Loan
to Tiny and Cottage Industries projects at reduced rate
of interest
Under
the scheme a composite loan upto a maximum of Rs. 5
lakh i.e. Rs. 4.5 lakh as term loan and Rs. 0.50 lakh
or the loan shall be made available to SSI/SSSBE. All
SSI/ISSBE registered with the DI shall be eligible for
assistance.
The rate of interest on term loan
shall be 7 per cent and 10 per cent per annum respectively.
The promoters' contribution shall
be a minimum of 15 per cent of the project cost.
The loan shall be recovered within
a period of 7 years. The loan shall be granted for
purchase
and erection of plant, machinery and allied accessories
required for industry.
Construction
of factory shed, well tank and other civil works required
for the industry.
Working capital loan for purchase
of raw material, consumables & other overhead
expenses needed for the unit.
For land development, the land
should be owned or leased for a minimum period of
15 years from the date of application for the loan.
Land should be converted for industrial use. The
unit should obtain no objection certificate from
the Municipality/Gram Panchayat.
The moratorium period will be
2 years from the date of disbursement of the loan.
In case of default, penal interest shall be levied
@14 per cent per annum on the amount in default
from the date of default and for the period of default.
The loanees shall have to furnish
the following documents in order to avail sanctioned
loan.
An undertaking in the prescribed
format for adjustment of subsidy, if any, against
repayment of loan to the General Manager, ANIIDCO,
Port Blair.
A personal bond from the application
and a service surety where the loan is for an amount
up to Rs. 1.00 lakh or credit guarantee from credit
guarantee giving institution.
Credit guarantee obtained from
credit guarantee giving institution against the
loan for loan above Rs. 1.00 lakh (or) collateral
security of immovable property chargeable by way
of equitable mortgage/simple mortgage.
An undertaking to hypothecate
all the assets created out of the loan and all other
movable assets like raw materials finished goods,
stocks in favour of Chairman, ANIIDCO
Infrastructural Support including
subsidy on installation of gen sets, water harvesting
equipment and land development.
Under the scheme, subsidy to the extent
of 50% of the cost of DG set & 50% of the expenditure
on the development of land subject to a maximum of Rs.
1.00 lakh in case of DG set and Rs. 50,000/- in each
case of water harvesting and land development shall
be made available to the unit. All small scale units
permanently registered with the Directorate shall be
eligible for assistance.
Generating set means one which will
be used for captive power generation for industrial
use. Land development means jungle clearing over the
land, levelling, earth filling, construction of boundary
wall/fencing, water connection and approachable all
weather road and electrical connection to a maximum
length of 100 metres in each case. In-house water harvesting
equipment means water storage container, water conveying
pipes and fitting, water lifting motor pumps constructed
RCC storage tanks where water is harvested for captive
industrial use. The scheme has been in force w.e.f 1-4-95.
Valuation of the DG set shall include
cost of DG set including packing, forwarding, transportation,
erection and insurance charges & cost of accessories.
The expenditure on land development is to be certified
by a qualified civil engineer and a no objection certificate
from Municipality/Panchayat is to be furnished.
The subsidy shall be disbursed to
the sanctioned unit after completion of the documentation
as required under the scheme. In case the unit has availed
any loan from Govt./financial institution for purchase
of DG set, the subsidy shall be adjusted towards the
loan account. An undertaking to this effect is to be
furnished by the unit.
Under this scheme capital investment
subsidy at the rate of 25 per cent on the fixed capital
investment shall be granted to units irrespective of
their size which are set up after 1.4.95 or units which
undergo substantial expansion after 1.4.95 subject to
a maximum of Rs.25 lakh.
Eligibility
:
All units permanently registered
with the Directorate of Industries, or holding a
licence from GOI, Ministry of Industry, or holding
approved Industrial Entrepreneur Memorandum or a
100% Export Oriented Unit approved by GOI, Ministry
of Industry.
The unit shall be set up on its
own land or the unit shall be set up on land leased
to it for a minimum of 15 years from the date of
application for the subsidy or the unit shall be
set up in a rented building which is leased to it
for a minimum period of 15 years from the date of
application of the subsidy.
