SIPCOT to develop world's largest cyber city in Chennai

State Industries Promotion Corporation of Tamilnadu (SIPCOT) encouraged by the positive response from the national and international infotech majors is to develop a world-class IT city at Siruseeri in the cyber corridor of Chennai, on Old Mahabalipuram road just 30 km away from the Tidel Park.

SIPCOT has already acquired 1000 acres for the project. It is in the process of acquiring another 1000 acres most of which is government land. SIPCOT has the technical expertise to develop industrial parks and it has already undertaken a Rs.80 crore development project. With the support of term lending institutions it proposes to complete the development works in 4-5 years.

The city will be a self-contained township which will have all facilities for the entrepreneurs to run infotech companies and to lead a comfortable life. There will be exclusive substations for power supply, dedicated telephone exchanges and earth stations for high speed data communication and image transmission provided by VSNL and STPI. 

To ensure quality of life there will be assured water supply, underground drainage, well-laid roads, outdoor and indoor recreation facilities including golf course and country club, hotels and restaurants, educational and technical institutions and healthcare facilities and hospitals.

The city will also create link-ups between world-renowned institutions and industry in India to facilitate exchange of ideas on the industrialisation of science and information technology.

It will also provide industry access to scientists from various disciplines so that a talent bank is created, which may not be affordable by individual companies. It can be referred to for many areas of product development, manufacturing etc.

Investors in this city will be given the following incentives and subsidies by the Tamilnadu government :-

  • Special subsidies for electronic industry of upto 20 percent of fixed assets subject to maximum of Rs.20 lakhs.
  • Additional capital subsidy of five percent in fixed assets subject to a ceiling of Rs.5 lakhs for units employing more than 30 percent women workers.
  • There will be no entry tax or purchase tax for IT industries. Unrestricted movement of capital equipment will be allowed subject to sales tax in force.
  • Mega projects will get Rs.25 lakh for investment between Rs.50 crore and Rs.100 crore, Rs.50 lakh for investment between Rs.100 crore and Rs.200 crore and Rs.100 lakh for investment above Rs.200 crore.
SIPCOT is also promoting a Rs.366 crore Business Cum Financial Centre (BCFC) at Chennai.


Rubber industrial park to be set up 

Tamilnadu Industrial Development Corporation (TIDCO) in association with a private sector company has promoted a Rubber Industrial Park in Tamilnadu to boost export of rubber products. The Government of India has sanctioned Rs.7.16 crore for the project. Total cost of project is Rs.14.11 crore. The state government and TIDCO will jointly contribute Rs.3.47 crore while Rs. 3.48 crore is to be contributed by financial institutions.

According to a TIDCO estimate the project would result in additional export of Rs.100 crore per annum, primarily in the form of non-auto tyre products. Currently export of non-tyre products stands at Rs.500 crore. 

The park is located at Chempakarmamputhur near Nagarcoil in Kanyakumari district. The location is considered to be advantageous since it is close to the Tutucorin port which is undergoing modernisation. 


HFC reduces interest rate for small-scale sector

Haryana Financial Corporation (HFC) on 23.02.2001 announced a reduction of 0.5 percent in the rate of interest on term loans advanced to industrial units in small-scale sector. Shri P.K. Gupta, IAS Managing Director, HFC said that the effective rate of interest for small-scale sector would 
now be 14 percent per annum after 2 percent rebate in interest rate to borrowers for timely repayments. He said during the current financial year, the Corporation had already achieved sanctions of Rs.110 crore, disbursements of Rs.48 crore and recovery of Rs.160 crore. 


HSIDC signs MoU with Vavasi Oil for LNG project

HSIDC has signed a Memorandum of Understanding (MoU) with Al Manhal International Group (AMIG) of Abu Dhabi and Vavasi Oil and Gas (P) Limited to establish an integrated gas grid in Haryana to provide gas to various categories of customers in major cities and towns of the State. This MoU is also to provide an integrated Optic Fibre Cable (OFC) network in the State alongwith the pipeline. 

VOGL is developing an integrated project at Gopalpur in Orissa in a joint venture with the Industrial Promotion and Investment Corporation of Orissa Ltd. (IPICOL). This mega project includes a 5 million tonne per annum LNG regassification unit. A 1250 km. gas pipeline is being laid culminating at Auriya in Uttar Pradesh. This pipeline would cater to the needs of Haryana and Punjab.

There is also a proposal to set up a fertiliser plant in Haryana, which will require 0.3 MMTPA of LNG. Further, with a view to provide environment friendly fuel to consumers, towns like Gurgaon and Faridabad can be supplied regassified LNG through a pipe-network.

