Government of India

Ministry of Micro, Small and Medium Enterprises

Office of Development Commissioner (MSME),
7th Floor, A Wing,
Nirman Bhawan, Maulana Azad Road,
New Delhi-110108

Supplementary Agenda

for

51st Meeting of Steering Committee

of

Micro & Small Enterprises - Cluster Development Programme

(MSE-CDP)

Date &Time : 12.09.2019 at 4:30 PM

Venue : New Delhi

Supplementary Description Page No.
Agenda Points
51.3 (S) Proposals for In-Principle Approval
Andhra Pradesh
51.3.28 (S) CFC in Auto & General Engineering Cluster, Kakinada 1
51.3.29 (S) CFC in Furniture Cluster, Rajahmundry, East Godavari 9
51.3.30 (S) CFC in Pulses and Pulses Products Cluster, Machavaram 15
51.3.31 (S) CFC in Garments Manufacturing Cluster, Nellore 22
51.3.32 (S) CFC in Printing Cluster, Kakinada, East Godavari 29
Karnataka
51.3.33 (S) CFC in Dairy Products Cluster, Terdal, Bagalkot 36
51.3.34 (S) CFC in Grapes & Raisins Processing Cluster, Jamakhandi, 43
Bagalkot
51.3.35 (S) CFC in Jaggery Manufacturers Cluster, Terdal, Bagalkot 49
51.3.36 (S) CFC in Borgaon Textile Manufacturing Cluster-Nippani Taluk, 56
Belgaum
Tamil Nadu
51.3.37 (S) CFC in Fabrication Agricultural Implements Cluster, Perambalur 62
51.3.38 (S) CFC in Print and Pack Products Cluster, Krishnagiri, Hosur 68
51.3.39 (S) CFC in Weaving Preparatory (Warping and Sizing) Cluster, Erode 74
51.3.40 (S) New Industrial Estate at Kurukalpatti, Tirunelveli District 80
51.3.41 (S) New Industrial Estate at Perundurai, Erode District 83
Uttar Pradesh
51.3.42 (S) CFC in Terracotta Pottery Cluster, Gorakhpur 86
51.4 (S) Proposals for Final Approval
Haryana
51.4.12 (S) CFC in Signage and Advertising Cluster, Mugal Majra, Karnal 92
Karnataka
51.4.13 (S) CFC in Spices Manufacturing Cluster, Betageri, Gadag District 98
51.4.14 (S) CFC in Jaggery Processing Cluster, Jalalpur, Raibag Tq, Belgavi 106
District
Mizoram
51.4.15 (S) CFC in Wood Carpentry Cluster, Baktwang 114
51.6 (S) Time Extension
Haryana
51.6.1 (S) Time extension to CFC in Footwear Cluster, Bahadurgarh, 124
Haryana

*****
Agenda No.51.3.28 (S): Proposal for setting up of Common Facility Centre (CFC) in
Auto & General Engineering Cluster, Kakinada, East
Godawari District, Andhra Pradesh.
Background

 The proposal was recommended by State Level Project Steering Committee (SLPSC)
of Andhra Pradesh in its meeting held on 28.08.19.
 Vide application ref. No. 14560 dated 01.09.19 MSME-DI, Hyderabad recommended
and forwarded the proposal.
 Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by
MSME-DI, Hyderabad vide email dated 01.09.19.
 Proposal was considered by Techno Economic Appraisal Committee (TEAC) in its
68th Meeting held on 04.09.19 and Committee recommended the proposal to place
before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Auto and General Engineering Cluster

District East Godavari
Location of Cluster Kakinada
Lok Sabha Constituency Kakinada
Main Product Automobile servicing of Heavy & Light Vehicles, Body
Building and Boat/Ship Body Building, General Engineering
Work, Metal Fabrication Work, Minor Automotive Components
manufacturing, Agricultural Equipments repair and
manufacturing.
No. of Enterprises Micro-200 (SC/ST owned-10 & OBC/Minorities Owned-20)
including break up (Micro,
Small, Medium)
Turnover for the last five 2013-14 : Rs.34.75
years (Rs in Crore) 2014-15 : Rs.38.80
2015-16 : Rs.49.50
2016-17 : Rs.58.90
2017-18 : Rs.76.00
Exports for the last five Nil
years (Rs in Crore)
Employment in Cluster 4200 (Direct -700 & Indirect – 3500)
Technology Details Average Technology Level with Conventional, Repairing tools,
Milling, Lathe Machinery, Drilling equipments, metal cutting
equipments, Metal Fabrication press, welding machines etc. Few
of the units have Semi Automatic machines
Whether DS Conducted Yes
Main findings of DSR The major problem faced by the cluster units is the non
availability of advance machinery needed in vehicle repair like
the heavy duty Lathe machines, grinding machines, Milling
machine, Valve grinding machine, Gear Hobbling machine,
Profile Copying machine, Crank shaft grinders, CAM Shaft
Grinders Boring machines, X-Ray/Magnetic Flux, Crack
Detection Inspection machines, Fuel Injection Pump Calibration
Machine, etc. None of the Cluster units have wheel alignment
equipment for Heavy Vehicles and as a result the cluster units
have to avail these facilities from nearby city Vijayawada. More
than 50 percent of the work is outsourced due to lack of facilities

1
 in the cluster. Also it is causing loss of time and transportation
charges. Due to outsourcing of work from Kakinada to
Vijayawada, Chennai, as a result, the profit margin of the cluster
enterprises is falling drastically. The rate of employment
generation in the automotive sector is falling as majority of the
work is outsourced and there is very little work available to the
members. The cluster units lack effluent treatment plant to treat
their waste like grease and oil and burned fuel. This waste is just
dumped into the drainage which may pollute the water and
environment. Hence a common effluent treatment plant will
solve this problem.
Main Problems of Cluster Major problems of the cluster are identified as (i)Non-
availability of advanced technology for major repair works (ii)
lack of advance machinery for ship and vehicle body building
works (iii) lack of testing and calibration facilities (iv) lack of
effluent treatment plants (iv) lack of advanced painting machines
(v) lack of skill training facilities