The land should be converted for
Industrial use and the unit should obtain no objection
certificate from the Municipality/Gram Panchayat
for the site development.
No claim for subsidy which is
more than one year old from the date of starting
production shall be entertained, and no claim substantial
expansion carried out prior to 1-4-95 shall be entertained.
The units shall apply for pre
registration with the Directorate of Industries
in the prescribed format.
Island
Transport subsidy Inter Island Transport Subsidy
Under the scheme 90% of the freight
charges shall be reimbursed as transport subsidy for
transporting raw material from Chennai Port to the location
of the unit in this territory and for transporting finished
goods from the location of the unit to the Chennai Port.
If any port on the mainland is used for the purpose
of the transport subsidy, the freight charges shall
be taken what the industrial unit would have incurred
had Chennai Port been used or the actual freight charges
which ever are less. The units which are eligible under
the transport subsidy scheme of GOI shall not be eligible
for available the transport subsidy under these scheme.
Eligibility
:
All units both in public and private
sector, (barring plantation, refineries and power generating
units) shall be eligible for the subsidy from 1.4.95
and further extended to all the industrial units irrespective
of their size w.e.f. 1.4.97 provided the unit
obtained permanent SSI registration
from the Directorate of Industries
is holding a license from GOI,
Ministry of Industry.
is a holder of approved Industrial
Entrepreneur Memorandum.
is a 100% export oriented unit
approved by GOI, Ministry of Industry.
the unit intending to avail subsidy
shall obtain pre registration with the Directorate
of Industry.
Freight charges for movement of finished
goods/raw materials by sea shall be determined on the
basis of the 'freight rates' fixed by the Indian Coastal
Conference/ the DSS, A&N Administration, from time
to time or the actual freight paid whichever is less.
Similarly for movement of finished goods/raw materials
by road, the rates fixed by a Sub-Committee consisting
of Director of Transport, Ex. Engineer(W/S), APWD, and
Director of Industry from time to time or the actual
cost paid whichever is less shall be considered. Units
employing their own modes of shall be limited to the
freight rate as fixed in accordance with the criteria
laid at para 5 (a) above, or the actual cost incurred
whichever is less.
The units which bring raw materials
from mainland through ANIIDCO or any other such
industrial promotion institution shall be eligible
for transport subsidy.
Transport subsidy shall be considered
either on weight or volume basis whichever has been
charged by the transporter. The claim should be
submitted along with the following supporting documents.
Proof of raw materials transported
into and finished goods transported out of the island
duly certified by a registered chattered accountant.
In case of SSI units with a capital
investment of Rs. 100 lakh or less production of
certificate from CA is not required, but is to be
certified by DI or officers authorised to do so.
Three copies of BL, Bills, Cash
Memo, money receipt etc. should also be enclosed
with the claim.
No claim which is more than the
year old from the date of incurring the transportation
expenses shall be entertained for reimbursement.
The following products which are considered
and vital for the development of downstream industries
shall not be eligible for transport subsidy.
Sawn Timber
Processed cane
Copra.
Interest free loans for procurement
of standby generating sets and in-house water harvesting
equipment to small scale units.
Under this scheme, an interest free
loan shall be provided to units for installing their
own standby generating sets and for setting up of in
house water harvesting equipments upto a maximum amount
of Rs. 2.75 lakh for standby DG set and Rs. 1.00 lakh
for in house water harvesting equipment. The promoter's
contribution shall be a minimum of 10% of the total
expenditure incurred on the purchase of equipment/machinery.
All the units permanently registered
with the Directorate shall be eligible for assistance.
The eligible unit intending to avail loan shall submit
a loan application in the prescribed from along with
the following documents.
Copy of the detailed project report.
SSI registration certificate.
quotation for the machinery.
The loan shall be disbursed to the
sanctioned unit after completing the documentation.
The loan shall be repayable in full within 5 years in
equal quarterly installment. The recovery shall commence
after a period of one year from the date of disbursement
of the loan. In case of default penal interest shall
be levied at the rate of 14% per annum on the amount
in default and for the period of default. The scheme
shall be applicable throughout A & N Islands and
is effective from 1-4-95.
