RIICO offers all help to upcoming units in Rajasthan
The private sector is being given all types of sops to invest in the development of industrial areas in Rajasthan by the State Government and Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO).
RIICO is to give independent large holdings to the private developers with a right to allot the same to the investors.
According to Shri P.N. Bhandari, CMD, RIICO huge areas continue to remain with RIICO for want of development. The total investments made on the purchase of land is around Rs.300 crore. Steps have been taken to simplify the procedures for land allotment and sanction of term loans. Now land allottees can get the maps for the construction of factories approved by any of the registered architects. Earlier, approvals were to be taken from the Corporation which took a lot of time. But for small plots, only certificates of approval (of the layouts) would be sufficient to draw loan installments.
For the purchase of sick or closed industrial units from RIICO, a rebate of 25 per cent in the conversion charges has been allowed. Until now, RIICO did not permit construction of any kind on the roofs of the shops located in industrial estates. Unauthorised constructions carried out near commercial plots would now be regularised by paying a sum which is four times the cost till January 31, after which the payment would be made eight times. Even the shops built by the Corporation can now be sold to the tenants. No additional payment of 2.5 per cent would be paid for the change of product mix in industrial areas.
RIICO to hire private agents to sell land
RIICO has decided to appoint private agents to sell its industrial land. The Corporation has presently land worth Rs.350 crore. The agents will sell plots in all those industrial areas where demand is less. In high demand areas, RIICO will sell plots directly.
RIICO has also decided to reduce the transfer fee from 10 per cent to 5 per cent if an allottee sells a vacant plot to another entrepreneur. An entrepreneur need not take permission for changing the end product of his unit or for change of partnership. RIICO has also allowed its regional managers to allot plots.
It has also decided to simplify the conversion rule. Now an entreprenueur can convert his industrial plot with the permission of regional manager.
Line of Credit Scheme introduced
Haryana State Industrial Development Corporation Ltd. (HSIDC) has decided to introduce the scheme of Line of Credit (LoC), which is another addition to its existing financial products being offered to the industry. The scheme envisages providing Line of Credit of maximum Rs.250 lakh per proposal to existing units of HSIDC for the purchase of machinery which is yet to be identified.
These units should be in operation for the last four years with a net worth of Rs.5 crore and cash accruals of Rs.1 crore, with a current ratio of 1:33 and no default with the existing lenders. This scheme shall provide enormous flexibility to the clients to select the machinery as and when required, as per the prevailing circumstances. This is more useful in an environment of fast technological innovations.
India’s first fully integrated cyber city in Haryana
Dr. Harbaksh Singh, IAS, MD, HSIDC signed an MoU with Shri Kannan Ramasamy, President and CEO of AtIndia LLC Incorporated Delaware, USA for setting up India’s first fully integrated cyber city to be located at Gurgaon in proximity to Indira Gandhi International airport. HSIDC has been entrusted the job to set up a world class self-contained intelligent ‘Cyber City’ at a suitable location and also to prepare a feasibility report and finalise the plans for setting up such a joint venture. The proposed cyber city would be set up in an area of around 1000 acres over the next five years. It is estimated that during this period, a total investment of about Rs.6,000 crore shall be mobilised to build and run AtIndia Cyber City Ltd. a new company to be incorporated for this purpose.
It is expected that there is a potential for employment for 5 lakh people in the proposed city with an impact on Haryana’s economy to the extent of about Rs.15000 crore.
HSIDC to set up industrial ecological parks
HSIDC has decided to set up industrial estates at various locations in the State for those industries which discharge polluting effluents and liquid waste. The main industries under this sector are textiles, chemicals, pharmaceuticals, fertilizers, paints, dyes and electroplating. This initiative has been taken up by the Corporation to attract such entrepreneurs from Delhi who have been asked by the Supreme Court to shift their polluting units outside the national capital. A hosiery and textiles park has already been developed by the Corporation near Gannaur in District Sonipat where applications have already been invited for allotment of industrial plots.
These estates shall be developed for the polluting industries by forming clusters of similar industry, producing almost similar effluent and liquid waste. Such industrial estates, where cluster approach is adopted to maintain ecology of the area are commonly known as industrial ecological parks. The industrial effluent in these estates is treated and discharged by setting up common effluent treatment plants.
RFC gears up to finance new projects in IT Sector
Rajasthan Financial Corporation (RFC) has assigned the work to promote information technology sector to a specially created technical cell which shall endeavour to identify viable projects in the sector and woo entrepreneurs to set up these projects.
“The cell has identified enormous scope in the field of information technology-enabled services both in terms of employment as well as export earnings besides software development”.
The information technology enabled services like call centres, medical transcription, revenue accounting, content development, web services, data search and analysis and human resources services have been identified as potential areas by the cell.
