilize at least 60 percent of installed capacity. (v) NOC from State Pollution Control Board. (vi) Certificate from State Government regarding compliance of GFR/CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common Facility Centre (CFC) in Furniture Industry Cluster, Mandankavu, Kozhikode, Kerala.

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Agenda No.48.3.7: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Auto and Engineering Cluster, Nagpur, Maharashtra.

Background

(i) The proposal received from Directorate of Industries, Government of Maharashtra vide online application vide ref. No. 13149 dated 08.06.18, which was recommended by MSME-DI, Nagpur. (ii) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded vide letter dated 21.04.16. (iii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Auto and Engineering Cluster District : Nagpur Location of Cluster : Hingna MIDC, Nagpur Main Product : Automotive Components, CI Casting and Forging, Control Panels, Precision Machining and Sheet Metal Press Components No. of Enterprises including break Micro 573 up (Micro, Small, Medium) : Small 143

Total 716 Turnover(Rs in Crore) for the last Year Amount five years : 2012-13 977 2013-14 1051 2014-15 1130 2015-16 1215 2016-17 1307

Exports(Rs in Crore) for the last Year Amount five years : 2012-13 2.85 2013-14 2.94 2014-15 3.02 2015-16 3.12 2016-17 3.22

Employment in Cluster : Direct employment: 9776 Indirect employment: 23660 Women: 313 Technology Details : The technologies used by most of the micro units are conventional, the small size units have installed some of the advance CNC based Machine tools. The technology employed in the process of designing the system particularly in casting, forging and fabrication units are conventional and old age. The Machining units are employing conventional Machine tools as well as CNC based Machine Tools. The testing facilities are locally available in MIDC Industries Association, Hingna, Nagpur. The advance tool room facilities are either not available at Nagpur or of small capacities mainly used for individual consumption by units. Whether DS Conducted : Yes Main findings of DSR : Inadequate tool room and design facilities, advance testing 41

facilities at affordable rates, Training needs to fulfill skilled manpower requirement. Raw material bank to procure raw material in bulk and also to fulfill the timely requirement of MSEs to cater to OEMS with cost competitive rates and avoid unwanted inventory in the form of raw material. Main Problems of Cluster : 1) No advance tool room activities in the proximity of the cluster. 2)No advance testing facilities 3)No multi skill training facilities 4) No bulk purchases arrangements exists to meet the raw material requirements. Other Information : N/A

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC In absence of Inadequate tool room and - design facilities, advance testing facilities at affordable rates, Training needs to fulfill skilled manpower requirement. Raw material bank to procure raw material in bulk, at present there is no common facility center to offer services to the MSEs to meet the challenges of regular cost effectiveness on account of peer pressure from OEMs. The number of MSEs can avail services from CFC to strengthen their value chain analysis and deliver products at competitive rates. (b.) Location of CFC MIDC, Hingna, Nagpur % age of units in radius of 68 - 5km % age of units in radius of 32 - 10km (c.) Land for CFC i. Whether land acquired No, comfort letter has been obtained from Registered land MIDC documents in ii. Title is in name of NA the name of SPV is iii. Valuation and its basis NA required. iv. Land is sufficient The offered land is sufficient to set up CFC. (If land is on lease basis, v. Change of land use NA registered lease vi. If on lease, duration of NA deed for lease minimum 30 years is vii Whether lease is legally NA required). tenable (d.) Total Building area(sq ft) Proposed 15300 sq ft - (e.) Rate of construction of Approximately INR 109.30 lakhs - building (f.) Main Facility Proposed  Common Processing Centre -  CAD / CAM Design Centre  Training Centre (g.) Prod capacity of CFC Based on 300 working days calculated - machinery utilisation 70% for common machining and tooling center (h.) Major Outputs/ Deliverables Expected outcome after setting up of CFC Tangible of CFC, Projected performance would be in the range of 25 to 30% increase outcomes like of the cluster after proposed in domestic sales and exports would reach 8 number of 42

Description Proposed by Implementation Agency (IA) Comments by Cluster Division intervention (in terms of to 10% hike and in terms of direct units, turnover, production, export/ domestic employment the same could be anticipated in export, sales and direct /indirect the range of 12 to 16% overall, and indirect employment etc. employment, etc.) employment would be increased by 20 to is required. 22%. (i.) Pollution clearance required NA - or not (j.) Man Power in CFC 36 based on the 70% machine utilisation in - subsequent years could be seen rise by 20 to 25%. (k.) Revenue generation 1. Year 1 at 70% capacity- INR 514.5 lakhs - mechanism for sustainability of 2. Year 2 at 80% capacity- INR 617.40 lakhs assets(service/user charges to be 3. Year 3 at 85% capacity- INR 688.79 lakhs levied, any other-to be specified) 4. Year 4 at 85% capacity- INR 723.23 lakhs 5. Year 5 at 85% capacity- INR 759.39 lakhs

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Nagpur Auto and Engineering Cluster. N.S. - Engineering Industries, Plot no C-12, MIDC Hingna Road, Nagpur- 40016. (b.) Nature of SPV(company or Private Limited Company - Society or Trust) (c.) Name of the state Govt. and Representative of the District Industries - MSME officials in SPV Center Nagpur and MSME - DI Nagpur official will be nominated after tripartite agreement. (d.) Date of formation of SPV 09 Jan 2013 - (e.) Number of Members 25 - (f.) Bye Laws or MA and AOA Yes - submitted (g.) Authorized Share Capital INR 10 lakhs - (h.) Paid up capital INR 2 lakhs - (i.) Shareholding Pattern Provided, attached at Annexure IX of DPR Received (j.) Commitment letter for Provided, attached at Annexure XII of DPR Received contribution (k.) SPV specific A/c SBI Current Account no- 32774390252 - IFSC code- SBIN0001632 Branch- Hingna Industrial Estate (l.) Trust Building of SPV, 1. Exposure visit to Auto Cluster Pune 2. - Previous track record of co- Exposure visit to Nashik Engineering operative initiatives pursued by Cluster 3. Workshop on bulk purchasing of SPV members need to be raw material scheme by NSIC 4. Workshop highlighted with support on labour laws, issues and upcoming documentation reforms and its impact on MSME's (m.) Technical Institution 1.Mahindra & Mahindra 2. Government of - Polytechnic 3. Industrial Training Institute, Saoner 4. Shri. Ramdeobaba College of Engineering and Management, Nagpur. (n.) CFC may be utilised by SPV Provided, attached at Annexure XII (ii) of Received members as also others in a DPR 43

Description Proposed by Implementation Agency (IA) Comments by Cluster Division cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 138.258 KW - commercial/domestic purpose (b) Water INR 0.60 lakhs - (c) Gas/Oil/Other Utilities INR 10.65 lakhs -

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency MIDC, Nagpur Maharashtra Development Commissioner (Industries), Govt. of Maharashtra (b.) Fund receiving Agency MIDC, Nagpur Maharashtra Maharashtra Industrial Development Corporation (MIDC), Mumbai (c.) Implementation Period 2 years As per MSE-CDP guidelines. (d.) Appraisal of DPR and main After according In-principle approval from SIDBI appraisal Recommendations GoI DPR will be submitted to SIDBI for required. appraisal. (e.) Comments of Technical - - Division (f.) Approval of Technical - Recommended by Committee Technical Committee. (g.) Working capital(In-principle NA - sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 10.45 % - (b.) IRR, Payback period 14 % - (c.) DSCR 12.61 - (d.) Return on Capital 35.47 % - employed (ROCE) (e.) NPV INR 409.35 lakhs - (f.) Sensitivity Analysis By dropping 5% in user charges : BEA - 11.04% ROCE 29.94% IRR 13% NPV INR 247.53 Lakhs

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Cost 1 Land and its Development 120.00 2 Building and other Civil Constructions 109.35 3 Plant & Machinery(including electrification) 1351.81 4 Misc. fixed assets 25.03 5 Preliminary expenses 7.00 6 Pre-operative expenses, maximum 2% of project cost 27.81 7 Contingency (2% building and 5% on plant and machinery) 41.15 8 Margin money for Working Capital 1.99 Total Project Cost 1684.14

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars Percentage (%) Amount 1 Grant-in-aid from Govt. of India 80.16 1350.00 2 SPV contribution 10.00 168.41 3 Bank Loan/others 9.84 165.73 Total 100.00 1684.14

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost Requirement (HP/KW) 1. CNC Turn mill Centre(TMC250/1000) 1 18KW 84.12 2. 5-Axis High performance VMC 1 35KW 379.70 3. 3D CMM 1 5.97KW 75.35 4. Profile Projector 1 2KW 21.16 5. Wire Cut 1 10.8KW 138.36 6. Surface Grinding Machine 1 - 54.00 7. Semi-Automatic Double Column Band Saw 1 1.492KW 16.18 Machine 8. Laser Cutting Machine 1 15 KW 335.75 9. CNC Synchro Hydraulic Press Brake 1 20 HP 63.66 10. Spark Erosion Machine 1 5.6KW 16.07 11. Cylindrical Grinding Machine 1 4 HP 72.49 12. Pallet Truck - Hydraulic 1 - 4.00 13. Electrical Transformer & Control Panel, Main 0 - 23.40 Cabling etc. 14. Trimos/Digital height 1 - 5.17 15. CAD, CAM centre for 20 persons 0 - 66.93 16. Over head crane 1 10KW 18.46 17. Furniture 0 - 16.20 18. Desktop computers and printers 10 1.492KW 5.58 19. Air Conditioners 8 5KW 3.66 Total 1400.24* 45

* Central Sales Tax, packing and forwarding charges, transit insurance and freight to cost are added in the cost of Machineries.

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) SIDBI Appraisal Report. (iii) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (iv) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (v) Commitment letter from SPV members to utilize at least 60 percent of installed capacity. (vi) Certificate from State Government for compliance of GFR/ CVC guidelines. (vii) Tangible outcomes such as number of units, turnover, export, employment etc. in the format provided.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Auto and Engineering Cluster, Nagpur, Maharashtra.

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Agenda No.48.3.8: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Silver Ornament Cluster, Hupari, Kolhapur, Maharashtra. Background

(i) MSME-DI, Mumbai forwarded online application vide application ref. No. 7475 dated 31.08.17. (ii) Clarification to the queries raised by Technical Division (TD) was received from Govt. of Maharashtra on 16.03.18 and same was forwarded to TD on 19.03.18. (iii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Silver Ornament Cluster District : Kolhapur

Location of Cluster : Hupari Lok Sabha Constituency : Hatkanangle Main Product : All Types of Silver Ornaments & Articles and Leg Anklets

No. of Enterprises including break Micro : 201 Small : 0 Medium : 0 up (Micro, Small, Medium) :

Turnover(Rs in Crore) for the last Year Amount five years : 2011-2012 603.00 2012-2013 685.91 2013-2014 792.44 2014-2015 907.51 2015-2016 1040.17 Exports(Rs in Crore) for the last Nil five years : Employment in Cluster : Total Employment in Cluster - 5354 (Direct - 354, Indirect - 5000) Technology Details : Setup for: 1. Leg Anklet (Payal ) making 2. Silver Refinery 3. Sliver Strip & Wire Making 4. Silver Jewellery Making (Casting) 5. Silver Purity Testing & Hall-marking Centre 6 Silver Chain Making 7. Design Centre Unit 8. Product diversification Unit 9. Training Centre Unit 10. Raw Material Banking Unit Whether DS Conducted : yes Main findings of DSR : 1) New Technology required 2) Infrastructure Development 3) Training and skill enhancement required Main Problems of Cluster : 1. Lack of modern technology: 2. Poor product Design: 4. Product Diversification: 3. Insufficient Marketing facility Other Information : Product Diversification: It is noted that there is tremendous scope for silver product diversification.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC Cluster is producing more than 500 types - 47

Description Proposed by Implementation Agency Comments by (IA) Cluster Division of Ornaments of Silver which has good market in India. some of the famous products of Hupari town are : 1) Silver Jewelry 2) Silver Utensils 3) Silver Pooja- Articles an intervention through the special purpose vehicle (SPV) under MSE - CDP program could provide sufficient base for the impetus of economy of town. It is noted that there is tremendous scope for silver product diversification. The world is changing where different varieties of silver products are required. The processes like mold making, Chain making, assembling and soldering and polishing are done manually by the craftsmen. However, at present many modern machines are available for reducing manual labour in this cycle of production. As the financial capabilities of craftsmen in Hupari are low, they are not able to purchase these machines for improving product and production. (b.) Location of CFC Silver Ornament Cluster - Hupari A/P: - Hupari Tal. : Hatkanangale, Dist. : Kolhapur Pincode : 416 203 (Maharashtra) % age of units in radius of 5km 100 - % age of units in radius of 0 - 10km (c.) Land for CFC i. Whether land acquired A/P : Hupari. Registered land ii. Title is in name of Hupari Silver Ornament Cluster, Hupari documents in the name of SPV is iii. Valuation and its basis Land on lease required. iv. Land is sufficient Yes (If land is on lease basis, v. Change of land use No. registered lease vi. If on lease, duration of lease 31 April 2022 deed for minimum 30 vii Whether lease is legally Notary years is tenable required). (d.) Total Building area(sq ft) 10,000 Sq.Ft. - (e.) Rate of construction of Land and building is given on lease. - building (f.) Main Facility Proposed  Silver Jewellery Design Centre -  Common Processing Centre  Testing & Hall – Mark Facility  Raw Material Bank (g.) Prod capacity of CFC 60-80% (1500 To 3000 Kgs) (h.) Major Outputs/Deliverables -- Tangible of CFC, Projected performance of outcomes like the cluster after proposed number of units, intervention (in terms of turnover, export, production, export/domestic sales employment etc. and direct/indirect employment, is required. etc.) (i.) Pollution clearance required or Pollution clearance is not Required. - not 48

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (j.) Man Power in CFC 66 - (k.) Revenue generation 1) Training Rs.20,000/- per year. - mechanism for sustainability of 2) Design center Rs. 36.00/- Lakhs in one assets (service/user charges to be year during 100% (percentage) utilization. levied, any other-to be specified) Assumptions: a) The project will work for 300 days and 65 days will be considered as holidays. b) It is a peculiar nature service rendering SPV so, one shift i.e. General shift is advisable. c) Figures are rounded off to the nearest thousand.

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Silver Ornament Cluster, Hupari. "(Dist. - Kolhapur) Special Purpose Vehicle (SPV) Name & Address: "M/s Hupari Silver Ornament Cluster, Hupari." Address - c/o - Chandi Karkhandar Association, Hupari. Main Road, Chatrapati Shivaji Chowk, A/P: Hupari - 416 203 Tal. : Hatkanangale, Dist. : Kolhapur (Maharashtra) (b.) Nature of SPV(company or "M/s Hupari Silver Ornament Cluster, - Society or Trust) Hupari" (CIN : U27310PN2014NPL151933 Dt.25th July 2014 ) has regd. itself under Company Act 1956 (25) (1) as a Company. (c.) Name of the state Govt. and (1) The Development Commissioner - MSME officials in SPV (Industries) Director of Industries, Govt. of Maharashtra, New Administrative Building, Madam Cama Road, Opp. Mantralaya, Mumbai - 400 032 (2) The Director, MSME - Development Institute, Kurla- Andheri Road, Sakinaka, Mumbai - 400 072 (d.) Date of formation of SPV 25th July 2014 - (e.) Number of Members Number of Members = 201 - (f.) Bye Laws or MA and AOA Yes - submitted (g.) Authorized Share Capital Authorized Share Capital = Rs.5 Lacs only. - (h.) Paid up capital Nil - (i.) Shareholding Pattern The Authorized Share Capital of the Share holding Company is Rs.5,00,000/- (Rupees Five pattern of SPV Lacs Only) divided into 50,000 (Fifty members is Thousand) Equity Share of Rs.10/- required. (Rupees Ten Only) each. (j.) Commitment letter for Submitted with DPR on Page No.158 Commitment contribution Annex No.13 letter from SPV contribution is required. (k.) SPV specific A/c Bank Name: Bank Of INDIA Branch: - Hupari. A/C Name: Hupari Silver

Description Proposed by Implementation Agency Comments by (IA) Cluster Division Ornament Cluster, Hupari. Current A/C No. : 092020110000559 (l.) Trust Building of SPV, 1) In 1962 - One acre land purchased for - Previous track record of co- members CFC use. 2) In 1969 - Land about operative initiatives pursued by 4000 Sq.Ft. purchased for Chandi SPV members need to be Association Office Building. 3) In 1972 - highlighted with support Inauguration of Office Building. 4) In 1975 documentation - Establishment of Shree Yashwant Co- Operative Industrial Estate Society in Hupari. 5) In 1977 - Organization of All India Jewelers Conference. 6) In 1981 - Government Silver Refinery Testing Center started in Hupari. 7) In 1987 - Association Identity-Card issued to Members. 8) In 1995 - Maharashtra State Saraf Mahamandal and Chambers of Commerce& Industries membership received by Association. 9) In 2001 - About 200 Acres of land sanctioned by M.I.D.C. for Silver Ornament Industries known as "Silver Zone - Hupari ". 10) In 2004 - Huparibhushan Y.R. Naik Jewelry Design Research & Education Institute Established. 11) In 2007 - Submitted Proposal for "Silver Cluster - Hupari". 12) In 2011 - Soft-Intervention Programme of "Silver Cluster - Hupari" Organized. (m.) Technical Institution 1) National Institute of Fashion - Technology (N.I.F.T.) - Mumbai. 2) Jems & Jewelry Export Promotion Council - Mumbai. (n.) CFC may be utilised by SPV Submitted with DPR on Page No.158 Commitment members as also others in a Annex No.13 letter from SPV cluster. However, evidence should members to be furnished with regard to SPV utilize at least 60 member ability to utilise at least percent of 60 percent of installed capacity. installed capacity. (o.) (a) Power requirement for Total = 90.00 KW. Per Month. - commercial/domestic purpose (b) Water Total = 75,000 Ltrs. Per Day - (c) Gas/Oil/Other Utilities Nil -

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency 1) The General Manager, District Development Industries Center, Kolhapur 2) S.P.V. Commissioner (Industries), Govt. of Maharashtra (b.) Fund receiving Agency S.P.V. Maharashtra Industrial Development Corporation (MIDC), Mumbai 50

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (c.) Implementation Period 3 Years form finally Sanction. As per MSE-CDP guidelines. (d.) Appraisal of DPR and main Appraisal of DPR - Dt. 17/11/2012 Main SIDBI appraisal Recommendations Recommendation: Old SPV is regd. under is required. trust Act, so this is not allowed for this project. so he recommended to established New SPV under Company Act. (e.) Approval of Technical The work of Approval of the Technical Recommended by Committee Committee is currently underway. Technical Committee. (f.) Comments of Cluster The Comments of Cluster Development - Development Division: Division is currently underway. (g.) Working capital(In-principle . The working capital required for the CFC Letter is sanction of loan from a bank ,if at the full capacity will be Rs.170.56 required. applicable arrangement made) Lakhs. Moreover the working capital for one month in the 100% utilization will be 157.83/- 12 i.e. Rs.14.21/- Lakhs. Furthermore, the working capitalfor the 85% utilization will be Rs.144.98/- Lakhs annually and Rs.12.08/- Lakhs monthly working capital for 80% utilization will be Rs.141.40/- Lakhs annually and 11.76/- Lakhs Rs. Monthly. Working Capital Chart is given in DPR page no.031.

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 3.80 % - (b.) IRR, Payback period 32.88 % (after tax) and 45.20% (before tax) - (c.) DSCR 216.54 - (d.) Return on Capital employed No Calculated. This is below (ROCE) the desirable figure of 25% mentioned by MSE-CDP Guidelines. (e.) NPV 27.97% - (f.) DER No Calculated. - (g.) Sensitivity Analysis Criteria DSCR ROI N.P. BEP Cash IRR - Ratio As % of BEP after installed Sales tax capacity 5% 110.31 36.19 24.18 3.60 0.04 31.23 Decrease in revenue Generation 5% 27.98 39.68 26.57 3.61 0.04 31.23 increase in expenses Without 216.54 38.48 27.87 3.80 0.04 32.88 any change in above

parameters

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (h.) Status of CFCs approved in Not available data of Status of CFCs - the State approved in the State

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Total Cost 1. Land and its Development 0.00 2. Building and other Civil Constructions 0.00 3. Plant & Machinery (including electrification) 1345.00 4. Misc. fixed assets 20.00 5. Preliminary & Pre-operative expenses, maximum 2% of project cost 40.00 6. Contingency (2% building and 5% on plant and machinery) 70.00 7. Margin money for Working Capital 25.00 Total Project Cost 1500.00

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars %age Amount 1 Grant-in-aid from Govt. of India 90.00 1350.00 2 SPV contribution 10.00 150.00

Total 100.00 1500.00

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost Requirement (HP/KW) 1. Leg Anklet (Payal) Making Setup 1 0 5878.00 2. Silver Refinery Setup 1 0 8250.00 3. Silver Strip & Wire Making Unit Setup 1 0 10123.00 4. Silver Jewellery Making (Casting) Setup 1 0 10474.30 5. Silver Purity Testing & Hall-Marking Center Setup 1 0 15866.02 6. Chain Making Machine Setup 1 0 54370.00 7. Design Center (Cad/Cam) Unit 1 0 12478.75 8. Product Diverfication Unit (For Other Silver Product 1 0 6610.56 & Articals Manufacturing) 9. Traning Center Unit 1 0 419.50 10. Raw - Material Banking Unit 1 0 10000.00 Total 1344.70

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) Tangible outcomes such as number of units, turnover, export, employment etc. in the format provided. (iii) Details of SPV members & their shareholding pattern. (iv) Commitment letter from State Government / SPV to meet the cost escalation, if any, over and above the approved project cost. (v) SIDBI Appraisal Report. (vi) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vii) Commitment letter from SPV members to utilize at least 60 percent of installed capacity. (viii) Certificate from State Government for compliance of GFR/ CVC guidelines. (ix) Certificate from State Pollution Control Board is required.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Silver Ornament Cluster, Hupari, Kolhapur, Maharashtra.

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Agenda No.48.3.9: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Tiny General Engineering & Allied Industries Cluster, Aurangabad, Maharashtra. Background:

(i) Proposal received on 30.12.16 and the same was forwarded to Technical Division (TD) on 19.01.17 and State Govt. was requested to forward minutes of SLSC meeting. (ii) State Government vide their letter dated 21.01.17, forwarded Minutes of Meeting of SLSC. (iii) The queries raised by TD vide their letter dated 15.02.17 were forwarded to IA seeking their clarification on 06.03.17. (iv) Clarification received from State Govt. on 23.06.17 and the same was forwarded to TD on 04.07.17. (v) The proposal was deliberated during the 53rd Technical Committee meeting held on 31.07.17 and committee advised to submit revised DPR along with specification of machinery & equipment and should be finalised in consultation with IGTR, Aurangabad by 31.08.17. (vi) Revised DPR received on 19.12.17 & same was forwarded to TD on 22.12.17. (vii) 57th Technical Committee meeting held on 04.04.18, decided that revised DPR should be examined afresh by Technical Division for its recommendations. (viii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Tiny General Engineering & Allied Industries Cluster District : Aurangabad Location of Cluster : Aurangabad Lok Sabha Constituency : Aurangabad Main Product : Al, Brass, Cu Components, Capital Equipment Parts & Sapres, Casting & forged Components, Gauges, Machine & Fabricated Component, Plastic Moulded Components, Tool Room Spares and Wooden Patterns No. of Enterprises including break S. No. Description Nos. up (Micro, Small, Medium) : 1 Micro 55 2 Small 6

Total 61 Turnover(Rs in Crore) for the last S. No. Year Amount five years : 1 2011-2012 15.94 2 2012-2013 16.015 3 2013-2014 17.06 4 2014-2015 18.22 5 2015-2016 19.56

Total 86.795 Exports(Rs in lakh) for the last S. No. Year Amount five years : 1 2010-11 1.507 2 2011-12 15.07 3 2012-13 15.09 4 2013-14 17.35

5 2014-15 21.68 Employment in Cluster : 341 Nos Technology Details : Water Jet Cutting Machine, CNC Machines, Wood Router , 54

Casting Foundry Whether DS Conducted : Yes Main findings of DSR : Need of Semi Finish Component manufacturing Facility Lacking in new Technology, Design Centre, Marketing assistance , Training Centre Main Problems of Cluster : High End Technology required for competitive manufacturing in terms of cost quality & delivery facility are not available. All micro entrepreneurs in a cluster. Unable to purchase high end machines individually Other Information : All Micro units of cluster are already situated in one Industrial Co operative Society Working on cluster concept since 1997

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC CFC facilities like inspection labortary & - Tool Room facilities provided would greatly benefit the engineering industries in Marathwada region in general in particular Aurangabad region to enhance quality of products during development and machining. availability of specialized and modern equipment would increase efficiency and productivity of the units on organized platform (b.) Location of CFC Chikalthana MIDC , Aurangabad - Percentage of units in radius of 100 - 5km Percentage of units in radius of 100 - 10km (c.) Land for CFC i. Whether land acquired Offer letter received from MIDC for 8000 Lease deed sq.mtr of land. 25% Earnest Money paid to registered in the MIDC name of SPV. ii. Title is in name of Tiny General Engineering and Allied - Industry Cluster iii. Valuation and its basis MIDC Rate (as per state corporation - guidelines) iv. Land is sufficient yes - v. Change of land use MIDC, Industrial Land - vi. If on lease, duration of 95 Years - lease vii Whether lease is legally Yes - tenable (d.) Total Building area(sq ft) 36234.83 - (e.) Rate of construction of 1357.8 - building (f.) Main Facility Proposed 2 Nos Industrial Shed, Administrative - Building, Training Centre , Design Centre (g.) Prod capacity of CFC IN RS. 13.64 CR / YEAR - (h.) Major Outputs / Deliverables Particulars Before After - of CFC, Projected performance Turnover 15.89 50.00 of the cluster after proposed (Rs. in crore) 55

Description Proposed by Implementation Agency Comments by (IA) Cluster Division

intervention (in terms of Employment 341 800 production, export/domestic sales and direct/indirect employment, etc.) (i.) Pollution clearance required Yes - or not (j.) Man Power in CFC 47 Nos - (k.) Revenue generation - mechanism for sustainability of 1st year-283, 2nd year 565, 3rd year 919 - assets(service/user charges to be levied, any other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Tiny General Engineering and Allied - Industries Cluster PVT LTD E-52 MIDC Chikalthana (b.) Nature of SPV(company or PVT. LTD. Document Society or Trust) required. (c.) Name of the state Govt. and Representatives of DC industries of GoM, - MSME officials in SPV representatives of director MSME DI Mumbai of GOI (d.) Date of formation of SPV 07/09/2015 - (e.) Number of Members 61 Nos. - (f.) Bye Laws or MoA and AoA Yes - submitted (g.) Authorized Share Capital 1 Lakh - (h.) Paid up capital 1 Lakh as on 31/03/2017 - (i.) Shareholding Pattern Not more than 10% per unit member Provided (j.) Commitment letter for Yes Provided contribution (k.) SPV specific A/c A/C No. 60072987222 (Bank of - Maharashtra) (l.) Trust Building of SPV, Soft Innervations already completed. Tinny - Previous track record of co- co operative industrial estate already operative initiatives pursued by establish in 1997. SPV members need to be highlighted with support documentation (m.) Technical Institution Govt. Engineering College Aurangabad - (n.) CFC may be utilised by SPV - Provided members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 500 KW - 56

Description Proposed by Implementation Agency Comments by (IA) Cluster Division commercial/domestic purpose (b) Water 5 Cum /Day - (c) Gas/Oil/Other Utilities NA -

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency MIDC, Maharashtra state -