All the conditions as stipulated under
Island Transport Subsidy are applicable for reimbursement
of subsidy under this scheme, however the scheme is
applicable only for a period of five years from the
date of commencement of commercial production.
Central Transport
Subsidy Scheme
Published in Part I, Section I of
the Gazette of India Extraordinary dated 27.7.1971 (No.
102) vide Notification No. F. 6(26)/71-IC dated 23.7.1971
and amended vide Notification No. 6(26)/71-IC dated
28.2.1974 published in the Part I, Section I of the
Gazette of India Extraordinary dated 28.2.1974 (No.
103) and Notification No. 6/3/15-RD dated 19.7.1978
Notification No. 11/1/90-DBA-11 dated 28.7.1993 and
29.09.1997.
NOTIFICATION
New Delhi, the 23rd July, 1971
No. F 6(26)/71-IC - The Government
of India are pleased to make the following scheme for
grant of subsidy on the transport of raw materials and
finished goods to and from certain selected areas with
a view to promoting growth of industries there :-
Short title - This Scheme may
be called the Transport Subsidy Scheme, 1971
Commencement and duration : It
comes into effect from 15.7.1971, for selected areas,
(A) with effect from 24.8.1973 for selected areas
(B) with effect from 1.12.1976 for selected areas
(C) and with effect from 5,12.1977 for selected
areas (D) and will remain in operation till 31.3.2000.
The scheme shall, however, remain in operation till
31.3.2007 for the North Eastern Region.
It is applicable to all industrial
units (barring plantations, refineries and power
generating units) both in the public and the private
sectors, irrespective of their size in the selected
areas (A), (B), (C) and (D).
Definitions
Industrial Unit" means an
industrial unit where a manufacturing programme
is carried on.
"New industrial Unit"
means an industrial unit which has set up manufacturing
capacity and come into production on or after the
date of commencement of the Scheme.
"Existing Industrial Unit"
means an industrial unit which has set up manufacturing
capacity and came into production before the date
of commencement of the Scheme.
"Substantial expansion"
means increase in production of an industrial unit
by 25 per cent or more of the licensed or approved
capacity.
"Diversification" means
manufacture of new article or articles by an industrial
unit by 25 per cent or more (by value) of the approved
or licensed capacity of the Article or Articles
already manufactured by it during the proceeding
year.
Amended vide Notification No.
11(1)/95-DBA-11 dated 28.7.93 and dated 29.09.1997
and Notification No. 11(1)/98-DBA-11, dated 29.01.1998.
The Selected Areas (A) means the
State of Jammu & Kashmir and the North - Eastern
Region comprising the States of Assam, Meghalaya,
Manipur, Nagaland and Tripura and the Union Territories
of Arunachal Pradesh and Mizoram, the Selected Areas
(B) means the State of Himachal Pradesh and Hilly
areas of Uttar Pradesh State comprising the districts
of Dehradun, Nainital, Almora, Pauri Garhwal, Tehri
Garhwal, Pithoragarh, Uttar Kashi and Chamoli, the
Selected Areas (C) means the Union Territories of
Andaman & Nicobar Islands and Lakshadweep, and
the Selected Areas (D) means the State of Sikkim,
"Raw material" means
any raw material actually required and used by an
in unit in its manufacturing programme as approved
by the Government of lndia or by the Government
of State/Union Territory in which the Industrial
unit is located.
"Finished goods" means
the goods actually produced by an industrial accordance
with the manufacturing programme approved by the
Government of India and/or the Government of the
State/Union Territory in which the industry is located.
Details of the scheme
A transport subsidy will be given
to the industrial units located selected areas in
respect of raw materials which are brought into
and finished which are taken out of such areas.
Industrial units will not be
eligible for the transport subsidy for internal
movement of raw materials and finished goods within
the State of Jammu & Kashmir, North- Eastern
Region, the State of Himachal Pradesh, the hilly
areas of Uttar Pradesh, Union Territories of Andaman
& Nicobar Islands and Lakshadweep and the Sikkim.