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC The major advantage of the cluster is the city --
of Kakinada. Kakinada is a fast growing
tourism hub. many national and international
tourist visits Kakinada daily as a result the
transportation industries are very important. the
transportation industry is also required for
supporting the huge industrial logistic handling
of the Kakinada Port, Large scale Industries,
Oil and Gas Industries, shipping industries and
mining industries of the District.
(b.) Location of CFC The cluster is located in Autonagar Industrial --
estate near Sarpavaram Junction, Kakinada
Rural, East Godavari District, Andhra Pradesh
% age of units in 200 --
radius of 5km
% age of units in 0
radius of 10km
(c.) Land for CFC
i. Whether land Yes, on lease Registered land
acquired document in the
ii. Title is in name of SPV name of SPV (if
land is on lease
iii. Valuation and its -- basis, registered
basis lease deed for a
iv. Land is sufficient Yes minimum period
of 30 years) is
v. Change of land use Nil required.
vi. If on lease, 30 Years
duration of lease
vii Whether lease is Yes
legally tenable
(d.) Total Building The SPV will take the building on lease basis, --
area(sq ft) built up area of 14000 Sft
(e.) Rate of construction NA --
of building
(f.) Main Facility  Advance Machineries for Major Engine --
Proposed Rebuilding and Repair Work
 Advance Machinery for Vehicle
2
 Description Proposed by Implementation Agency (IA) Remarks
 Body Building and Ship Body Building.
 Closed Chamber Automated Painting
Facility
 Advance Machineries for Testing and
Calibration
 Advance/Precision Machining Facility
 Training Facility
 Common Effluent Treatment Plant and Oil
 Recycling Plant
(g.) Prod capacity of The proposed CFC will enable repair of 10 --
CFC engines/day, 4 vehicle body-buildings/day,
pump repair 10 Nos. /day and also cater needs
in general engineering, fabrication and
precision components.
(h.) Major Outputs/ S. Particulars Before CFC After CFC
Deliverables of CFC, No.
Projected performance (i) No. of units 200 250
of the cluster after (ii) Turnover Rs. 76.00 Rs. 125.00
proposed intervention (in (Rs. in crore) (2-3 years of
terms of production, CFC)
export/domestic sales (iii) Employment Direct -700 Direct -1000
and direct/ indirect Indirect -3500 Indirect -5000
employment, etc.) (iv) Others, if any Extra recurring Increase in
Increase in expenditure, profit 25-30%
Production increased process higher output
cost and reduced no extra
profit margins recurring cost.
(i.) Pollution clearance SPV will apply for pollution control board for Required
required or not NoC for the proposed activity after in-principle
approval.
(j.) Man Power in CFC Total 49 persons consisting of Managers, --
technical, skilled and supporting staff required
for smooth functioning of CFC
(k.) Revenue generation Revenue generation at 100% utilisation of the --
mechanism for proposed machinery of the CFC of Rs.1179
sustainability of lacs.
assets(service/user
charges to be levied, any
other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Autonagar Cluster Kakinada Special Certificate
Purpose Vehicle CFC Welfare Association required
Address: registered office at No. Plot
No.104, Road No. 4, Autonagar
Sarpavaram, Kakinada Rural-East Godawari
District,
(b.) Nature of The SPV is registered as M/s Autonagar --
SPV(company or Society Cluster Kakinada Special Purpose Vehicle
or Trust) Common Facility Centre Welfare
Association under Andhra Pradesh Societies
Registration Act, 2001.
(c.) Name of the State State Govt and MSME-DI will appoint their --
Govt. and MSME officials officials after final approval.
in SPV
(d.) Date of formation of 15/02/2018 --
3
 Description Proposed by Implementation Agency (IA) Remarks
SPV
(e.) Number of Members 200 --
(f.) Bye Laws or MA and submitted Required
AOA submitted
(g.) Authorized Share Nil --
Capital
(h.) Paid up capital as Nil --
on............
(i.) Shareholding Pattern Equal Required
(j.) Commitment letter for Submitted Received
contribution
(k.) SPV specific A/c The SPV has opened an A/c in Karur Vysya --
Bank, IFSC Code: KVBL0004871, A/c No
:48711350000015
(l.) Trust Building of SPV, The SPV has undertaken various activities --
Previous track record of in association with DIC, Govt of Andhra
co-operative initiatives Pradesh and MSME-DI Hyderabad majority
pursued by SPV members of soft intervention activities like Trust
need to be highlighted with building activities, Awareness programmes
support documentation on various schemes of Govt of India and
Govt of Andhra Pradesh , the SPV has also
visited Auto Cluster, Bidar (Karnataka)
,capacity building, study tour visit to other
clusters.
(m.) Technical Institution There are several institutions that are --
supporting SPV viz. Commissioner of
Industries, MSME-DI, Hyderabad, DIC,
Local Engg Colleges, financial institutions
etc
(n.) CFC may be utilised Undertaking submitted by SPV assuring that Received
by SPV members as also 60% capacity of plant and machinery will be
others in a cluster. utilised by the cluster firms.
However, evidence should
be furnished with regard to
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o.)
(a) Power requirement for 300 KVA --
commercial/domestic
purpose
(b) Water 10,000 ltrs /day --
(c) Gas/Oil/Other 20 ltrs/day --
Utilities

4. Implement Arrangements

Description Proposed by Implementing Agency (IA) Remarks

(a.) Implementing Agency Andhra Pradesh Trade Promotion As per guidelines
(b.) Fund receiving Corporation (APTPC), Vijayawada
Agency
(c.) Implementation Period The project will be implemented within 20 24 months from the
months from date of Final Approval letter date of issuance of
by the O/o DC(MSME), New Delhi final approval letter

4
 Description Proposed by Implementing Agency (IA) Remarks
(d.) Appraisal of DPR and The present proposal is for In-principle SIDBI appraisal
main Recommendations approval report to be
submitted prior to
final approval.
(e.) Comments of Techno Economic Appraisal Committee (TEAC) in its 68th
Technical Division Meeting held on 04.09.19 recommended the proposal to place
(f.) Approval of Technical before Steering Committee for In-principle approval.
Committee
(g.) Comments of Cluster
Development Division
(h.) Working capital(In- The SPV will approach bank for working --
principle sanction of loan capital loan after getting in-principle
from a bank, if applicable approval
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementing Agency (IA) Remarks

(a.) BEP 37% --
(b.) IRR, Payback period 30% --
(c.) DSCR Not applicable --
(d.) Return on Capital 34% --
employed (ROCE)
(e.) NPV 28% --
(f.) DER Not applicable --
(g.) Sensitivity Analysis
Sensitive analysis is calculated on decrease --
in revenue at 5-10%. The key financial
indicators are economically viable.
(h.) Status of CFCs Two CFCs viz Gold ornaments cluster, --
approved in the State Vijayawada and Machilipatnam Imitation
Jewellery Cluster successfully implemented
in the State of Andhra Pradesh

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Amount
(i) Land -0.5 Acres on Lease for 30 years 90.00
(ii) Building-14000 square feet 196.30
(iii) Plant And Machineries 1104.21
(iv) Misc. Fixed Assets-Furniture 16.00
(v) Pre Operative Expenditure (Advance for Power etc.) 15.00
(vi) Contingencies (2% Building and 5% Machineries) 59.14
(vii) Margin Value Of Working Capital 15.00
Total Project Cost 1495.65
7. Proposed means of finance:
(Rs. in lakh)
S. No. Particulars % Amount
(i) Government of India grant 80 1196.51
(ii) State Government contribution 10 149.57
(iii) SPV contribution 10 149.57
Total 100 1495.65