(b.) Fund receiving Agency MIDC, Maharashtra state - (c.) Implementation Period 2 yr - (d.) Appraisal of DPR and main SIDBI appraisal of DPR after in principal SIDBI Appraisal Recommendations approval will be sought Report is required. (e.) Comments of Technical - Recommended the Division proposal. (f.) Approval of Technical - Recommended the Committee proposal. (g.) Working capital(In- Bank of Maharashtra has principally agreed Letter regarding principle sanction of loan from a to extend credit working capital working capital. bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 1st year 64.96% 2nd year 46.45% 3rd year - 27.27% 4th year 21.15% 5th year 19.02% 6th year 17.17% 7th year 16.11% 8th year 15.12% 9th year 14.21% 10th year 13.36% (b.) IRR, Payback period 10.39% calculated for 10 years - (c.) DSCR 1st year 1.34 2nd year 1.44 3rd year 2.28 4th - year 2.83 5th year 2.85 6th year onward not applicable (d.) Return on Capital 1st year 1.81% 2nd year 3.63% 3rd year As per MSE- employed (ROCE) 9.34% 4th year 12.92% 5th year 12.91% 6th CDP guidelines, year 13.15% 7th year 12.15% 8th year desirable should 11.30% 9th year 10.59% 10th year 9.97% be 25%. (e.) NPV assuming rate of interest 10% npv for the - period of 10 year is 42.81 lakhs (f.) DER 1st year 11.55 2nd year 8.56 3rd year 4.87 4th - year 3.14 5th year 2.36 6th year 2.00 7th year 1.78 8th year 1.64 9th year 1.53 10th year 1.46 (g.) Sensitivity Analysis if sale value decreasing by 3% 1st year 0.91 - 2nd year 0.83 3rd year 0.75 4th year 0.68 5th year 0.62 6th year 0.56 7th year 0.51 8th year 0.47 9th year 0.42 10th year 0.39 (h.) Status of CFCs approved in State government approved and sent the - the State recommendation letter to MSME 57

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Total Cost 1 Land and its Development 88.00 2 Building and other Civil Constructions 482.94 3 Plant & Machinery(including electrification) 1316.56 4 Misc. fixed assets 30.00 5 Preliminary & Pre-operative expenses, maximum 2% of project cost 29.95 6 Contingency (2% building and 5% on plant and machinery) 79.16 7 Margin money for Working Capital 18.27 Total Project Cost 2044.88

7. Proposed Means of Finance as follows: (Rs. in lakh) S. No. Particulars %age Amount 1 Grant-in-aid from Govt. of India 58.69 1200.00 2 Grant-in-aid from Govt. of Maharashtra 7.33 150.00 3 SPV contribution 7.33 150.00 4 Bank Loan/others 26.65 544.88 Total 100.00 2044.88

8. Plant and machinery (with Brief Specification) – (Rs. in lakh) S. No. Description No. Power Requirement Cost (HP/KW) 1. Band Saw 1 5 8.10 2. Wire Cut 1 10 54.00 3. Water Jet 1 25 71.34 4. 3 Axis VMC 1 5 147.00 5. 3 Axis VMC 800 x 400 mm 3 45 129.00 6. Radial Drill 65 mm 1 5 21.08 7. CNC Lathe 2.5 mtr 1 5 61.000 8. CNC Lathe Chuck Dia 600 1 20 40.00 9. Turn Mill CNC Chuck Dia 250 mm Dia 1 20 68.00

10. Surface Grinder 1 20 39.37 11. Cylindrical Grinding 1 15 40.00 12. Wood Ingraving Machine 1 15 20.14 13. Shearing Machine 1 5 10.00 14. CNC Bending 1 20 16.00 15. Mig Welding Unit 1 10 0.68 16. Tig Welding 1 5 0.74 17. Induction Furnance 150 kw 1 150 25.80 18. Forging Press 180o t 1 150 110.00 19. CNC Pipe Bending 50 mm dia 1 1 39.00 20. Compressor 30 hp 1 30 3.15 58

S. No. Description No. Power Requirement Cost (HP/KW) 21. Gen Set 2 50 28.50 22. Electrical Utility 1 5 30.00 23. Over Head Cranes 2 10 20.00 24. Design Centre Software 1 5 45.00 25. Testing and Measuring Lab Equipments 1 1 93.00 26. CNC Turret Punch Press 1 30 114.677 27. Peripheral Equipments-Tools 1 50 81.00 Total Project Cost 1316.58

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) Proof of SPV formation & shareholding pattern of SPV members. (iii) SIDBI Appraisal Report. (iv) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (v) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vi) Assurance from Bank for providing working capital loan to SPV. (vii) Certificate from State Government for compliance of GFR/ CVC guidelines. (viii) Certificate from State Pollution Control Board is required.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Tiny General Engineering & Allied Industries Cluster, Aurangabad, Maharashtra.

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Agenda No.48.3.10: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Kolhapuri Chappal Cluster, Kolhapur, Maharashtra. Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Maharashtra vide letter dated 25.06.16. (ii) MSME-DI, Mumbai forwarded online application vide ref. No. 7497 dated 11.09.17. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) The proposal for setting up of CFC in Kolhapuri Chappal Cluster, Kolhapur was discussed in detail. Technical Committee, agreed to the suggestion of Technical Division to reduce few machines, however, advised Technical Division to obtain the comments of CFTI, Agra on the list of Machinery & Equipment by 08.08.18. It was decided to deliberate the recommendations in next meeting, before recommending the proposal to place before Steering Committee. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Mumbai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (v) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal, subject to fulfilment of decisions taken during 59th TEAC, to place before Steering Committee for in-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Kolhapuri Chappal Cluster District : Kolhapur Location of Cluster : Kolhapur Lok Sabha Constituency : Kolhapur Main Product Kolhapuri Leather Chappal and Leather Products

No. of Enterprises including break Micro : 60 up (Micro, Small, Medium) : Turnover for the last five years Year Amount (Rs. in lakh): 2018-19 135475000 2019-20 158054000 2020-21 180634000 2021-22 180634000 2022-23 180634000

Exports for the last five years (Rs. Year Amount in lakh) : 2018-19 33868750 2019-20 39513500 2020-21 45158500

2021-22 45158500 2022-23 45158500

Employment in Cluster : 500 (Direct – 60 and Indirect – 440) Technology Details : Sant Rohidas Leather Industries & Charmakar Development Corporation Ltd; Mumbai Whether DS Conducted : DS Report under MSE-CDP prepared by MITCON Consultancy Services Ltd; PUNE - 411005 Main findings of DSR : The technology used for the production process is the mixture of Handmade and Machinery. The technology of many computerized machinery have been developed instead of obsolete machines used in the production & also high quality machines are available instead of many hand processing work. With the services of many modern machines of common production centre, the quality work of production can be enhanced & thus the quality of final product of the cluster can remain with the pace of modern Indian market & global market. It will directly uplift the knowledge of cluster members, which is very essential for the goal set by the cluster to develop at the high rate & to become the global hub in leather industry. Main Problems of Cluster : There is a total lack of facilities of technology up gradation in the cluster. Detailed GAP Analyses are enclosed. Other Information : Bag tanned leather used for Kolhapuri Chappal, will help to control body heat, blood pressure, burning of eyes. The bag tanned leather which is used in Kolhapuri Chappals, is skin friendly to every human being.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC The Diagnostic Study Report (DSR) -- discusses all in detail about need and collective approach of cluster entrepreneurs & an intervention collectively for the growth and development of cluster and to achieve the vision of the cluster. The Cluster is located in Kolhapur and many adjacent villages and investment in the business of all cluster members is less than Rs. 5 lakhs and all entrepreneurs belongs to Schedule Caste. So, This Cluster is of 100% Schedule Caste Members. Thus, according to the norms of MSME-CDP this cluster can be classified under the Cluster of Schedule Caste Micro and Village Entrepreneurs. Therefore, facilities for such classified cluster will be enjoyed by this Cluster. (b.) Location of CFC Gat No. 1205, Mouje : Vasagade, Taluka : -- Karveer, Dist : Kolhapur. (Maharashtra) PIN : 416119 % age of units in radius of 5km 30 -- % age of units in radius of 10km 60 -- (c.) Land for CFC i. Whether land acquired Yes Registered land

Description Proposed by Implementation Agency Comments by (IA) Cluster Division ii. Title is in name of Vishnu Ramchandra Pawar documents in the iii. Valuation and its basis Rs. 14,45,000/- as per Ready Recknor name of SPV in English version (If iv. Land is sufficient Yes land is on lease v. Change of land use No basis, registered lease deed for a vi. If on lease, duration of lease Lease hold land for fifteen years minimum period vii Whether lease is legally Yes of 30 years is tenable required).

(d.) Total Building area(sq ft) 16452 Sq. Ft. -- (e.) Rate of construction of Rs. 1644/- per Sq Ft. -- building (f.) Main Facility Proposed Production Bay (CFC) Training Centre, -- Administrative Office, Raw material & Finished Goods Stores etc. (g.) Prod capacity of CFC 4032000 pairs per annum -- (h.) Major Outputs/ Deliverables Production will increase by four times. 25 Tangible outcomes of CFC, Projected performance to 50% of the production will be exported. like number of of the cluster after proposed Direct Employment 500 and Indirect units, turnover, intervention (in terms of Employment 2000. export, production, export/ domestic employment etc. sales and direct/ indirect employment, etc.) (i.) Pollution clearance required Pollution clearance required Certificate from or not State Pollution Control Board is required. (j.) Man Power in CFC 59 persons -- (k.) Revenue generation Rs. 56/- per pair. -- mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified) (l.) In modern age, many new technologies -- based footwear designs are developing around the world, In the cluster of Kolhapuri Chappal, the foot-wares designs are made in traditionally inherited manner. The Endeavour for new innovation or developing of new design is mostly not made in the present cluster. The customer choices needed development of variety of designs. For that purpose there is need of infrastructure for developing new designs. There is totally lack of availability of such facility in the cluster, which is affecting to go in the Indian modern age market & also overseas market. Therefore, there is a need for common designing development centre in the cluster. This designing centre will also study about new leather products which can be produced by the cluster.

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Kolhapur Zilla Charmavastu Utpadak -- Kolhapuri Chappal Cluster Private Limited Address : C.S. No. 608/70, B-Ward, Salokhe Park, Kolhapur - 416012 (b.) Nature of SPV(company or The SPV Company incorporated under Received Society or Trust) Sec. 25 of the Companies Act; 1956 (c.) Name of the state Govt. and Government of Maharashtra. Director, Received MSME officials in SPV MSME - Development Institute, Kurla (d.) Date of formation of SPV 24/01/2014 -- (e.) Number of Members 60 Members -- (f.) Bye Laws or MA and AOA MA and AOA attached -- submitted (g.) Authorized Share Capital Rs. 1,00,000/- -- (h.) Paid up capital Rs. 1,00,000/- as on 31/03/2017 (i.) Shareholding Pattern Annex - IX attached Received (j.) Commitment letter for Commitment for necessary own Received contribution contribution attached.

(k.) SPV specific A/c A/c. No. 451501010035232 UNION Bank -- of India, IFSC: UBIN0545155 (l.) Trust Building of SPV, Audited Financial Statements for the year -- Previous track record of co- ended on 31/03/2016 attached. operative initiatives pursued by SPV members need to be highlighted with support documentation (m.) Technical Institution Shivaji University, Kolhapur Centrtal -- Leather Research Institute, Chennai (n.) CFC may be utilised by SPV Commitment for at least 70% utilzation of Received members as also others in a CFC attached. cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for Power requirement 50 HP -- commercial/domestic purpose (b) Water Available at Site -- (c) Gas/Oil/Other Utilities Available at Site --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency Kolhapur Zilla Charmavastu Utpadak Development Kolhapuri Chappal Cluster Private Limited Commissioner (Industries), Government of Maharashtra 63

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (b.) Fund receiving Agency Kolhapur Zilla Charmavastu Utpadak MIDC, Mumbai Kolhapuri Chappal Cluster Private Limited (c.) Implementation Period Six months from the date of receipt of As per MSE-CDP Funds from Central Government. guidelines. (d.) Appraisal of DPR and The Development Commissioner SIDBI appraisal is main Recommendations (Industries), Director of Industries, required. Maharashtra, Mumbai on 25/05/2016, recommended for Technical Approval. (e.) Comments of Technical DPR states that there will be a four - fold or -- Division 400% increase in production of the cluster after establishment of CFC. The reasons are furnished. (f.) Approval of Technical Approval of Technical Committee is Recommended by Committee awaited. Technical Committee. (h.) Working capital(In- Working Capital required is Rs. 60.00 -- principle sanction of loan from lakhs. Application for WC loan is to be a bank, if applicable made. arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 27.75 -- (b.) IRR, Payback period 28.40% 7 years -- (c.) DSCR 0 -- (d.) Return on Capital 28.40% -- employed (ROCE) (e.) NPV 32.77 -- (f.) DER 0 -- (g.) Sensitivity Analysis 0 --

7. Proposed Project Cost: (Rs. in Lakh) S. No. Particulars Cost (i) Land and its Development 0 (ii) Building and other Civil Constructions 270.43 (iii) Plant & Machinery (excluding electrification) 513.10 (iv) Misc. fixed assets 53.68 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 16.74 (vi) Contingency (2% building and 5% on plant and machinery) 0.0 (vii) Margin money for Working Capital 0.0 Total Project Cost 853.95

8. Proposed means of finance: (Rs. in lakh) S. No. Particulars Amount (i) Grant-in-aid from Govt. of India 583.518 (ii) SPV contribution 270.43 Total 853.948

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Particulars Quantity Unit cost Total Hydraulic Clicking machine, pressure 20 6 1 tons 3.24 19.44 Hydraulic Clicking Machine, pressure – 25 3 2 tons 4.140 12.42 Skiving Machine Double Roller, Heavy 2 3 Duty 1.122 2.24 4 Sole Leather Flexing machine 2 12.92 25.84 5 Strap cutting machine - spiral 2 0.856 1.712 6 Strap cutting machine – straight 2 1.600 3.20 7 Band knife splitting machine 2 25.710 51.43 8 Roller press for sole 3 3.780 7.56 9 Insole Slotting machine 1 3.839 3.84 10 Logo Stamping machine 1 4.130 4.13 11 Air Compressor 1 10.400 10.40 12 Stamping machine 1 1.150 1.15 13 Insole Glazing machine 2 11.259 22.16 14 Leather Polishing and Brushing Machine 1 1.063 1.06 15 Grinding and Buffing machine 2 0.934 1.87 16 Sole Grooving Machine 2 15.864 31.73 17 Sole Stitching Machine 3 18.039 54.12 18 Edge Colouring Machine 3 1.050 3.15 19 Flat bed Single Needle Sewing Machine 6 1.578 9.47 20 Post Bed Double Needle Sewing Machine 1 1.960 1.96 21 Last Bin Set 10 0.550 5.50 22 Die Rack 10 0.620 6.20 23 Lasts (all sizes) pairs 400 0.060 2.40 24 DG Set - Generator 1 15.660 15.66 25 Perforating machine(Gimping) 2 6.014 12.03 26 Cutting Dies – All sizes 400 0.022 8.80 27 Travel Head Clicking m/c 1 9.42 9.42 28 Upper skiving m/c 2 12.02 24.04 29 Upper folding machine 1 11.00 11.00 30 Flat bed zig zag sewing machine 1 2.09 2.09 31 Flat bed double needle sewing m/c 1 1.73 1.73 32 Post bed single needle heavy duty m/c 4 1.70 6.800 33 CNC machine for sole thickness reduction 1 45.00 45.00 34 Mini hydraulic press – 30 ton 1 9.00 9.000 35 Hammering machine 2 0.739 1.57 36 Spray booth & spray guns 1 2.000 2.00 37 Heavy duty sole splitting machine 1 53.985 53.99 38 2D & 3D Footwear designing software 1 17.000 17.00 39 2D Digitizer 20” x 24” 1 2.000 2.00 40 Plotter with cutter 900 mm x 600 mm 1 8.000 8.00 Total 513.10

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required) in English Version. (ii) Tangible outcomes such as number of units, turnover, export, employment etc. (iii) SIDBI Appraisal Report. (iv) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (v) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vi) Certificate from State Government for compliance of GFR/ CVC guidelines. (vii) Turnover and export figures are unrealistic, need clarification.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Kolhapuri Chappal Cluster, Kolhapur, Maharashtra.

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Agenda No.48.3.11: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Auto component Cluster, Waluj, Aurangabad, Maharashtra.

Background:

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Maharashtra vide letter dated 21.1.17. (ii) During 53rd Technical committee Meeting, state government was requested to submit the revised proposal. (iii) The revised proposal was forwarded by Government of Maharashtra vide letter dated 13.12.17. (iv) MSME-DI, Mumbai forwarded online application vide ref. No. 7463 and dated 13.07.17. (v) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) Technical Division to obtain comments of IGTR, Aurangabad for impact, if any, on their functioning in view of facilities being proposed in the CFC. (vi) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Mumbai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (vii) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal, to place before Steering Committee for in-principle approval, based on the comments of IGTR, Aurangabad.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Auto Component Cluster District : Aurangabad Location of Cluster : Waluj Lok Sabha Constituency : Aurangabad Main Product : Auto Components Dies & Moulds Plastic Moulding Components Precision Machine Components Press Parts Repairs and Maintenance Of Dies And Moulds Rubber Parts No. of Enterprises Micro 735 including break up (Micro, Small 510 Small, Medium) : Medium 40

Total 1285 Turnover(Rs in Crore) for Year Amount the last five years : 2012-13 1900 2013-14 2500 2014-15 2900 2015-16 3500

2016-17 4080 Turnover(Rs in Crore) for Year Amount

67 the last five years : 2012-13 115 2013-14 121 2014-15 127 2015-16 133

2016-17 140 Employment in Cluster : 48,000 Nos. Technology Details : Conventional Machining practice, Press tooling, Injection Moulding tooling by conventional Method with less accuracy. Whether DS Conducted : Yes Main findings of DSR : Requirement of high end machining facility, to reduce product development time, requirement of product development center , training center for skilled manpower Main Problems of Cluster : High end machines not available for Product Development & Skill Development Employee Other Information : Due to CFC export opportunity very high. Make in India facility will be created 2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC To support Micro & Small Entrepreneur - For Product Development Where High End Machines Are Required Which Is Not Feasible For Individual Entrepreneurs (b.) Location of CFC Waluj, MIDC, Aurangabad - % age of units in radius of 70 - 5km % age of units in radius of 30 - 10km (c.) Land for CFC i. Whether land acquired Land offer letter received from MIDC 25% Registered land earnest money paid to MIDC documents in the ii. Title is in name of Massia Auto Component Cluster Pvt Ltd name of SPV is required. iii. Valuation and its basis MIDC rate ( as per corporation guidelines) (If land is on lease iv. Land is sufficient Yes 8000 sq. Mtr ofer received basis, registered lease deed for v. Change of land use MIDC Industrial Land minimum 30 years vi. If on lease, duration of 95 years is required). lease vii Whether lease is legally Yes tenable (d.) Total Building area(sq ft) 20735 Sq. ft. - (e.) Rate of construction of 835/- Per Sq. Ft - building (f.) Main Facility Proposed Product Development Center, Training - Center , Measuring And Testing Center , Design Center (g.) Prod capacity of CFC Rs 5.14 cr per year (196 Hrs Per Day - Machining Facility of 11 M/C ) (h.) Major Outputs/ Production will increased by 30% , Export Tangible outcomes Deliverables of CFC, will increased By 100 % due to new like number of Projected performance of the products , employment will be increased by units, turnover, cluster after proposed 40% export, intervention (in terms of employment etc. 68

Description Proposed by Implementation Agency Comments by (IA) Cluster Division production, export/ domestic sales and direct/indirect employment, etc.) (i.) Pollution clearance As Land will be alloted after Final DPR Certificate from required or not approval NOC of Pollution Clearance will State Pollution be taken after wards. Control Board is required. (j.) Man Power in CFC 53 Nos - (k.) Revenue generation Machine rent on hr rate basis & testing , - mechanism for sustainability metro-logy by per nos of assets (service/user charges to be levied, any other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Massia Auto Component Cluster Pvt Ltd - (b.) Nature of SPV(company or Pvt Ltd - Society or Trust) (c.) Name of the state Govt. and 1) DC , Industries Ministry, Maharashtra - MSME officials in SPV Government, 2) Director, MSME MUMBAI (d.) Date of formation of SPV 28/04/2009 - (e.) Number of Members 25 Nos and members will be increase As - Final DPR Approved By Goi (f.) Bye Laws or MA and AOA Yes - submitted (g.) Authorized Share Capital At present 50 LAKHS as on 31.03.17 and - Share Capital will be increased upto 175 lakh after DPR approval (h.) Paid up capital 33 Lakhs as on 31.03.17 and will be - increased after final DPR approval (i.) Shareholding Pattern Not More Than 10% Share Holding To Received Any Stake Holder (j.) Commitment letter for Yes - contribution (k.) SPV specific A/c Bank of Maharashtra Adalat Road Branch Required Aurangabad C/A A/C NO 60027452610, Juagal Kishore Tapadiya Shree Mahesh Urban Co op Bank FD A/c no 2018302 to 2018305 (l.) Trust Building of SPV, MASSIA Association of more than 1500 - Previous track record of co- MSME unit members MASSIA is a more operative initiatives pursued by than 25 years old association & largest SPV members need to be association in Marathwada. highlighted with support documentation (m.) Technical Institution Government College of Engineering, - Aurangabad (n.) CFC may be utilised by SPV Survey Report Enclosed With DPR. - members as also others in a 69

Description Proposed by Implementation Agency Comments by (IA) Cluster Division cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 150 KW - commercial/domestic purpose (b) Water 5 CUM PER DAY - (c) Gas/Oil/Other Utilities NA -

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency MIDC Aurangabad As per MSE-CDP guidelines. (b.) Fund receiving Agency MIDC Aurangabad As per MSE-CDP guidelines. (c.) Implementation Period 2 Years As per MSE-CDP guidelines. (d.) Appraisal of DPR and main SIDBI Appraisal of DPR After Principal SIDBI Appraisal Recommendations Approval Will Be Sought Report is required. (e.) Comments of Technical O/o DC MSME Technical Div Furnish the - Division comment to Tech Committee (f.) Approval of Technical O/o DC MSME technical committee Recommended by Committee forwarded approval to cluster div Technical Committee. (g.) Working capital(In- Bank of Maharashtra given Principal - principle sanction of loan from a Sanction for Working Capital via letter bank, if applicable arrangement Dt.17/10/15 made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 1 st yr 80.32%,2nd yr 76.31%, 3 rd yr - 63.39%, 4th yr 52.41%, 5 th yr 45.06%, 6 th yr 40.09%, 7 th yr 35.55%, 8 th yr 31.63% (b.) IRR, Payback period 3 years - (c.) DSCR Avg. Gr.DSCR 5.56 Avg. Net DSCR 6.38 - (d.) Return on Capital employed 18.38%, 18.03% As per MSE-CDP (ROCE) guidelines, desirable should be 25%. (e.) NPV 1st yr 13.93 cr - (f.) DER 2.14 - (g.) Sensitivity Analysis for 1st yr @5% Sales Variation Gross - DSCR 2.23 Net DSCR 2.59 @10% COP

Description Proposed by Implementation Agency Comments by (IA) Cluster Division Variation Gross DSCR 2.38, Net DSCR 2.62

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Total Cost 1. Land and its Development 86.63 2. Building and other Civil Constructions 171.50 3. Plant & Machinery (including electrification) 1253.21 4. Misc. fixed assets 26.20 5. Preliminary & Pre-operative expenses, maximum 2% of project cost 14.50 6. Contingency (2% building and 5% on plant and machinery) 69.50 7. Margin money for Working Capital 51.52 Total Project Cost 1673.06 7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars Amount (i) Grant-in-aid from Govt. of India 1050.00 (ii) Government of Maharashtra 150.00 (iii) SPV contribution 151.00 (iv) Bank Loan/others 322.06 Total 1673.06

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S.No. Description No. Power Requirement Cost (HP/KW) 1. Deep Hole Drilling with HMC Operation with 1 20 124.21 hole depth 1000 mm 2. 5 AXIS VMC M/C X-620 Y-520 Z-460 Table 1 20 223.20 dia 650 mm 3. CNC Double Column Machining Centre Table 1 20 151.26 size 3 x 1.8 m Dist bet col 2200 mm x x,y,z axis travel 3200x2100x 800 mm max loading 12000/kgs 4. Precision Surface Grinding Machine Table size 1 10 61.09 2000 x900 mm 5. CNC Wire Cut M/C Max Size of Work Piece 1 10 150.16 600x470x230 Max weight 500kg wire dia 0.1 t0 0.3 mm 6. CNC Turn Mill Centre M/C Chuck dia 300 X 1 15 60.00 ABC 500 7. CNC Lathe M/c Chuck dia 350 xABC 1500 1 10 50.00 mm 8. CNC Lathe M/c Chuck Dia 400 mm ABC 1100 1 10 56.16 mm 9. CNC Fibre Laser Cut Machine 500 w 1 20 101.40

S.No. Description No. Power Requirement Cost (HP/KW) 10. Tooling & Other Accesorries As per 1 0 40.00 requirements 11. Shearing Machine 2.5 Mtr cutting length 1 5 10.00 12. Drill Machine 25 mm capacity 1 2 1.00

13. Bench Grinder 1 0.5 0.09 14. Air Compressor 110 cfm 1 3 5.00 15. EOT CRANE 1 3 20.00 16. Surface Finish Measurement - Roughness 1 0 2.06 Tester AS per JIS, VDA, ISO 1997 and ANSI portable for evaluationg parameters like Ra, Rc, Ry,Rz,Rq, Rmax, R, Rp, Rv, R3z, Rsk 17. Co ordinate Measuring Machine ( CMM) 3 d 1 0.1 60.00 moving bridge X 900 Y 1500 Z 800 Touch signal Probe , 3d software 18. Hardness tester -RC Digital Motorized 1 0.0 2.34 Rockwell cum Rockwell Superficial Hardness Tester . Least count 0.1 for rockwell & 0.2 for rockwell 19. Spectro Meter Optical Sysytem for proposed 1 0.5 42.80 analytical Programmes 20. Micrometers & other Measuring Equipment As 1 0 10.00 per requirements 21. Carbide Slip Gauges Accuracy Grade 0 ( No of 1 0 2.50 slip 121 & 88) 22. Height Master Digital Motorised with air 1 0 6.74 bearings , resolution 0.01 mm to .0001 mm, 23. Surface Plate 2000 mmx 1000 mm x200 mm 1 0 0.75 Granite 24. Pin Gauges 1 mm to 8 mm in step of .05 1 0 0.60 25. Bench Centre 1000 mm , Granite with MS 1 0 1.30 stand with Levelling facility 26. Cutting M/c & Polishing m/c ( Lab equi) 1 0 0.80 Standard 27. Cad Cam Softwares Latst Technology Software 1 0 50.00 AS PER REQUIREMENT 28. Computers 10 0 6.00 29. AO Plotter Colour Plotter A0,A+ capacity 1 0 1.25 30. ELECTRIFICATION AS PER 1 0 12.50 REQUIREMENT Total 1253.21

9. Observations:

Following documents are to be submitted prior to final approval:

(iv) SIDBI Appraisal Report. (v) Details of SPV bank account. (vi) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (vii) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (viii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Auto component Cluster, Waluj, Aurangabad, Maharashtra.