In
the case of Jammu & Kashmir, transport subsidy
will be given on transport costs between the location
of the industrial unit and rail - head of Jammu or
Pathankot, whichever is nearer
In the case of Himachal Pradesh the
transport subsidy will be given on transport costs between
the location of the industrial unit in the state and
the nearest rail head viz. (i) Pathankot, (ii) Kiratpur
Sahib, (iii) Nangal, (iv) Kalka, (v) Ghano (vi) Yamuna
Nagar, (vii) Barara and (viii) Hoshiarpur.
In the case of hilly areas of Uttar
Pradesh State, the transport subsidy will be given on
the transport costs between the location of the industrial
unit and the nearest rail head viz., (i) Dehradun, (ii)
Rishikesh, (iii) Moradabad, (iv) Bareilly, (v) Kotdwara
(vi) Shahajahanpur and (vii) Rampur.
In the case of North - Eastern
region comprising the States of Assam, Meghalaya,
Nagaland, Manipur, Tripura and the Union Territories
of Arunachal Pradesh, Mizoram the transport subsidy
will be given on the transport costs between and
the location of the industrial unit in these States/Union
Territories calculating the transport costs of raw
materials the cost of movement by rail from Siliguri
to the railway station nearest to the location of
the industrial unit thereafter the cost of movement
by road to the location of the industrial unit taken
into account. Similarly, while calculating the transport
costs of finished the costs of movement by road
from the location of industrial unit to the railway
station and thereafter the cost of movement by rail
to Siliguri will be taken into account. In the case
of North-Eastern region, for raw materials moving
entirely by road or other mode of transport the
transport costs will be limited to the amount which
the industrial unit might have paid had the raw
materials moved from Siliguri by rail upto the railway
station nearest to the location of the industrial
unit and thereafter by road. Similarly in the case
of movement of finished goods moving entirely by
road or other mode of transport in the North-Eastern
region, the transport costs will be limited to the
amount which the industrial unit might have paid
had the finished goods moved from the location of
the industrial units to the nearest railway station
by road and thereafter by rail to Siliguri. Amended
vide Notification No. 6/3//5-RD dated 19.7.1978.
@ Amended vide Notification No. F. 6(26)/71-IC dated
28.2.1974 and No. 6/3/75 RD Dated 19.7.1978. % Deleted
vide Notification No. 6. (26)/74-IC dated 28.2.1974.
* Amended vide Notification No. F. 6(26)/71-IC dated
28.2.1974.
In the case of Andaman & Nicobar
islands, the transport subsidy will be given on
transport costs by sea and road between Madras Port
and the location of the industrial unit in the Union
Territory. In the case of Lakshadweep, the transport
subsidy will be given on transport costs by sea
and road between Cochin Port and the location of
the industrial unit in the Union Territory. If any
other port on the mainland is used for the purpose
of transport subsidy, the transport costs will be
taken at the industrial unit would have incurred
had Madras or Cochin Port, as the case may be, been
used, or the actual transport costs, whichever are
less.
In the case of Sikkim, the transport
subsidy will be given on transport costs between
the location of the industrial unit in the State
and the rail head of Siliguri.
Freight charges for movement by
road/sea will be determined on the basis of transport/
transhipment rates fixed by the Central Government/State
Government/ Union Territory Administration concerned
from time to time or the actual freight paid, whichever
is less
Costs of loading or unloading
and other handling charges such as from railway
station to the site of the industrial unit will
not be taken into account for the purpose of determining
transport costs.
All New Industrial units located
in the selected areas will be eligible for transport
subsidy equivalent to 50 per cent or the transport
costs of both raw materials as well as finished
goods.
Existing industrial units in the
selected areas are also eligible for transport subsidy
in respect of the additional transport costs of
raw materials and finished goods arising as a result
of substantial expansion or diversification effect
by them after the commencement of the Scheme. Transport
Subsidy in such cases will be restricted to 50 per
cent of the transport costs of the additional raw
materials required and finished goods produced as
a result of the substantial expansion or diversification.
Transport subsidy will also cover
50 per cent of the transport charges for movement
of steel from Gauhati Stockyard of M/s. Hindustan
Steel Limited to the site of the industrial units
in the North-Eastern region and for movement of
industrial raw materials from the State Corporation's
depots situated in the hill districts of Uttar Pradesh
to the sites of the Industrial units located in
the hill districts of the State &
inserted vide Notification No. 6/3/75-RD dated 19.7.1978
+ Renumbered and amended vide Notification No. /3/75-RD
dated 19.7.1978. £ Renumbered vide Notification
No. 6/3/75-RD dated 19.7.1978.