The total cost of this project is estimated around Rs.6,000 crores in phases. Besides providing direct and indirect employment opportunities, the proposed project will also open doors for the development of spin off of ancillary items as well as other businesses. 

Instant allotment camps for Delhi Industrialists

HSIDC held two Instant Allotment Camps in Delhi in December 2000 and February 2001 for the benefit of the Delhi industrialists affected by the Hon'ble Surpeme Court's recent decision to shift the polluting units from the national capital. During these camps, industrial plots of various sizes were allotted in the Industrial Model Township (IMT Manesar), Growth Centre Bawa, Barhi and Kundli and the newly developed industrial estate at Rai near Sonipat. These industrial estates have been developed by HSIDC around the national capital Delhi. 

During these camps HSIDC received 1955 applications for allotment of industrial plots. Out of this 983 applications were for Kundli alone. The allotments for IMT Manesar, Industrial Estate, Barhi and Growth Centre Bawal have been finalised and 353 allotments have been made for the total land of 85.60 acres with a value of Rs.41.73 crores. 

The balance applicants, would be offered plots in the newsly created Industrial Estate in Rai. As a nodal agency of the State Govt. for the development of industrial infrastructure in Haryana, HSIDC has allotted four thousand industrial plots of various sizes in different industrial estates during the period 01.04.1999 to 28.02.2001. During the corresponding period from 01.04.1997 to 31.03.1999 HSIDC had allotted only 316 plots in these industrial estates. 


RIICO's loan recovery goes up

Following simplification of the entire procedures followed by RIICO (Rajasthan State Industrial Development and Investment Corporation Ltd.) the loan recoveries during the last two months of December and January had improved considerably. During December last year the loan recoveries made were more than the amount recovered during the previous three months, said Shri R.N. Bhandari, C.M.D., RIICO.

He said that the RIICO procedures had been overhauled keeping in view the interests of the loanee entrepreneurs. The entrepreneurs are happy as the formalities they were supposed to undergo earlier had now been removed. 


UPFC initiates new revamp strategy via NPA liquidation 

Ms. Rita Menon, MD, UPFC has said that the total non-performing assets of the institution are Rs.580 crore, and the priority is to clear them. 

UPFC is to liquidate at least Rs.250 crore within the first quarter of the coming financial year. The NPAs of Rs.713 crore (as on March 31, 2000) were 64 percent of the total portfolio. The standard assets were Rs.389 crore in August 2000. Ms. Menon has persuaded the UPFC team and the entrepreneurs to reduce the non-performing assets by rescheduling the loan, offering OTS etc.

The UPFC was able to clear its Rs.123 crore high cost borrowings to save interest of Rs.6 crore. The fresh SLR borrowing was at a low rate of 10.82 percent interest.

The state government and the SIDBI were urged to meet the requirement of Rs.363 crore in phased manner including Tier-II capital for repayment and fresh lending as well as for maintaining CAR level at 9 per cent. 

The SIDBI and IDBI were also requested to contribute Rs.104 crore towards equity to set off operating cumulative losses.

In this effort, the UPFC floated fresh series of SLR bonds at an interest rate of 10.82 percent for Rs.47.27 crore in February 2000 which was oversubscribed. 

The institution has once again started disbursement after a gap of 18 months and the result was encouraging with Rs.240 crore worth registrations, sanctions were Rs.60.07 crore, disbursement were Rs.40 crore against a recovery of Rs.221 crore till February 2000.

Ms. Menon said that her strategy was aggressive recovery, aggressive disbursement and sanctions, strict appraisals, cutting down of operational costs, fiscal management and setting up micro-organisations for specified sectors.

UPFC has stopped reckless lease assistance and equity participation, which is expected to produce turn around results in 2001-02 by keeping the cash loss in less than double figure. 

UPFC sanctions Rs.93 crores 

In a changed work culture, UPFC has emerged as a customer friendly organisation. For the first time UPFC has gone to the doorstep of the entrepreneurs to sort out their problems through regular and frequent Samadhan Gosthis and Business Promotion Seminars organised at each of its regional offices.

UPFC has endeavoured to regain the confidence of the good entrepreneurs so that good quality proposals may be considered for fresh sanctions. By the end of March 23, 2001, UPFC has sanctioned more than Rs.93.86 crores in favour of 282 units during the current financial year. Fresh sanctions include various prestigious projects like Imported Stone Tiles unit M/s Oriental Timex, Noida, Hind Lamps, Shikohabad a Bajaj Group Unit for GLS Bulbs & Tubes; Textile Export gaint Sybly for Technology Upgradation; Sir Shadi Lal Distillery, Muzaffarnagar for their Captive Power Plant; the highest ice skating resort of Asia, Auli Resorts (a ski & snow resort) unit at Auti; Devi Dayal Industries, Ghaziabad for their established Aluminium Utensils and Cook Ware brands; JP Dharuka, Sitapur for expansion of their paper unit; Sunehary Exports, Greater Noida a 100% export unit manufacturing Tooth Brushes for leading brands of US and Europe markets.