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Agenda No.48.3.13: Proposal for In-principle approval for setting up of Common Facility Centre in Wood Carpentry Cluster, Churachandpur, Manipur. Background:

 The proposal received from MSME-DI, Imphal vide letter dated 20.03.18 recommended by MSME-DI, Imphal.  Online application received vide Ref. No: 11936 dated 14.03.18.  The proposal was recommended by State Level Steering Committee in its meeting held on 15.01.18 at Manipur.  Techno Economic Appraisal Committee (TEAC) in its 59th meeting held on 31.07.18, recommended the proposal for placing before Steering Committee for in-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster Name of Cluster : Wood Carpentry Cluster District Churachandpur Location of Cluster : Churachandpur town area and surrounding Lok Sabha Constituency : Outer Manipur(St) Main Product : Tables, Bed (Normal), Bed, Sofa Set, Cup Board, Almirah (small), Almirah (Large) & Others. No. of Enterprises including break up Micro 31 (Micro, Small, Medium) Small 0 Medium 0 Turn over for the last five years : Year Amount (Rs. in Crore) 2012-13 3.00 2013-14 3.70

2014-15 4.50 2015-16 5.40 2016-17 6.20

Exports for the last five years : Nil (Rs. in Crore)

Employment in Cluster : 155 Nos. (Direct – 125 and Indirect – 30) Technology Details : All the implements installed in different units in individual level are traditional type in operative nature. Any sort of setback due to malfunction / breakage of component of those implements lead to serious implications on the output performance of the processing units. Whether DS Conducted : Yes, the DSR is conducted by Indian Institute of Entrepreneurship Guwahati. Main findings of DSR :  Wood is directly procured from hills and local market.  Wood is dried / seasoned for a period of time.  When wood is dried, carpenter begins the process of making it as per demand.  Sanding is done using both manual and power tool like orbital sander.  Golden chapra or sanding sealer is applied to make the wood into a finishing stage when colour can be applied.  Golden chapra or melamine paint with wood stain colour is used according to the choice of the customer or demand in the market.  Main Problems of Cluster :  The artisans are still practicing the old method of wood working with traditional tools.  Low productivity due to absence of modern 74

implements.  Non-availability of proper timber treatment.  Non-availibility of bulk planning / sawing / edge banding techniques / implemnts.  Lack of Joint making techniques / implemnts.  Lack of finishing implements.  Lack of proper storage.  Other Information :  Locational disadvantages.  Transportation bottleneck.  Lack of processing infrastructure.  No separate policy furniture industries.  High competitiveness in the market.  Lack of marketing agency.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC  Presently using traditional -- technology.  The problems exist in every stage right from raw material availability, Seasoning, chemical treatment through low value primary processes.  Wastage of both raw material and energy to the final manufacturing step of polishing / finishing. Quality assurance.  Inherent problem of inconsistent power supply. (b.) Location of CFC Lighthouse lane, Tedim Road, -- Zouveng, Churachandpur, Manipur. % age of units in radius of 90 5km % age of units in radius of 10 10km (c.) Land for CFC i. Whether land acquired Yes. Land is on lease basis for 25 years. The lease deed has submitted. ii. Title is in name of Title is in name of the SPV i.e. Churachandpur Area Carpenters Association (CACA). iii. Valuation and its basis Rs. 5.00 lakhs for 25 years lease. - iv. Land is sufficient Yes -- v. Change of land use Yes. -- vi. If on lease, duration of 25 years -- lease vii Whether lease is legally Yes. -- tenable (d.) Total Building area(sq 8000 sq. ft. -- ft)

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (e.) Rate of construction of Rs. 5 lakh a total approximate for the building repairing and renovation of the -- building. (f.) Main Facility Proposed  Seasoning Facility. --  Chemical Treatment facility.  Debarking of logs.  Modern Joint Making Facilities.  Panel saw, cross cut saw, band saw facility.  Automatic Sanding.  Mortise, Tenner facility.  Modern Edge Banding Facility.  High Frequency Plank Joining.  Powered Small Tools.  Finishing Facilities.  Laminating Facility.  Quality Control Service.  Skill up-graation facility.  Marketing network through optional common branding. g.) Prod capacity of CFC The Churachandpur Carpentry Cluster -- as a whole process approximately 3000 c. ft. to 3500 c. ft. of raw wood. Considering the growth of the cluster the CFC has been planned with plant and machinery in such a manner that this CFC will be capable of processing 6000 to 6500 c. ft. of raw wood per month in 300 hrs / month of operation hours. (h.) Major Outputs/ Sl. Paramete Present After Deliverables of CFC, No. rs intervention Intervention Projected performance of 1. Units 31 units 50 units the cluster after proposed 2 Employmen 350 155 intervention (in terms of t production, export/ 3 Exports Nil Will be able to ensure quality domestic sales and direct/ products for export. indirect employment, etc.) 4 Total sales Rs. 620.00 lakh Rs. 1040.00 lakh 5 Profits 12-15% 20-25%

6 Investment Rs. 150.00 lakh Rs. 350.00 lakh. (i.) Pollution clearance Yes. A moderate size Effluent NOC from PCB required or not Treatment Plant has been considered as required. support service. (j.) Man Power in CFC 44 persons (k.) Revenue generation The revenue generation for various services, which will be mechanism for charges as conversion cost to the cluster members (with sustainability of certain discounts for the SPV members), will be as listed assets(service/user charges below: to be levied, any other-to Particulars Qty. Unit Rate At full capacity 76

Description Proposed by Implementation Agency Comments by (IA) Cluster Division be specified) (Rs.) Capacity utilization 100.00% Estimated working (240 2400 hrs at 100%) Service Charge Various Service 55200 Cft. 550 303.60 Sub Total (I) 303.60 Other revenues from Training 12.00 Sub Total (II) 12.00 Gross revenue 315.60 (sub I+ II) 10% Discount to 2.84 SPV members # Net Revenue 312.76 # it is assumed that 90% of the facilities will be utilised

the cluster units

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address Churachandpur Area Carpenters -- Association (CACA) (b.) Nature of The SPV is a registered industrial -- SPV(company or Society or cooperative society. Trust) (c.) Name of the state Govt. - -- and MSME officials in SPV (d.) Date of formation of 22.03.2017 -- SPV (e.) Number of Members 31 nos. --

(f.) Bye Laws or MoA and Yes. -- AOA submitted (g.) Authorized Share Rs. 3.00 lakh Capital (h.) Paid up capital Rs. 10.00 lakh. (i.) Shareholding Pattern Submitted. -- (j.) Commitment letter for Submitted. -- contribution (k.) SPV specific A/c Vijaya Bank : A/c No: 860400301000176 (l.) Trust Building of SPV, SPV namely Churachandpur Area -- Previous track record of co- Carpenters Association (CACA). The operative initiatives pursued registered society to function as a Special by SPV members need to be Purpose Vehicle for setting up and highlighted with support running the proposed Common Facility documentation. Centre. (m.) Technical Institution IIE, Guwahati (n.) CFC may be utilised by CFC may be utilised by SPV members as -- SPV members as also others also others in a cluster. However, in a cluster. However, evidence should be furnished with regrd evidence should be to SPV members ability to utilise at least furnished with regard to 60% installed capacity. SPV member ability to utilise at least 60 percent of installed capacity. 77

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (o) (a) Power requirement for 170 KW commercial/domestic purpose (b) Water 2 Cubic liters (c) Gas/Oil/Other Utilities Not required

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency Indian Institute of Entrepreneurship (IIE) -- (autonomous organisation under Ministry of Skill Development & Entrepreneurship). (b.) Fund receiving Agency Indian Institute of Entrepreneurship (IIE) -- (autonomous organisation under Ministry of Skill Development & Entrepreneurship). (c.) Implementation Period 12 months 24 Months from date of final approval as per guidelines. (d.) Appraisal of DPR and The DPR will be sent to concerned Required prior to final main Recommendations authorities for necessary appraisal. approval. (e.) Comments of Technical Techno Economic Appraisal Committee (TEAC) in its 59th Division meeting held on 31.07.18, recommended the proposal for placing (f.) Approval of Technical before Steering Committee for in-principle approval. MSME-DI, Committee Imphal was advised to ensure that brand names should not be mentioned along with specification of machinery, while floating tenders. (g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP. Development Division: (h.) Working capital(In- - - principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 47.06% As per MSE-CDP guidelines. (b.) IRR, Payback period 27.78% (Before Tax) -- 21.71% (After Tax) 3 years 10 months (c.) DSCR N/A -- (d.) Return on Capital 36.66% (Before Tax) 25% is desirable. employed (ROCE) 27.91% (After Tax) (e.) NPV Positive -- (f.) DER Not Applicable -- (g.) Sensitivity Analysis Yes, the figures are positive as required -- by guidelines: a) IRR 27.78% b)NPV – positive c)Breakeven Point 47.08% d)ROCE 36.66%. (h.) Status of CFCs Approved CFC Nil. -- approved in the State

6. Proposed project cost: (Rs. in lakh) S. No. Particulars Total Cost (i) Land and its Development 0.00 (ii) Building and other Civil Constructions 5.00 (iii) Plant & Machinery 389.53 (iv) Misc. fixed assets 14.50 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 8.00 (vi) Contingency (2% building and 5% on plant and machinery) 19.58 (vii) Margin money for Working Capital 1.94 Total Project Cost 438.55

7. Proposed means of finance: (Rs. in lakh) S. No. Particulars %age Amount (i) SPV contribution 10.38 45.52 (ii) Grant-in-aid from Govt. of India 84.62 371.10 (iii) Grant-in-aid from Govt. of Manipur 5.00 21.93 Total 100.00 438.55

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost Requirement (HP/KW) 1. SCM MINIMAX Band Saw S400 P (Non CE) 2 1.5 5.25 2. SCM Band Saw S 45 N (CE) 2 1.5 4.10 3. Altendorf table panel saw with Tilt 1 2.75 6.95 4. SCM Cut-off Saw 1 3 4.31 5. SCM, Spindle Moulder With Tilting Spindle & LL 1 9 9.66 Version 6. SCM Feeder 1 0.75 0.84 7. CMS Balestrini, Automatic TWIN TABLE 1 205 17.85 ROUND-END TENONER 8. CMS Balestrini, Automatic Twin Table Slot 1 2.5 9.82 Mortiser MICRON 9. SCM Surface Planer 1 2.1 6.46 10. SCM Thicknessing Planer 1 3.5 6.46 11. SCM Sandya Automatic Wide Belt Sander 1 11 19.03 12. SCM Universal Belt Sanding Centre with 1 3 7.30 Oscillating Belt 13. SCM, Automatic Throughfeed Planer Moulder, 1 17 16.07 PROFISET 40 CE 14. Multifunction wood l 4/4 axis CNC Router 1 7.5 19.95 15. CNC Router 2 704 18.80 16. Finger Jointer- semi Automatic 1 10.5 4.73 17. Multi head 4 axis latheEksen 1 14 38.33

S. No. Description No. Power Cost Requirement (HP/KW) Sub Total 195.91 18. Festool Domino Joining Machine Domino Df 500 1 0 1.23 Q-Set 19. Festool Domino Assortment Box Ds 1 0 0.34 20. Festool Domino Joining Machine Df 700 Eq Plus 1 0 1.58 21. Festool Beechwood Domino Xl Assortment Ds/Xl 1 0 0.26 D12/D14 128X Bu 22. Festool Beechwood Domino Xl Assortment Ds/Xl 1 0 0.30 D8/D10 306X Bu 23. Festool Planer Hl 850 Eb-Plus 1 0 0.78 24. Festool Planer Head Hk 82 Sd Rustic Design Fine 1 0 0.23 with spiral blade Hs 82 Rf 25. Festool Planer Head Hk 82 Sd Rustic Design 1 0 0.23 Coarse with Spiral blade HS 82 Rf with spiral blade Hs 82 Rg Depth Limiter 26. Festool Planer Head Hk 82 Sd Rustic Design 1 0 0.23 Undulating with Hs spiral blade Hs 82 Rw Depth Limiter 27. Festool Dove Tail Kit Vs 600 1 0 0.58 28. Festool Cutt. Template Vs 600 Sz 14 1 0 0.11 29. Festool Cutters Hw S8 D138/135/15° 1 0 0.06 30. Festool Copy Ring Kr-D 17/Of1400/Vs 600 1 0 0.03 31. Festool Cutt. Template Vs 600 Szo 20 1 0 0.19 32 Festool Dovetail Cutter Hw Vs600 D20X26X8 Z2 1 0 0.07 Rl 33. Festool Eccentric Sander Ets Ec 150/3 Eq 3 0 2.13 34. Festool Eccentric Sander Ets Ec 150/5 Eq 3 0 2.13 35. Festool Suction Hose D 27 22X3 5M As Gq Ct 3 0 0.76 36. Festool Workcenter Wcr 1000 3 0 3.06 37. Festool Sliding Compound Mitre Saw Kapex Ks 1 0 3.40 120 Ug-Set 38. Festool Circular Saw Ts 55 Rebq-Plus-Fs 1 0 0.80 39. Festool Multifunction Table Mft/3 1 0 1.21 40. Festool Rotary Sander Ras 180 E 1 0 1.03 41. Festool Orbital Sander Rutscher Rs 200 Eq-Plus 1 0 0.71 42. Festool Compressed Air Eccentric Sander Lex 3 2 0 1.46 77/25 Set 43. Festool Oscillator Vecturo Os 400 Eq-Set 1 0 0.86 44. Festool Hole Drilling Set Lr 32-Sys 1 0 0.62 45. Festool Routing Template Mfs 400 1 0 0.35 46. Festool Routing Template Mfs 700 1 0 0.54 47. Festool Bench-Mounted Router Tf 2200-Set 1 0 3.02 48. Festool Cordless Drills Txs Li 26 Plus Eu 230V 5 0 1.61 49. Bessey K Body Revo Kr 600/95 10 0 0.61 50. Bessey Band Clamp Ban700 3 0 0.13

S. No. Description No. Power Cost Requirement (HP/KW) 51. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0 0.33 200/100 52. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0 0.42 300/120 53. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0 0.82 1000/140 54. Bessey Heavy Duty Malleable Cast Iron Screw 10 0 0.92 Clamp Tgk 1500/120 55. Bessey Malleable Cast Iron Screw Clamp Tpn-Be- 10 0 0.25 2K 200/100 56. Bessey Heavy Duty Malleable Cast Iron Screw 10 0 0.63 Clamp Tgk-2K 600/120 57. Bessey Heavy Duty Malleable Cast Iron Screw 10 0 0.79 Clamp Tgk-K 1000/120 58. Bessey One-Handed Clamp Ezs 150/80 10 0 0.29 59. Bessey One-Handed Clamp Ezs 300/80 10 0 0.33 60. Bessey One-Handed Clamp Ezs 600/80 10 0 0.39 Sub Total 35.82 61. Sawing Machine 2 0.5 5.25 62. Pllet Truck 2000 1800mm 2 0 0.63 63. Seasoning Klin Electric 1 22 15.75 64. Air compressor + Receiver + Drier Atlas Copco 1 1 7.5 3.15 300000 5.00 65. Compressed Air Pneumatic lines John Guest 1 0 2.63 66. Dust Collector 12 16 6.30 67. Paint Booth 1 11 14.70 68. Tooling for Machines 1 0 5.25 Sub Total 53.66 Packaging + forwarding (Freight)+ insurance @ 9.99 4% Installation & Training @ 5% 14.27 Maximum tax component @ 18% 51.37 69. Captive DG Set and related Electricals 1 0 12.00 70. Transformer and Switchgear 1 0 7.50 71. Fire Fighting System 1 0 6.00 72. Pollution Control System 1 0 3.00

9. Observations:

Following documents are to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) NOC from State Pollution Control Board. (iii) Certificate from State Government regarding compliance of GFR/CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common Facility Centre (CFC) in Wood Carpentry Cluster, Churachandpur, Manipur.

*******

Agenda No.48.3.13: Proposal for In-principle approval for up-gradation of Industrial Estate at Focal Point, Amritsar, Punjab.

Background

(i) Proposal was received from Punjab Small Industries & Export Corporation vide application ref. No. 13355 dated 27.08.18, which was recommended by MSME-DI, Ludhiana. (ii) Proposal along with Detailed Project Report (DPR) was forwarded by MSME-DI, Ludhiana vide letter dated 17.09.18 (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 16.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Punjab Small Industries & Export Corporation State : Punjab District : Amritsar Industrial Estate : Upgradation of Focal Point Amritsar

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with Yes approved layout plan Total Area of industrial estate/ area 184.04 acres (acre) Area to be developed (acre) 184.04 acres Number and sizes of plots to be The Industrial Estate has around 464 plots and all plots developed stands allotted. The industrial area has around 147 operational units Implementing Period 24 months Other ID projects sanctioned in N/A same district: year of sanction, number of plots allotted, units set up etc. Performance of ID projects in Projects which were successfully completed State under IID scheme are New Dhanchala of Jhans, Distt. Hoshirpur, New Malaout Distt. Muktsar. In both the cases PSIEC was the implementing agency.

3. Details about proposal:

Description Proposed by Implementing Agency Remarks (IA) Implementing Agency (IA) Punjab Small Industries and Export As per MSE-CDP 83

Description Proposed by Implementing Agency Remarks (IA) Corporation (Government of Punjab guidelines undertaking) Track Record of the IA Satisfactory -- Appraisal by SIDBI Appraisal is attached Received (Observations and recommendations). Attach SIDBI report Whether sufficient facilities Detailed is provided in Chapter 3: -- available at site. (Proximity to Project railway stations / state Proposal( Page no 20 highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession The proposed project is for the Land document is in the name of IA with Clear upgradation of the existing focal required. Title point. Implementation agency i.e. Punjab Small Scale Industries & Export Corporation Ltd. (PSIEC) was the original owner of the land. Once the focal point Amritsar was developed the entire land was allotted to the unit holders present in the focal point and the current project is to upgrade the industrial focal point not for development of the new focal point. But still PSIEC is responsible for operation and maintenance of focal point. Land was taken under possession before year 2000 Whether Zoning regulations Yes, Project is about upgradation of and non-agricultural conversion the existing focal point etc complied with) Whether State Level Notification attached Constituted. Committee to coordinate and monitor progress has been constituted Whether confirmation received Cover letter signed by MD- PSIEC Received form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project Road, drainage, water harvesting, -- Cost Street light, administrative and other service complex, Effluent treatment plant, Sanitary, Boundary wall Tangible Outcomes of the Covered under Chapter : project Presently there are project Impact around 3300 direct & 4000 indirect employees and it is expected that there would be an increase of employment generation by 2-5% and turnover by10%.

Description Proposed by Implementing Agency Remarks (IA) Justification of the proposal This DPR propose upgradation of the -- focal point catering components such as roads, drainage system, power, administrative and other services complex etc. This focal point was developed in year 1980s. But with time infrastructure has deteriorated. Industries are bearing wear and tearcost. Transport companies are charging higher tariffs in return which are increasing the overall production cost.

4. Project Cost: (Rs. in lakh) S. No. Particulars As per IA As per SIDBI (i) Land filling/levelling including boundary wall and 108.88 100.00 fencing: (ii) Laying roads 205.03 200.00 (iii) Road side greenery & social forestry 9.86 9.86 (iv) Water supply including overhead tanks, and pump 101.61 101.61 houses (v) Water harvesting 12.96 10.00 (vi) Drainage 58.31 58.31 (vii) Power distribution, Street light arrangements, etc. 231.57 231.47 (viii) Administrative and Other Services Complex 46.22 20.00 (ix) Telecom/Cyber/Documentation centre 20.00 20.00 (x) Conference Hall/Exhibition centre 30.00 30.00 (xi) Bank/Post office 20.00 20.00 (xii) First aid centre, Creche Canteen 20.00 20.00 (xiii) Effluent Treatment Facilities 150.00 80.00 (xiv) Contingencies & Pre operative expenses : 14.81 14.81 (xv) Other (Sanitary Convenience ): 10.15 10.00 Total 1039.40 926.06

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars As per IA As per SIDBI (i) GoI Grant under MSE-CDP 740.42 740.81* (ii) State Government 298.98 298.59 Total 1039.40 1039.40 *80% of eligible project cost i.e. Rs. 926.06 lakh.

6. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered land documents in the name of Implementing Agency. (ii) Copy of approved layout plan signed by Competent Authority. (iii) Certificate from State Government that more than 50% of units in the Industrial Estate are micro. (iv) Details of industries operating in the Industrial Estate. (v) PSIEC, Chandigarh should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Punjab / PSIEC, Chandigarh.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Focal Point, Amritsar, Punjab.

*********

Agenda No.48.3.14: Proposal for In-principle approval for up-gradation of Industrial Estate at Focal Point, Goindwal Sahib, District Tarn Taran, Punjab.

Background

(i) Proposal was received from Punjab Small Industries & Export Corporation vide application ref. No. 13357 dated 27.08.18, which was recommended by MSME-DI, Ludhiana. (ii) Proposal along with Detailed Project Report (DPR) was forwarded by MSME-DI, Ludhiana vide letter dated 17.09.18. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 16.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Punjab Small Industries & Export Corporation State : Punjab District : Tarn Taran Industrial Estate : Upgradation of Focal Point Goindwal Sahib

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with No approved layout plan Total Area of industrial estate/ area 907.00 acres (acre) Area to be developed (acre) 907.00 acres Number and sizes of plots to be 120 units developed Implementing Period 24 months Other ID projects sanctioned in N/A same district: year of sanction, number of plots allotted, units set up etc. Performance of ID projects in Projects which were successfully completed State under IID scheme are New Dhanchala of Jhans, Distt. Hoshirpur, New Malaout Distt. Muktsar. In both the cases PSIEC was the implementing agency.

3. Details about proposal:

Description Proposed by Implementing Remarks Agency (IA) Implementing Agency (IA) Punjab Small Industries and As per MSE-CDP Export Corporation (Government guidelines 87

Description Proposed by Implementing Remarks Agency (IA) of Punjab undertaking) Track Record of the IA Satisfactory -- Appraisal by SIDBI (Observations project will submitted to SIDBI Yet to be received. and recommendations). Attach after final approval SIDBI report. Whether sufficient facilities Detailed is provided in Chapter 3: -- available at site. (Proximity to Project railway stations / state highways, proposal availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in The proposed project is for the Land document is the name of IA with Clear Title upgradation of the existing focal required. point. Implementation agency i.e. Punjab Small Scale Industries & Export Corporation Ltd. (PSIEC) was the original owner of the land. Once the focal point Goindwal was developed the entire land was allotted to the unit holders present in the focal point and the current project is to upgrade the industrial focal point not for development of the new focal point. Whether Zoning regulations and State Government i.e. PSIEC had non-agricultural conversion etc procured the land before the complied with) industrial area was developed. Whether State Level Committee to Yes, the committee has been Constituted coordinate and monitor progress formed which includes officials has been Constituted from PSIEC, Industry department, MSME-DI. Whether confirmation received Yes, Cover letter consist of Received form IA that it will meet the cost in confirmation excess of approved project cost and any escalation in cost Basis of elements of project Cost Project cost is explained -- Tangible Outcomes of the project Covered under Chapter : Project -- Impact Justification of the Proposal This DPR propose upgradation of -- the focal point catering component such as roads, drainage system, power etc. This focal point was developed in year 1978. But with time infrastructure has deteriorated. Industries are bearing wear and tear cost. Transport companies are charging higher tariffs which are increasing the overall production cost.

4. Project Cost: (Rs. in lakh) S. No. Particulars As per IA

(i) Land filling/levelling including boundary wall and fencing: 100.00 (ii) Laying roads 200.00 (iii) Road side greenery & social forestry 9.87 (iv) Water supply including overhead tanks, and pump houses 107.80 (v) Water harvesting 12.96 (vi) Drainage 59.11 (vii) Power distribution, Street light arrangements, etc. 225.00 (viii) Telecom/Cyber/Documentation centre 20.00 (ix) Effluent Treatment Facilities 150.00 (x) Contingencies & Pre operative expenses : 17.90 (xi) Other (Sanitary ): 10.25 Total 912.89

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars As per IA (i) GoI Grant under MSE-CDP 671.74 (ii) State Government 241.15 Total 912.89

6. Observations:

Following documents are to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) Copy of approved layout plan signed by Competent Authority. (iii) Registered land documents in the name of Implementing Agency. (iv) Certificate from State Government that more than 50% of units in the Industrial Estate are micro. (v) Details of industries operating in the Industrial Estate. (vi) PSIEC, Chandigarh should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Punjab / PSIEC, Chandigarh.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Focal Point, Goindwal Sahib, District Tarn Taran, Punjab.

******** 89

Agenda No.48.3.15: Proposal for In-principle approval for up-gradation of Industrial Estate at Chanalon, District SAS Nagar, Punjab.

Background

(i) Proposal was received from Punjab Small Industries & Export Corporation vide application ref. No. 13368 dated 23.10.18, which was recommended by MSME-DI, Ludhiana. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 16.10.18. (iii) Proposal along with Detailed Project Report (DPR) was forwarded by MSME-DI, Ludhiana vide letter dated 23.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Punjab Small Industries & Export Corporation State : Punjab District : S.A.S NAGAR Industrial Estate : Upgradation of Industrial Focal Point Chanalon

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with No approved layout plan Total Area of industrial estate/ area 150.58 acres (acre) Area to be developed (acre) 150.58 acres Number and sizes of plots 338 plots developed Implementing Period 24 months Other ID projects sanctioned in None same district: year of sanction, number of plots allotted, units set up etc. Performance of ID projects in Projects which were successfully completed State under IID scheme are New Dhanchala of Jhans, Distt. Hoshirpur, New Malaout Distt. Muktsar. In both the cases PSIEC was the implementing agency.

3. Details about proposal:

Description Proposed by Implementing Agency (IA) Remarks Implementing Agency (IA) Punjab Small Industries and Export As per MSE-CDP Corporation (Government of Punjab guidelines undertaking) 90

Description Proposed by Implementing Agency (IA) Remarks Track Record of the IA Satisfactory -- Appraisal by SIDBI After In-principle approval DPR will be Yet to be received (Observations and submitted to SIDBI for appraisal recommendations). Attach SIDBI report Whether sufficient facilities Page no 5 & 6, Explained in detail in -- available at site. (Proximity chapter 2, to railway stations / state Industrial scenario in Chanalon (Kurali) highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in The proposed project is for the upgradation Land document is possession in the name of IA of the existing focal point. Implementation required. with Clear Title agency i.e. Punjab Small Scale Industries & Export Corporation Ltd. (PSIEC) was the original owner of the land. Once the focal point Chanalon was developed the entire land was allotted to the unit holders present in the focal point and the current project is to upgrade the industrial focal point not for development of the new focal point. But still PSIEC is responsible for operation and maintenance of focal point. Land was taken under possession before year 1980 Whether Zoning regulations DPR proposes upgradation of Focal point. and non-agricultural State Government i.e. PSIEC has procured conversion etc complied the land with) before the industrial area was developed Whether State Level Yes, the committee has been formed which Constituted Committee to coordinate and includes officials from PSIEC, monitor progress has been Industry department, MSMEDI constituted Whether confirmation Mentioned in Cover letter (Signed by Received received form IA that it will MD) meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project Page no 22- 25 of DPR -- Cost Tangible Outcomes of the Under Chapter : Project Impact -- project Justification of the proposal This DPR propose upgradation of the focal -- point catering components such as roads, drainage system, power, administrative and other services complex etc. This focal point was developed in year 1980s. But with time infrastructure has deteriorated. Industries are bearing wear and tear cost. Transport companies are charging higher tariffs in return which are increasing the overall production cost.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars As per IA (i) Land filling/levelling including boundary wall and fencing 103.87 (ii) Laying roads 250.73 (iii) Road side greenery & social forestry 8.00 (iv) Water supply including overhead tanks, and pump houses 115.76 (v) Water harvesting 8.00 (vi) Drainage 56.00 (vii) Power distribution, Street light arrangements, etc. 99.92 (viii) Administrative and Other Services Complex 21.52 (ix) Telecom/Cyber/Documentation centre 20.00 (x) Conference Hall/Exhibition centre 20.00 (xi) Bank/Post office 20.00 (xii) First aid centre, Creche Canteen 19.89 (xiii) Effluent Treatment Facilities 94.00 (xiv) Contingencies & Pre operative expenses : 16.71 (xv) Other (Sanitary ): 8.00 Total 862.40

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % As per IA (iii) GoI Grant under MSE-CDP 72.96 629.22 (iv) State Government 27.04 233.18 Total 100.00 862.40

6. Observations:

Following documents are to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) Registered land documents in the name of Implementing Agency. (iii) Certificate from State Government that more than 50% of units in the Industrial Estate are micro. (iv) Details of industries operating in the Industrial Estate. (v) PSIEC, Chandigarh should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Punjab / PSIEC, Chandigarh.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Chanalon, District SAS Nagar, Punjab. ******

Agenda No.48.3.16: Proposal for In-principle approval for up-gradation of Industrial Estate at Focal Point, Pathankot, Punjab.