5
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. No. Description No. Power Requirement Cost
(HP/KW)
1. Magnetic Crack Detection Setup 1 0.25KVA 9.045
2. Profile Projector 1 0.25KVA 5.412
3. Coordinate Vision Measuring System 1 0.25KVA 15.928
4. Automatic De-Greasing Machine 1 5KVA 15.313
5. Heavy Duty Cylinder Boring Machine 1 5KVA 25.368
6. Bore Honning Machine 1 -- 11.199
7. Line Boring Machiner 1 - 18.57
8. Connecting Rod Bush Cutting 1 -- 10.455
Machine
9. Crank Shaft Grinding with rail 1 -- 66.144
10. CAM Shaft Bush Boring Machine 1 -- 8.942
11. Valve Grinding Machine-v-18 1 -- 10.639
12. Valve Seat Cutting Machine 1 0.25 KW 20.848
13. CNC Lathe Machine 1 -- 19.987
14. Head Surface Grinding Machine 1 1 HP 3 Phase 7.995
15. Disc Grinding Machine 1 1 HP 3 Phase 8.856
16. Crank Shaft Straightning Press 1 -- 5.238
17. Engine Opening and Fitting Tools 1 -- 10.147
18. CRDi Pumps Repair and Calibration 1 15 KW 150.429
Setup
19. Inline and V-E Pumps Repair and 1 19 KW 47.521
Calibration Setup
20. Automatic Nozzle and Injeector Tester 1 5 KW 26.568
21. Nozzle Pressurizer and Blower 1 -- 4.735
22. Ultrasonic Pump Elements Cleaner 1 30 KW 4.253
23. Pump Opening and Fitting Tools 1 -- 3.075
24. Alternator Testing Setup 1 -- 5.227
25. Stator Testing Setup 1 -- 4.735
26. Battery Testing Setup 1 -- 4.612
27. Engine Leak Detector 1 -- 6.949
28. Vehicle Engine Scanner 1 -- 6.949
29. A/C Refilling Setup 1 -- 7.687
30. Turbo Repair and Calibration Setup 1 -- 11.992
31. Heavy Vehicles Wheel Alignment 1 -- 22.939
Setup
32. Computerised Crash Repair Setup 1 -- 26.524
33. Vehicle Body Denting Setup 1 2KW 4.489
34. Closed Chamber Vehicle Painting 1 -- 32.902
35. Sheet Cutting Machine 1 -- 5.719
36. Sheet Folding and Pressing Machine 1 -- 4.243
37. Pipe Bending Machine 1 -- 4.653
38. Arc Welding Machine 1 -- 1.537
39. MIG/TIG Welding Machine 1 -- 3.019
6
S. No. Description No. Power Requirement Cost
(HP/KW)
40. Spot Welding Machine 1 -- 6.949
41. Seam Welding Machine 1 -- 7.687
42. Two Post Lifts 1 -- 1.537
43. Circular Cutting Brand Saw 1 -- 3.997
44. Sesor Lift 1 -- 5.719
45. Plasma Cutter 1 -- 99.574
46. Beam Line fabrication- Setup 1 -- 92.505
47. Purlin C& Z Fabrication Setup 1 40KVA 74.494
48. Lathe Machine-20fee 1 -- 21.248
49. Lathe Machine-6 feet 1 -- 12.607
50. CNC Milling Machne 1 -- 10.639
51. Surface Grinding Machine 1 -- 9.173
52. Radial Drilling Machine 1 -- 6.158
53. Pillor 1 Inch Drilling Machine 1 -- 1.532
54. Hydraullic Press-500 tons 1 -- 10.764
55. Power Press-50 tons 1 -- 8.548
56. Profile Cutting Machine 1 -- 1.215
57. Gear Cutting/ Tooth Chamferring 1 -- 8.314
Machine
58. Double Track Overhead Rail 1 -- 1.291
59. CAD/C CA Software for Design 1 -- 3.075
60. Computers, Windows Software 1 -- 2.767
61. Digital Intaractive Classroom Board 1 -- 1.790
62. High Resolution Projector with Auto 1 -- 0.591
Lock Screen Projector with Auto Lock
Screen
63. Audio System Amplifier, Speakers 1 -- 0.645
with Cordless and Podium MIC-set
64. All in One Laser Colour Printer 1 -- 0.602
Scanner and Copier
65. Accounting Software-Tally 1 -- 2.275
66. Website and ERP Software Design 1 -- 1.845
and Development
67. CCT Camera and DVR and EPABX 1 - 2.089
Inter-com setup
68. Fire fighting Equipments-set 1 -- 3.437
69. Air- conditioner A/C 2.0 Ton 1 -- 0.984
70. DG Set 1 160KVA 16.728

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered land document in the name of SPV (if land is on lease basis, registered
lease deed for a minimum period of 30 years).
(ii) SIDBI Appraisal Report.
(iii) Certificate of SPV formation.
7
 (iv) Details of SPV members and their shareholding pattern.
(v) Copy of Memorandum of Association and Article of Association.
(vi) NOC from State Pollution Control Board.
(vii) Copy of Article of Association and Memorandum of Association.
(viii) Certificate from State Government that more than 50% units in the cluster are
Micro/ SC/ST/ Women Enterprises, as the case may be.
(ix) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(x) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.
(xi) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre in Auto & General Engineering Cluster, Kakinada, East Godawari District,
Andhra Pradesh.

