WBIDC creates Rs.300 cr VC fund
West Bengal Industrial Development Corporation has created a Rs.300
crore venture capital fund to promote IT and BPO firms in the region.
The fund is now seeking participation from private sector companies
and is also contemplating a tie-up with financial institutions, state
minister for IT and environment Shri Manabendra Mukherjee said. WBIDC
and West Bengal Electronic Development Corporation (WEBEL) already
have a venture fund exclusively in eastern India to encourage entrepreneurship
in the small sector.
MIDC maps marketing plan
The Maharashtra Industrial Development Corporation (MIDC) has drawn
up plans to market its specialised parks to attract emerging sectors.
MIDC is promoting a Floriculture Park at Talegaon near Pune, spread
over 200 hectare of area. Plots will be allotted to individuals willing
to start their own floriculture units. The corporation would be providing
common facilities like post harvest service and logistics, apart from
professionally run plant propagation nurseries through service providers
for production of quality planting material at economical rates.
Rajasthan's New Investment Policy 2003
The Rajasthan State Government had announced three industrial policies
in the 90s; in 1990; 1994 and 1998. The major incentive available
under the first two policies was Capital Investment Subsidy whereas
under the 1998 policy it was Interest Subsidy upto 2%. Besides that
Sales Tax Exemption and Deferment schemes were also available from
time to time.
The highlights of the current policy are given below:
percent exemption of Luxury-tax on new investments;
of 50 percent on Stamp-duty and Conversion-charges in case of all
of 50 percent on Electricity-duty, Mandi-tax and Entertainment-tax
for 7 years in case of all investments;
Interest subsidy of 5 percent would be made available. And additional
interest subsidy of 1 percent to SC/ST (Schedule Castes/ Scheduled
Tribes) entrepreneurs for 7 years. This interest subsidy would be
available to the units having a minimum borrowing of Rs.50 lakh
or having an investment of atleast Rs.25 lakh in land and buildings.
For purpose of calculating investment in land and buildings, the
calculation for land would be made at DLC rate and for building
at the rate of Rs.300 per square meter.
Wage/employment subsidy of 25 percent of wages/salary with respect
to such workers who are contributing towards PF and 30 percent on
appraisal by Rajasthan State Industrial Development and Investment
Corporation (RIICO)/Rajasthan Financial Corporation (RFC) when the
inventor is not availing interest subsidy. Wages/employment subsidy
would be available for 7 years.
sum total of interest and wage/employment subsidy would be subject
to a maximum of 50 percent of sales tax, purchase tax, VAT and works
subsidy would be available only if the unit provides direct employment
to atleast ten persons in case of new units.
and employment subsidy would be available to new as well as existing
units for modernisation and expansion to the extent of additional
employment generated or capital borrowed and additional taxes paid.
The payment of interest and wage subsidy would be made through a
mechanism which would be worked out within a period of one month.
@ 5 percent annum would be payable to investor in case the reimbursement
is delayed for a period of more than 30 days.
Commission would be reduced to 0.5 percent in case of RIICO and
RFC so as to reduce their lending rates.
budgetary provision of Rs.100 crore would be provided every year
till 2007 for development of critical infrastructure for new investment.
For the purpose of this policy, New Investment shall
mean investment in a project involving loan of atleast Rs.50 lakh
or investment in land and building of atleast Rs.25 lakh.
releases Citizens' Charter
released its Citizens Charter recently. On the occasion, Dr.
Chandrabhan, the Industries Minister said that the State Government
had made a commitment to the entrepreneurs, industrialists and the
people at large that it will provide a responsive, accountable and
a transparent Government. This had been kept in mind when RIICO charted
its Citizens Charter. The objective of this Charter is to provide
information to entrepreneurs, investors and other citizens. Now they
will have a right to information about RIICOs activities and
In the charter, time limit had been set for allotment of land and
disposal of pending issues. The concerned Sr. Regional Manager/Regional
Manager/Assistant Manager will now allot land within 15 days; execute
the lease deed within 3 days, make amendment in the partnership and
articles of association within 7 days and provide extension of time
limit for construction and production within a period of 7 days. Similarly,
for sanction of financial assistance, the lease deed to be provided
to financial institutions for loan will be done within 3 days and
the loan will be sanctioned within 60 days of receipt of complete
application. Similarly, time limit has also been set for equipment
refinance scheme, working capital, flexi-loan and multi-purpose loan.