Background

(i) Proposal was received from Punjab Small Industries & Export Corporation vide application ref. No. 13478 dated 26.09.18 & recommended by MSME-DI, Ludhiana. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 16.10.18. (iii) Proposal along with Detailed Project Report (DPR) was forwarded by MSME-DI, Ludhiana vide letter dated 23.10.18.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Punjab Small Industries & Export Corporation State : Punjab District : Pathankot Industrial Estate : Upgradation of Industrial Focal Point Pathankot

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with No approved layout plan Total Area of industrial estate/ area 399.46 acres (acre) Area to be developed (acre) 368.00 acres Number and sizes of plots to be 370 plots developed Implementing Period 24 months Other ID projects sanctioned in Projects which were successfully completed same district: year of sanction, under IID scheme are New Dhanchala of Jhan s, number of plots allotted, units set up Distt. Hoshirpur, New Malaout Distt. Muktsar. etc. In both the cases PSIEC was the Performance of ID projects in State Satisfactory

3. Details about proposal:

Description Proposed by Implementing Agency (IA) Remarks Implementing Agency (IA) Punjab Small Industries and Export As per MSE- Corporation (Government of Punjab CDP undertaking) guidelines Track Record of the IA Satisfactory -- Appraisal by SIDBI Report will be submitted to SIDBI after in- Yet to be (Observations and principle approval received recommendations). 93

Description Proposed by Implementing Agency (IA) Remarks Attach SIDBI report Whether sufficient facilities Chapter 3: Project Proposal -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in Punjab Small Industries & Export Land the name of IA with Clear Title Corporation limited was set in 1962 with document is the objective of required. supporting the individual in his endeavour to set up his own industrial unit and help him and the small-scale industry to grow in Punjab. Today PSIEC Ltd. has grown to become a Rs. 2000 million profit making corporation, with committed workforce of about 1000 people. With growing interests in infrastructure development, distribution of raw materials, promotion of exports from state, is providing marketing assistance to small scale industries & show casing & developing handicrafts through training & marketing finished products. As PSIEC Ltd. moves hand in hand with the individual in the 21st century, it envisages a border role for itself in laying the infrastructure for the industrial development in Punjab. Whether Zoning regulations and Project is about upgradation of Industrial non-agricultural conversion etc Focal Point complied with) Whether State Level Committee Yes, constituted Constituted to coordinate and monitor progress has been constituted Whether confirmation received mentioned in Cover letter (Signed by MD) Received form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project Cost Under Chapter 5 : Project cost -- Tangible Outcomes of the project Under Chapter 7 : Project Impact -- Justification of the proposal This DPR propose upgradation of the focal -- point catering components such as roads, drainage system, power, administrative and other services complex etc. But with time infrastructure has deteriorated. Industries are bearing wear and tear cost. Transport companies are charging higher tariffs in return which are increasing the overall production cost. Currently, there are only 16 units in Industrial Focal Point, Pathankot due to deteriorated condition of the focal point. Funds will help us to improve the infrastructure. 94

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars As per IA (i) Land filling/levelling including boundary wall and fencing 101.94 (ii) Laying roads 201.14 (iii) Road side greenery & social forestry 9.46 (iv) Water supply including overhead tanks, and pump houses 109.98 (v) Water harvesting 8.48 (vi) Drainage 59.96 (vii) Power distribution, Street light arrangements, etc. 207.25 (viii) Administrative and Other Services Complex 20.00 (ix) Telecom/Cyber/Documentation centre 20.00 (x) Conference Hall/Exhibition centre 30.00 (xi) Bank/Post office 20.00 (xii) Raw material storage facility, Marketing outlets 26.22 (xiii) First aid centre, Creche Canteen 20.00 (xiv) Effluent Treatment Facilities 150.00 (xv) Contingencies & Pre operative expenses 20.00 (xvi) Other (Sanitary convenience ) 10.25 Total 1014.68

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % percentage As per IA (i) GoI Grant under MSE-CDP 74.22 753.08 (ii) State Government 25.78 261.60 Total 100.00 1014.68

6. Observations:

Following documents are to be submitted prior to final approval:

(i) SIDBI appraisal report. (ii) Copy of approved layout plan signed by Competent Authority. (iii) Registered land documents in the name of Implementing Agency. (iv) Details of industries operating in the Industrial Estate. (v) There are 370 plots allotted and only 16 units are working. (vi) PSIEC, Chandigarh should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Punjab / PSIEC, Chandigarh.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Focal Point, Pathankot, Punjab. ********

Agenda No.48.3.17: Proposal for up-gradation of Industrial Estate at Baran, Rajasthan.

Background

(i) Rajasthan State Industrial Development and Investment Corporation (RIICO) Ltd. forwarded online application vide ref. No. 13360 dated 28.08.18. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 29.08.18. (iii) Government of Rajasthan submitted the Detailed Project Report (DPR) vide letter dated 04.09.18. (iv) Vide letter dated 28.09.18, MSME-DI, Jaipur recommended the proposal.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Rajasthan State Industrial Development and Investment Corporation Ltd. State : Rajasthan District : Baran Industrial Estate : IID Centre Baran

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved layout No plan Total Area of industrial estate/ area (acre) 99.00 acres Area to be developed (acre) 62.61 acres Number and sizes of plots developed Size of plots No. of plots (m) 30x65 : 31 30x50 : 27 25x40 : 119 20x35 : 10 20x25 : 15 SPL : 1

Total : 203 Implementing Period 24 months Other ID projects sanctioned in same district: IID centre Baran was sanctioned by GoI on year of sanction, number of plots allotted, units 26.11.09. set up, etc. Performance of ID projects in State Good

3. Details about Proposal:

Description Proposed by Implementing Remarks Agency (IA) Implementing Agency (IA) Rajasthan State Industrial As per guidelines

Development and Investment Corporation Ltd Track Record of the IA Good -- Appraisal by SIDBI DPR will be appraised after getting Yet to be received (Observations and in principle approval. recommendations). Attach SIDBI report. Whether sufficient facilities yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in yes Land document in the name of IA with Clear Title the name of Implementing Whether Zoning regulations and not applicable Agency is required non-agricultural conversion etc complied with) Whether State Level Committee yes Constituted to coordinate and monitor progress has been Constituted Whether confirmation received yes Required form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project As per memorandum dated -- Cost 16.02.2010 issued from DC MSME Tangible Outcomes of the upgradation of infrastructure -- project facilities will cater more investment by the existing units. Justification of the Proposal Baran is an Aspirational District --

4. Project Cost: (Rs. in lakh) S. No. Particulars Proposed by IA (i) Land filling/levelling including boundary wall and fencing: 27.49 (ii) Laying roads 167.54 (iii) Drainage 53.69 (iv) Power distribution, Street light arrangements, etc. 124.80 Total 373.52

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % percentage Proposed by IA (i) GoI Grant under MSE-CDP 80 298.82 (ii) State Government contribution 20 74.70 Total 100 373.52

6. Observations:

Following documents are to be submitted prior to final approval.

(i) SIDBI appraisal report. (ii) Copy of approved layout plan signed by Competent Authority. (iii) Registered land documents in the name of Implementing Agency. (iv) Commitment letter from IA to meet the cost escalation, if any, over and above the approved project cost. (v) Status of completed ID projects in the State as per format to be provided by Office of DC (MSME). (vi) Certificate from State Government for compliance of GFR/ CVC guidelines. (vii) Certificate from State Government that more than 50% of units in the Industrial Estate are micro. (viii) RIICO, Jaipur should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Rajasthan / RIICO, Jaipur.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Baran, Rajasthan.

********

Agenda No.48.3.18: Proposal for up-gradation of Industrial Estate Ajeetgarh, Sikar, Rajasthan.

Background

(i) Rajasthan State Industrial Development and Investment Corporation (RIICO) Ltd. forwarded online application vide ref. No. 13362 dated 28.08.18. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 29.08.18. (iii) Government of Rajasthan submitted the Detailed Project Report (DPR) vide letter dated 04.09.18. (iv) Vide letter dated 28.09.18, MSME-DI, Jaipur recommended the proposal.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Rajasthan State Industrial Development and Investment Corporation Ltd. State : Rajasthan District : Sikar Industrial Estate : Industrial Area Ajeetgarh

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved No layout plan Total Area of industrial estate/ area 142.56 acres (acre) Area to be developed (acre) 97.70 acres Number and sizes of plots developed Size of plots No. of plots (m) 80x100 : 14 50x100 : 4 50x80 : 24 30x65 : 34 30x50 : 31 25x40 : 6 20x35 : 30 20x25 : 33

Total : 176 Implementing Period 24 months Other ID projects sanctioned in same Yes, IID centre Palsana was sanctioned by GoI on district: year of sanction, number of 09.02.2011 and completed on 31.03.2015. plots allotted, units set up, etc. Performance of ID projects in State Good

100

3. Details about Proposal:

Description Proposed by Implementing Remarks Agency (IA) Implementing Agency (IA) Rajasthan State Industrial As per guidelines Development and Investment Corporation Ltd Track Record of the IA Good -- Appraisal by SIDBI (Observations DPR will be appraised after Yet to be received and recommendations). Attach getting in principle approval. SIDBI report. Whether sufficient facilities Yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in the Yes Land document in the name of IA with Clear Title name of Implementing Agency Whether Zoning regulations and Not applicable is required non-agricultural conversion etc complied with) Whether State Level Committee to Yes Constituted coordinate and monitor progress has been Constituted Whether confirmation received Yes Required form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project Cost As per OM dated 10.02.2010 -- from the office of DC, MSME Tangible Outcomes of the project Up-gradation of infrastructure -- will cater more investment by the existing units Justification of the Proposal present infrastructure needs -- improvement

4. Project Cost: (Rs. in lakh) S. No. Particulars Proposed by IA (i) Land filling/levelling including boundary wall and fencing: 11.06 (ii) Laying roads 394.44 (iii) Water supply including overhead tanks, and pump houses 12.62 (iv) Water harvesting 10.64 (v) Drainage 59.38 (vi) Power distribution, Street light arrangements, etc. 26.76 Total 514.90

101

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % percentage Proposed by IA (i) GoI Grant under MSE-CDP 49.69 255.86 (ii) State Government contribution 50.31 259.04 Total 100.00 514.90

6. Observations:

Following documents are to be submitted prior to final approval.

(i) SIDBI appraisal report. (ii) Copy of approved layout plan signed by Competent Authority. (iii) Registered land documents in the name of Implementing Agency. (iv) Commitment letter from IA to meet the cost escalation, if any, over and above the approved project cost. (v) Status of completed ID projects in the State as per format to be provided by Office of DC (MSME). (vi) Certificate from State Government for compliance of GFR/ CVC guidelines. (vii) RIICO, Jaipur should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Rajasthan / RIICO, Jaipur.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate Ajeetgarh, Sikar, Rajasthan. *********

102

Agenda No.48.3.19: Proposal for up-gradation of Industrial Estate at Sirohi Road, Sirohi, Rajasthan.

Background

(i) Rajasthan State Industrial Development and Investment Corporation (RIICO) Ltd. forwarded online application vide ref. No. 13359 dated 28.08.18. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 29.08.18. (iii) Government of Rajasthan submitted the Detailed Project Report (DPR) vide letter dated 04.09.18. (iv) Vide letter dated 28.09.18, MSME-DI, Jaipur recommended the proposal.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Rajasthan State Industrial Development and Investment Corporation Ltd. State : Rajasthan District : Sirohi Industrial Estate : Industrial Area Sirohi Road

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved No layout plan Total Area of industrial estate/ area (acre) 117.74 acres Area to be developed (acre) 82.24 acres Number and sizes of plots developed Size of plots No. of plots (m) 80x100 : 5 60x100 : 10 50x80 : 9 30x65 : 49 30x50 : 39 25x40 : 36 SP : 1

Total : 149 Implementing Period 24 months Other ID projects sanctioned in same No ID project sanctioned in Sirohi District district: year of sanction, number of plots allotted, units set up, etc. Performance of ID projects in State Till date out of 16 ID projects, 14 projects has been completed.

103

3. Details about Proposal:

Description Proposed by Implementing Agency Remarks (IA) Implementing Agency (IA) Rajasthan State Industrial As per guidelines Development and Investment Corporation Ltd Track Record of the IA Detailed discussed in DPR chapter-7 -- Appraisal by SIDBI DPR will be appraised after getting in Yet to be received (Observations and principle approval. recommendations). Attach SIDBI report Whether sufficient facilities Yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession Yes Land document in in the name of IA with Clear the name of Title Implementing Agency is required Whether Zoning regulations Not applicable and non-agricultural conversion etc complied with) Whether State Level Yes Constituted Committee to coordinate and monitor progress has been Constituted Whether confirmation received Yes Required form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project As per memorandum dated 10.02.2010 -- Cost issued from the office of DC MSME Tangible Outcomes of the Up gradation of infrastructure facilities -- project will cater more investment by the existing units. Justification of the Proposal Sirohi is an Aspirational District --

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Proposed by IA (i) Land filling/levelling including boundary wall and fencing: 95.01 (ii) Laying roads 198.31 (iii) Power distribution, Street light arrangements, etc. 118.36 Total 411.68

104

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % percentage Proposed by IA (i) GoI Grant under MSE-CDP: 80 329.34 (ii) State Government contribution 20 82.34 Total 100 411.68

6. Observations:

Following documents are to be submitted prior to final approval.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Sirohi Road, Sirohi, Rajasthan.

*********

105

Agenda No.48.3.20: Proposal for up-gradation of Industrial Estate at Sanwar, Udaipur, Rajasthan.

Background

(i) Rajasthan State Industrial Development and Investment Corporation (RIICO) Ltd. forwarded online application vide ref. No. 13540 dated 15.10.18. (ii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 11.09.18. (iii) Government of Rajasthan submitted the Detailed Project Report (DPR) vide letter dated 16.10.18. (iv) Vide letter dated 23.10.18, MSME-DI, Jaipur recommended the proposal.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Rajasthan State Industrial Development and Investment Corporation Ltd. State : Rajasthan District : Udaipur Industrial Estate : Industrial Area Sanwar

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved No layout plan Total Area of industrial estate/ area (acre) 129.18 Acres Area to be developed (acre) 62.00 Acres Number and sizes of plots developed Size of plots No. of plots (m) 30x65 : 36 30x50 : 36 25x40 : 74 20x50 : 23 20x25 : 14

Total : 183 Implementing Period 24 months Other ID projects sanctioned in same IID Kaladwas in Udaipur District was sanctioned district: year of sanction, number of plots on 09.11.1998 allotted, units set up etc. Performance of ID projects in State Good

106

3. Details about Proposal:

Description Proposed by Implementing Remarks Agency (IA) Implementing Agency (IA) Rajasthan State Industrial As per guidelines Development & Investment Corporation Ltd. Track Record of the IA Good -- Appraisal by SIDBI DPR will be appraised after getting Yet to be received (Observations and in principle approval. recommendations). Attach SIDBI report Whether sufficient facilities Yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in Yes Land document in the name of IA with Clear Title the name of Implementing Whether Zoning regulations and Not applicable Agency is required non-agricultural conversion etc complied with) Whether State Level Committee Yes Constituted to coordinate and monitor progress has been Constituted Whether confirmation received Yes Required form IA that it will meet the cost in excess of approved project cost and any escalation in cost Basis of elements of project Cost As per memorandum dated -- 16.02.2010 issued by DC MSME. Tangible Outcomes of the project Upgradation of Infrastructure -- facilities will cater more investment by the existing units. Justification of the Proposal Need of improvement in -- infrastructure.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Proposed by IA (i) Land filling/levelling including boundary wall and fencing: 28.33 (ii) Laying roads 251.43 (iii) Drainage 60.02 (iv) Power distribution, Street light arrangements, etc. 79.45 Total 419.23

107

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars % percentage Proposed by IA (i) GoI Grant under MSE-CDP 70 294.22 (ii) State Government 30 125.01 Total 100 419.23

6. Observations:

Following documents are to be submitted prior to final approval.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for up-gradation of Industrial Estate at Sanwar, Udaipur, Rajasthan ********

108

Agenda No.47.3.21: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Design Cluster, Trippur, Tamil Nadu.

Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter dated 02.08.17. (ii) MSME-DI, Chennai forwarded online application vide ref. No. 13457 dated 25.09.18. (iii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Design Cluster District : Tiruppur Location of Cluster : Tiruppur Lok Sabha Constituency : Thanjavur Main Product : Design Development in Clothing No. of Enterprises including Micro 1308 break up (Micro, Small, Small 800 Medium) : Medium 225 Large 67

Total 2400 Turnover(Rs. in Crore) for the Year Amount last five years : 2013-14 24,012 2014-15 26,650 2015-16 37,500 2016-17 46,375

2017-18 57,968 Exports(Rs. in Crore) for the Year Amount last five years : 2013-14 19,378 2014-15 20,160 2015-16 27,765 2016-17 30,800

2017-18 35,500 Employment in Cluster : 6,00,000 employee directly and indirectly involved Technology Details : Design studio Fashion Media Labs Ramps and Runways Training facility Sampling Facility Whether DS Conducted : Yes Main findings of DSR : 1) Lack of product R&D 2) Inconsistent production quality 3) Lack of novel product sampling services 4) Poor product knowledge for manufacturers 5) Poor production knowledge for designers 6) Gaps in skills and training Main Problems of Cluster : 1) Lack of product R&D 2) Inconsistent production quality 3) Lack of novel product sampling services 4) Poor product knowledge for manufacturers 5) Poor production knowledge for designers 6) Gaps in skills and training Other Information : Benefits of the proposed facility - The proposed facility will support the stakeholders in entire process from Conceptual Design Development, Fashion Sample development, Fashion products manufacturing, Marketing . 109

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC Proposed CFC help in overcoming following -- problems: 1) Lack of product R&D 2) Inconsistent production quality 3) Lack of novel product sampling services 4) Poor product knowledge for manufacturers 5) Poor production knowledge for designers 6) Gaps in skills and training (b.) Location of CFC NIFT Tea Knitwear Fashion Institute Campus -- Sidco East of TEKIC Mudalipalayam Village Tiruppur 641 606 Tamil Nadu. % age of units in radius of 1800 -- 5km % age of units in radius of 4500 –- 10km (c.) Land for CFC i. Whether land acquired yes Registered land ii. Title is in name of Tiruppur Fashions Cluster Private Limited documents in the name of SPV is iii. Valuation and its Rs. 450 / sq ft required. basis (If land is on lease iv. Land is sufficient yes basis, registered lease deed for v. Change of land use nil minimum 30 vi. If on lease, duration 25 years years is required). of lease vii Whether lease is yes legally tenable (d.) Total Building area(sq 45000 Sq Ft -- ft) (e.) Rate of construction of 1000 -- building (f.) Main Facility  Design Development Facility -- Proposed  Costume and Sampling Development Facility  Media Lab Facility  Ramps and Runways Facility  Training Facility (g.) Prod capacity of CFC 1) Development of designs at the average rate of -- Rs. 14,000/- per design. 2) Sale of Samples 15 Samples produced in one day at the rate of Rs. 9,000/- per Sample. 3) Promotion of Products About 10 products promoted in one day at the rate Rs.5745/product. 4) Conduction of events 1 event conducted in one day at the rate of 45,000/- per program. 5)lab Training Courses Conducted In three courses about 12 students per course in each 6 months with a fee of Rs.24,000/- per student (h.) Major Outputs/ S. No Year Turnover (largely micro-sized units in Tangible Deliverables of CFC, Rs. crore) outcomes like Projected performance of number of units, the cluster after proposed 1. 2013-14 24,012.00 turnover, export, intervention (in terms of 2. 2014-15 26,680.00 employment etc. production, export/ 3. 2015-16 37,500.00

110

Description Proposed by Implementation Agency (IA) Comments by Cluster Division domestic sales and direct/ 4. 2016-17 46,375.00 indirect employment, etc.) 5. 2017-18 57,968.75 (i.) Pollution clearance Required Certificate from required or not State Pollution Control Board is required. (j.) Man Power in CFC 69 persons -- (k.) Revenue generation Development of Designs 10 designs produced in -- mechanism for 1) Development of designs at the average rate of sustainability of assets Rs. 14,000/- per design. (service/user charges to be 2) Sale of Samples 15 Samples produced in one levied, any other-to be day at the rate of Rs. 9,000/- per Sample. specified) 3) Promotion of Products About 10 products promoted in one day at the rate Rs.5745/product. 4) Conduction of events 1 event conducted in one day at the rate of 45,000/- per program. 5)lab Training Courses Conducted In three courses about 12 students per course in each 6 months with a fee of Rs.24,000/- per student

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Tiruppur Fashions Cluster Private Limited NIFT -- TEA Knitwear Fashion Institute Campus SIDCO East of TEKIC Mudalipalayam Village TIRUPPUR 641 606 Tamil Nadu. (b.) Nature of SPV Private Limited -- (company or Society or Trust) (c.) Name of the state Govt. The current members of CDCC comprise: - Dy. -- and MSME officials in Director, MSME - DI, Coimbatore, Government of SPV India(Member) - B ran c h Manager, TANSID CO (Chairman) - GM, DI C (Member) - Dy. Director, Textiles Committee, Tiruppur - (d.) Date of formation of 9th August 2016 -- SPV (e.) Number of Members 39 -- (f.) Bye Laws or MA and Yes -- AOA submitted (g.) Authorized Share 20 lakh -- Capital (h.) Paid up capital 324 lakh -- (i.) Shareholding Pattern Upon percentage of each and every stakeholder -- (j.) Commitment letter for Willingness form collected from all SPV members Required. contribution (k.) SPV specific A/c Syndicate Bank SME Tirupur Required. (l.) Trust Building of SPV, S. No. Constraints Action by (supported by) Time- -- Previous track record of co- line Beneficiaries Output and Impact SOFT operative initiatives INTERVENTIONS Pilot activities capacity pursued by SPV members building activities Scope to improve awareness on need to be highlighted with technology upgrading needs Interactive meets with 111

Description Proposed by Implementation Agency (IA) Comments by Cluster Division support documentation technology service providers equipment manufacturers in Coimbatore and Tiruppur. (m.) Technical Institution NIFT Tea Knitwear Fashion College, Tiruppur. Received (n.) CFC may be utilised by The initiative of the proposed facility will Required. SPV members as also conceptually and proficiently support the MSEs of others in a cluster. Tiruppur cluster in entire process from sample However, evidence should development to clothing manufacturing. Starting be furnished with regard to from concept design, fabric selection, trims design, SPV member ability to or actual design of garment, the designer will work utilise at least 60 percent of together to make sure the garment comes out right installed capacity. with a collection which gives a great sale and profit. To begin with the studio will take up with the sketches and prepare technical drawing. The studios technical fashion designer consults ideas and come up with technical design in production feasible and cost effective without compromising. (o.) (a) Power requirement for 200 KVA -- commercial/domestic purpose (b) Water 5000 LTRS PER DAY -- (c) Gas/Oil/Other 18 KGS OF GAS. -- Utilities

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency Tiruppur Fashions Cluster Private Limited, As per MSE-CDP Tiruppur guidelines. (b.) Fund receiving Agency TANSDICO, Tami lnadu (c.) Implementation Period 1 year -- (d.) Appraisal of DPR and Scrutiny by SIDBI appraisal SIDBI appraisal main Recommendations required. (e.) Comments of Passed. No any query Received. Technical Division (f.) Approval of Technical Yes Recommended by Committee Technical Committee. (g.) Working capital(In- Rs. 20 lakh, contributed by SPV itself Received. principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 25.83 -- (b.) IRR, Payback period IRR is 34.86 and payback period is 3 Years and 4 -- Months with grant-in-aid assistance from GoI. 112

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (c.) DSCR Not Applicable (non-availment of term loan in this -- project) (d.) Return on Capital 27.46% (project viable) -- employed (ROCE) (e.) NPV NPV is positive and high (Rs. 1849.21 lakh) at a -- conservative project life is 10 years (f.) DER nil -- (g.) Sensitivity Analysis Sensitivities vis-a-vis ROCE and project pay-back -- period No Particulars ROCE (Considering PAT) NPV (Considering Cash flow values of inflows) IRR (Considering Cash flow values of inflows) BEP 1 Base case 28.06 1,901.09 35.49% 24.23% 2 With decline in user charge by 5 % 25.83 1697.34 33.03 25.78 Even assuming a fall in user charge and capacity utilisation ROCE is favourable. From the above it is evident that the project is very viable even under (unlikely) risky environment circumstances. (h.) Status of CFCs State Steering Committee Approved this Design -- approved in the State Cluster Proposal and Forward to MSEs DI new Delhi and MSEs DI New Delhi also approved Design Cluster proposal in GOI MSEs Technical Committee and Waiting for MSEs DI Steering Committee .

6. Proposed Project Cost is as follow: (Rs. in lakh) S. No. Particulars Total Cost (i) Land and its Development 10.00 (ii) Building and other Civil Constructions 324.00 (iii) Plant & Machinery (including electrification) 1050.98 (iv) Misc. fixed assets 19.15 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 29.00 (vi) Contingency (2% building and 5% on plant and machinery) 29.51 (vii) Margin money for Working Capital 17.00 Total Project Cost 1479.64

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Total Project Cost Percentage (%) Amount (i) Grant-in-aid from Govt. of India 70.00 1035.74 (ii) Grant-in-aid from State Govt. of Tamil Nadu 6.76 100.00 (iii) SPV contribution 23.24 343.90 Total 100.0 1479.64

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. Description No. Power Cost No. Requirement (HP/KW)

113

S. Description No. Power Cost No. Requirement (HP/KW) 1. Design Development Facility Fashion Library /Fashion 1 10 222.25 Catalogues/ magazines/ journals/on line fashion shows / Fashion designing /Printing Designing/ Handmade and machine Embroidery Designing / Accessories designing / Packing materials Designing / TECHPACK Creation etc. Designing for Offset printing CMYK/Wacom Tablet/WGSN online subscription 2. Costume and Sampling Development Facility Single 1 62 140.20 Needle Lock Stitch/Over lock/ Flat lock Machines/Button making and other accessories fixing machine / Digital Printing machine / Mannequins, Dress forms with postures/2D 3D inbuilt pattern software equipment 3. Media Lab Facility Post production Studio tools & 1 45 275.00 Equipments / Audio Mixing & Dubbing Equipments / Reverberation reduction and acoustical erection equipment/ Special lighting & Control equipments/ Video recording & Editing devices and equipment / Mother Server 4. Ramps and Runways Facility DMX Machine and 1 23 275.00 lighting equipments, Digital Sound and allied Equipment, Reverberation reduction and acoustical erection equipment, Movable Draping Equipment, The horizontal control equipment with gear box and heavy duty sprockets chain driven, Video Presentation devices and equipment, Live coverage , recording and streaming equipment/Immersive Media 5. Training Facility Class room furniture, Library Books, 1 9 30.00 Projector, LED Displays Black boards etc 6. Supporting Equipments Centralized Air Conditioning 1 25 93.00 Equipments / Gensets/ ETP/Control Panels/ UPS/ Wardrobes / Furniture / Telephones EPBAX Total 1035.45 9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) SIDBI Appraisal Report. (iii) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (iv) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (v) Details of SPV’s Bank Account. (vi) Certificate from State Pollution Control Board. (vii) Certificate in respect utilise at least 60 percent of installed capacity. (viii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Design Cluster, Trippur, Tamil Nadu.