*****

8
Agenda No. 51.3.29 (S): Proposal for In-principle approval for setting up of Common
Facility Centre (CFC) in Furniture Manufacturing Cluster,
Rajahmundry, Andhra Pradesh.
Background
 The proposal was recommended by State Level Project Steering Committee (SLPSC)
of Andhra Pradesh in its meeting held on 28.08.19.
 Vide application ref. No. 14554 dated 01.09.19 MSME-DI, Hyderabad recommended
and forwarded the proposal.
 Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by
MSME-DI, Hyderabad vide email dated 01.09.19.
 Proposal was considered by Techno Economic Appraisal Committee (TEAC) in its
68th Meeting held on 04.09.19 and Committee recommended the proposal to place
before Steering Committee for In-principle approval.
Details of the proposal are as under:
1. Basic Information of Cluster
Name of Cluster Furniture Manufacturing Cluster
District East Godavari
Location of Cluster Rajahmundry
Lok Sabha Constituency Rajahmundry
Main Product Tables, Chairs and Almirahs, Wooden bed cots Wood and Metal
Mix Cots, Cupboards for offices, institutional and household,
Dinning Sets, Sofa Sets, Doors and windows including
Thresholds, Other furniture work includes sculpture and idol
making, Modular Furniture, Office Furniture
No. of Enterprises Micro – 125
including break up (Micro, (General-110, SC/ST owned- 05, OBC/Minorities owned-10,)
Small, Medium)
Turnover for the last five 2013-14 : 29.57
years (Rs in Crore) 2014-15 : 34.50
2015-16 : 41.45
2016-17 : 48.75
2017-18 : 63.00
Exports for the last five Nil
years (Rs in Crore)
Employment in Cluster 2625 (Direct - 625 & Indirect – 2000)
Technology Details The cluster units follow traditional wood processing techniques
which are labour and energy intensive. The cluster units have
hand held tools like saws, chisels, hammers and few units are
having motorised machines .
Whether DS Conducted Yes
Main findings of DSR Lack of Wood Seasoning Equipment, Non Practice of Chemical
Impregnation of Wood, lack of advanced machinery like CNC
bending, Wide Belt Sander, Engraving, Lamination etc. Poor
Integration of newer designs Prolonged production Process Lack
of Quality Furniture, Poor Market Reach.
Main Problems of Cluster  Lack of Wood Seasoning Equipment
 Non Practice of Chemical Impregnation of Wood
 Lack of advanced machinery like CNC bending, Wide Belt
Sander, Engraving, Lamination etc.
 Poor Integration of Newer Designs
 Prolonged Production Process
 Lack of Quality Furniture
 Poor Market Reach.
9
2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC The cluster units lack critical machines and --
have not been able to keep in pace with
changing furniture industry processing,
machines and trends due to their financial
constraints. In order to support this industry
an establishment of common facility center
in the region is very much needed which
will have modern computerized scientific
machines which will help the cluster units to
correct their production process reduce the
time taken to produce the products. A CFC
is very much needed where in the cluster
units can avail the facilities which will help
them in overcoming their short comings and
flourish in the market.
(b.) Location of CFC The cluster is located at Rajahmundry Town --
which is adjacent to East Godavari district
Head Quarter (68km).
% age of units in radius 0
of 5km
% age of units in radius 100
of 10km
(c.) Land for CFC
i. Whether land acquired Yes Registered land
ii. Title is in name of SPV document in the
name of SPV (if
iii. Valuation and its Taken on lease for 30 years land is on lease
basis basis, registered
iv. Land is sufficient YES lease deed for a
minimum period
v. Change of land use Yes of 30 years.) is
vi. If on lease, duration 30 required.
of lease
vii Whether lease is Yes
legally tenable
(d.) Total Building area(sq 15000 sft --
ft)
(e.) Rate of construction of NA --
building
(f.) Main Facility Proposed  Wood Seasoning Facilities --
 Chemical impregnation Facility
 CAD Designing, Engraving Machine,
Photographic Printing setup for furniture
 Advance modern machineries for
bending, cutting, edge trimming,
folding, Lamination, Hot Press Sheet
Joining, Paint Booth etc.
 Training and Skill Up gradation Facility
Center.
 Brand Identity, display center and
Export infrastructure
(g.) Prod capacity of CFC Wood Seasoning Machine Setup: 5MT --
capacity, Wood Chemical Impregment
Setup:5 MT capacity with other supporting
and advanced machinery like ,Single Sided
Edge Banding Machine, Wide Belt Sanding
10
 Description Proposed by Implementation Agency (IA) Remarks
Machine-for furniture, Wide Belt Sanding
Machine-for Door Pannels, Wide Belt
Sanding Machine-for Door Pannels, CNC 5-
Axis Machining Centre, Plywood Digital
Colour Print with Photography System,
CNC Water Jet Cutting Machine, Panel
Cutter, NMC Controlled Processing Centre,
Universal Edge Banding Machine, Hot Melt
Glue Flat Lamination Line, Spray Coating
Machine with Paper Cover Conveyor,
(h.) Major S. No. Particulars Before CFC After CFC
Outputs/Deliverables of (i) No. of units 125 200
CFC, Projected (ii) Turnover Rs. 63.00 Rs. 90.00 Crores
performance of the cluster (Rs. in crore) (2-3 years of CFC)
after proposed intervention (iii) Exporting Nil 4
(in terms of production, Units
export/domestic sales and (iv) Employment Direct -625 Direct -1000
direct/indirect Indirect -2000 Indirect -3500
employment, etc.) (v) Others, if any Extra Increase in profit
Increase in recurring margin by 20%-
Production expenditure, 25%, higher
excess productivity, no
process extra recurring
cost and expenditure.
low profit
margins
(i.) Pollution clearance SPV will apply for pollution control board Required
required or not for NOC for the proposed activity after in-
principle approval.
(j.) Man Power in CFC Total 47 persons consisting of managers, --
technical, Skilled and supporting staff are
required for smooth functioning of CFC
(k.) Revenue generation Wood Seasoning Machine Setup:72 Lakhs, --
mechanism for Wood Chemical Impregment Setup:48
sustainability of Lakhs, Single Sided Edge Banding
assets(service/user charges Machine:96 lakhs, Wide Belt Sanding
to be levied, any other-to Machine-for furniture:96 Lakhs, Wide Belt
be specified) Sanding Machine-for Door Pannels:192
Lakhs, Wide Belt Sanding Machine-for
Door Pannels:48 Lakhs,CNC 5-Axis
Machining Centre:60 Lakhs, Plywood
Digital Colour Print with Photography
System:120 Lakhs, CNC Water Jet Cutting
Machine: 60 Lakhs, Pannel Cutter:72 Lakhs,
NMC Controlled Processing Centre:72
Lakhs, Universal Edge Banding Machine:60
Lakhs, Hot Melt Glue Flat Laimnation
Line:120 Lakhs, Spray Coating Machine
with Paper Cover Conveyer:120 Lakhs.
Total Revenue generation at 100%
utilization will be 1074 Lakhs Per Annum.
3. Information about SPV
Description Proposed by Implementation Agency (IA) Remarks
(a.) Name and Address Surya Chandra Furniture Manufacturers Formed
Cluster Association #8-20-12/1, Mothevari
Street, Rajamahendravaram (Urban),
Rajahmundry-Pin code: 533101, East
Godavari District, Andhra Pradesh
(b.) Nature of SPV has registered under Society Act of --
11
SPV(company or Society 2001
or Trust)
(c.) Name of the State State Govt & MSME-DI will appoint their --
Govt. and MSME officials officials after final Approval
in SPV
(d.) Date of formation of 15.10.18 --
SPV
(e.) Number of Members 90 --
(f.) Bye Laws or MA and Memorandum of Association submitted Received
AOA submitted
(g.) Authorized Share Nil --
Capital
(h.) Paid up capital as Nil --
on............
(i.) Shareholding Pattern Equal Share from the SPV members Required
(j.) Commitment letter for Submitted Received
contribution
(k.) SPV specific A/c Nil Required
(l.) Trust Building of SPV, SPV have already organized trust building --
Previous track record of programmes like visit to furniture cluster
co-operative initiatives Earnakulam, workshop of CDP ,exposure
pursued by SPV members visit for Technology identification and
need to be highlighted machinery manufacturers etc.
with support
documentation
(m.) Technical Institution The SPV taking support from MSME DI --
and District Industries Centre, Kakinada.
(n.) CFC may be utilised Undertaking submitted by the SPV assuring Received
by SPV members as also that 60% capacity of plant and machinery
others in a cluster. will be utilised by the cluster firms.
However, evidence should
be furnished with regard to
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o.)
(a) Power requirement 200KVA --
for
commercial/domestic
purpose
(b) Water 500 ltr per day water is required for drinking --
and portable purpose
(c) Gas/Oil/Other NIL --
Utilities
4. Implement Arrangements
Description Proposed by Implementing Agency (IA) Remarks
(a.) Implementing Agency Andhra Pradesh Trade Promotion As per guidelines.
(b.) Fund receiving Corporation (APTPC), Vijayawada
Agency
(c.) Implementation PeriodThe Project will be implemented within 12 24 months from the
months from the date of final approval letter date of issuance of
by the O/o DC(MSME). final approval letter
(d.) Appraisal of DPR and The current proposal is for in-Principle SIDBI appraisal
main Recommendations approval, appraisal of DPR will be done report to be