The Corporation also plans to finance low-cost information kiosks or cyber cafes in block panchayat headquarters in co-ordination with district administration zilla panchayat so as to ensure transparency in the government functioning and better dissemination of information. In the pursuit of information technology for the benefit of rural masses the endeavour of the Corporation will not only be to provide employment to rural youths but also provide them with computerised land records, mandi rates, information regarding employment opportunities, e-mail facilities and information regarding state government programmes through proposed information kiosks.
Quicker sanction of loans to regular units
Mr. I.K. Jadeja, Chairman and Mr. S.K. Nanda, IAS Managing Director, Gujarat State Financial Corporation (GSFC) have announced that as a token of appreciation for regular repayent of loans by assisted units to GSFC, it is now decided that these units would be entitled to quicker sanctions to their further requirements of assistance by direct application to the GSFC’s appraisal department, instead of the Management Scrutinee committee (M.S.C.).
UPFC launches drive to cut NPAs, recover bad debts
In an attempt to improve its financial health, Uttar Pradesh Financial Corporation (UPFC) has set a target for its zonal offices to sell seized assets locked up with the Corporation as part of its drive to reduce non-performing assets.
UPFC has directed all its three zonal offices to sell 40 assets per month. Steps are being taken to sell as many units as possible to reduce NPAs and recover bad debts. A one-time settlement scheme to free assets locked up with UPFC has been worked out. “The settlement panel meets twice a month to dispose off cases”, according to Ms. Rita Menon, IAS, Managing Director, UPFC.
If a borrower defaults on payment, a reminder is sent. If there is no response after three calls, a recovery certificate is issued with a letter to the district authorities to ensure strict compliance. The seized assets are then valued by independent agencies and put up for sale.
UPFC is seeking to restore confidence among the industry by a combination of steps including attitudinal change, a strong recovery mechanism and greater co-operation from the state government under the Vittiya Bandhu scheme.
UPFC to honour star borrowers
UPFC is honouring 48 “Star Borrowers” who have been regular with their loan servicing. They are from Ghaziabad, Meerut and Bulandshahar districts. Apart from the recognition they would also get several incentives like priority clearance of loan applications from UPFC for their future borrowings.
Rebate for SSI sector
UPFC has announced a series of measures, including one per cent rebate on interest rates under the Terminal Interest Rebate Benefit Scheme (TIRB) for strengthening the small scale industries.
Under the scheme, rebate would be available on a year to year basis for timely payments to help SSI to manage their cash flows more efficiently.
UPFC has also set up a task force to study the impact of WTO regulations and carry on in-depth studies of the various industrial sectors that operate in the SSI area. The data would be available to entrepreneurs at both macro and micro levels.
TIDCO to set up bio-tech incubator park
The Tamilnadu Industrial Development Corporation (TIDCO) in association with American Universities is setting up a Rs.40 crore bio-technology incubator park in Tamil Nadu on a 65 acre plot near the Tidel Park. The Park will provide centralised services to entrepreneurs to develop and commercialise bio-tech products and patents.
At the inaugural of the seminar on ‘Bio-technology for Development’ in Chennai the Tamil Nadu Chief Minister, Shri M. Karunanidhi announced the state bio-technology policy. One of the key components of the policy is the setting up of bio-valleys. One of the important projects is the incubator park which will be structured on a commercial format. It will focus in the main on agriculture, medical, environmetnal and industrial bio-technology opportunities. It will be ready in seven months according to TIDCO sources.
Women’s bio-technology park, Kelambakkam, Medicinal plants bio-technology park near Madurai, marine bio-technology park in Mandapam and the Bioinformatics and genomics centre in Chennai are the other major biotech projects proposed in the policy statement.
According to Prof. M.S. Swaminathan, Chairman of the M.S. Swaminathan Research Foundation (MSSRF) the women’s bio-technology park will start functioning in a month. MSSRF and TIDCO are the promoters of the Rs.10 crore park which focusses on micro-enterprises and traditional bio-technologies.
J&K IT park to start operations
The Rs.8.8 crore Software Technology Park at SIDCO’s Rangreth estate is sponsored jointly by the union ministries of commerce and information and is soon to start operating. SIDCO has contributed over Rs.1.87 crore by offering 7.5 acres of land and a built-up area of 20,000 sq. ft.
The park according to STP project executive Asim Khan, will have high speed data communication facilities through the H4 Earth Station that will serve as the International Gateway. “It will have a bandwidth of two mega bytes per second (MBPS) but can be expanded upto eight MBPS depending on the requirements”, said Mr. Khan. Units within and outside the park will have microwane linkage facilities for integrating with the International Gateway.
Though the facilities will be made available for e-commerce and e-governance, the emphasis will be on the software development for modular exports.