*******

114

Agenda No.48.3.22: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Lorry Body Building Cluster, Namakkal, Tamil Nadu.

Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter dated 18.07.17. (ii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval. (iii) MSME-DI, Chennai forwarded online application vide ref. No. 13439 dated 20.09.18.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Lorry Body Building Cluster District : Namakkal Location of Cluster : Namakkal Lok Sabha Constituency : Namakkal Main Product : Cabin and body for open body lorries, tankers & tippers, trailers, rigid trucks & haulage, delivery vans and repair work for old commercial vehicles. No. of Enterprises including break Micro 287 up (Micro, Small, Medium) : Small 2

Total 289 Turnover(Rs in Crore) for the last Year Amount five years : 2008-09 47.30 2009-10 52.55 2010-11 58.39 2011-12 64.88

2012-13 72.08 Exports(Rs in Crore) for the last Nil five years : Employment in Cluster : Direct 2792. Indirect 10000 Technology Details : The entire construction of the cabin and body of vehicles are done manually. There are no standards maintained by the body building units for construction of the cabin and body and they do not adhere to the ARAI standards. Whether DS Conducted : Yes Main findings of DSR : The entire construction of the cabin and body of vehicles are done manually. There are no standards maintained by the body building units for construction of the cabin and body and they do not adhere to the ARAI standards. No R&D and testing facilities. Main Problems of Cluster : Inability to create infrastructure facilities for construction of cabin and body for vehicles adhering to ARAI standards; Increasing cost of raw materials and spares; Frequent power shut down; Low profit margin for micro units; Inability to access R & D and testing facilities; Financial constraint to go for expansion at the unit level. Other Information : The District and adjacent 4 districts have more than 1000; The upcoming industrial estate will have 300 Body Building Units; The SPV has more than 300+ members from all over TN including a number of District level Associations, 500+ non- members. 115

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC  Micro lorry body building units needs -- to comply with ARAI norms viz., the standards AIS 29 and AIS 93.  Investment in infrastructure for manufacturing and getting type approval for various components (parts of cabin at the unit level is beyond the reach of micro body building units).  Training is required for assembling the machine made cabin components.  Testing facility and R&D centre is required for testing raw materials and finished components. (b.) Location of CFC R.S.F. No.26/5, llanagar Village -- Panchayat, Elachipalayam Union, Thiruchengode Taluk, Namakkal District % age of units in radius of 50 -- 5km % age of units in radius of 100 -- 10km (c.) Land for CFC i. Whether land acquired Yes Registered land ii. Title is in name of SPV documents in the name of SPV is iii. Valuation and its basis Registered Sale Deed required. iv. Land is sufficient Yes (If land is on lease basis, registered v. Change of land use Yes lease deed for vi. If on lease, duration of NA minimum 30 years lease is required). vii Whether lease is legally NA tenable (d.) Total Building area(sq ft) 28416 (e.) Rate of construction of Rs.352 Per SFT building (f.) Main Facility Proposed  MS Sheet Metal Cutting Facility. –  Bending  Roll Forming  Pressing facility (g.) Prod capacity of CFC components processing support for upto -- 5000 cabins for micro units (h.) Major Outputs/ Parameter Present Within Within -- Deliverables of CFC, Projected status 1 year 3 performance of the cluster after of years proposed intervention (in terms CFC of of production, export/ domestic CFC sales and direct /indirect No. of units 289 325 375 employment, etc.) Employment 2792 3200 3600 (direct) Turnover 72.08 85.00 95.00 (Rs. in cr.) Export (Rs. - - 1.00

in cr.) (i.) Pollution clearance NA 116

Description Proposed by Implementation Agency Comments by (IA) Cluster Division required or not (j.) Man Power in CFC 34 Skilled and 7 Administrative -- (k.) Revenue generation Units bring raw materials for conversion to -- mechanism for sustainability of desired geometric dimension of assets(service/user charges to components as per AIS norms get it be levied, any other-to be pressed by paying user charges specified) (l.) Training for existing man power for AIS -- norms of ARAI

3. Information about SPV

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Name and Address M/s Namakkal District Lorry Body -- Builders Private Limited, S.F. No.72/5, C-2 S.S.M. Building, Sankari Road, Seetharampalayam-PO, Thiruchengode- 637 209, Namakkal District (b.) Nature of SPV(company or Limited Company -- Society or Trust) (c.) Name of the state Govt. and TANSIDCO, DIC, MSME DI -- MSME officials in SPV (d.) Date of formation of SPV 7.9.2009 -- (e.) Number of Members 390 -- (f.) Bye Laws or MA and AOA Enclosed -- submitted (g.) Authorized Share Capital Rs. 1 Lac; however it shall be increased -- to Rs.3 crore after sanction by Steering committee (h.) Paid up capital Rs. 1 Lac -- (i.) Shareholding Pattern Most of them less than 1%; very few of -- them upto 2.5 %; shall be decided after Steering committee approval, as there is a slowdown of momentum after last meeting. (j.) Commitment letter for Enclosed Commitment letter contribution from SPV contribution is required. (k.) SPV specific A/c Current Account No0.31440429039 Bank -- State Bank of India, Thiruchengode Branch, Namakkal District (l.) Trust Building of SPV, The cluster units are members of a very -- Previous track record of co- strong Federation of Lorry builders viz., operative initiatives pursued by Anaithu Mavatta Anaithu Body Builders SPV members need to be Sammalanam. The cluster members have highlighted with support already formed a consortium to act as the documentation special purpose vehicle for the proposed cluster development programme. MSME- DI, Chennai have conducted awareness programmes and management development programmes at the cluster. Few members of the cluster have already 117

Description Proposed by Implementation Agency Comments by (IA) Cluster Division visited other clusters and also Ashok Leyland, one of the leading commercial vehicle manufacturers. With the support of Government of Tamil Nadu the cluster members have formed an industrial estate at Velagoundampatty, about 15 Km from Namakkal Town exclusively for the lorry body builders at Cluster. About 300 units will be accommodated within the industrial estate. The SPV has already purchased the land for the proposed CFC, which is also very near to the industrial estate (m.) Technical Institution ARAI Pune, PGP College of Engineering Received. Namakkal (n.) CFC may be utilised by SPV Letter Enclosed, Formation of All Lorry Received members as also others in a builders association to have access to the cluster. However, evidence facility by all district associations is a should be furnished with regard clear evidence documents enclosed. to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 325 HP -- commercial/domestic purpose (b) Water 1000 Litres -- (c) Gas/Oil/Other Utilities 2500 Litres --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Implementing Agency TANSIDCO, Chennai As per MSE-CDP guidelines. (b.) Fund receiving Agency TANSIDCO, Chennai As per MSE-CDP guidelines. (c.) Implementation Period 24 Months -- (d.) Appraisal of DPR and main By SIDBI & ARAI SIDBI appraisal is Recommendations required. (e.) Comments of Technical Approved -- Division (f.) Approval of Technical Approved Recommended by Committee Technical Committee. (g.) Working capital(In- Rs. 20 lacs; TL Rs.79 Lacs; arrangements -- principle sanction of loan from a made with local financial services firms. bank, if applicable arrangement made)

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5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) BEP 49.64% -- (b.) IRR, Payback period IRR 12.85%. Payback: 6 to 7 Years -- (c.) DSCR 10.11 -- (d.) Return on Capital employed 25.01% -- (ROCE) (e.) NPV Rs.213.97 Lacs -- (f.) DER 1 : 3.31 -- (g.) Sensitivity Analysis on drop of 5% in income IRR : 11.23%. -- DSCR. 9.32

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Cost 1. Land and its Development 30.00 2. Building and other Civil Constructions 100.03 3. Plant & Machinery(including electrification) 1413.57 4. Misc. fixed assets 5.00 5. Preliminary & Pre-operative expenses, maximum 2% of project cost 30.00 6. Contingency (2% building and 5% on plant and machinery) 78.41 7. Margin money for Working Capital 5.00 Total 1662.01

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars Amount 1. Grant-in-aid from Govt. of India 1377.73 2. Grant-in-aid from Govt. of Tamil Nadu 98.53 3. SPV contribution 185.73 Total 1661.99

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Requirement Cost (HP/KW) (i) Hydraulic Press Break 1 60 174.42 (ii) Roll Forming Machine 18 Station 1 30 74.16 (iii) Hydraulic "H" frame Deep Drawing 1 100 286.54 Press (iv) Hydraulic "H" frame Deep Drawing 1 75 228.00 Press (v) Press Tools & Dies for parts of Cabin 1 00 582.40 Kit (vi) Miscellaneous Tools 1 00 3.00 (vii) Equipments R & D & Testing Centre 1 1 3.00 (viii) Training Centre Infrastructure 1 1 2.00 119

S. No. Description No. Power Requirement Cost (HP/KW) (ix) 125 KVA Generator 1 0 8.30 (x) 200 KVA Generator 1 0 11.13 (xi) Fork Lift 1 0 10.00 (xii) Electrical Installations 1 0 30.60 Total 1413.55

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) Revised SIDBI Appraisal Report. (iii) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (iv) Commitment letter from SPV for their contribution. (v) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vi) Details of SPV bank account. (vii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Lorry Body Building Cluster, Namakkal, Tamil Nadu.

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Agenda No.47.3.23: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Home Furnishing Cluster, Karur, Tamil Nadu.

Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter dated 22.03.18. (ii) Proposal was forwarded to Technical Division on 09.04.18. (iii) Technical Committee in its 59th meeting held on 31.07.18 recommended the proposal to place before Steering Committee for In-principle approval. (iv) MSME-DI, Chennai forwarded online application vide ref. No. 13274 dated 31.08.18.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Home Furnishing Cluster District : Karur Location of Cluster : Gandhi Grammam Lok Sabha Constituency : Karur Main Product: Cotton fabric home furnishings of 20s and 10s No. of Enterprises including break Micro 600 up (Micro, Small, Medium) : Small 40 Medium 10

Total 650 Turnover(Rs in Crore) for the last Year Amount five years : 2015-16 3140 2016-17 3611 2017-18 4153 2018-19 4776

2019-20 5492 Exports(Rs in Crore) for the last Nil five years : Employment in Cluster : 29600 Nos. (Direct – 9600 & Indirect – 20000) Technology Details : The equipment and technology options may be viewed in terms of terms of training as well as value-added printed fabric/garments components (like printed panels, printed collars, and printed cuff) development machines. Whether DS Conducted : Yes Main findings of DSR : Critical gap identified on the training, value-added apparel component development and testing front. Main Problems of Cluster : The important findings encapsulated in the DSR may be viewed in terms of critical gap identified on the training, value-added apparel component development and testing front. Other Information : No other information.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC The CFC could help cluster firms even -- double capacity utilization. Profit 121

Description Proposed by Implementation Agency Comments by (IA) Cluster Division margins may double from 5-10 percent. Units could graduate to value added products. More importantly, the envisaged common facility will help existing firms move up the value-chain; help expand product and market mix (value added home furnishings; apparel products.). The CFC will also enable increase in employment by at least about 3000 persons directly; train manpower to the tune of at least 3500 persons in 5 years. (b.) Location of CFC The facility is proposed to be located in -- Karur Taluk, Karur Dist. The SPV is procuring necessary land. About 42048 sq. ft. of this land will be the built-up area of the site. % age of units in radius of 5km - -- % age of units in radius of 10km - -- (c.) Land for CFC i. Whether land acquired Registration of land has been undertaken Registered land by the SPV documents in the ii. Title is in name of The title is in the name of SPV name of SPV is required. iii. Valuation and its basis The land is to be secured on 16 year lease (If land is on lease basis with lease rental of Rs. 10 lakh basis, registered (Land + Building). lease deed for iv. Land is sufficient Yes, the land is sufficient minimum 30 years is required). v. Change of land use Change of land use is not required vi. If on lease, duration of 16 years lease vii Whether lease is legally Yes, it is legally tenable tenable (d.) Total Building area(sq ft) 42048 -- (e.) Rate of construction of Building and civil works (building also -- building on lease basis along with renovation) Rs. 110 lakh (f.) Main Facility Proposed • Automatic Fabric Spreader & -- Cutting. • Printing. • Embroidery. • Testing Facilities. (g.) Prod capacity of CFC Please refer to page no 68 table no 29 of the DPR. (h.) Major Outputs/Deliverables Expected turnover rise to Rs. 5,970 crore Tangible outcomes of CFC, Projected performance during 2019-20 from the existing like number of of the cluster after proposed turnover of Rs. 3,140 crore for the period units, turnover, intervention (in terms of 2014-15. Capacity utilization may export, production, export/domestic increase by at least 50 per cent. increase employment etc. sales and direct/indirect in employment by 8000 persons directly. employment, etc.) Profit margins may double from 5 to 10 percent Exports could increase from barely 80% of turnover to even 85%. (i.) Pollution clearance required Not required -- or not 122

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (j.) Man Power in CFC 68 Nos. -- (k.) Revenue generation Total gross revenue in flow works out to -- mechanism for sustainability of Rs.890.11 lakh per annum on the basis of assets(service/user charges to be operating capacity (on continuous shift levied, any other-to be specified) basis) of 80 per cent. (l.) No other information --

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Plot no.69, SIDCO Industrial Estate, Certificate of Vennaimalai, Karur 639006. incorporation (b.) Nature of SPV(company or Registered as Private Limited under section 7 received. Society or Trust) of Companies Act 2014. (c.) Name of the state Govt. and The provision for State Govt. and MSME -- MSME officials in SPV officials in SPV. (d.) Date of formation of SPV Jan 8, 2016 -- (e.) Number of Members 22 members (f.) Bye Laws or MA and AOA Please refer to Annexure no -III Received. submitted (g.) Authorized Share Capital Rs. 180 lakh -- (h.) Paid up capital Rs. 200 lakh -- (i.) Shareholding Pattern Please refer to page no 48 table no 14 of the -- DPR. (j.) Commitment letter for It is provided Required. contribution (k.) SPV specific A/c Canara Bank Required. (l.) Trust Building of SPV, Provided, attached at Annexure IV of DPR -- Previous track record of co- operative initiatives pursued by SPV members need to be highlighted with support documentation (m.) Technical Institution Provided, attached at Annexure X of DPR -- (n.) CFC may be utilised by SPV Provided, attached at Annexure XII of DPR -- members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 277 Kva commercial/domestic purpose (b) Water 7000 ltr/ day (c) Gas/Oil/Other Utilities Nil

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4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency TANSIDCO, GoTN, (Karur Home Furnishing As per Cluster Services Pvt. Ltd. is the project SPV) guidelines (b.) Fund receiving Agency TANSIDCO, GoTN, (Karur Home Furnishing Cluster Services Pvt. Ltd. is the project SPV) (c.) Implementation Period 12 months -- (d.) Appraisal of DPR and It is being appraised Cluster Development SIDBI main Recommendations Coordination Committee appraisal required. (e.) Comments of Technical It is still awaited - Division (f.) Approval of Technical It is still awaited Recommended Committee by Technical Committee. (g.) Working capital(In- It is obtained from Canara Bank Received. principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 24 -- (b.) IRR, Payback period 30.30, 3 year 11 months -- (c.) DSCR Nil -- (d.) Return on Capital 26.03 -- employed (ROCE) (e.) NPV Rs. 924.10 lakh -- (f.) DER NA -- (g.) Sensitivity Analysis NA -- (h.) Status of CFCs approved in NA -- the State

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Cost (i) Land and its Development 10.00 (ii) Building and other Civil Constructions 110.00 (iii) Plant & Machinery(including electrification) 1266.37 (iv) Misc. fixed assets 20.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 30.00 (vi) Contingency (2% building and 5% on plant and machinery) 65.52 (vii) Margin money for Working Capital 5.31 Total 1507.20

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7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars Amount 1. Grant-in-aid from Govt. of India 1229.69 2. Grant-in-aid from Govt. of Tamil Nadu 100.00 3. SPV contribution 177.51 Total 1507.20

8. Plant and machinery (with Brief Specification)

S. Description No. Power Requirement Cost No. (HP/KW) 1. CAD 1 0 30.84 2. Spreader 3 14 80.97 3. Cutter 1 0 119.19 4. Spreading Table 1 0 40.21 5. St. Knife Cutting Machine 4 2 2.73 6. Band Knife Cutting Machine 1 1 3.34 7. Computers 2 2.5 1.26 8. Air Conditioning 1 2 0.42 9. Supporting equipments 1 0 20.18 10. Multicolour Printing Small 1 50 125.76 11. Multicolour Printing Large 1 77 177.65 12. Multicolour Printing with Foil option 1 42 138.39 13. Exposing Machine 1 8 95.19 14. Stretching Machine 1 0 59.37 15. UPS 1 0 0.99 16. Air Conditioning 1 2 0.42 17. Compressor / Stabilizer 1 15 9.81 18. Humidification 1 10 15.77 19. Supporting equipment 1 0 2.81 20. Embroidery machine (for larger dimension) 1 2.25 63.50 21. Embroidery Mc Sequin 1 2.25 97.50 22. Laser Engraving 1 5 3.68 23. Fusing Machine 1 2 1.38 24. Air conditioner 4 2 1.92 25. UPS 1 0 1.25 26. Testing Lab 1 10 29.56 27. Supporting equipments 4 13 81.99 Total 1206.08

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9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) SIDBI Appraisal Report. (iii) Tangible outcomes such as number of units, turnover, export, employment etc. (iv) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (v) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vi) Details of SPV bank account. (vii) Certificate from State Government for compliance of GFR/ CVC guidelines. (viii) Certificate from State Pollution Control Board. (ix) Number of units in the radius of 5 Km & 10 Km of the cluster.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Home Furnishing Cluster, Karur, Tamil Nadu.

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Agenda No.48.3.24: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Wooden Furniture Cluster, Salem, Tamil Nadu.

Background:

(i) The proposal was recommended by State Level Steering Committee (SLSC), Govt. of Tamil Nadu and forwarded vide letter dated 10.11.16 (ii) MSME-DI, Chennai forwarded online application vide ref. No. 4863 and dated: 14.07.16. (iii)Proposal along with Detailed Project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 24.01.17. (iv) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) MSME-DI, Chennai was advised to remove the Finger Joint Machine from List of Plant & Machinery and recommended the proposal to place before Steering Committee. (v) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Chennai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (vi) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal to place before Steering Committee for in-principle approval, include the Finger Joint Machine in list of Plant & Machinery, based on the justification provided by MSME-DI, Chennai.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Wooden Furniture Cluster District : Salem Location of Cluster : Salem Lok Sabha Constituency : Dharamapuri, Kallakurichi, Namakkal, Salem Main Product : Design Development, Finger Joint Board Development, Raw Material Primary Processing -Seasoning of Wood and Value Added Components Development No. of Enterprises including break Micro 250

up (Micro, Small, Medium) : Small 50 Turnover(Rs in Crore) for the last Year Amount five years : 2010-11 195 2011-12 215 2012-13 240 2013-14 270

2014-15 300 Exports(Rs. in Crore) for the last Nil five years :

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Employment in Cluster : 9600 (Direct – 3600 and Indirect – 6000) Technology Details : Supported by DIC, Govt. College of Engineering Salem, Thyiagarajar Polytechnic College, Salem, Govt. ITI, Salem Whether DS Conducted : yes Main findings of DSR : Raw material & procurement, financial institutions, skill upgrading, marketing and market development Main Problems of Cluster : Raw materials process, procurement, opportunities Other Information : Markets and market development, technology and productivity

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (a.) Justification for CFC Optimizing Cost And Quality Of Raw -- Material Hard And Soft Wood, Facilitating Cluster Firms To Progressively Cater To Premium Market Segments And Expand The Market Competitive Market Orientation Of Cluster Firms And Competitively Enable Import Substation Enabiling Higher (b.) Location of CFC Salem -- % age of units in radius of 5km 20 % age of units in radius of 50 -- 10km (c.) Land for CFC i. Whether land acquired Lease for 21 years Registered land ii. Title is in name of Salem Furniture Cluster India Private documents in Limited the name of SPV is iii. Valuation and its basis 1.37 crores ( market value) required. iv. Land is sufficient Yes ( 2.74 acers) (If land is on lease basis, v. Change of land use Categorized as industrial land registered lease vi. If on lease, duration of lease 21 Years deed for minimum 30 vii Whether lease is legally Yes years is tenable required). (d.) Total Building area(sq ft) 25100 -- (e.) Rate of construction of 500 Per Sq. Ft -- building (f.) Main Facility Proposed Raw material primary processing- -- seasoning of soft and hardwood species, finger joint board development (g.) Prod capacity of CFC Primary processing a) seasoning wood - -- 7500 cft pm b) finger joint - 4200 boards pm value added component a) development facility in value basis 66.44 lakhs pm design work 1.00 lakh pm (h.) Major Outputs / Deliverables Please refer table 8.17 Tangible of CFC, Projected performance of outcomes like the cluster after proposed number of intervention (in terms of units, turnover, production, export/ domestic sales export, and direct/ indirect employment, employment etc. etc.) 128

Description Proposed by Implementation Agency Comments by (IA) Cluster Division (i.) Pollution clearance required or Required Based on the Value of the Plant Certificate from not and Machinery State Pollution Control Board is required. (j.) Man Power in CFC 101 -- (k.) Revenue generation please refer table no : 8.16 -- mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Salem Furniture Cluster India Private -- Limited, 58, AKM Complex, Brindhavan Road, Fairlands , Salem -16, Tamil Nadu (b.) Nature of SPV(company or Company -- Society or Trust) (c.) Name of the state Govt. and Tamil Nadu State Government,(TANSIDCO) -- MSME officials in SPV AD, MSME -DI , Coimbatore (d.) Date of formation of SPV 29/01/2016 -- (e.) Number of Members Thirty (f.) Bye Laws or MA and AOA MOA & AOA -- submitted (g.) Authorized Share Capital 10 Share -- (h.) Paid up capital 189.48 -- (i.) Shareholding Pattern Please refer table 6.2 Received. (j.) Commitment letter for yet to get Required contribution (k.) SPV specific A/c Bank of India, Swarnapuri Branch , Salem , Required Tamil Nadu (l.) Trust Building of SPV, Akm Complex, Brindhavan Road,Fairlands , -- Previous track record of co- Salem operative initiatives pursued by SPV members need to be highlighted with support documentation (m.) Technical Institution DIC, Government College of Engineering , -- Salem, Tyagarajar Polytechnic College Salem, Government ITI, Salem (n.) CFC may be utilised by SPV Please refer annexure x for details Received members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 815 KVA -- commercial/domestic purpose (b) Water 20000 Liters/Day -- 129

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (c) Gas/Oil/Other Utilities Not Required --

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency TANSIDCO As per MSE-CDP (b.) Fund receiving Agency TANSIDCO guidelines (c.) Implementation Period 2 Years (d.) Appraisal of DPR and main To be made SIDBI Appraisal Recommendations Report is required (e.) Comments of Technical To be made -- Division (f.) Approval of Technical To be made Recommended by Committee Technical Committee. (g.) Working capital(In- No Loan Applied -- principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC:

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 27% -- (b.) IRR, Payback period 23.14% -- (c.) DSCR Not Applicable -- (d.) Return on Capital 28.96% -- employed (ROCE) (e.) NPV Positive and high -- (f.) DER Not applicable -- (g.) Sensitivity Analysis 5% reduction in user charges --

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Total Cost

(i) Land and its Development 15.00 (ii) Building and other Civil Constructions 125.50 (iii) Plant & Machinery (including electrification) 1197.00 (iv) Misc. fixed assets 10.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 28.00 (vi) Contingency (2% building and 5% on plant and machinery) 62.36 (vii) Margin money for Working Capital 8.47

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Total Project Cost 1446.33

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars %age Amount (i) Grant-in-aid from Govt. of India 80.00 1156.85 (ii) Government of Tamil Nadu 6.90 100.00 (iii) SPV contribution 13.10 189.48 Total 100.0 1446.33

8. Plant and Machinery (with brief specification) – (Rs. in lakh) S.No. Description No. Power Requirement Cost (HP/KW) 1. Server 1 0 1.00 2. Work Station Computer CPU 4 1 1.46 3. Work Station Monitor 4 1 0.42 4. UPS for Work Station Computers 1 0 0.32 5. Battery for Work Station Computer Ups 6 0 0.82 6. All in one printer 1 1 0.54 8. LCD Projector 1 1 0.45 9. Projector Screen 1 0 0.22 10. WIFI Networking 1 0 0.04 11. Plotter 1 0 1.15 12. Softwares for Design Studio and CNC 1 0 5.25 Machines 14. Chemical Treatment Plant 1 20 10.46 15. Wood Seasoning Klin 5 60 34.56 16. Boiler 1 30 25.34 17. Mother Trolley 1 0 1.28 18. Klin Trolley 10 0 10.24 19. CTP Trolley 6 0 3.84 20. Track Prallel Line 1 0 12.50 21. Thin Kerf Band Saw with Tool Grinding 1 25 41.30 Accessories and Related Equipment 22. Multi Rip Saw 1 50 47.20 23. Six Side Moulder 1 60 35.40 24. Pneumatic Cross Cut Saw 1 12 5.56 25. Sliding Table Panel Saw 1 10 7.80 26. Finger Joint Machine 1 50 154.07 27. CNC Master Cut ( templating solutions ) 1 30 123.90 29. auto copy lathe 1 12 47.00 30. wide belt sander with spiral cutter head 1 70 47.40 31. rotary composer 1 12 64.90 32. rectangular twin tabel tennoner 1 8 21.24 131

S.No. Description No. Power Requirement Cost (HP/KW) 33. twin table motiser 1 4 11.32 34. multi functional cnc router 1 25 82.40 35. wide belt sander ( smooth sanding) 1 60 47.20 36. auto copy shaper 1 22 29.50 37. double end tenoner 1 34 88.50 38. dust extraction system provision 1 25 53.10 39. air compressor 1 45 5.90 40. pneumatic lines 1 0 9.44 41. universal tool grinder 1 6 11.80 42. tooling for various machine 1 0 29.50 43. dg sets 2 0 30.30 44. transformer 1 0 21.24 45. fork lift 2 0 14.16 Total 1140.00

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) Tangible outcomes such as number of units, turnover, export, employment etc. (iii) Certificate from State Pollution Control Board. (iv) Commitment letter from SPV for their contribution. (v) SIDBI Appraisal Report. (vi) Details of SPV bank account. (vii) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (viii) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (ix) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Wooden Furniture Cluster, Salem, Tamil Nadu.