12
 after that. submitted prior to
final approval.
(e.) Comments of Techno Economic Appraisal Committee (TEAC) in its 68th
Technical Division Meeting held on 04.09.19 recommended the proposal to place
(f.) Approval of Technical before Steering Committee for In-principle approval.
Committee
(g.) Comments of Cluster
Development Division:
(h.) Working capital(In- SPV will approach bank for working capital --
principle sanction of loan requirement after the proposal gets in-
from a bank, if applicable principle approval
arrangement made)
5. Financial Analysis of CFC
Description Proposed by Implementing Agency (IA) Remarks
(a.) BEP 44% --
(b.) IRR, Payback period 27% --
(c.) DSCR Not Applicable --
(d.) Return on Capital 32% --
employed (ROCE)
(e.) NPV 28% --
(f.) DER Not Applicable --
(g.) Sensitivity Analysis
Sensitive analysis is calculated on decrease --
in revenue at 5-10%. The key financial
indicators are economically viable.
(h.) Status of CFCs Two CFCs viz., Machilipatnam Imitation --
approved in the State Jewellery Cluster, Krishna District and
Vijayawada gold Ornament Cluster, Krishna
District have been implemented and are
running successfully.
6. Proposed Project Cost:
(Rs. in lakh)
S. No. Particulars Amount
(i) Land and Building Cost (Land -1 acres with 15000 Square 60.00
feet, Building-15 years Lease)
(ii) Plant and Machinery 1327.06
(iii) Miscellaneous fixed assets 15.00
(iv) Preliminary and Pre-operative 15.00
(v) Contingencies 66.35
(vi) Margin Money 15.00
Total Project Cost 1498.41
7. Proposed means of finance:
(Rs. in lakh)
S. No. Particulars % Amount
(i) Government of India grant 80 1198.73
(ii) State Government contribution 10 149.84
(iii) SPV contribution 10 149.84
Total 100 1498.41
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. No. Particulars Nos. Total Cost
1. Wood Seasoning Machine Setup 1 77.36
2. Wood Chemical Impingement Setup 1 50.06
3. Single Sided Edge Banding Machine 1 98.30
4. Wide Belt Sanding Machine-for furniture 1 109.22
13
 5. Wide Belt Sanding Machine-for Door 1 212.98
Pannels
6. CNC Controlled Vertical Processing Centre 1 57.79
7. CNC 5-Axis Machining Centre 1 92.84
8. Plywood Digital Colour Print with 1 4.36
Photography System
9. CNC Water Jet Cutting Machine 1 80.46
10. Pannel Cutter 1 92.84
11. NMC Controlled Processing Centre 1 92.84
12. Universal Edge Banding Machine 1 6.14
13. Hot Melt Glue Flat Lamination Line 1 159.28
14. Spray Coating Machine with Paper Cover 1 161.05
Conveyer
15. ETP Plant 1 31.48
Total 1327.00

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered land document in the name of SPV (if land is on lease basis, registered
lease deed for a minimum period of 30 years).
(ii) SIDBI Appraisal Report.
(iii) NOC from State Pollution Control Board.
(iv) Details of SPV’s bank account/ Mandate form.
(v) Details of SPV members and their shareholding pattern.
(vi) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(vii) Certificate from State Government that more than 50% units in the cluster are
Micro/ SC/ST/ Women Enterprises, as the case may be.
(viii) Certificate from State Government for compliance of GFR/ CVC guidelines.
(ix) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre in Furniture Manufacturing Cluster, Rajahmundry, Andhra Pradesh.

*****

14
Agenda No. 51.3.30 (S): Proposal for In-principle approval for setting up Common
Facility Centre (CFC) in Pulses & Pulses Products Cluster,
Machavaram, Rayavaram, Andhra Pradesh.
Background

 The proposal was recommended by State Level Project Steering Committee (SLPSC)
held on 28.08.19.
 Proposal was received from Andhra Pradesh Trade Promotion Corporation (APTPC),
Vijayawada vide online ref. No. 14563 dated 01.09.19 & recommended by MSME-
DI, Hyderabad.
 Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by
MSME-DI, Hyderabad vide letter dated 01.09.19.
 Proposal was deliberated during 68th meeting of Techno Economic Appraisal
Committee (TEAC) held on 04.09.19 and the committee recommended the proposal
to place before the Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Pulses and Pulses Products Cluster
District : East Godavari.
Location of Cluster : Machavaram.
Lok Sabha Constituency : Kakinada.
Main Product : Pulses and Pulses Products of different varieties like
Red gram (tur dhal), Green gram (mung dhal), Black gram
(urad dhal), Bengal gram (chana dhal), (lentil), Toor Dal,
Mix Dal Flour for Dosa, Wada, Baby Mix Dal Food
Products.
No. of Enterprises including Micro : 119
break up (Micro, Small,
Medium) :
Turnover for the last five years Year : Amount
2014-15 Rs.51.91
2015-16 : Rs.57.20
2016-17 : Rs.62.92
2017-18 : Rs.68.40
2018-19 : Rs.770.00
Exports(Rs in Crore) for the last Nil
five years :
Employment in Cluster : 2095 Nos. (Direct - 595 & Indirect- 1500)
Technology Details : The cluster members are skilled in pulses processing from
their age old experience. At present the cluster members are
using traditional methods and semi automatic dal mills of
processing capacity ranging from 100 kg to 200 kg per hour
and are micro in nature. Lot of advancement has taken place
in the processing technology, however the cluster members
are economically weak and are dependent on mechanical
processing equipments.
Whether DS Conducted : Yes
Main findings of DSR :  The cluster lacks a dedicated raw material purchase
mechanism.
 The cluster is adopting age old technolgies which
are hindering the growth of cluster.
 The cluster lacks dedicated cold storage centre and
warehouse. The cluster products have very huge
15
 market and demand but the marketing
methodologies adopted are incapable to capture the
market for profitability.
 The cluster lack grading, sorting and polishing
facility as result, proper price tagging of the raw
material and processed pulses is difficult.
 The cluster lack advance training and R&D / value
added product development centre to address the
problems faced by the cluster and for developing
advance methodologies for sustainability and
accelerated growth.
Main Problems of Cluster :  Prolonged process.
 Lack of pulses drying machineries.
 Lack of fine cleaning and grading facility.
 Lack of pulses polishing and sorting facility.
 Poor packaging practices.
 Testing facility not available in the cluster region.
 Lack of national market reach, dominance of traders.
 Lack of storage facilities.
 Poor value addition and product diversification.
 Lack of research and training facility.
Other Information : NA
2. Information about Proposed CFC
Description Proposed by Implementation Agency Remarks
(IA)
(a.) Justification for CFC The establishment of CFC in the cluster --
will minimize the wastage and will
improve the quality of the pulses. Thus
the project is need based and support
worthy.
(b.) Location of CFC The proposed CFC will be established at --
Machavaram village, Rayavaram
Mandal of East Godavari District,
Andhra Pradesh.
% age of units in radius of 70 --
5km
% age of units in radius of 30 --
10km
(c.) Land for CFC
i. Whether land acquired Lease, land 1.06 acres. Registered land
ii. Title is in name of SPV document in the
name of SPV for
iii. Valuation and its basis Leased building a minimum
iv. Land is sufficient Yes period of 30 years
is required.
v. Change of land use N.A
vi. If on lease, duration of 15 Years
lease
vii Whether lease is legally Land and building has been identified
tenable and SPV has undertaken the lease
agreement with the owner.
(d.) Total Building area SPV will take the building on lease, --
total built up area of 20000 sq. ft.
(e.) Rate of construction of N.A. --
building
(f.) Main Facility Proposed  Automatic Pulses dryers --
 Automatic Fine Cleaning and
Size Grading Facility
16
Description Proposed by Implementation Agency Remarks
(IA)
 Automatic Color Sorting Facility
 Automatic Pulses Polishing
Machine
 Common Packaging center
with Automatic
 Pouch and Bag Packing Machines
 Common testing facility for Pulses
of BIS and FSSAI Standards
 Common marketing and Export
Centre.
 Cold Storage Facility.
 Value Added Product
Development Centre
 Pulses Processing Research &
Training Centre
(g.) Prod capacity of CFC 20000 Tons per year after CFC setup --