GSFC's Steady March Towards a Dynamic Future

Gujarat State Financial Corporation (GSFC) has continued to march in leaps and bounds towards a dynamic future inspite of the universal recession and devastating earthquake.

With its traditional loan assistance activities, GSFC has introduced novel financial schemes as also a liberal assistance scheme for earthquake affected entrepreneurs, thus proving itself to be a sound pillar of Gujarat's economy.

Having recognised the demands of the present age, GSFC has started advancing loan assistance upto Rs.240 lakhs to entrepreneurs eager to convert hi-tech and biotech agriculture into money spinning enterprises. Many an entrepreneur has brought about a great revolution in agriculture by synchronising GSFC's assistance with their own enterprise, technology, personal capital and management skills. Products of green houses built by hitech agricultural technology have found tremendous market response in Ahmedabad and Mumbai. These include Ayurvedic herbs, decorative plants and flowers, a variety of salads such as red cabbage, red raddish, yellow and red capsicum, broccoli, chinese cabbage, English roses etc. This hitech and biotech agricultural activity will have another beneficial effect. As more and more rural entrepreneurs take to such agriculture, the exodus of rural masses towards cities will diminish and self-employment as well as lucrative jobs will contribute to realisation of GOKUL GRAM dream.

GSFC has implemented an assistance scheme for the handicapped in co-operation with the National Handicapped Finance and Development Corporation, whereby these people can avail of necessary capital for various self-employment activities at such nominal rates of interest as 5% to 10% depending upon the amount of loan. Handicapped women are eligible to 2% concession even in this nominal rate of interest and regular loanees can get further half percent rebate for regular repayment. Assistance is available in 37 commercial activities including STD, PCO, Xerox Centre, provision stores, dairy industry centre, computer service etc.

GSFC has also started advancing assistance upto Rs.2 lakhs and more to already assisted units and also to new units in small and medium sector on liberal terms. The promoters do not have to harness their own capital to receive loan assistance upto Rs.2 lakhs. Also, the entrepreneurs from other than Kutch district units have to employ only 5% margin money and they will not have to pay to GSFC the prescribed up-front fee, scrutiny fee, MSC fee etc. Moratorium period has been granted for two years for repayment of principal and six months for repayment of interest. No collateral security will be required for loan assistance under this scheme. Legal procedures, too, have been made easier and speedier so that assistance under this scheme can be expedited. Regional offices have been empowered to extend loans upto Rs.15 lakhs to quake affected units.

GSFC has sanctioned loan assistance of Rs.419.81 lakhs to 27 units of Gujarat which includes sanctions worth Rs.101.81 lakhs to affected units of Kutch district. The Corporation has also granted provisional disbursements of Rs.40.81 lakhs to certain units in anticipation of cash assistance / loan sanctions by the State.


MIDC to raise Rs.100 crore loan to fund infrastructure projects

Maharashtra Industrial Development Corporation (MIDC) is to raise a loan of Rs.100 crore for implementing various infrastructure projects in the state.

SICOM which was appointed by MIDC as an arranger has roped in ICICI Bank for providing loan at a competitive rate of 12.10 percent said MIDC, Chief Executive Officer, Shri Jayant Kawle.

He said that MIDC which has achieved a turnover of Rs.600 crore during 1999-00, would use the loan amount for the development of its second infotech part at Hinjawade, near Pune, which is over 500 acres and other information technology parks at Latur, Nagpur, Nashik, Kolhapur, Solapur, Ahmedaad, Sangli and Satara.

Mr. Kawle said that MIDC, with assets of over Rs.3,000 crore would form a joint venture with private sector companies for the generation and supply of "quality" power in the information technology parks, biotechnology parks and special economics zones across the State.

The Corporation will not pick up any financial equity in the proposed JV, but will provide space and assured consumers at these parks. Power would be provided at cheaper rate compared to the tariff charged by the Maharashtra State Electricity Board (MSEB). Such power projects will be an extended version of captive power project based on diesel.

MIDC would also encourage private participation for the hydro-power generation project with a capacity of 15 mw at Barvi dam in Thane district. It would be developed on Build-Operate-Own-Transfer basis.