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Agenda No.48.3.25: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Printing Cluster, Salem, Tamil Nadu. Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter dated 31.05.17. (ii) MSME-DI, Chennai forwarded online application vide ref. No. 8760 dated 20.11.17. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) MSME-DI, Chennai should visit to study the machinery available in Printing Cluster, Kannur, Kerala. (b) MSME-DI, Chennai should discuss with SPV and suggested to remove some of the machinery from the list of Plant & Machinery proposed in the DPR by 08.08.18, in order to ensure that proposed CFC is not a complete manufacturing unit. (c) To deliberate the modified proposal in its next meeting. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Chennai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (v) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal to place before Steering Committee for in-principle approval on removal of 2 Machines from list of Plant & Machinery, namely, Reel to Sheet ruling machine and Pinning & Folding machine.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Printing Cluster District : Salem Location of Cluster : Salem Lok Sabha Constituency : Salem Main Product : Annual reports, Brochures, Diaries, Directories, Greeting cards, magazines, newsletters, note and school books, posters and Text books No. of Enterprises including break Micro : 480

up (Micro, Small, Medium) : Small : 20 Turnover(Rs. in crore) for the last Year Amount five years : 2012-13 220 2013-14 240 2014-15 255 2015-16 270 2016-17 300

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Exports(Rs. in lakh) for the last Year Amount five years : 2012-13 80.00 2013-14 80.00 2014-15 90.00 2015-16 100.00 2016-17 120.00

Employment in Cluster : 6380 (Direct-2380 and Indirect – 4000) Technology Details : District Industries Centre, Department of Printing Technology, Anna University, College of Engineering, Salem, Thiyagaraja Polytechnic, Salem. Whether DS Conducted : Yes Main findings of DSR : Man Power Cost Increase, Advance Skill Set, Advance Software, Main Problems of Cluster : 1) Optimisation of procurement costs. 2) Technology upgradation 3) Quality of design. 4) Requirement of multi-colour printing and product development facilities. Other Information : There is ample scope for cluster enterprises to network with institutions such as the National Small Industries Corporation as well as the Export Promotion Council (EPC) CAPEXIL to further penetrate the large government institutional market as well as export markets (in the longer term context). 2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC 1. Facilitating development of quality -- designs ,plates and printing products as to enable retention of value lost to firms in other clusters 2. Ensuring higher income-accruals to cluster firms 3. Facilitating value-addition to cluster products 4. Competitive market orientation of firms 5. Enhancing productivity, quality and value in printing (b.) Location of CFC Salem % age of units in radius of 5km 50 -- % age of units in radius of 10km 40 -- (c.) Land for CFC i. Whether land acquired Yes, Leased Registered land ii. Title is in name of Salem Prints Cluster Services Private documents in the Limited name of SPV is required. iii. Valuation and its basis 1.60 Crores (If land is on iv. Land is sufficient Yes (1Acre) lease basis, registered lease v. Change of land use Categorized as Industrial Land deed for vi. If on lease, duration of Yes, 21 Years minimum 30 lease years is required). vii Whether lease is legally Yes tenable (d.) Total Building area(sq ft) 10,000 Sq Ft --

134

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (e.) Rate of construction of INR 70,00,000 -- building (f.) Main Facility Proposed  Design Development --  Training (in multi-color web and offset equipment and sheet rolling equipment.  Value added product development. (g.) Prod capacity of CFC Please refer Table 8.15 (h.) Major Outputs/ Deliverables Please refer Table 8.16 Tangible of CFC, Projected performance outcomes like of the cluster after proposed number of units, intervention (in terms of turnover, export, production, export/ domestic employment etc. sales and direct/ indirect employment, etc.) (i.) Pollution clearance required Yes, Enclosed -- or not (j.) Man Power in CFC 73 Persons -- (k.) Revenue generation Please refer Table 8.15 Required mechanism for sustainability of assets(service/user charges to be levied, any other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Salem Prints Cluster Services Private -- Limited, SF No. 163/3, Dadagapatti Village, Salem Taluk, Salem 636201 (b.) Nature of SPV(company or Company Received Society or Trust) (c.) Name of the state Govt. and TANSIDCO & MSME-DI -- MSME officials in SPV (d.) Date of formation of SPV 14-12-2012 -- (e.) Number of Members 35 -- (f.) Bye Laws or MA and AOA Yes, Enclosed Received. submitted (g.) Authorized Share Capital 2,00,00,000 -- (h.) Paid up capital. 28,00,000/- as on 31-03-17 -- (i.) Shareholding Pattern Please refer Table 6.2 Received. (j.) Commitment letter for Please refer Annexure 10 Required contribution (k.) SPV specific A/c Bank of India, Salem Main Branch - 636002 Required (l.) Trust Building of SPV, No h-92, C Block, TNHB Green Park -- Previous track record of co- Avenue, Salem 636007 operative initiatives pursued by SPV members need to be highlighted with support documentation (m.) Technical Institution DIC, Government ITI Salem, Government -- College of Engineering Salem, Thiyagarajar Polytechnic, Salem. 135

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (n.) CFC may be utilised by SPV Please refer Annexure 10 Received members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 273 KVA -- commercial/domestic purpose (b) Water 10,000 Litre -- (c) Gas/Oil/Other Utilities Not required --

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency TANSIDCO, Chennai As per MSE-CDP (b.) Fund receiving Agency TANSIDCO, Chennai guidelines (c.) Implementation Period 1 Year (d.) Appraisal of DPR and main 08.02.17 SIDBI Appraisal Recommendations Report is required (e.) Comments of Technical To be Made -- Division (f.) Approval of Technical To Be Made Recommended by Committee Technical Committee. (g.) Working capital(In- No Loan Applied -- principle sanction of loan from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 21.27% -- (b.) IRR, Payback period IRR - 31.4 , Pay Back Period - 3 years and 9 -- Months (c.) DSCR NA -- (d.) Return on Capital employed 35.93% -- (ROCE) (e.) NPV Positive & High -- (f.) DER NA -- (g.) Sensitivity Analysis 5 % --

6. Proposed Project Cost: (Rs. in Lakh) S. No. Particulars Total Cost 136

(i) Land and its Development 15.00 (ii) Building and other Civil Constructions 70.00 (iii) Plant & Machinery (including electrification) 1159.00 (iv) Misc. fixed assets 15.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 27.06 (vi) Contingency (2% building and 5% on plant and machinery) 59.35 (vii) Margin money for Working Capital 4.82 Total Project Cost 1350.23

7. Proposed Means of Finance: (Rs. in lakh) S. No. Particulars %age Amount 1. Grant-in-aid from Govt. of India 83.29 1124.60 2. Grant-in-aid from Govt. of Tamil Nadu 6.71 90.60 3. SPV contribution 10.00 135.03 Total 100.00 1350.23

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Requirement Cost (HP/KW) 1. PC & Design Software 4 4 12.00 2. CTP 1 15 80.00 3. Four color sheet fed offset 1 55 690.00 4. Four color web offset 1 90 195.00 6. Die punching and creasing machine 1 15 40.00 7. VDP machine 1 10 23.00 9. Case making machine 1 8 70.00 10. Power: DG Set 250 KVA 1 0 16.00 11. UPS for CtP equipment 1 0 9.00 12. Transformer 1 0 14.00 13. Air conditioner (25 tonnes) 20 45 10.00 Total 1159.00

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) Tangible outcomes such as number of units, turnover, export, employment etc. (iii) Commitment letter from SPV for their contribution. (iv) SIDBI Appraisal Report. (v) Details of SPV bank account. (vi) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (vii) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. 137

(viii) Certificate from State Government for compliance of GFR/ CVC guidelines. (ix) Certificate from State Pollution Control Board. (x) Document Revenue generation mechanism for sustainability of assets (service/user charges to be levied, any other-to be specified)

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Printing Cluster, Salem, Tamil Nadu. *******

138

Agenda No.47.3.26: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Power loom Cluster, Palladam, Tiruppur, Tamil Nadu. Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter 22.03.18. (ii) MSME-DI, Chennai forwarded online application vide ref. No. 13432 dated 20.09.18. (iii) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) MSME-DI, Chennai to ascertain the existence of any such facilities created by other Ministries / Departments in the nearby area and also advised to verify & report by 14.08.18, for membership duplication of SPV members in more than one CFC. (iv) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Chennai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc.) etc. (v) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal to place before Steering Committee for in-principle approval, based on the report submitted by MSME-DI, Chennai.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Powerloom Cluster District : Tiruppur Location of Cluster : Palladam Lok Sabha Constituency : Thanjavur Main Product : Cotton Grey Fabric with different sizes and Width No. of Enterprises including break Micro 2500 up (Micro, Small, Medium) : Small 450 Medium 50

Total 3000 Turnover(Rs. in crore) for the last Year Amount five years : 2014-15 13,600 2015-16 14,000 2016-17 14,500 2017-18 15,000

2018-19 15,700 Exports(Rs. in crore) for the last Year Amount five years : 2014-15 12 2015-16 15 2016-17 18 2017-18 20

2018-19 22 139

Employment in Cluster : Employees about 1,20,000 (Direct + Indirect) Technology Details : 1) Only 35-40 conventional sizing units available in the entire Cluster, 2) Only Conventional machine technology available with cluster. 3) There is not any facility of Wet Processing accessible in the Cluster 4) There is no the facilities of Rotary Woven Printing accessible in the Cluster 5) In adequate design development. 6) Poor product development. Whether DS Conducted : Yes conducted and validated on 24th November 2016 by CDCC members Main findings of DSR : 1. Poor market information on demand/ require trends. 2. Inconvenient to direct market linkages. 3. Poor product development. 4. High fluctuations in procurement price affecting capacity utilization. 5. Absence of Wet Processing and Printing Facility. 6. Difficulties in accessing of testing designing and technical services. 7. No access to market information/ snag in setting up Cost based Market. Main Problems of Cluster :  Poor market information on demand/ require trends.  Inconvenient to direct market linkages. (Export/Corporate/Retailers/ Consumers) in the National and Global Value Chain.  Inadequate design development.  Poor product development.  High fluctuations in procurement price affecting capacity utilization and value accruals to all job work weavers / master weavers.  Absence of Wet Processing and Printing Facility.  Difficulties in accessing of testing designing and technical services.  No access to market information/ snag in setting up Cost based Market. Other Information : Proposed Facility Modern Sizing Facility is proposed - Warping Machine with creels - Cooker/Starch Storage Tank - Sizing Machine Wet Processing Facility is proposed - Desizing -Scouring - Bleaching - Stentering Rotary Woven Printing Facility is proposed - Rotary Printing Machine - Com plete with screen making section/ Curing with Steaming m/c (loop ager) - Screen washing, sqeecee washing - Color Kitchen / color making system Apparel Product Design Research Development and Marketing Facility is proposed - Apparel Designing equipments with software - Sewing Machines - Product Display - Samples manufacturings - Dummys and Mannequins/Racks, Wardrobes etc.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC Proposed Facility Modern Sizing Facility is -- proposed - Warping Machine with creels - Cooker/Starch Storage Tank - Sizing Machine Wet Processing Facility is proposed - Desizing - Scouring - Bleaching - Stentering Rotary Woven

140

Description Proposed by Implementation Agency (IA) Comments by Cluster Division Printing Facility is proposed - Rotary Printing Machine - Com plete with screen making section/ Curing with Steaming m/c (loop ager) - Screen washing, sqeecee washing - Color Kitchen / color making system Apparel Product Design Research Development and Marketing Facility is proposed - Apparel Designing equipments with software - Sewing Machines - Product Display - Samples manufacturing - Dummys and Mannequins/Racks, Wardrobes etc. (b.) Location of CFC SF No. 37/1 and 38/2. 1 acre and 64 cents and 2 -- acre and 29 cents, Kethanur Village, Palladam Taluk Tiruppur % age of units in radius of 40 -- 5km % age of units in radius of 95 -- 10km (c.) Land for CFC i. Whether land acquired Acquired and leased for 25 years Registered land ii. Title is in name of Palladam Poerloom Weaving Cluster Private documents in the Limited name of SPV (If land is on lease iii. Valuation and its 25 years basis, registered basis lease deed for a iv. Land is sufficient Very much sufficient minimum period of 30 years is v. Change of land use To run Industry required). vi. If on lease, duration 25 years of lease vii Whether lease is Yeas legally tenable (d.) Total Building area(sq 50,000 -- ft) (e.) Rate of construction of Rs. 600 per Square foot. -- building (f.) Main Facility Proposed  Modern Sizing Facility --  Wet Processing Facility  Rotary Woven Fabric Printing Facility  Apparel Product Designing Research Development and Marketing Facility  Supporting Equipments (g.) Prod capacity of CFC No. Facility Particulars (Requirements by way of -- consumables) Amount (requirement @ 100% C.U. in Rs. Lakh) Amount (@ 80% C.U. in Rs. Lakh) Amount (@ 85% C.U. in Rs. Lakh) a. Modern Sizing Facility 1 Sizing 1,00,000 mts of yarn sized at the rate of Rs.1.00/mts per day 288.00 230.40 244.80 Sub Total 288.00 230.40 244.80 b. Wet Processing Facility 1 Wet Processing 22,000 mts of fabric bleached at the rate of Rs.10.00/mts per day 633.60 506.88 538.56 Sub Total 633.60 506.88 538.56 c. Rotary Woven Fabric Printing Facility 1 Rotary Fabric Printing 18,000 mts of fabric printed at the rate of Rs.10.00/mts per day 518.40 414.72 440.64 Sub Total 518.40 414.72 440.64 d. 141

Description Proposed by Implementation Agency (IA) Comments by Cluster Division Apparel Product Design Research Product Development and Marketing Facility 1 Product designing and development About 25 Products Designed/Developed as samples per day at the rate of Rs.1,000/Product. 72.00 57.60 61.20 Sub Total 72.00 57.60 61.20 TOTAL 1512.00 1209.60 1285.20 (h.) Major Outputs/ Activity Gross Value per Value added Fabric ( Tangible Deliverables of CFC, profit margin of about 25%) Sale to outcomes like Projected performance of wholesaler/marketer Rs.49 per mtr fabric sold in number of units, the cluster after proposed the market approximately (Gross value on sale turnover, export, intervention (in terms of of one kg of fabric @ Rs. 196.25 each yielding a employment etc. production, export/ gross operating profit of over Rs. 49 per kg or 25 domestic sales and per cent on sale) Value adding with Woven direct/indirect employment Rotary Printing Facility (Designing/Screen etc.) Making) Rs. 196.25 per kg (gross value under taking value adding activity @ Rs. 39.25 at 25% value) Processing Desizing / Half /Full Bleached Fabric conversion Rs. 157 per kg (gross value under taking value adding activity @ Rs. 20.55 at 15% value) Fabric Formation by Powerloom Rs.137 per kg (gross value on undertaking value adding activity @ Rs. 7 per kg) Yarns winded into beams and the warp beams are converted to Sized beams by adding starch. Rs.130 per kg (Gross value on undertaking Sizing activity @ Rs.20 per kg. Procurement: Sourcing of grey yarn from Spinning mills at Udumelpet, Vellakoil Coimbatore Tiruppur Rs. 110 per kg (Gross value on procurement of yarn of 1 kg) (i.) Pollution clearance Yes -- required or not (j.) Man Power in CFC 75 -- (k.) Revenue generation No. Facility Particulars (Requirements by way of -- mechanism for consumables) Amount (requirement @ 100% sustainability of assets C.U. in Rs. Lakh) Amount (@ 80% C.U. in Rs. (service/ user charges to be Lakh) Amount (@ 85% C.U. in Rs. Lakh) a. levied, any other-to be Modern Sizing Facility 1 Sizing 1,00,000 mts of specified) yarn sized at the rate of Rs.1.00/mts per day 288.00 230.40 244.80 Sub Total 288.00 230.40 244.80 b. Wet Processing Facility 1 Wet Processing 22,000 mts of fabric bleached at the rate of Rs.10.00/mts per day 633.60 506.88 538.56 Sub Total 633.60 506.88 538.56 c. Rotary Woven Fabric Printing Facility 1 Rotary Fabric Printing 18,000 mts of fabric printed at the rate of Rs.10.00/mts per day 518.40 414.72 440.64 Sub Total 518.40 414.72 440.64 d. Apparel Product Design Research Product Development and Marketing Facility 1 Product designing and development About 25 Products Designed/Developed as samples per day at the rate of Rs.1,000/Product. 72.00 57.60 61.20 Sub Total 72.00 57.60 61.20 Total 1512.00 1209.60 1285.20

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3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address 6/21sellakarachal, Karadivaavi, Sulur TK -- (b.) Nature of SPV Private Limited Company -- (company or Society or Trust) (c.) Name of the state Govt. The current members of CDCC comprise: - Dy. -- and MSME officials in Director, MSME-DI, Coimbatore, Government SPV of India Member) – Branch Manager, TANSIDCO(Chairman) - GM,DIC(Member) - Representative, Cluster Association/ SPV(Member) – Representative Syndicate Bank(Member) (d.) Date of formation of 06.02.17 -- SPV (e.) Number of Members 45 -- (f.) Bye Laws or MA and Available enclosed in the DPR Annexure IX. Received AOA submitted (g.) Authorized Share The company has an authorized capital of -- Capital Rs.412.23Lakh. The members are largely Micro unit firms (registered units) involved in grey fabric manufacturing. (h.) Paid up capital Composition Means of Finance Particulars Total -- GoI GoTN SPV BANK Land 20.00 20.00 Building 306.40 306.40 Plant And Machinery 1281.00 1235.00 96.00 15.00 Provision for contingencies (on plant and machinery) 65.00 Miscellaneous Fixed Assets 20.00 15.00 4.00 1.00 Preliminary Expenses 21.00 21.00 Preoperative Expenses 20.00 20.00 Margin For Working Capital 28.83 28.83 Total Project Cost 1762.23 1250.00 100.00 412.23 % Of Share In Total Project Cost 100% 70.93% 5.67% 23.40% Working Capital Requirement 28.83 7.21 21.62 % of Contribution 70.93% 5.67% 23.40 % (i.) Shareholding Pattern List of SPV Members (All SPV members belong Received to Micro Segment) (j.) Commitment letter for -- Commitment contribution letter from SPV contribution is required. (k.) SPV specific A/c -- Detail SPV Bank accounts is required. (l.) Trust Building of SPV, SPV for project implementation has been -- Previous track record of co- evolved by cluster stakeholders and support operative initiatives institutions through the catalysing role of the pursued by SPV members TANSIDCO, MSME-DI and DIC. The SPV was need to be highlighted with incorporated in 2017 and already includes about support documentation 45 members who are subscribing to the necessary equity base of the company. The SPV believes in a policy of free entry and exit. (m.) Technical Institution Textiles Committee, Tiruppur, Textile Received Commissioner Office Coimbatore, NIFT TEA KNitwear Fashion Institute, Tiruppur. (n.) CFC may be utilised by The Evident Demand connotes the facilities Commitment 143

Description Proposed by Implementation Agency (IA) Comments by Cluster Division SPV members as also utilization of SPV members on more or less letter from SPV others in a cluster. requirements, but in proportionate the facilities members to However, evidence should utilization will be subdivided in to 50-60 percent utilize at least 60 be furnished with regard to SPV members 40-50 percent cluster 3600 MSEs percent of SPV member ability to will be benefited at competitive cost. installed capacity. utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 450 KVA -- commercial/domestic purpose (b) Water 16,000 Ltrs/day -- (c) Gas/Oil/Other Utilities 60 kgs/day --

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency TANSIDCO, Chennai and Coimbatore Office. Tamilnadu Small (b.) Fund receiving Agency MSME-DC, Mo MSME, GoI, New Delhi Industries Development Corporation Limited, Chennai (c.) Implementation Period Project implementation is envisaged to involve a As per MSE-CDP time-frame of about 12 months upon receipt of guidelines. final approval of grant-in-aid assistance from the Govt. of India. (d.) Appraisal of DPR and Awaiting for Steering Committee, MSME DC. SIDBI appraisal main Recommendations is required. (e.) Comments of Technical Committee, Passed. -- Technical Division (f.) Approval of Technical 27.07.17 Recommended by Committee Technical Committee. (g.) Working capital(In- Rs. 21,61,000 Letter is principle sanction of loan required. from a bank, if applicable arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 23.21 -- (b.) IRR, Payback period Over 36.42% (project viable) -- (c.) DSCR Not Applicable (non-availment of term loan in -- this project) (d.) Return on Capital 28.55% (project viable) -- employed (ROCE) (e.) NPV NPV is positive and high (Rs. 2350.70 lakh) at a -- conservative project life is 10 years (f.) DER 3 year and 3 month with grant-in-aid assistance -- from GoI. (g.) Sensitivity Analysis Sensitivity vis-a-vis ROCE and project pay-back -- 144

Description Proposed by Implementation Agency (IA) Comments by Cluster Division period No Particulars ROCE (Considering PAT) NPV (Considering Cash flow values of inflows) IRR (Considering Cash flow values of inflows) BEP 1 Base case 28.55 2,350.70 36.42% 23.21% 2 With decline in user charge by 5 % 26.08 2080.23 33.68% 24.85%

6. Proposed Project Cost is as follow: (Rs. in Lakh) S. No. Particulars Total Cost (i) Land and its Development 20.00 (ii) Building and other Civil Constructions 300.00 (iii) Plant & Machinery (including electrification) 1281.00 (iv) Misc. fixed assets 20.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 41.00 (vi) Contingency (2% building and 5% on plant and machinery) 71.40 (vii) Margin money for Working Capital 28.83 Total Project Cost 1762.23 7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars % percentage Amount (i) Grant-in-aid from Govt. of India 70.92 1250.00 (ii) Grant-in-aid from Government of Tamil Nadu 5.68 100.00 (iii) SPV contribution 23.40 412.23 Total Project Cost 100 1762.23

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Power Cost Requirement (HP/KW) 1. Modern Sizing Facility is proposed - Warping Machine 3 75 215.00 with creels - Cooker/Starch Storage Tank - Sizing Machine

2. Wet Processing Facility is proposed - Desizing -Scouring - 4 75 385.00 Bleaching - Stentering 3. Rotary Woven Printing Facility is proposed - Rotary 4 90 315.00 Printing Machine - Com plete with screen making section/ Curing with Steaming m/c (loop ager) - Screen washing, sqeecee washing - Color Kitchen / color making system 4. Apparel Product Design Research Development and 5 15 85.00 Marketing Facility is proposed - Apparel Designing equipments with software - Sewing Machines - Product Display - Samples manufacturing - Dummys and Mannequins/Racks, Wardrobes etc. 5. Supporting Equipments Lab testing facility / ETP / 9 35 220.00 Generator set /Air Compressor/Air Conditioning Equipments / Boiler with Chimney/ Distribution transformer/ Control Panels/ UPS/ Wardrobes / Furniture / Telephones EPBAX Total Project Cost 1220.00

145

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV (If land is on lease basis, registered lease deed for a minimum period of 30 years is required). (ii) SIDBI Appraisal Report. (iii) Tangible outcomes such as number of units, turnover, export, employment etc. (iv) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (v) Commitment letter from SPV for their contribution. (vi) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (vii) Details of SPV bank account. (viii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Powerloom Cluster, Palladam, Tiruppur, Tamil Nadu.

*****

146

Agenda No.47.3.27: Proposal for In-principle approval for setting up of Common Facility Centre (CFC) in Power loom Cluster, Namakkal, Rasipuram, Tamil Nadu. Background

(i) The proposal was recommended by State Level Steering Committee (SLSC) and forwarded by Government of Tamil Nadu vide letter dated 23.03.18. (ii) MSME-DI, Chennai forwarded online application vide ref. No. 13390 dated 07.09.18.

(i) The proposal was discussed in detail during 59th meeting of Techno Economic Appraisal Committee (TEAC) held on 31.07.18 and the following decisions were made: (a) MSME-DI, Chennai to ascertain for existence of any CFC facilities created by other Ministries / Departments in nearby area. (ii) During the 60th meeting of TEAC held on 28.09.18, the proposal was discussed and MSME-DI, Chennai was advised to come prepared on the issues such as number of units in the cluster, number of units in the SPV (also in terms of percentage of units in cluster), necessity for setting up of CFC, details of value chain, number of units expected to avail the CFC facilities, analysis of expected machinery utilization capacity, per beneficiary investment (cluster units as well as SPV units), expected financial, social & environmental returns, schemes of Ministry of MSME that can be implemented in the cluster (Lean Manufacturing, Design Clinics, Incubation, EDP etc) etc. (iii) Techno Economic Appraisal Committee (TEAC) in its 61st meeting held on 18.10.18 recommended the proposal to place before Steering Committee for in-principle approval, based on the comments of MSME-DI, Chennai.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Power Loom Cluster District : Namakkal Location of Cluster : Namakkal Lok Sabha Constituency : Namakkal Main Product : Fabrics of all type (eg. Shirts, Towels, Dhotis No. of Enterprises including break Micro 440 up (Micro, Small, Medium) : Small 5

Total 445 Turnover (Rs. in crore) for the last Year Amount five years : 2013-14 350 2014-15 380 2015-16 400 2016-17 450

2017-18 480 Exports(Rs. in crore) for the last Nil five years : Employment in Cluster : 7500 Technology Details : 1) Power Looms (nearly 90%) 2) Auto Looms Whether DS Conducted : YES Main findings of DSR : 1) In-adequate or in-significant presence of Sizing, Warping, Dyeing facility compared to the demand of the cluster units. 147

2) Upgradation to Auto Looms is slower than the market demand 3) High cost of Manufacturing as dyeing, sizing & warping are faraway. Main Problems of Cluster : 1. Production cycle is longer due to wait state of support facility - sizing, warping, Dyeing in the cluster location (latency of approximately 30 to 40 days) 2) Due to lower productivity, profits to owners are strained. The reason is Capital Inadequacy for support facilities 3) No Direct Market Access - Most of the orders are job works Other Information : Due to Shut down of most of Dyeing units in the region, subsequent to High Court Order for Zero Liquid Discharge Compliance, the cluster units' business is drastically reducing as shortage of Dyeing Facility. So CFC is an Emergency Need.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC As there is no Modern Dyeing Facility with Zero -- Liquid Discharge ETP Compliant, no mechanised Sizing, Warping Facilities Present, the Cluster Units are fast loosing the business Opportunities. So CFC is an Emergency need for the Micro & Small Enterprises to sustain and grow. (b.) Location of CFC Kalyani, Namakkal -- % age of units in radius of 95 -- 5km % age of units in radius of 5 -- 10km (c.) Land for CFC i. Whether land acquired Yes Received. ii. Title is in name of Namakkal Rasi Looms Cluster Private Limited Land documents in the name of SPV. iii. Valuation and its basis Rs.2.78 Lacs (Purchase Value) -- iv. Land is sufficient Yes -- v. Change of land use Non-Agricultural Land. Applied for change of Letter required. Land use. vi. If on lease, duration of NA Land purchased lease vii Whether lease is NA -- legally tenable (d.) Total Building area(sq 29400 -- ft) (e.) Rate of construction of Rs.1084 per Sq ft. Total Rs.318.75 Lacs -- building (f.) Main Facility Proposed Yarn Dyeing, Sizing, Warping with ZLD -- compliance (g.) Prod capacity of CFC Dyeing: 3 Tons per shift per day Sizing & -- Warping: each 25000 Meters per shift per day. (h.) Major Outputs/ In 3 years of commencement of CFC Tangible Deliverables of CFC, (1) Production shall increase by minimum of 30% outcomes like Projected performance of of the 300+ units of the cluster number of units, 148

Description Proposed by Implementation Agency (IA) Comments by Cluster Division the cluster after proposed 2) Cost of Production will come down by an turnover, export, intervention (in terms of estimated Rs.15000 per month employment etc. production, export/ 3) Production lead time will reduce to an domestic sales and direct estimated 30 days (from 50 to 60 days) /indirect employment, etc.) 4) Create opportunities for Direct Export (at least Rs.50 Cr) without intermediaries. (i.) Pollution clearance Required Certificate from required or not State Pollution Control Board is required. (j.) Man Power in CFC 130 -- (k.) Revenue generation 1) Warping @ Rs.1.25 per meter 2) Sizing @ -- mechanism for Rs.2.25 per Meter 3) Dyeing @ Rs.65 per kilo sustainability of assets (excluding consumables) (service/user charges to be levied, any other-to be specified) 3. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address Namakkal Rasi Looms Cluster Private Limited -- Door No.3, V. Nagar, Road No.5, Rasipuram, Namakkal District. Pin: 637408 (b.) Nature of Limited Company -- SPV(company or Society or Trust) (c.) Name of the state Govt. 1) Branch Manager, TANSIDCO, Salem 2) -- and MSME officials in Director, MSME DI, Chennai 3) General Manager, SPV DIC, Namakkal (d.) Date of formation of 21.07.2010 Required SPV (e.) Number of Members 44 -- (f.) Bye Laws or MA and Yes Required AOA submitted (g.) Authorized Share 1) Rs.25 Lacs Authorised 2) Proposed to increase -- Capital after Final approval of Grant from GoI (h.) Paid up capital Rs.25 Lacs -- (i.) Shareholding Pattern All proposed members to have from 1% upto 10% Required each (j.) Commitment letter for Enclosed Required contribution (k.) SPV specific A/c Lakshmi Vilas Bank Account No. Required 0603351000003604 & Canara Bank. Ac. No. 0985201001589 Rasipuram (l.) Trust Building of SPV, 1. There is a well functioning Association with -- Previous track record of co- 400 members for more than 30 years 2) operative initiatives Consortium is formed with more than 30 proposed pursued by SPV members members need to be highlighted with support documentation (m.) Technical Institution PEDEXCIL (Power Loom Development Export Required Promotion Council) SITRA (South Indian Textile Research Association) 149

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (n.) CFC may be utilised by Enclosed Required SPV members as also others in a cluster. However, evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for 580 KW -- commercial/domestic purpose (b) Water 25000 Litres per day -- (c) Gas/Oil/Other Utilities Wood or Husk or other such Fuel for Boiler --

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency TANSIDCO, Tamil Nadu As per MSE- CDP guidelines. (b.) Fund receiving Agency TANSIDCO, Tamil Nadu As per MSE- CDP guidelines. (c.) Implementation Period 45 Weeks from the date of signing Tripartite As per MSE- Agreement CDP guidelines. (d.) Appraisal of DPR and SIDBI Appraisal will be done after GOI - SIDBI appraisal main Recommendations DCMSME - Technical Committee Approval required. (e.) Comments of To be obtained Received. Technical Division (f.) Approval of Technical To be obtained Recommended Committee by Technical Committee. (g.) Working capital(In- Yes LVB agreed for Term Loan & Working Required principle sanction of loan Capital (letter enclosed). The bank is giving TL in from a bank, if applicable principle letter with Revised limit. (Optionally) arrangement made) Since GoTN has asked for increase in the members to 100, we may get equity (from New Members) instead of Bank Term Loan. So, this is not a constraint for Capital.