(h.) Major Outputs/ S. No. Particulars Before CFC After CFC

Deliverables of CFC, Projected (i) No. of units 119 150
performance of the cluster after (ii) Turnover Rs. 77 crores Rs. 100 crores
proposed intervention (in terms (Rs. in After 2 to 3
of production, export/ domestic crore) years of CFC
sales and direct /indirect (iii) Exports Nil Direct exports
employment, etc.) by 5 units
(iv) Employment Direct -595 Direct -1000
Indirect -1500 Indirect -3000
(v) Others, if Inconsistent Consistent and
any profit margins 20 to 25%
Profit due to price higher profits
margin of fluctuations, for producers
individual product due to better
units quality quality and
inconsistencies price and
and increased
inefficiencies production
in production efficiencies.
(i.) Pollution clearance required Not required. NOC required
or not from PCB.
(j.) Man Power in CFC 40 Nos. --
(k.) Revenue generation Expected revenue generation at 100% --
mechanism for sustainability of capacity utilization is 952.15 lakh and
assets(service/user charges to 85$ capacity utilization is 814.72 lakh.
be levied,any other-to be
specified)
(l.) N.A --
3. Information about SPV
Description Proposed by Implementation Agency Remarks
(IA)
(a.) Name and Address Shri Mahalaxmi Pulses Mills Cluster --
Association.
7-122, Atchutapuram Road,
Machavaram, Rayavaram Mandal –
533261.
(b.) Nature of SPV(company or The registrar of societies, Kakinada. --
Society or Trust)
(c.) Name of the state Govt. and State Govt. and MSME-DI will appoint --
17
Description Proposed by Implementation Agency Remarks
(IA)
MSME officials in SPV their officials after final approval.
(d.) Date of formation of SPV 04.08.18 --
(e.) Number of Members 110 Nos. --
(f.) Bye Laws or MoA and AoA Submitted Required.
submitted
(g.) Authorized Share Capital Equal. --
(h.) Paid up capital as - --
on............
(i.) Shareholding Pattern Equal Required
(j.) Commitment letter for Submitted Required
contribution
(k.) SPV specific A/c SPV will take initiative to open new Required.
bank account with nationalized bank
after in-principle approval.
(l.) Trust Building of SPV, SPV has already organized trust --
Previous track record of co- building programmes like awareness
operative initiatives pursued by workshop of CDP, conducted skill
SPV members need to be development programmes, exposure
highlighted with support visits, selection of machinery etc.
documentation
(m.) Technical Institution Intaglio Technical and Business --
Services
(n.) CFC may be utilised by Undertaking submitted by the SPV Required
SPV members as also others in assuring that 60% capacity of plant &
a cluster. However, evidence machinery will be utilized by the cluster
should be furnished with regard firms.
to SPV member ability to
utilise at least 60 percent of
installed capacity.
(o.)
(a) Power requirement for Total power of 260 KVA is required for --
commercial/domestic purpose a shift of 8 hrs per day.
(b) Water 10000 lts per day and shall be available --
through borewell.
(c) Gas/Oil/Other Utilities NA --
4. Implement Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency Andhra Pradesh Trade Promotion --
Corporation (APTPC), Vijayawada.
(b.) Fund receiving Agency Andhra Pradesh Trade Promotion --
Corporation (APTPC), Vijayawada.
(c.) Implementation Period 18 Months 24 months from
date of issuance of
final approval
letter.
(d.) Appraisal of DPR and main DPR will be submitted to SIDBI for Required prior to
Recommendations appraisal. final approval.
(e.) Comments of Technical Techno Economic Appraisal Committee (TEAC) in its 68th
Division meeting held on 04.09.19 recommended the proposal to
(f.) Approval of Technical place before the Steering Committee for In-principle
18
Description Proposed by Implementation Agency Remarks
(IA)
Committee approval.

(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP.

Development Division:
(h.) Working capital(In- The SPV shall approach financial --
principle sanction of loan from institutions for working capital after in-
a bank, if applicable principle approval of the DPR.
arrangement made)
5. Financial Analysis of CFC
Description Proposed by Implementation Agency Remarks
(IA)
(a.) BEP 36% --
(b.) IRR, Payback period 27% --
(c.) DSCR NA --
(d.) Return on Capital 30% --
employed (ROCE)
(e.) NPV 29% --
(f.) DER Not Applicable --
(g.) Sensitivity Analysis Sensitivity analysis is calculated on --
decrease in revenue in 5-10%. The key
initial indicators are economically
viable.
(h.) Status of CFCs approved in -- --
the State

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Amount
1 Land 1.06 acres with Building-20000sqft on lease for 15 120.00
2 Building construction 0.00
3 Plant and Machineries 1244.82
4 Misc. Fixed Assets-Furniture 20.00
5 Pre Operative Expenditure(Advance For Power 20.00
Etc)
6 Contingencies(2% Building and 5% Machineries) 62.24
7 Margin Value of Working Capital 16.00
Total 1483.06
7. Proposed means of finance:
(Rs. in lakh)
S. No. Particulars Percentage Amount
1 Grant-in-aid from Govt. of India 80.00 1186.44
2 State Government contribution 10.00 148.31
2 SPV contribution 10.00 148.31
Total 100.00 1483.06
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. No. Particulars Nos. Total Cost
1. Automatic Pulses Cleaning, 1 107.66
2. Automatic Pulses Grading and Dryer 1 115.01
3. Automatic Colour Sorting Machine Setup 2 160.20
4. Automatic Pulses Polishing Machine Setup 1 92.59
19
 5. Automatic Metal Detector Setup 1 32.35
6. Pouch Packing Machine for Pulses 1 45.02
7. Pouch Packing Machine for Pulses 1 54.86
8. Bag Packing Machine for Pulses 1 88.36
9. Cold Storage for Pulses 1 142.69
10. Weigh Bridge 1 14.82
11. Hydraulic Pallets- Hand Operated 4 1.57
12. Full Electric Stacker 2 9.47
13. Weigh Scale Pallet Truck 1 1.17
14. Universal Weighing Scale 1 1.41
15. Bag Unloading System 2 53.35
16. Testing Laboratory Setup - 31.98
17. Breakfast cereal making mixture and Extruder 1 20.48
18. canned curry ready to mix pulses making machine 1 17.53
setup
19. Installation Accessories 1 45.33
20. Computers, Windows Software 5 2.77
21. Digital Interactive Classroom Board 1 1.80
22. High Resolution Projector with Auto Lock Screen 1 0.60
Projector with Auto Lock Screen
23. Audio System Amplifier, Speakers with Cordless 1
and Podium Mic-set 0.65
24. All in One Laser Colour Printer Scanner and Copier 1 0.58
25. Accounting Software-Tally 1 3.51
26. Website and ERP Software Design and 1 8.43
Development
27. CCT Camera and DVR and EPABX Intercom setup 1 0.81
28. Fire fighting Equipments-set 1 31.67
29. Air-conditioner A/C 2 3.73
2.0 Ton
30. DG Set 1 17.83
31. Electrical Installations- Transformer, Cables, 1 58.12
Control Pannels with wiring
32. Environmental Section 1 41.62
33. Installation and commissioning cost - 36.90
T0tal 1244.82

9. Observations:

A. Justification for Cold Storage Facility under Plant & Machinery, as pulses does not fall
under the category of perishable items.