After the receipt of 0.1% processing charge, the loan will be cleared
as early as possible. As far as one time settlement is concerned,
the process will be completed within 45 days.
Those having a complaint regarding allotment of land have been advised
to contact the concerned unit heads and Advisor Infrastructure at
the Head Office in RIICO. Similarly any complaint regarding development
works in any of the RIICOs industrial areas; may be made to
Chief General Manager (Projects) in the head office. He said that
for any kind of complaint, the entrepreneurs and investors can also
contact the senior officers of RIICO or him personally.
Rent-free built up space for IT and ITES Companies
In an attempt to give a fillip to IT/ITES project RIICO will now provide
rent-free built up space in the Software building of the Sitapura-based
IT Park in Jaipur.
Any I.T. (Information Technology)/I.T.E.S. (Information Technology
Enabled Services) project wanting a plug and play facility in the
software building will be exempted from payment of basic rent of Rs.5.65
per sq. ft per month. This exemption, however, will be for only the
first year and they will have to pay monthly common service charges
@ Rs.2.90 per sq. ft.
RIICO has constructed a software building in I.T. Park where built
up space on rent as well as on outright sale is available. In the
first phase 20,000 sq. ft. built up space has been constructed. The
modules are available in multiple of 1000 sq. ft. Facilities like
continuous power, water, high-speed data communication link through
the Satellite Earth Station among others are available in the building.
The I.T. Park in which the Software building is located has been developed
in the I.T. Park developed on an expanse of about 100 acres in the
Export Promotion Industrial Park (EPIP) near Jaipur. Developed plots
are available in the multiple of 1000 sq. mt. RIICO is providing a
rebate ranging from 25 percent to 60 percent on land to I.T. industries
in the area.
A high speed data communication facility is being provided to I.T.
units in periphery of about 30 kms. in Jaipur through an Earth Station.
Set up by RIICO in association with STPI, the Earth Station is providing
both point to point and internet connectivity to I.T. units.
Keeping in mind the requirement of trained and skilled manpower; RIICO
has promoted advanced computing institutes; Compucom Software, Cistem
Software, Global Institute of Technology and B.R. Mirdha Institute
of Technology and Science. Apart from uninterrupted quality power,
the park has a good network of roads and other infrastructure.
Some of the well-known units like G.E. Capital International Services,
Compucom Software, Cistems Software, Global Institute of Technology,
Software Technology Park of India, AM Plus are already operational
in the Park.
launches new scheme for Medium Term Loan
RIICO has launched a new scheme for medium term loan against securitisation
of fixed assets. Under this scheme, those companies which are in production
for the last 5 years and have earned cash profit for the last 3 years
will be eligible for financial assistance. They must also have a satisfactory
repayment record with financial institutions/banks and should have
repaid atleast 75% of the principal amount of term loan.
The loan amount will be limited to 30% of fixed assets value subject
to maximum of Rs.2 crores. The repayment of the loan shall be made
within a period of 6 years with a moratorium period of not more than
1 year. RIICO has launched this scheme to meet the fund requirement
of the entrepreneurs for setting up expansion of projects. This loan
can also be used for clearing debt, working capital term loan and
corporate loan. The builders setting up commercial, residential complexes
can also avail of this assistance, as can entreprenurs for hotel for
tourism-related projects. This scheme will also be useful for financially
sound companies wanting to raise funds to invest in their associate
RIICO has also decided to charge only 1% premium on the balance in
case an entrepreneur returns the loan before time to the Corporation.
A number of important decisions relating to infrastructure development
have also been taken. RIICO has agreed to the proposal made by the
Neemrana Industries Association for taking care of infrastructure
related facilities like water, fire fighting arrangements and general
maintenance of the industrial areas. The service charges received
from the allottees in these areas will be given to the Industries
Association. Similarly, if any other industries association wants
to take up the responsibility of maintenance of its industrial areas
: they too will be given the permission. The Board of Directors also
took a decision to set apart 3000 sq. mt. chunk of land free of cost
to the Vishwakarma Industries Association for making a Recreation
The premium charged on the transfer of commercial plots has been reduced
to half and the yearly service charges taken from the allottees of
such plots have been reduced from 4 times to 2 times of industrial
rate. RIICO will now charge only Rs.7.5% of the prevailing industrial
rate instead of 10% on the transfer of residential plots. There has
also been a reduction in the retention charges for commercial plots
in which there has been a delay in the commencement facilities. The
development charges in the industrial areas of Khushkhera and Chopanki
have been reduced to the level of rates prevailing on 1st April, 2002.