The State Government Union Territory
Administration will set up a committee consisting
of the Director of Industries, a representative
each of the State Industries Department and the
State Finance Department etc. on which a representative
of the Ministry of Industrial Development will also
be nominated. The Committee will operate at the
State/Union Territory Level and scrutinize and settle
all claims of transport subsidy arising in the State/Union
Territory. The claimants should be asked to provide
proof of raw materials, 'imported' into and finished
goods 'exported out of the selected States/Union
Territory/areas where the unit is situated from
the registered chartered accountants. The committee
may also lay down the production of any other documents
which in their opinion is necessary to decide the
eligibility of claimant for the transport subsidy.
However, in the case of small units with a capital
investment of Rs. I lakh or less the requirement
of production of certificate from Chartered Accountant
may be waived subject to the condition that such
claims are properly verified by the State Government
authorities before the subsidy is sanctioned/ disbursed.
After having scrutinised and settled the claims,
the amount disbursed to industrial unit should first
be adjusted against the outstanding ways and means
of advances made to the State Government/Union Territory
Administration for Centrally Sponsored Scheme in
accordance with the procedure outlined in the Ministry
of Finance letter No. 2 (17) Pll/58 dated 12.5.1958
and the balance, if any, shall be paid in cash to
the State Government/Union Territory Administration.
Provided that in the case of small
units with a capital investment of Rs. 1.00,000
and less, the requirement of production of proof
of import of raw material and export of finished
products from registered Chartered Accountant will
be substituted by an appropriate verification by
the State Government authorities.
In order to check any misuse of
transport subsidy Directorate of Industries in the
State/Union Territories will carry out periodical
checks to ensure that the raw materials and the
finished goods in respect of which transport subsidy
has been given were actually used for the purpose
by a system of scrutinizing of consumption of the
raw materials and the output of the finished goods.
Directorate of Industries of the
State and Union Territories concerned will draw
up procedures and arrangements not only for scrutinizing
the claims for transport subsidy but also arrange
for prompt payment of the claims. The number of
transport subsidy claims that may be preferred by
an industrial unit should not ordinarily exceed
one in a quarter. However, the Director of Industries
may at his discretion entertain more number of claims
in a financial year, if the financial position of
the industrial unit so warrants.
Directorates of Industries of
the states and Union Territories concerned will
lay down a system of pre-registration of industrial
units which are eligible for transport subsidy.
At the time of registration the Directors of Industries
will fix and indicate the capacity of such units.
They will also lay down procedure to ensure regular
inflow of information regarding the movement of
raw material and finished goods to and from the
industrial units. The Directorate of Industries
of the States and Union Territories should also
lay down that statistics of production and utilisation
of raw materials should be maintained and kept open
for inspection on request by the Directorate of
Industries.
The Ministry of Industrial Development
will continuously review the arrangements made by
the Directorate of Industries of the concerned States
and Union Territories and suggest modifications
in the procedure for scrutinizing the claim, payment
of transport subsidy etc.
Notwithstanding the provisions
of the Scheme Government of India and/or the Government
State/Union Territory concerned have full discretion
to refuse to entertain or reject any claim for transport
subsidy.
Any false statement made deliberately
by an industrial unit or any mis- representation
of facts by it will disqualify it from the grant
of transport subsidy for such period of time as
the Government of India and/or the Government of
State/Union Territory concerned may decide after
giving a reasonable opportunity to the industrial
unit to state its case.
£
Renumbered vide Notification No. 6/3/75-RD dated 19.7.1978.
*£ Amended vide Notification No. F6(26)/71-IC
dated 28.2.1974.
+ Renumbered and amended vide notification No. 6/3/75-RD
dated 19.7.1978.
* Amended vide Notification No. F. 6(26)/71-IC dated
28.2.1974.
