TRIPURA INDUSTRIAL DEVELOPMENT CORPORATION LTD - A PROFILE
 
 
Tripura Industrial Development Corporation Ltd. (TIDC) was incorporated in the year 1974 as a company under the Company's Act, 1956 with the basic objective to promote industries and to create  healthy industrial environment in Tripura. With this view TIDC required to play the role of a catalyst in the development of  the state. Particularly, it is required to perform the twin role of State Industrial Development Corporation and State Financial Corporation. The activities and performance of the corporation are given below.    

Functions and objectives  :  

The basic objectives of TIDC can be classified in the three major heads :    

  • Development of infrastructure facilities. 
  • Industrial promotion. 
  • Extending financial assistance to the prospective entrepreneurs. 
Development of infrastructure facilities :    

To promote industries in state, it is necessary to develop proper infrastructural facilities in the form of industrial facilities in the form of industrial areas. This is particular necessary if potential entrepreneurs are to be invited from outside the state as they expect to get ready infrastructure. TIDC is acting as nodal agency of the state government for implementation of different centrally sponsored schemes.    

  • Growth Centre  : TIDC is implementing a growth centre at Budhjangnagar near Khayerpur, about 10 Km from Agartala. The total land is 240 acres. The total project cost is Rs. 15 crores. The preliminary works like acquisition of land and contour survey have been done. After development of plots with infrastructural facilities, the same will be allotted to the entrepreneurs. The growth centre will be based on natural gas utilization both as fuel and feed stock. In  addition to other facilities, the growth centre will include shopping centre, power station, telephone exchange, school, hospital etc. 
  • Integrated Infrastructure Development Centres (IIDs)  : The new scheme is a scaled down version of Growth Centre Scheme. The total area and the project cost of each centre would be about 40 to 50 acres and Rs 5 crores respectively. It has been decided to set up these centres and the North, South and Dhalai districts of Tripura. 
  • Export promotion and Industrial park (EPIP)  : There is also a proposal for setting up an Export Promotion Park to encourage the export oriented units (EOUs). The EOUs will be housed in the proposed park. There are potentialities for handicrafts, handlooms and fruit processing industries for export. 
Industrial Promotion    

Despite its natural resources and comparatively high the literacy, the state has failed to take off industrially. All four districts of the state are 'No Industry District'. TIDC is playing a vital role for economic development of the state through planned industrialization. Tripura's resource potential lies in natural gas, rubber, horticulture, bamboo, sericulture and tourism. The resources are to be utilised with timely planning for industrial and economic planning.    

Resources/Investment Opportunities       

  • Natural Gas 
    • Gas is available in non-associated from with high Methane content of about 97%; at present, 2.00 MMSCMD gas is available. The amount is expected to increase to 4.5 MMSCMD by 2001-02; present utilisation is 0.45 MMSCMD, mainly for power projects. Additional quality committed for power projects is 0.8 MMSCMD, balance available - 0.75 MMSCMD. 
    • Concessional gas pricing for North Eastern Region: Current Consumer price at land fall points about Rs. 1200/MCD for North-east as against General Price of Rs. 2200/MCM: Further discount of Rs 300/MCM on case to case basis, for new consumers in North-Eastern region for a period of 5 years. 
    • Projects that can be set using available gas as feed stock are Urea complex (Rs 1145 crore), Urea-PVC complex (Rs. 1305 crore), Urea-Methanol complex (Rs. 987 crore), Liquid/Solid Hydrocarbon complex (Rs 376 crore). 
  • Rubber 
    • Rubber Board has declared Tripura 'Second Rubber Capital'  of   India. 
    • Total area under plantation is 23,500 Hactere. The potential for  plantation in the state by 2001-02 is about 1,00,000 Ha. 
    • Rubber production- 5,000 TPA. Production is expected to increase to 20,000 TPA by 2001-2002. 
    • There is scope for setting up of rubber based industries. 
  • Fruit Processing  : The production of major horticulture crops are pine apple (45000 TPA), orange (24000 TPA), jackfruit (22000 TPA),  litchi (3000 TPA), cashew (1800 TPA) and coconut (1250 TPA). Fruit Processing units can be set-up with these resources. 
  • Cane and Bamboo handicrafts  : Tripura handicrafts are among the best in the country and being exported also. There is scope to modernize and set up export oriented units. 
  • Tea  : Tripura is traditional tea growing state and has scope to increase production. The present production is about 54000 TPA. Other potential sectors include forest-based industries, tourism electronics, software development light engineering, textile and other industries with export potential to Bangladesh and neighbouring countries. 
Incentive for industries    

 Following incentives are available for investment in the State :  

  • Central Subsidies 
    • Transport subsidy @ of 90% of transportation cost of raw materials/finished goods between Siliguri and project site. Also, 50% subsidy of transportation cost of finished goods from one state to another in the N.E Region. 
    • Income tax exemption to new units for 5 years and 10 years if within industrial estates/Growth Centre. 
  • State Subsidy 
    • Capital investment subsidy @ 30% of the fixed capital investment for new units. Additional subsidy in certain cases. Total subsidy per unit will not exceed Rs. 25 lakhs. 
    • Sales tax exemption to new units for 5 years. 
    • 15% price preference for  local units in purchase by State Government Departments. 
    • 100% subsidy for standard certification. 
    • 4% subsidy for the annual interest paid by the unit up to 5 years. 
Credit to SSI and Service sector State level financial institutes mainly meet up the demand for credit in small scale sectors in the North Eastern region. Bank financing to SSI sector is declining day by day. 80% of the loan portfolios are based on different refinance schemes of SIDBI. The Corporation is financing both term loan and working capital under single window scheme. The performance of the Corporation for the last 5 years is reproduced below:-   
  (Rs. in lakh) 
  
Sl. No  Year     Sanction  Disbursement      Recovery
  1.   1994-95    327.72   141.14  114.75 
  2.    1995-96    284.95    220.68    99.17 
  3.   1996-97    234.14    176.17    98.17 
  4.   1997-98   100.58   117.85  142.39 
  5.   1998-99     84.55     98.28   149.00
   
Low recovery and lack of share capital from IDBI and State Government remains the hurdle in boosting up sanction and disbursement. The Corporation is taking measures to reduce NPAs and invest in better portfolios. Writing-off bad debts has also resulted in reduction of profit for the Corporation during the last few years. To  reduce NPAs the Corporation is encouraging One Time Settlement offers specially with the borrowers whose accounts have become sticky and have remained doubtful for years. Apart from that re-schedulement of loan account is also being done. The Corporation has so far taken over four units and been able to sell only one unit and that too with loss of principal amount. The main constraint that the Corporation is facing for taking over is lack of suitable buyer. Even after repeated advertisements in local as well as national dailies for auction of units, the response is very poor and the, rates offered are much below the asset value. To boost up recovery, the transport vehicles financed by the Corporation are seized directly from road and auctioned.    

Thrust Areas    

In the advent of the next millennium the State government seeks to stimulate the industrial growth rate, As the contribution of the secondary sector is only 5-6% in the State economy there is ample scope for development. With discovery of huge reserves of natural of natural gas and vast areas coming under rubber plantation in near future, Corporation is poised for industrial growth in the State.    

  • Natural gas based industry. 
  • Rubber based industries. 
  • Handlooms & Handicrafts. 
  • Tea processing. 
  • Food processing. 
  • Export oriented industries.