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 55.06% -- (b.) IRR, Payback period IRR : 11.15% Pay Back Period: 5.8 years -- (c.) DSCR No Long term Debt hence NA -- (d.) Return on Capital 20.57% -- employed (ROCE) (e.) NPV 94.52 Lacs -- (f.) DER NA --

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(g.) Sensitivity Analysis BEP for increase in cost by 20% is 58.73% BEP -- for decrease in sales by 10% is 59.17% Both are viable

6. Proposed Project Cost is as follow: (Rs. in lakh) S. No. Particulars Cost (i) Land and its Development 5.25 (ii) Building and other Civil Constructions 318.75 (iii) Plant & Machinery (including electrification) 1545.32 (iv) Misc. fixed assets 10.00 (v) Preliminary & Pre-operative expenses, maximum 2% of project cost 44.06 (vi) Contingency (2% building and 5% on plant and machinery) 81.28 (vii) Margin money for Working Capital 6.00 Total Project Cost 2010.66

7. Proposed means of finance are as follows: (Rs. in lakh) S. No. Particulars % percentage Amount (i) Grant-in-aid from Govt. of India 67.14 1350.00 (ii) Grant-in-aid from Government of Tamil Nadu 4.97 100.00 (iii) SPV contribution 27.89 560.66 Total Project Cost 100 2010.66

8. Plant and machinery (with Brief Specification) (Rs. in lakh) S. No. Description No. Cost 1. Direct Warping Machinery 2 75.96 High Speed Sectional Warping (Working width: 2200 mm) 2. Sizing Machinery 1 111.95 (Beam Working Width 2200 mm) Boiler unit – 5000 Kg & 3000 Kg 2 69.59 3. Dyeing Facility with ETP 531.00 Full Automation Dyeing HT/HP Yarn Package Dyeing 1 Machines (i) Capacity 25 Kg (PLC Based) 1 (ii) Capacity 50 Kg (PLC Based) 1 (iii) Capacity 100 Kg (PLC Based) 1 (iv) Capacity 200 Kg (PLC Based) 2 (v) Capacity 300 Kg (PLC Based) 2 (vi) Capacity 500 Kg (PLC Based) 1 (vii) Capacity 1000 Kg (PLC Based) 1 (viii) Semi Automatic Hydro Extractor : 30 Kg 1 (ix) Room Dryer 2000 kg 1 (x) Infrared Beaker Lab Machine 1 (xi) Dye Springs (2000) 1 Set 4 RF Dryer and Hydro Extractor 1 46.67 5. Effluent Treatment Plant ZLD 1 418.75 6. Diesel Genset 160 KVA 1 Set 47.20 500 KVA, 200 KVA, 380 KVA Genset 7. Winding 0.00 8. Soft Package Winder – 280 Spindles 1 0.00 9. Rewinding Machine – 240 Spindles 1 111.39 151

S. No. Description No. Cost Total Project Cost 1412.51

9. Observations:

Following documents are to be submitted prior to final approval:

(i) Conversion certificate of land from Agricultural to industrial use. (ii) Tangible outcomes such as number of units, turnover, export, employment etc. (iii) Certificate from State Pollution Control Board. (iv) Proof of formation of SPV and Bye-Laws or MoA and AoA. (v) Details of Share holding pattern of SPV members. (vi) Commitment letter from SPV for their contribution. (vii) Details of SPV bank account. (viii) Proof of tie-up with Technical Institution. (ix) SIDBI Appraisal Report. (x) Commitment letter from State Government / IA to meet the cost escalation, if any, over and above the approved project cost. (xi) Commitment letter from SPV for utilization of at least 60% of the facilities created. (xii) Certificate from State Government that more than 50% units in the cluster are Micro/SC/ST/Women Enterprises, as the case may be. (xiii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of CFC in Powerloom Cluster, Namakkal, Rasipuram, Tamil Nadu.

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48.4 Proposals for Final Approval

Agenda No. 48.4.1: Proposal for Final approval for setting up of Common Facility Centre (CFC) in Textile Knitting Cluster, Tirupur, Thiruvarur, Tamil Nadu.

Background

(i) Proposal was accorded In-principle approval during the 44th SCM held on 05.09.17, subject to submission of following documents prior to Final approval. (ii) Vide letter dated 08.10.18, TANSIDCO, Chennai submitted the documents and requested to consider the proposal for final approval:

Documents required Status (a) SIDBI Appraisal Report. Received (b) Tangible outcomes like – number of units, turnover, employment Awaited etc. (c) NOC from Pollution Control Board is required. Received (d) Proof of land registration on the name of SPV. Notarized document received (e) Commitment letter from Bank for grant of working capital loan. Received

Details of the proposal are as under:

1. DSR Details

DSR Conducted By : South India Imported Machine Knitters Association, Tiruppur Validated By : MSME-DI When Started : 26.07.14 When Completed : 20.04.15

2. Basic Information of Cluster

Name of Cluster : Textile Knitting Cluster District : Thiruvarur Location of Cluster : Tirupur Lok Sabha Constituency : Pollachi, Tiruppur Main Product : Cotton knitted fabrics, collars, cuffs and Jacquard fabrics No. of Enterprises including Micro 480 break up (Micro, Small, Small 310 Medium) : Medium 10

Total 800 Turnover(Rs. in crore) for Year Amount the last five years : 2010-11 210 2011-12 230 2012-13 255 2013-14 285

2014-15 314 Exports(Rs. in crore) for the Nil last five years : Employment in Cluster : The total employment in the cluster is 9320 directly and 20,000 indirectly. Technology Details : The operations within the facility may be viewed in terms of training, developing value added components and testing. Training equipment Single Jersey Circular Knitting machine: Such

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equipment can knit fabric components in single jersey, Lycra Jersey, Pique two thread fleece and all other type of self design in 4 track. Whether DS Conducted : The DSR has been conducted by South India Imported Machine Knitters Association, Tiruppur.

Main findings of DSR :  Critical gaps identified on the training, value added product development and testing front.  Gaps are evidently constraints that merit establishment of relatively capital intensive equipment.  Appropriate interventions could enable development of better quality training and better quality products.  A related common facility centre is a dire need.  Beyond CFC it is necessary to Consider appropriate sourcing of raw material and inputs in terms of price Main Problems of Cluster :  Non availability of training facilities which makes skilled manpower availability a concern.  Lack of training discouraging upgradation by most cluster firms.  Cluster firms were into traditional products without resources to explore options to expand the product market mix.  Job charges for firms had virtually fallen by over 50 per cent the last few years. Other Information : No other information

3. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Justification for CFC  Non availability of training facilities makes - skilled manpower availability a serious problem, thereby discouraging upgradation of cluster firms.  Cluster firms were into traditional products without resources to explore options to expand the product market mix.  Job charges for firms had virtually fallen by over 50 per cent the last few years. (b.) Location of CFC Palladam, Tiruppur - percentage of units in 10 - radius of 5 km percentage of units in 40 - radius of 10 km (c.) Land for CFC i. Whether land acquired The land has been acquired in the name of the - CFC. ii. Title is in name of The title is in the name of the SPV i.e. SIIMKA - Knitex Cluster Services Pvt. Ltd. iii. Valuation and its basis The land is valued at Rs.25 lakh (inclusive of site - development) iv. Land is sufficient Yes, land is sufficient. - v. Change of land use The land needs to be classified as Industrial Land. - The CLU is in process. vi. If on lease, duration of The SPV has bought the land. Land document lease Registered in the name of SPV is required.

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Description Proposed by Implementation Agency (IA) Comments by Cluster Division vii Whether lease is legally Not applicable. - tenable (d.) Total Building area(sq. 20000 - ft.) (e.) Rate of construction of Rs.750 per sq. ft. - building (f.) Main Facility Proposed Main facilities of the proposed CFC: -  Training Facility,  Value Added Facility

(g.) Prod capacity of CFC Training Facility: -

 Training Operator Training - 600 per Annum  New Technicians (Foremen) - 40 per Annum  Existing Technicians (Foremen) - 120 per Annum  Service Engineer - 5 Trainees per Annum.

Job Working:

 Circular High Speed 24gg Single Jersey Knitting Machine - Capacity of 500 Kgs per Day  High Speed 28gg Interlock Circular Knitting Machine- Capacity of 500 Kgs per Day  High Speed 18gg Double Jersey (Rib) Circular Knitting Machine- Capacity of 400 Kgs per Day  24gg Interlock Circular Knitting Machine - Capacity of 400 Kgs per Day  3 Thread Fleece (20gg) Circular Knitting Machine- Capacity of 400 Kgs per Day  Computerized Flatbed Knitting Machine - Capacity of 720 Pcs per Day  Computerized Flatbed Knitting Machine - Capacity of 1200 Pcs per Day  Computerized Jacquard Flatbed Knitting Machine - Capacity of 250 Pcs per Day

Value Addition Facility

 Seamless 14gg Knitting Machine - Capacity of 200 Kgs per Day  Garment Length 16gg Circular Knitting Machine - Capacity of 200 Kgs per Day  Mattress 18gg Circular Knitting Machine - Capacity of 200 Kgs per Day  Plating (Denim 22gg) Circular Knitting Machine - Capacity of 250 Kgs per Day  Single Jersey Multi Feeder 3 Colour Auto Stripper (24gg) Circular Knitting Machine - Capacity of 150 Kgs per Day  Glove Knitting Machine - Capacity of 192 Pcs per Day Sample Development - Capacity of 20 Samples per Day  Testing Lab - Capacity of 10 Tests per Day. (h.) Major Outputs/  Profitability margins Increasing cluster Tangible Deliverables of CFC, growth rate from 10 to 20 per cent per annum outcomes like Projected performance of  Scope for directly increasing skilled number of the cluster after proposed employment by at least 8000 persons in 5 units, turnover, 155

Description Proposed by Implementation Agency (IA) Comments by Cluster Division intervention (in terms of years and about 1280 manpower will also be export, production, export/ domestic groomed every year. employment etc. sales and direct/indirect  Cluster turnover in a 5 year time - frame. employment, etc.)  Competitive market and product mix expansion for cluster firms with competitiveness and quality in design and quality value added products while over 25 members are directly. (i.) Pollution clearance Yes. Received required or not (j.) Man Power in CFC The total manpower requirement for the project - would be about 94 persons. (k.) Revenue generation Training Facility: - mechanism for sustainability of assets (service/user  Training Operator Training: Training Fee for charges to be levied, any Operator Course at Rs.1000 per Month. other-to be specified)  New Technicians Course at Rs.2000 per Month  Existing Technicians (Foremen) Course at Rs.3000 per Month  Service Engineer: Service Engineer Course at Rs.10000 per Month. Job Working:  Circular High Speed 24gg Single Jersey Knitting Machine: Charges at Rs.12 per Kg  High Speed 28gg Interlock Circular Knitting Machine: Charges at Rs.30 per Kg  High Speed 18gg Double Jersey (Rib) Circular Knitting Machine: Charges at Rs.15 per Kg  24gg Interlock Circular Knitting Machine: Charges at Rs.20 per Kg  3 Thread Fleece (20gg) Circular Knitting Machine: Charges at Rs.20 per Kg  Computerized Flatbed Knitting Machine: Charges at Rs.4 per Pcs  Computerized Flatbed Knitting Machine: Charges at Rs.4 per Pcs  Computerized Jacquard Flatbed Knitting Machine: Charges at Rs.25 per Pcs  Value Addition Facility Seamless 14gg Knitting Machine: Charges at Rs.50 per Kg  Garment Length 16gg Circular Knitting Machine: Charges at Rs.60 per Kg  Mattress 18gg Circular Knitting Machine: Charges at Rs.100 per Kg Plating (Denim 22gg) Circular Knitting Machine: Charges at Rs.100 per Kg  Single Jersey Multi Feeder 3 Colour Auto Stripper (24gg)  Circular Knitting Machine: Charges at Rs.60 per Kg Glove Knitting Machine: Charges at Rs.10 per Pcs  Sample Development: Rs. 1500 per sample Testing Lab: Rs. 538 per test (l.) The total power requirement of 154 kwh for the - facilities.

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4. Information about SPV

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Name and Address SIIMKA Knitex Cluster Services Private Limited - (b.) Nature of SPV(company Private Limited - or Society or Trust) (c.) Name of the state Govt. The provision for the state govt. and MSME - and MSME officials in SPV official has been included in MOA and AOA of SPV. The name will be decided after the final approval during the execution of Tri-partite agreement (d.) Date of formation of 12.05.15 - SPV (e.) Number of Members 25 nos. - (f.) Bye Laws or MA and Bye Laws or MOA and AOA are annexed with - AOA submitted the DPR. (g.) Authorized Share 200 lakhs - Capital (h.) Paid up capital 186 lakhs - (i.) Shareholding Pattern Provided at Page no 44 to 46 of the DPR. Received (j.) Commitment letter for It has been provided as an annexure 12. Commitment contribution letter for their contribution by SPV and State Govt. is required. (k.) SPV specific A/c SPV specific account is in Bank of India. - (l.) Trust Building of SPV, Pursuing initiatives in close coordination with the - Previous track record of co- MSME DI to facilitate networking with operative initiatives pursued institutions to facilitate common procurement and by SPV members need to be marketing in the short to medium term Exposure highlighted with support visits to successful clusters in Tamil Nadu, documentation machinery fairs and to units in other locations Spearheading various programmes and seminars related to industry needs Securing land for upgrading plans Please refer to annexure 4. (m.) Technical Institution The letter from Textiles Committee will be - provided at the earliest. (n.) CFC may be utilised by The evidence of demand with regard to SPV - SPV members as also others member ability to utilise at least 60 percent of in a cluster. However, installed capacity is provided. evidence should be furnished with regard to SPV member ability to utilise at least 60 percent of installed capacity. (o.) (a) Power requirement for The total power requirement of 154 kWh is - commercial/ domestic required for the facilities. purpose (b) Water Total requirement of water is 5 KLD per day - (c) Gas/Oil/Other Utilities Consumables required for the project facilities - may be critically visualised in terms of needles, 157

Description Proposed by Implementation Agency (IA) Comments by Cluster Division thread and stationery etc.

5. Implement Arrangements

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) Implementing Agency Tamil Nadu Small Industries Development As per MSE- Corporation Ltd (TANSIDCO) CDP Guidelines. (b.) Fund receiving Agency Tamil Nadu Small Industries Development Corporation Ltd (TANSIDCO) (c.) Implementation Period 24 months as per MSE-CDP Guidelines (d.) Appraisal of DPR and The DPR will be sent to State Govt., office of DC Received main Recommendations MSME for technical appraisal and SIDBI appraisal at the earliest. (e.) Comments of Technical The issues raised by Technical Division were on Recommended Division repetition of machines of various sizes in training the proposal. section as well as in the Value addition section. (f.) Approval of Technical (i) Based on justification provided by SPV Recommended Committee members, the technical division agreed for the proposal. inclusion of machines as proposed for the training section, CFC members agreed to enhance their contribution so that value of machine of value addition section can be covered from SPV contribution, Which was agreed by Technical Division. (ii) SPV members were advised to revise the DPR accordingly by covering all the above aspects including enhanced contribution from Rs 233.88 lakh to 400.00 lakh and submit the revised DPR to this office through State Government. (g.) Working capital (In- Rs. 5.88 lakhs Received principle sanction of loan from a bank, if applicable arrangement made)

6. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Comments by Cluster Division (a.) BEP 26% - (b.) IRR, Payback 23.14% and payback period of 3 year 9 months - period (c.) DSCR Not Applicable (non-availment of term loan in this - project). (d.) Return on Capital 26.02% - employed (ROCE) (e.) NPV NPV is positive and high (Rs.938.63 lakh) at a - conservative project life of 10 years (f.) DER NA - (g.) Sensitivity A sensitivity analysis has been carried out assuming - Analysis variation in some parameters that is a 5 per cent drop

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Description Proposed by Implementation Agency (IA) Comments by Cluster Division in user charges. Major financial parameters are still attractive.

7. Proposed project cost of the CFC is as follow: (Rs. in lakh) S. Particulars Revised Recommended As per No. proposed by SIDBI MSE- by IA CDP 1. Land and its development 25.00 25.00 25.00 2. Building and other Civil Constructions 150.00 150.00 150.00 3. Plant & Machinery (including electrification) 1240.05 1194.57 1194.57 4. Misc. fixed assets 20.00 65.49 65.49 5. Pre-operative and Preliminary expenses, maximum 16.00 30.00 30.00 2% of project cost 6. Contingency (2% building and 5% on plant and 65.00 63.00 63.00 machinery) 7. Margin money for Working Capital 5.88 5.88 5.88 Total Project Cost 1535.93 1533.94 1533.94

8. Proposed Means of Finance: (Rs. in lakh) S. No. Particulars Proposed Recommended by As per by IA SIDBI MSE-CDP 1 Grant-in-aid from Govt. of India 835.93 833.93 833.93 2 Grant-in-aid from Govt. of Tamil Nadu 300.00 300.00 300.00 3 SPV contribution 400.00 400.00 400.00 Total 1535.9 1533.93 1533.93

9. Plant and machinery (with Brief Specification)

S. Name of Machine Specifications Amount per No Total Amount No Machinery (Rs. in lakh)

1 Circular High Speed Dia – 26, 28, 26” – 16,44,500 1 114.84 24gg Single Jersey 30, 32, 34 & 28” – 17,22,500 1 Knitting Machine (With 36 30” – 17,48,500 1 Standard Accessories) 32” – 18,85,000 1 34” – 20,15,000 1 36” – 21,38,500 1 2 High Speed 28gg Dia – 30 & 34 30” – 36,26,000 1 75.74 Interlock Circular 34” – 38,48,000 1 Knitting Machine (With Standard Accessories) 3 High Speed 18gg Double Dia – 30” 30” – 28,86,000 1 91.40 Jersey (Rib) circular Dia – 32” & 32” – 29,97,000 1 Knitting Machine (With 34” ( 2 Feeder) 34” – 30,71,000 1 Standard Accessories) 4 24gg Interlock Circular Dia – 30” ( 30” – 31,82,000 1 66.86 Knitting Machine (With With 28gg 34” – 34,04,000 1 Standard Accessories) Cylinder) Dia – 34”

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S. Name of Machine Specifications Amount per No Total Amount No Machinery (Rs. in lakh)

5 3 Thread Fleece (20gg) Dia – 26”, 28”, 26” – 15,14,500 1 99.675 Circular Knitting 30”, 32” & 34” 28” – 16,12,000 1 Machine (With Standard 30” – 17,09,500 1 Accessories) 32” – 18,13,500 1 34” – 19,04,500 1 Standard accessories – 11,96,000 6 Computerised Flat Bed 40” (14gg) 40” – 26,00,000 5 110.875 Knitting Machine ( With 54” (14gg) 54” - 29,25,000 5 Standard Accessories) 80” ( 14gg) 80” – 53,62,000 5 7 Computerised Jacquard 52 “ - ( 14gg) 52” – 27,88,500 3 55.41 Flat Bed Knitting Single Head – Machine (With Standard With Single Accessories System 52” (14gg) Single 2 Head With 52” – 25,02,500 Double System

Sub Total - 1 38 614.8 Value Added Facility 1 Seamless 28gg Knitting Dia – 12”, 14” 12” – 37,37,000 1 128.80 Machine (With Standard & 16 14” – 37,37,000 1 Accessories) 16” – 39,22,000 1 2 Garment Length 16gg Dia – 33” 33” – 60,68,000 1 67.60 Circular Knitting Standard Machine (With Standard accessories – Accessories) 5,92,000 3 Mattress 18gg Circular Dia – 38 “ 38” – 85,10,000 1 86.10 Knitting Machine (With Standard Accessories 4 Plating (Denim 22gg) Dia – 26” 26” – 28,60,000 2 58.30 Circular Knitting Machine (With Standard Accessories 5 Single Jersey Multi Dia – 30’ & 30” – 74,96,200 1 155.43 Feeder 3 Colour Auto 34” 34” – 79,47,600 1 Stripper ( 24gg) Circular Knitting Machine ( With standard Accessories) 6 Gloves Knitting Machine 00” (7 GG) 7GG – 5,25,000 5 25.65

Sub Total - 2 14 521.88 5% electrification cost 57.06 on total value - Grant Total (1+2+3) 1193.74

10. Observations:

Following documents are to be submitted prior to final approval:

(i) Registered land documents in the name of SPV. (ii) Tangible outcomes such as number of units, turnover, employment etc. (iii) Certificate from State Government for compliance of GFR/ CVC guidelines. (iv) Commitment letter from State Government / SPV to meet the cost escalation, if any, over and above the approved project cost.

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11. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for setting up of Common Facility Centre (CFC) in Textile Knitting Cluster, Tirupur, Thiruvarur, Tamil Nadu at a total project cost of Rs. 1533.93 lakh with GoI assistance of Rs.833.93 lakh, Government of Tamil Nadu constitution of Rs.300.00 lakh & SPV contribution of Rs.400.00 lakh.

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Agenda No.48.4.2: Proposal for final approval for up-gradation of ID Centre at K. Pudur, Madurai, Tamil Nadu. Background:

(i) Proposal along with Detailed Project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 21.04.17. (ii) Online Application of the proposal was received from Government of Tamil Nadu vide application ref. No.11840 dated 10.01.18, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the documents and requested to consider the proposal for final approval:

Documents required Status (a) Tangible outcomes like number of units, turnover, export, Received employment etc. in the format provided. (b) Status of completed ID projects in the State as per format provided. Received (c) Details of industries operating in the Industrial Estate. Received (d) Certificate from State Government for compliance of GFR/ CVC Received guidelines.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Madurai Industrial Estate : Upgradation of existing Industrial Estate at K.Pudur

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with Yes approved layout plan : Total Area of industrial estate/ area 56.05 Acres (acre): Area to be developed (acre) 56.05 Acres Number and sizes of plots to be Developed plots -10 developed : Sheds-65. Implementing Period : 24 Months Other ID projects sanctioned in same ID Project Kappalur having total no of 169 plots and 189 district: year of sanction, number of sheds out of which 168 plots and 188 sheds are allotted plots allotted, units set up, etc. : respectively and total no of units functioning are 400. Performance of ID projects in state. : ID Projects Completed- 30, ID Projects under process – 3.

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3. Details about Proposal:

Description Proposed by Implementation Remarks Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP Development Corporation Ltd guidelines. (SIDCO) Track Record of the IA IA has so far implemented Information required. Appraisal by SIDBI Attached SIDBI appraisal is received (Observations and from IA. recommendations). Attach SIDBI report. Whether sufficient facilities Yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession Yes Received in the name of IA with Clear Title Whether Zoning regulations Yes Received and non-agricultural conversion etc complied with): Whether State Level Yes Received Committee to coordinate and monitor progress has been Constituted : Whether confirmation received Yes Received form IA that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project As per Public Works Department, -- Cost : Govt. of Tamil Nadu schedule of rate for 2017-18 Tangible Outcomes of the At present 3000 employees. Turn Received project Over 90 crores Justification of the Proposal The proposal is justifies as it will -- satisfy the space requirement of MSMEs in that area and also generate employment to local people.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated by IA As per As per SIDBI MSE-CDP (i) Land filling/leveling including boundary 26.00 26.00 26.00 wall and fencing:

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S. No. Particulars Estimated by IA As per As per SIDBI MSE-CDP (ii) Laying roads 152.00 152.00 152.00 (iii) Road side greenery & social forestry 3.00 3.00 3.00 (iv) Water supply including overhead tanks, 27.00 27.00 27.00 and pump houses (v) Water harvesting 2.00 2.00 2.00 (vi) Drainage 60.00 60.00 60.00 (vii) Power distribution, Street light 23.00 23.00 23.00 arrangements, etc. (viii) Administrative and Other Services 20.00 20.00 20.00 Complex (ix) First aid centre, Creche Canteen 20.00 20.00 20.00 (x) Contingencies & Pre operative expenses : 42.00 32.90 32.90 Total 375.00 365.9 365.9

5. Proposed Means of finance: (Rs. in lakh) S. No. Particulars Proposed by IA As per As per SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 225.00 219.60 219.60 (ii) Government of Tamil Nadu 112.50 109.80 109.80 (iii) Amount to be collected from allottee by 37.50 36.60 36.60 TANSIDCO ( Implementing Agency) Total 375.00 366.00 366.00

6. Observation:

TANSIDCO should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Tamil Nadu.

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at K.Pudur, Madurai, Tamil Nadu, at a total project of Rs.366.00 lakh with GoI grant of Rs.219.60 lakh, State Government contribution of Rs.109.80 lakh and an amount of Rs.36.60 lakh to be collected from allottees by TANSIDCO (Implementing Agency).

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Agenda No.48.4.3: Proposal for final approval for up-gradation of ID Centre at Hosur (New), Krishnagiri, Tamil Nadu.

Background:

(i) Proposal along with Detailed project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 26.05.17. (ii) Online application of the proposal was received from Government of Tamil Nadu vide application ref. No.11953 dated 21.02.18, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the documents and requested to consider the proposal for final approval:

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Krishnagiri Industrial Estate : Upgradation of existing Industrial Estate at Hosur (New), Krishnagiri

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved Yes. layout plan : Total Area of industrial estate/ area 18.80 acres (acre): Area to be developed (acre) 18.80 acres Number and sizes of plots to be Developed Plots -123 , allotted plots -121 developed : units functioning -183 Implementing Period : 24 Months Other ID projects sanctioned in same Pollupalli Industrial Estate was formed in the year district: year of sanction, number of plots 2014. The Industrial Estate has an area of 60.52 acres allotted, units set up, etc. : and total No of Plots developed is 129 out of which 126 plots were allotted. Performance of ID projects in state. : ID Projects Completed-30, ID Projects under process- 3.