RIICO's profit of Rs.3.42 crores in 2002-2003
RIICO has posted a net profit of Rs.3.42 crores in the financial year
During above mentioned period, RIICO earned an income of Rs.151.37
crores and spent an amount of Rs.147.85 crores under different heads.
RIICO sanctioned financial assistance to Rs.63.63 crores and disbursed
an amount of Rs.45.89 crores. It made a record recovery of Rs.130
crores in the year.
During the last financial year RIICO spent Rs.31.05 crores for the
development of its industrial areas and Rs.11.14 crores towards its
maintenance. RIICO also took an important step of returning loans
which it had received on higher rate of interest thereby making a
saving of Rs.20 crores in the form of interest that would have been
RIICO in association with SIDBI has formulated Rajasthan Venture Capital
Fund for financing of IT, Biotech and other knowledge based industries.
The Fund has been made operational in November, 2002.
During the year under review, the Corporation introduced a new scheme
for providing loans to Builders/Commercial/Residential Complexes taking
up development of real estate projects.
New loan scheme in Rajasthan
RIICO has launched a scheme for industrial units to avail of medium
term loan against securitisation of fixed assets. Five year old units
making profit in the last theee years will be eligible for financial
assistance under the scheme.
The RIICO board at its recent meeting also cleared four projects worth
Rs.13.82 crore and sanctioned a term loan of Rs.8.16 crore to these
projects. According to RIICO officials, the scheme is aimed at helping
entrepreneurs to meet their funds requirements for expansion. The
loan can also be used for clearing debt and meeting working capital
units must have a satisfactory repayment record with financial institutions
and banks and should have returned atleast 75 percent of the principal
amount of the term loan sourced earlier, said an official.
HSIDC retains 'MA' rating for Public Deposit Scheme
ICRA has reaffirmed the MA rating, signifying adequate
safety, to the Public Deposit Scheme of Haryana State Industrial Development
Corporation for the current year as well. This rating has been retained
by the Corporation continuously for the last ten years which reflects
the financial health of the Corporation as well as the investing publics
faith in its public deposit scheme.
ICRA has reaffirmed the rating after carrying out annual surveillance
and due consideration of the latest developments and performance of
the Corporation. This rating takes into account Capital Adequacy,
Asset Quality, Recoveries, Management, Earnings, Financial Flexibility
and Liquidity position of the Corporation. HSIDC is a State level
industrial development corporation, wholly owned by the Government
of Haryana. HSIDC provides financial assistance by way of term lending
and equity investment in the projects being set up in the State of
Haryana. The State Government has also declared HSIDC as the sole
nodal agency for development of industrial infrastructure in the state
of Haryana. HSIDC has achieved ISO 9001:2000 certification for its
financial and related services being provided to industries in Haryana.
It has earned the distinction of being the first state level financial
institution in the country when it received ISO 9002:1994 certificate
from Bureau of Indian Standards (BIS) in 1997. The upgradation was
necessitated because of the higher standards and bench marks fixed
by the ISO over the years. The
upgraded certificate has been awarded to HSIDC after thorough investigation
from the auditors and the requisite qualification possessed by the
corporation for obtaining the new version of ISO 9000 quality management
systems standard. International certification limited - a certification
body based at Auckland in New Zealand is having its group companies
in Mesa Arizona (USA), Abu Dhabi (UAE), Brisbane (Australia), Seoul
(South Korea), Toronto (Canada), Bangkok (Thailand), Delhi and Chandigarh
in India. The group provides independent third party certification
service for environment, quality and occupational health and safety
management system to national and international standards, including
the ISO 9000 series of standards, ISO 9001:2000, ISO 14001:1996, QS-9000
and global HACCP, laboratory registration conforming to ISO guide
HSIDC calls for settlement of loans
HSIDC has invited the borrowers covered under revised Reserve Bank
of India (RBI) guidelines to settle their accounts through one-time
An HSIDC spokesman said on September 16, 2003, the companies whose
accounts with outstanding upto Rs.10 crore are classified as sub-standard,
doubtful and loss as on March 31, 2000, would be covered under these
Similarly, the companies whose cases were pending before courts, subject
to consent decree being obtained without prejudice to the rights of
the corporation would also be covered. The cases where no one-time
settlement had been approved earlier and had not been categorises
as wilful defaulters would also be covered. The minimum one-time settlement
amount payable would be worked out as per the RBI norms.
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