B. Following documents are required to be submitted prior to final approval:

(i) Being Agro-rural based cluster, a time bound & measurable (on year-to-year-
base) outcome based road map / Concept Note for backward integration of
farmers (cultivating pulses) for their socio-economic upliftment.
(ii) SIDBI Appraisal Report.
(ii) Details of all units in the cluster.
(iii) NOC from State Pollution Control Board.
(iv) Bye Laws or MoA and AoA.

20
 (v) List of SPV members and details.
(vi) Details of shareholding pattern of SPV members.
(vii) Commitment letter from SPV for their contribution.
(viii) Details of Project specific bank account.
(ix) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.
(x) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(xi) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be.
(xii) Certificate from State Government for compliance of GFR/ CVC guidelines.
(xiv) Registered deed documents for land and building in the name of SPV (if land is
on lease basis, registered lease deed for a minimum period of 30 years is
required).
(xv) Document regarding Non Agriculture conversion for change of land use.
(xvi) Undertakings from State Government as well as SPV that CFC will not sell the
products.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up Common
Facility Centre (CFC) in Pulses & Pulses Products Cluster, Machavaram, Rayavaram, Andhra
Pradesh.

********

21
Agenda No. 51.3.31(S): Proposal for In-principle approval for setting up of Common
Facility Centre (CFC) in Hosiery & Readymade Garments
Cluster, Nellore, Andhra Pradesh.

 The proposal was recommended by State Level Project Steering Committee (SLPSC)
of Andhra Pradesh in its meeting held on 28.08.19.
 Vide application ref. No. 14562 dated 01.09.19 MSME-DI, Hyderabad recommended
and forwarded the proposal.
 Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by
MSME-DI, Hyderabad vide email dated 01.09.19.
 Proposal was considered by Techno Economic Appraisal Committee (TEAC) in its
68th Meeting held on 04.09.19 and Committee recommended the proposal to place
before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Hosiery & Readymade Garments Cluster

District Shri Potti Sriramulu Nellore
Location of Cluster Nellore
Lok Sabha Constituency Nellore(SC)
Main Product Hosiery Garments for Children, Hosiery Garments for Women,
Readymade Garments, Value added Ladies Garments with
Embroidery, Work, Value added Ladies Garments with Zari
Work
No. of Enterprises Micro-200 (Gen-165, SC/ST owned-15 & OBC/Minorities
including break up (Micro, Owned – 20)
Small, Medium)
Turnover for the last five 2013-14 : Rs.6.58
years (Rs in Crore) 2014-15 : Rs.9.25
2015-16 : Rs.12.50
2016-17 : Rs.18.60
2017-18 : Rs.25.00
Exports for the last five Nil
years (Rs in Crore)
Employment in Cluster 3800 (Direct – 800 & Indirect – 3000)
Technology Details Traditional and conventional technology being used in the cluster
like Hadda (Wooden frame), Needle (different type), Glue
Pasting and Stone work tools, Conventional Sewing Machines
Whether DS Conducted Yes
Main findings of DSR The cluster presently using the conventional stitching machines
and handmade fabrics. Facing problem due to lack of latest
technology in enhancement of skills of the workers and the
quantum of production.
 Cluster lacks modern technology for Pattern Making.
 High capacity Motor driven Stitching machine, interlock
machine, kaj machine, Dry Cleaning Machine, strain
remover machine, CAD designing Software, training and
teaching aids etc are not available in the cluster,
 No designer input in the cluster. The designs of the
Embroidery and Products of the cluster are old and
traditional. Therefore a Design Center is required.
 Need of skill Upgradation training programs, in-house
Training Center.

22
  Internet advertisement in Foreign markets, publicity
campaigns, websites, online purchase, e-commerce etc are
missing in the Cluster. The cluster is facing stiff
competition in the market and due to their traditional
production process the cluster members are finding it
difficult to survive in the current global scenario and are
finding difficulties in procuring raw materials as well as
selling their products individually
Main Problems of Cluster  Lack of design Development and Training facility
 Poor Product Diversification
 Poor knowledge of use of modern means of marketing
 Lack of Advance Machineries for Finishing Work.
 Lack of Advance Machineries for Stitching Dress Materials
like Suit and Ladies wears.
 Dominance of Traders

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for The cluster need advance machineries to --
CFC improve the productivity, quality and for
diversification of the cluster products. The
CFC, if established, will bring about holistic
changes in the cluster. Necessary interventions
which are required in order to overcome the
adversaries will be provided by the CFC
(b.) Location of CFC Survey No.452, Kakutur village, --
Venkatachalam Mandal, SPSR Nellore Dist
(Andhra Pradesh)
% age of units in 0 --
radius of 5km
% age of units in 100 --
radius of 10km
(c.) Land for CFC
i. Whether land Leased land of 0.5 acres or 30 years Registered land
acquired document in the
ii. Title is in name of Women Entrepreneurs Association Door No. name of SPV (if
16/II/131, Kasturi Devi Nagar, Pogothota, land is on lease
Nellore- Andhra P basis, registered
lease deed for a
iii. Valuation and its Leased building minimum period
basis of 30 years.) is
iv. Land is sufficient Yes required.
v. Change of land use Not Applicable
vi. If on lease, 30 years
duration of lease
vii Whether lease is Land & building has been identified and SPV
legally tenable has undertaken the lease agreement with the
owner
(d.) Total Building 6900 sq ft --
area(sq ft)
(e.) Rate of 104.39 Lakhs for 6900 Sq ft --
construction of building
(f.) Main Facility  Common Raw Material Consortia --
Proposed  Common Design Development Centre
 CFC with Embroidery Machining Facility
 Common Facility Centre with advance
23
 Description Proposed by Implementation Agency (IA) Remarks
machineries for Hosiery and Readymade
Finishing work
 Common Branding and Packaging Facility
 Common Training Facility
 Common Finished Product
(g.) Prod capacity of -- Required
CFC
(h.) Major S. No. Particulars Before After CFC
Outputs/Deliverables of CFC
CFC, Projected (i) No. of units 200 250
performance of the (ii) Turnover (Rs. Rs. 25 Rs. 40 crores
cluster after proposed in crore) crores By 3 to 4 years of
intervention (in terms CFC establishment
of production, and will increase by
export/domestic sales many fold
and direct/indirect subsequently
employment, etc.) (iii) Exporting No direct 5 units
Units exports
(iv) Employment Direct -800 Direct -1500
Indirect - Indirect -5000
3000
(v) Others, if any Low profit Increase in profit
Profit margin margin margin by 20%-30%
of individual
units
(i.) Pollution clearance SPV will apply for pollution clearance once Required
required or not they get in-principle approval.
(j.) Man Power in CFC Total requirement 23 (Technical 13, --
administrative 10)
(k.) Revenue generation All the SPV members and other principle --
mechanism for cluster firms are expected to utilize the services
sustainability of of various facilities proposed to be established
assets(service/user on user charge basis for sustainability of its
charges to be levied, operations. Separate charges will be levied for
any other-to be members and non-members, which is as per the
specified) guidelines of MSE-CDP. All the charges
proposed are highly competitive and less than
prevailing local market prices. These charges
were finalized after due consultations with
stakeholders balancing both commercial as well
as social viabilities of the CFC. As per the DPR
projections, the revenue generation is expected
to increase from 203.03 lakhs to 304.64 lakhs in
a span of 10 years (2019 to 2029)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Women Entrepreneurs Association Certificate
Door No. 16/II/131, Kasturi Devi Nagar, required
Pogothota, Nellore- Andhra Pradesh
Contact: +91-9000114422,
Email:vasanthalakshmi1998@[Link]
(b.) Nature of Registered as a Women Entrepreneur --
SPV(company or Society Association under Society Act as a non-
or Trust) profitable organisation
(c.) Name of the state State Govt and MSME-DI will appoint their --
Govt. and MSME officials officials after final approval