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3. Details about Proposal:

Description Proposed by Implementation Remarks Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP Development Corporation Ltd guidelines. (SIDCO) Track Record of the IA IA has so far implemented Received Appraisal by SIDBI Attached SIDBI appraisal (Observations and received from IA. recommendations). Attach SIDBI report. Whether sufficient facilities Yes -- available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession Yes Received in the name of IA with Clear Title Whether Zoning regulations Yes and non-agricultural conversion etc complied with): Whether State Level Yes Received Committee to coordinate and monitor progress has been Constituted : Whether confirmation received Yes Received form IA that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project As per Public Works Department, -- Cost : Govt. of Tamil Nadu schedule of rate for 2017-18 Tangible Outcomes of the At present there are 750 employees. Received project With Turn Over Rs 200 crores. Justification of the Proposal The proposal is justifies as it will -- satisfy the space requirement of MSMEs in that area and also generate employment to local people.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (i) Land filling/leveling including boundary wall and 15.00 15.00 15.00 fencing: (ii) Laying roads 117.00 117.00 117.00

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S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (iii) Road side greenery & social forestry 3.00 3.00 3.00 (iv) Water supply including overhead tanks, and pump 22.00 22.00 22.00 houses (v) Water harvesting 2.00 2.00 2.00 (vi) Drainage 38.00 38.00 38.00 (vii) Power distribution, Street light arrangements, etc. 15.00 15.00 15.00 (viii) Contingencies & Pre operative expenses : 26.00 20.00 20.00 Total 238.00 232.00 232.00

5. Proposed Means of finance: (Rs. in lakh) S. No. Particulars Proposed As per As per by IA SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 142.80 139.20 139.20 (ii) Government of Tamil Nadu 71.40 69.60 69.60 (iii) Amount to be collected from allottee by 23.80 23.20 23.20 TANSIDCO ( Implementing Agency) Total 238.00 232.00 232.00

6. Observation:-

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at Hosur (New), Krishnagiri, Tamil Nadu, at a total project of Rs. 232.00 lakh with GoI grant of Rs. 139.20 lakh, State Government contribution of Rs. 69.60 lakh and Amount of Rs.23.20 lakh to be collected from allottees by TANSIDCO ( Implementing Agency).

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Agenda No.48.4.4: Proposal for final approval for up-gradation of ID Centre at Nanjikottai, Thanjavur, Tamil Nadu. Background:

(i) Proposal along with Detailed project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 21.04.17. (ii) Online Application of proposal was received from Government of Tamil Nadu vide application ref. No.8717 dated 25.10.17, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the following documents and requested to consider the proposal for final approval:

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Thanjavur Industrial Estate : Upgradation of existing Industrial Estate at Nanjikottai

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with Yes approved layout plan : Total Area of industrial estate/ 26.30 Acres area (acre): Area to be developed (acre) 26.30 Acres Number and sizes of plots to Developed plots- 62 be developed : Sheds- 22 and 76 units are functioning Implementing Period : 24 Months Other ID projects sanctioned in ID Project in Palayapatti, Tamilnadu having Total no of 83 same district: year of sanction, plots out of which 34 plots allotted. number of plots allotted, units set up, etc. : Performance of ID projects in ID Projects Completed- 30, ID Projects under process - 3 state. :

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3. Details about Proposal:

Description Proposed by Implementation Remarks Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP Development Corporation Ltd guidelines. (SIDCO) Track Record of the IA IA has so far implemented Information required. Appraisal by SIDBI (Observations Attached SIDBI appraisal is and recommendations). Attach received from IA. SIDBI report. Whether sufficient facilities available Yes -- at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in the Yes Received name of IA with Clear Title Whether Zoning regulations and non- Yes Received agricultural conversion etc complied with): Whether State Level Committee to Chairman of SIDCO is the Received coordinate and monitor progress has Principal Secretary to the been Constituted : Government of Tamil Nadu. SIDCO Board of Directors will monitor the progress of implementation of the project. Whether confirmation received form Yes Received IA that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project Cost : As per Public Works Department, -- Govt. of Tamil Nadu schedule of rate for 2017-18. Tangible Outcomes of the project At present there are 600 Received employees with Turn Over of Rs10 Crores. Justification of the Proposal The proposal is justifies as it will - satisfy the space requirement of MSMEs in that area and also generate employment to local people.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (i) Land filling/leveling including boundary wall and 14.00 14.00 14.00 fencing: (ii) Laying roads 69.00 69.04 69.04 (iii) Road side greenery & social forestry 3.00 3.00 3.00 169

S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (iv) Water supply including overhead tanks, and pump 8.00 8.00 8.00 houses (v) Water harvesting 2.00 2.00 2.00 (vi) Drainage 54.00 54.00 54.00 (vii) Power distribution, Street light arrangements, etc. 10.00 9.50 9.50 (viii) Contingencies & Pre operative expenses : 20.00 15.44 15.44 Total 180.00 174.98 174.98 5. Proposed Means of finance: (Rs. in lakh) S. No. Particulars Proposed As per As per by IA SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 108.00 105.00 105.00 (ii) State Government 54.0 52.50 52.50 (iii) Amount to be collected from allottee by 18.00 17.50 17.50 TANSIDCO ( Implementing Agency) Total 180.00 175.00 175.00

6. Observation:-

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at Nanjikottai, Thanjavur, Tamil Nadu, at a total project of Rs.175.00 lakh with GoI grant of Rs.105.00 lakh, State Government contribution of Rs.52.50 lakh and Amount of Rs.17.50 lakh to be collected from allottees by TANSIDCO (Implementing Agency).

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Agenda No.48.4.5: Proposal for final approval for up-gradation of ID Centre at Vellore, Tamil Nadu. Background:

(i) Proposal along with Detailed project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 21.04.17. (ii) Online Application of Proposal was received from Government of Tamil Nadu vide application ref. No.8672 dated 23.10.17, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the following documents and requested to consider the proposal for final approval:

Documents required Status (a) Registered Land documents in the name of Implanting Agency. Received (b) SIDBI Appraisal Report. Received (c) Commitment letter from State Government (Industries Received Department) in respect of its share in the project and cost escalation, if any, over and above the approved project cost. (d) Tangible outcomes like number of units, turnover, export, Received employment etc. in the format provided. (e) Status of completed ID projects in the State as per format provided. Received (f) Details of industries operating in the Industrial Estate. Received (g) Certificate from State Government for compliance of GFR/ CVC Received guidelines.

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Vellore Industrial Estate : Upgradation of existing Industrial Estate at Ranipet

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved Yes layout plan : Total Area of industrial estate/ area 113.44 Acres (acre): Area to be developed (acre) 113.44 Acres Number and sizes of plots to be Developed plots- 71 developed : Sheds - 161and 225 units are functioning. Implementing Period : 24 Months Other ID projects sanctioned in same - district: year of sanction, number of plots allotted, units set up, etc. :

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Performance of ID projects in state. : ID Projects Completed- 30, ID Projects under process - 3 3. Details about Proposal:

Description Proposed by Implementation Remarks Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE- Development Corporation Ltd CDP (SIDCO) guidelines. Track Record of the IA IA has so far implemented Received Appraisal by SIDBI (Observations and Provided SIDBI appraisal recommendations). Attach SIDBI report. is received from IA. Whether sufficient facilities available at Yes - site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in the name Yes Received of IA with Clear Title Whether Zoning regulations and non- Yes agricultural conversion etc complied with): Whether State Level Committee to Chairman of SIDCO is the - coordinate and monitor progress has been Principal Secretary to the Constituted : Government of Tamil Nadu. SIDCO Board of Directors will monitor the progress of implementation of the project. Whether confirmation received form IA Yes Received that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project Cost : As per Public Works - Department, Govt. of Tamil Nadu schedule of rate for 2017- 18 Tangible Outcomes of the project At present there are 15000 Received employees with Turnover of Rs.300 crore. Justification of the Proposal The proposal is justified as it - will satisfy the space requirement of MSMEs in that area and also generate employment to local people.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (i) Land filling/leveling including boundary wall and 32.50 32.50 32.50 fencing: (ii) Laying roads 278.50 200.00 200.00 172

S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (iii) Water supply including overhead tanks, and pump 40.00 40.00 40.00 houses (iv) Water harvesting 10.00 10.00 10.00 (v) Drainage 102.00 102.00 102.00 (vi) Power distribution, Street light arrangements, etc. 30.00 30.00 30.00 (vii) Road side greenery 10.00 10.00 10.00 (viii) Administrative and Other Services Complex 20.00 20.00 20.00 (ix) Conference Hall/Exhibition centre 30.00 30.00 30.00 (x) Raw material storage facility, Marketing outlets 40.00 40.00 40.00 (xi) First aid centre, Creche Canteen 25.00 20.00 20.00 (xii) Contingencies & Pre operative expenses 82.00 11.19 11.19 (xiii) Other (Others Sanitary conveniences) 25.00 25.00 25.00 Total 725.00 570.69 570.69 say Rs.571.00 lakh)

5. Proposed means of finance: (Rs. in lakh) S. No. Particulars Proposed As per As per by IA SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 435.00 342.60 342.60

(ii) Government of Tamil Nadu 217.50 171.30 171.30 (iii) Amount to be collected from allottee by TANSIDCO 72.50 57.10 57.10 (Implementing Agency) Total 725.00 571.00 571.00

6. Observation:-

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at Vellore, Tamil Nadu, at a total project of Rs.571.00 lakh with GoI grant of Rs.342.60 lakh, State Government contribution of Rs.171.30 lakh and Amount of Rs.57.10 lakh to be collected from allottees by TANSIDCO (Implementing Agency).

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Agenda No.48.4.6:: Proposal for in-principle approval for up-gradation of ID Centre at Nanjaiuthukuli, Erode, Tamil Nadu. Background:

(i) Proposal along with Detailed project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 21.04.17. (ii) Online Application of Proposal was received from Government of Tamil Nadu vide application ref. No.10826 dated 08.01.18, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the following documents and requested to consider the proposal for final approval:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Erode Industrial Estate : Upgradation of existing Industrial Estate at Nanjaiuthukuli, Erode

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with approved Yes layout plan : Total Area of industrial estate/ area (acre): 13.05 Acres Area to be developed (acre) 13.05 Acres Number and sizes of plots to be developed : Developed plots 12 & 14 sheds and no of units functioning are 20.

Implementing Period : 24 Months Other ID projects sanctioned in same ID project in district Erode having 8 plots and 23 district: year of sanction, number of plots sheds, all are allotted and 31 units are functioning. allotted, units set up, etc. : Performance of ID projects in state. : ID Projects Completed- 30, ID Projects under process - 3

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3. Details about Proposal:

Description Proposed by Remarks Implementation Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP Development Corporation Ltd guidelines. (SIDCO) Track Record of the IA IA has so far implemented Received Appraisal by SIDBI (Observations and Attached SIDBI appraisal recommendations). Attach SIDBI received from IA. report. Whether sufficient facilities available at Yes -- site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in the Yes Received name of IA with Clear Title Whether Zoning regulations and non- Yes agricultural conversion etc complied with): Whether State Level Committee to Chairman of SIDCO is the Received coordinate and monitor progress has Principal Secretary to the been Constituted : Government of Tamil Nadu, SIDCO Board of Directors will monitor the progress of implemented of the project. Whether confirmation received form IA Yes Received that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project Cost : As per Public Works -- Department, Govt. of Tamil Nadu Schedule of rate for 2017-18. Tangible Outcomes of the project At present there are 360 Received employees. With Turnover Rs 60 crores. Justification of the Proposal The proposal is justifies as it -- will satisfy the space requirement of MSMEs in that area an also generate employment to local people

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (i) Land filling/leveling including boundary wall and 12.00 12.00 12.00 fencing:

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S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (ii) Laying roads 37.50 37.50 37.50 (iii) Road side greenery & social forestry 2.50 2.50 2.50 (iv) Water supply including overhead tanks, and pump 10.00 10.00 10.00 houses (v) Water harvesting 2.00 2.00 2.00 (vi) Drainage 15.00 15.00 15.00 (vii) Power distribution, Street light arrangements, etc. 15.00 15.00 15.00 (viii Conference Hall/Exhibition centre 30.00 30.00 30.00 (ix) First aid centre,Creche Canteen 20.00 20.00 20.00 (x) Contingencies & Pre operative expenses : 14.00 12.96 12.96 Total 158.00 156.96 156.96 (say Rs.157.00 lakh)

5. Proposed Means of finance: (Rs. in lakh) S. No. Particulars Proposed As per As per by IA SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 94.80 94.20 94.20 (ii) Government of Tamil Nadu 47.40 47.10 47.10 (iii) Amount to be collected from allottee by 15.80 15.70 15.70 TANSIDCO ( Implementing Agency) Total 158.00 157.00 157.00

6. Observation:-

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at Nanjaiuthukuli, Erode, Tamil Nadu, at a total project of Rs.157.00 lakh with GoI grant of Rs.94.20 lakh, State Government contribution of Rs.47.10 lakh and Amount of Rs.15.70 lakh to be collected from allottees by TANSIDCO ( Implementing Agency).

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Agenda No.48.4.7: Proposal for in-principle approval for up-gradation of ID Centre at Dindigul, Tamil Nadu. Background:

(i) Proposal along with Detailed project Report (DPR) was forwarded by Government of Tamil Nadu vide letter dated 21.04.17. (ii) Online Application of proposal was received from Government of Tamil Nadu vide application ref. No.8714 dated 25.10.17, which was recommended by MSME-DI, Chennai. (iii) The proposal was recommended by State Level Steering Committee (SLSC) in its meeting held on 14.12.17 and minutes received on 08.05.18. (iv) Vide letter dated 23.07.18, TANDICO, Chennai submitted the documents and requested to consider the proposal for final approval:

Details of the proposal are as under:

1. Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation Ltd State : Tamil Nadu District : Dindigul Industrial Estate : Upgradation of existing Industrial Estate at Dindigul

2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with Yes approved layout plan : Total Area of industrial estate/ 39.90 Acres area (acre): Area to be developed (acre) 39.90 Acres Number and sizes of plots to be Developed plots- 12 developed : Sheds- 80 and 72 units are functioning. Implementing Period : 24 Months Other ID projects sanctioned in - same district: year of sanction, number of plots allotted, units set up, etc. : Performance of ID projects in ID Projects Completed- 30, ID Projects under process - 3 , state. :

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3. Details about Proposal:

Description Proposed by Implementation Remarks Agency(IA) Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP Development Corporation Ltd (SIDCO) guidelines. Track Record of the IA IA has so far implemented Received Appraisal by SIDBI (Observations Attached SIDBI appraisal is and recommendations). Attach received from IA. SIDBI report. Whether sufficient facilities Yes Received available at site. (Proximity to railway stations / state highways, availability of water supply, adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in Yes Received the name of IA with Clear Title Whether Zoning regulations and Yes Received non-agricultural conversion etc complied with): Whether State Level Committee to Chairman of SIDCO is the Principal Received coordinate and monitor progress Secretary to the Government of Tamil has been Constituted : Nadu. SIDCO Board of Directors will monitor the progress of implementation of the project. Whether confirmation received Yes Received form IA that it will meet the cost in excess of approved project cost and any escalation in cost : Basis of elements of project Cost : As per Public Works Department, Govt. -- of Tamil Nadu schedule of rate for 2017-18. Tangible Outcomes of the project As present 5200 employees, Turn Over received 50 Crores Justification of the Proposal The proposal is justifies as it will satisfy -- the space requirement of MSMEs in that area and also generate employment to local people.

4. Proposed Project Cost: (Rs. in lakh) S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (i) Land filling/leveling including boundary wall and 21.00 21.00 21.00 fencing: (ii) Laying roads 135.00 135.00 135.00 (iii) Road side greenery & social forestry 3.00 3.00 3.00 (iv) Water supply including overhead tanks, and pump 28.00 28.00 28.00 houses

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S. No. Particulars Estimated As per As per by IA SIDBI MSE-CDP (v) Water harvesting 2.00 2.00 2.00 (vi) Drainage 60.00 60.00 60.00 (vii) Power distribution, Street light arrangements, etc. 13.00 13.00 13.00 (viii) First aid centre, Creche Canteen 25.00 20.00 20.00 (ix) Contingencies & Pre operative expenses : 38.00 37.63 37.63 Total 325.00 319.63 319.63

5. Proposed Means of finance: (Rs. in lakh) S. No. Particulars Proposed As per As per by IA SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 195.00 192.00 192.00 (ii) State Government 97.50 96.00 96.00 (iii) Amount to be collected from allottee by 32.50 32.00 32.00 TANSIDCO ( Implementing Agency) Total 325.00 320.00 320.00

6. Observation:- TANSIDCO should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Tamil Nadu.

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for upgradation of Industrial Estate at Dindigul, Tamil Nadu, at a total project of Rs.320.00 lakh with GoI grant of Rs.192.00 lakh, State Government contribution of Rs.96.00 lakh and Amount of Rs.32.00 lakh to be collected from allottees by TANSIDCO (Implementing Agency).

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Agenda No.48.4.8: Proposal for Final approval for setting up New Industrial Estate at Armoor, Nizamabad, Telangana.

Background:

 The proposal was accorded In-principle approval during 46th Meeting of Steering Committee held on 09.02.18, subject to submission of the following documents prior to Final approval:

S. No Documents required Status (A) (i) Development of more number of plots Vide letter dated 25.08.18, Principal instead of proposed 80-100. Secretary and Commissioner for Industrial Promotion & Mines, Government of Telangana has informed that the number of plots will be increased to 120-150 instead of proposed 80-100. (ii) Enhancement of State Government share It is informed that earlier, the proposal in the project. was accorded final approval during 35th SCM held on 15.01.14 with State Govt. share of Rs. 2.61 crore which was 26% of the project cost (Rs.10.00 crore) i.e. 6% more than 20% eligible State share as the project is meant for the benefit of SC/ST and Women Entrepreneurs. (B) Land documents with clear title, signed by Received. (i) Competent Authority and complying with zoning regulations and non-agricultural conversion etc. (ii) Commitment letter from IA to meet the Received. cost escalation, if any, over and above the approved project cost.

(iii) Details of tangible outcomes of the project Received. (as per provided format).

(iv) Undertaking from State Government that Received. more than 50% plots would be allotted to units of Micro / SC-ST /Women Enterprises, as the case may be.

(v) Certificate from State Government for Received. compliance of GFR/ CVC guidelines.

Details of the proposal are as under:

1. Pre-registration Information:

Name of Organization Telangana State Leather Industries Promotion Corporation Limited (TSLIPC), Hyderabad State Telangana District Nizamabad Industrial Estate Armoor Village & Mandal

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2. Basic Information about Proposal:

Particulars Description Whether appraised DPR with Yes. Copy of revised layout plan is awaited. approved layout plan : Total Area of industrial estate/ 28.01 acre area (acre): Area to be developed (acre) 28.01 acre Number and sizes of plots to be Vide letter dated 25.08.18, Principal Secretary, developed : Commissioner for Industrial Promotion & Mines, Government of Telangana has informed that the number of plots will be increased to 120-150 instead of proposed 80- 100 in 14.60 acres of land. Average size of the plots would be in the range of around 700 Sq. yards. Implementing Period : 24 months from the date of final approval. Other ID projects sanctioned in Nil same district: year of sanction, number of plots allotted, units set up, etc. : Performance of ID projects in Satisfactory state. :

3. Details about Proposal:

Particulars Description Comments by Cluster Division Implementing Agency (IA): Telangana State Leather Industries As per guidelines. Promotion Corporation Limited (TSLIPC), Hyderabad.

Track Record of the IA -- -- Appraisal by SIDBI (Observations Yes SIDBI appraisal and recommendations). Attach report received. SIDBI report. Whether sufficient facilities Nizamabad Railway Station is -- available at site. (Proximity to approx. 20 kms away from the site railway stations / state highways, and Armoor Bus stand is 3 kms availability of water supply, away from site. adequate power supply, telecom facilities, dwelling places of workers) Whether land is in possession in Yes, State Government (Earlier A.P) Vide letter dated the name of IA with Clear Title has transferred the title in the name 25.08.18, Govt. of of LIDCAP/TSLIPC vide Telangana has G.O.Ms.No:166, dt:-13-02-2004. forwarded the possession handover certificate to the TSLIPC, Hyderabad. Whether Zoning regulations and Yes. Document received. non-agricultural conversion etc complied with): Whether State Level Committee to Yes, Telangana Government vide Constituted.

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Particulars Description Comments by Cluster Division coordinate and monitor progress G.o.Ms.No:53 Ind & Comm has been Constituted : (FP&MSME) Dept. dt:-22-09-2016 constituted the State Level Committee. Whether confirmation received The cost in excess of approved Vide letter dated form IA that it will meet the cost Project cost/any escalation in the 24.08.18, TSLIPC, in excess of approved project cost cost shall be met by Hyderabad has and any escalation in cost : TSLIPC/Government of Telangana forwarded the confirmation letter for the same. Basis of elements of project Cost : The cost estimates have been made -- as per Standard Schedule of Rates (SSR) 2012-13 of GOAP Tangible Outcomes of the project • New Industrial Estate will be Tangible established with compound wall Outcomes are around the cluster 100 – 120 required. SC/ST/Women Industrial Units will come into existence (if allotted more plots for some industries as per their requirement). • Direct Employment to 1,500 candidates. Majority of employment opportunities would be available for SC/ST community women. Justification of the Proposal The proposed Mini Leather Park is -- proposed exclusively for SC & ST Entrepreneurs which would have Industrial Plots with Integrated facilities.

4. Project Cost: (Rs. in lakh) S. No. Particulars As per IA Recommended As per by SIDBI MSE-CDP 1. Land Development and other overhead Infrastructure (i) Cost of land leveling / boundary wall and 109.51 100.00 100.00 fencing: (ii) Cost of laying roads 177.24 177.24 177.24 (iii) Road side greenery & social forestry 14.94 10.00 10.00 (iv) Water supply including overhead tanks, and 112.82 110.00 110.00 pump houses (v) Water harvesting 13.00 10.00 10.00 (vi) Drainage 64.00 60.00 60.00 (vii) Power distribution, Street light 207.85 207.85 207.85 arrangements, etc. (viii) Other (Solid Waste Management System): 14.14 10.00 10.00 Sub Total 713.50 685.09 685.09

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S. No. Particulars As per IA Recommended As per by SIDBI MSE-CDP 2. Administrative and Other Services Complex (i) Administrative office building 20.72 20.00 20.00 (ii) Telecom/Cyber/Documentation centre 20.32 20.00 20.00 (iii) Conference Hall/Exhibition centre 30.78 30.00 30.00 (iv) Bank/Post office 22.72 20.00 20.00 (v) Raw material storage facility, Marketing 45.43 40.00 40.00 outlets (vi) First aid centre,Creche Canteen 20.77 20.00 20.00 3. Effluent Treatment Facilities 80.31 80.00 80.00 4. Contingencies & Pre operative expenses : 24.41 20.00 20.00 Sub Total 265.46 250.00 250.00 Total 978.96 935.09 935.09

5. Means of finance: (Rs. in lakh) S. No. Particulars Propsoed Recommended As per by IA by SIDBI MSE-CDP (i) GoI Grant under MSE-CDP: 748.07 748.07(80%) 674.09 (72.09%) (ii) Government of Telangana 252.80 187.02(20%) 261.00* (27.91%) Total 1000.87 935.09 935.09 *As requested by the Government of Telangana vide letter dated 25.08.18.

6. Observations:

Following documents are required to be submitted prior to issuance of final approval letter:

(i) No. of plots are proposed to be increased to 120-150 from the earlier stated 80-100. Hence, revised layout plan, duly signed and approved by Competent Authority is required. (ii) Details of tangible outcomes of the project (as per enclosed format). (iii) TSLIPC should consider laying of roads with Cement Concrete in place of Bituminous and proper drainages built in a professional manner to serve the purpose for relatively longer period of time. The additional cost on this account shall be borne by the Government of Telangana.

7. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval at a total project cost of Rs.935.09 lakh with GoI assistance of Rs.674.09 lakh for setting up of new Industrial Estate at Armoor, Nizamabad, Telangana.

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48.5 Ratification of Decisions

Agenda No.48.5.1: Ratification of Time Extension granted for Setting up of CFC in Electronic Industries Cluster, Bangalore, Karnataka.

S. No. Description Status 1 Name of the proposal Setting up of CFC in Electronic Industries Cluster, and location Bangalore, Karnataka. 2 Approval accorded 35th SCM held on 15.01.14 3 Final approval order 28.05.14 issued on 4 Name of the IA Karnataka Council for Technological Upgradation (KCTU), Bangalore. 5 Means of Finance (Rs. in lakh) Govt. of India Grant : 1008.32 Govt. of Karnataka Grant : 216.35 SPV contribution : 216.35 Total : 1441.02

6 Project Costs and (Rs. in lakh) component wise (i) Land and its Development 0.00 details (ii) Building and other Civil 75.00 Constructions (iii) Plant & Machinery(including 1254.74 electrification) (iv) Misc. fixed assets 16.29 (v) Preliminary & Pre-operative 12.50 expenses, maximum 2% of project cost (vi) Contingency (2% building and 5% 62.74 on plant and machinery) (vii) Margin money for Working 19.75 Capital Total 1441.02

7 Total GoI grant Installment & Date (Rs. in lakh) released 1st on 13.04.14 : 403.328 2nd on 19.09.17 : 302.00 3rd on 29.08.18 : 200.00 Total : 905.328 8 Validity upto 31.03.18 9 Time extension 30.11.18 accorded on file up to 10 Proposal for Steering  Steering Committee may kindly ratify the time Committee extension accorded on file.

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Agenda No.48.5.2: Ratification of Time Extension granted for setting up of CFC in Wood Furniture Cluster, Taliparamba, Kannur, Kerala.

S. No. Description Status 1 Name of the proposal Setting up of CFC in Wood Furniture Cluster, and location Taliparamba, Kannur, Kerala. 2 Approval accorded 29th SCM held on 22.02.12. 3 Final approval order 28.08.12. issued on 4 Name of the IA Kerala Bureau of Industrial Promotion (KBIP), Thiruvananthapuram. 5 Means of Finance (Rs. in lakh) Govt. of India Grant : 811.67 Govt. of Kerala Grant : 235.38 SPV contribution : 117.69 Total : 1164.74

6 Project Costs and (Rs. in lakh) component wise (i) Land and its Development 16.00 details (ii) Building and other Civil Constructions 260.12 (iii) Plant & Machinery(including 620.90 electrification) (iv) Misc. fixed assets 202.33 (v) Preliminary & Pre-operative expenses, 22.84 maximum 2% of project cost (vi) Contingency (2% building and 5% on 36.25 plant and machinery) (vii) Margin money for Working Capital 6.30 Total 1164.74

7 Total GoI grant released Installment & Date (Rs. in lakh) 1st on 29.04.16 : 324.668 2nd on 30.08.17 : 243.501 3rd on 12.03.18 : 162.334 Total : 730.503 8 Validity upto 30.06.18 9 Time extension 31.12.18 accorded on file up to 10 Proposal for Steering  Steering Committee may kindly ratify the time Committee extension accorded on file.

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Agenda No.48.5.3: Ratification of Time Extension granted for setting up of CFC in Pharmaceutical Cluster, Cuttack, Odisha.

S. No. Description Status 1. Name of the proposal Setting up of CFC in Pharmaceutical Cluster, Cuttack, and Location Odisha 2. Approval accorded 40th SCM held on 23.06.16 & 02.07.16 3. Final approval order 19.10.16 issued on 4. Name of the Odisha Small Industries Corporation Limited (OSIC), Implementing Agency Cuttack 5. Means of Finance (Rs. in lakh) Govt. of India grant : 197.70 Govt of Odisha : 60.00 SPV contribution : 35.00 Total : 292.70

6. Project Cost and (Rs. in lakh) component-wise details i) Land & site Development 12.68 ii) Building 30.44

iii) Plant & Machineries 209.20 iv) Misc. Fixed Asset 19.88 v) Preliminary & pre-operative 4.77 expenses vi) Contingency for plant & machinery 10.46 vii) Margin money for working capital 5.26 Total 292.69 Say 292.70

7. Total GoI grant 1st instalment of Rs. 79,08,000/- was sanctioned, released however, the disbursement of said amount is still pending due to non-furnishing of Certificate of unspent balance by Implementing Agency. 8. Validity upto 31.05.18 9. Time extension 31.03.19 accorded on file upto 10. Proposal for Steering  Steering Committee may kindly ratify the time Committee extension accorded on file.

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48.6 Any Other Points

Minutes of 47th SCM

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