The Gazette of
India Extraordinary
(Part I Section
1)
MINISTRY OF INDUSTRY
(Department of industrial Policy & Promotion)
NOTIFICATION
New Delhi the 29th January. 1998
No.ll(l)/98-DBA II. The Central Government
hereby makes the following further amendment in the
Notification of the Government of India in the erstwhile
Ministry of Industrial Development Notification No.
6/26/71-IC, dated 23rd July. 1971, namely the Transport
Subsidy Scheme.
1971 as published in the Gazette of India Extraordinary
Part I, Section I, dated 27th July, 1971 as amended
from time to time :-
In
para 2 of the said Scheme under the heading "Commencement
and Duration" the following shall be added at
the end :
"The Scheme shall, however, remain in operation
till 31st March, 2007 for the North-Eastern Region"
In para 6 of the said Scheme after sub-para (xii a)
the following sub-para (xii b) shall be inserted namely:
"The North East Development Financial Corporation
(NEDFi) shall act as a nodal agency for release
of transport subsidy on the basis of the recommendations
of the State Level Committee, for the North East
Region, as per existing terms & conditions of
the said Scheme"
Credit guarantee
scheme
The scheme seeks to extend a degree
of protection to the State Financial Corporations, Commercial
& Cooperative Banks by furnishing a guarantee in
lieu of the collateral security proposed/required to
be furnished by the SSI Units operating in the islands.
The scheme will cover all working capital
loans granted by the lending institutions for purchase
of raw materials, stores, spares, consumables etc. including
temporary overdrafts granted for the above purposes
as also the term loans/installment credits granted for
purchase of plant & machinery, tools & equipments
(including office equipments), vehicles for transportation
of rawmaterials, finished products and for acquisition
of land or for construction of factory shed, office.
The scheme is being implemented by ANIIDCO. The guarantor's
liability will be restricted to 75% of the amount in
default as on the date, the dues have become bad/doubtful
of recovery subject to a maximum of Rs. 10 lakh per
borrower.
The amount in default means the aggregate
amount outstanding in the working capital and term loan
accounts of the borrower plus admissible expenses, that
is the expenses incurred by the lending institution
towards recovery of the dues - through legal action
or otherwise and towards storage, protection, insurance
of the security less the amount recovered after the
relevant date till the date of lodgement of the claim.
NO claim shall be lodged by the lending institution
within 3 years of date of first disbursement of loan.
The borrower will deposit guarantee
fee @ 5 per cent on the loan sanctioned through the
lending institution to meet the establishment charges
of the guarantor.
The scheme comes into force w.e.f 1.4.1995.
All credit facilities as mentioned under scheme and
granted after 1.4.95 will be covered. Non fund based
facilities like letters of credit/Bank guarantees etc.
will not be eligible for cover under the scheme.
A small scale industry is an undertaking
having invested in plant & machinery, whether held
on ownership basis or by hire purchase not exceeding
Rs. 3.00 crore.
This also includes an ancillary industry
having investment in fixed assets in plant and machinery
whether held on ownership basis or by lease or by hire
purchase not exceeding Rs. 3.00 crore and engaged in
The
manufacture of parts, components, sub-assemblies,
toolings, or intermediate; or
The rendering of supplies or rendering
or proposing to supply or render 50% of their production
or the total receives, as the case may be, to other
units for production of other articles. The tiny
sector unit is a unit having an investment in plant
and machinery upto Rs. 5 lakh inrrespective of the
location of the unit.
In order to give impetus to the educated
unemployed youths so as to facilitate smooth implementation
of the PMRY scheme, reimbursement of interest subsidy
to the extent of 7% against loan subject.
That
the payment of principal as well as interest is regular
and timely.
That the beneficiary who defaults
in making payment of 3 monthly installment of the
principal and 2 quarterly installment of interest
shall not be eligible for reimbursement of interest
subsidy.
Provided the beneficiary pays 3 defaulted
monthly installment principal and 2 quarterly installment
of interest subsequently, he shall be eligible for reimbursement
of subsidy for future accrual of interest.
The financing banks shall be claimants
of interest subsidy. They shall furnish their claim
to Director of Industries in the prescribed proforma
on quarterly basis. The scheme comes into force with
effect from 1-4-95.