24
 Description Proposed by Implementation Agency (IA) Remarks
in SPV
(d.) Date of formation of 11.11.14 --
SPV
(e.) Number of Members 100 --
(f.) Bye Laws or MA and Submitted Required
AOA submitted
(g.) Authorized Share Nil --
Capital
(h.) Paid up capital as Nil --
on............
(i.) Shareholding Pattern Equal Required
(j.) Commitment letter for Submitted Received
contribution
(k.) SPV specific A/c SPV has taken initiative to open new bank Required
account with nationalised bank
(l.) Trust Building of SPV, SPV has already organised trust building --
Previous track record of programmes like awareness workshop of
co-operative initiatives
CDP, conducted skill development
pursued by SPV members programmes, exposure visits, selection of
need to be highlighted with machinery etc
support documentation
(m.) Technical Institution The SPV has appointed Mr. MD --
SHAHERIAZ (MS Patel) and his company -
IntaGlio Technical and Business Services,
Bangalore for technical consultation.
(n.) CFC may be utilised Undertaking submitted by the SPV assuring Received
by SPV members as also that 60 % capacity of plant and machinery
others in a cluster. will be utilized by the cluster firms
However, evidence should
be furnished with regard to
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o.) Utilities
(a) Power requirement for 75 KVA considering 8 hours of single shift --
commercial/domestic per day
purpose
(b) Water 500 Lts per day for drinking and portable --
purpose
(c)Gas/Oil/Other Utilities -- --

4. Implement Arrangements

Description Proposed by Implementing Agency (IA) Remarks

(a.) Implementing Agency Andhra Pradesh Trade Promotion As per guidelines.
(b.) Fund receiving Corporation (APTPC), Vijayawada
Agency
(c.) Implementation PeriodThe project will be implemented within 20 24 months from the
months from the date of final approval and date of issuance of
releasing of sanction order by the Office of final approval letter
DC-MSME, New Delhi
(d.) Appraisal of DPR and The current proposal is only for in-principal SIDBI appraisal
main Recommendations approval, appraisal o the DPR will be done report to be
after that submitted prior to
25
 Description Proposed by Implementing Agency (IA) Remarks
final approval.
(e.) Comments of Techno Economic Appraisal Committee 68th meeting of
Technical Division (TEAC) in its 68th Meeting held on 04.09.19 TEAC
(f.) Approval of Technical recommended the proposal to place before recommended the
Committee Steering Committee for In-principle proposal.
approval.
(g.) Comments of Cluster
Development Division
(h.) Working capital(In- The SPV will approach nationalized banks --
principle sanction of loan for working capital after in-principle
from a bank, if applicable approval
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementing Agency (IA) Remarks

(a.) BEP 43 % --
(b.) IRR, Payback period 28 % --
(c.) DSCR Not Applicable --
(d.) Return on Capital 35% --
employed (ROCE)
(e.) NPV 32% --
(f.) DER Not Applicable --
(g.) Sensitivity Analysis
Sensitive Analysis is calculated on decrease --
in revenue in 5-10%. The key financial
indicators are economically viable
(h.) Status of CFCs Two CFCs viz. Machilipatnam Imitation --
approved in the State Jewellery Cluster, Krishna District and
Vijayawada Gold Ornaments Cluster,
Krishna District have been implemented in
the State and successfully running.

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Amount
(i) Land and its Development 60.00
(ii) Building and other Civil Constructions 104.39
(iii) Plant and Machineries (including electrification) 579.52
(iv) Misc. Fixed Assets 16.00
(v) Pre operative & Preliminary expenses 16.00
(vi) Provision for Contingencies (2% building and 5% on plant 31.07
and machinery)
(vii) Margin Money 16.00
Total Project Cost 822.98

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars % Amount
(i) Government of India grant 80 658.38
(ii) State Government contribution 10 82.30
(iii) SPV contribution 10 82.30
Total 100 822.98

26
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. No. Particulars Nos. Total Cost
1. Multi-color Computerized Quilting Embroidery 1 34.44
Machine
2. Ultrasonic Lace Pattern Cutting Machine 1 32.60
3. Ultrasonic lace sewing machine 1 27.37
4. 5 Thread flatbed flatlock machine with under bed & top 1 3.14
cover thread trimmer
Readymade Ladies Suits Making Section
5. 20 Head 6 needle embroidery machine 1 80.46
Readymade Garments Finishing Section
6. Double Needle Sewing Machine 10 40.59
7. 4 Thread over-lock machine with chain cutter, lint 10 23.49
collector & DD motor
8. 4 Thread over-lock machine with tape feeder, automatic 1 2.37
pneumatic tape cutter, lint collector & DD motor
9. Loop making machine 1 5.41
10. Garments Finishing Setup-Steam Pressing, Dry 1 5.36
Cleaning, Folding and
Packing
11. Direct Drive Electronics Button Hole Machine 2 21.77
12. Automatic Direct Drive Button Stitching Machine 2 12.19
13. 5 Thread Cylinder bed Flat-lock machine with left 1 3.13
hand fabric trimmer, under bed & top cover thread
trimmer
14. 6 Thread feed off the arm machine with presser feet 1 5.85
lifter, lint collector & DD motor
15. Placket making machine 1 32.78
16. Bar Tech Machine 2 8.51
17. Placket Box Making Machine 1 8.00
18. Oval (round) type textile screen printing machines-6 1 23.19
Colour 8 Station
19. Digital Fabric Printing Machine 1 88.87
Design Development and Training Section
20. Cloth cutting machine 1 4.90
21. Computer Aided Cloth Design Machineries and 1 32.53
Software
22. Fashion Design Tools & Equipments 1 3.44
23. Motorized Single needle sewing machines 15 12.14
24. Computers 10 7.99
25. Digital Board 2 7.01
26. Projector with Screen 2 1.10
27. Audio System with Speakers, MIC, Podium 1 1.54
28. DG set-250KVA 1 23.98
29. Software OS Anti-virus 5 0.77
30. Electrification, Installation and Commissioning 1 24.60
Charges
Total 579.52

9. Observations:
A. As recommended by TEAC undertaking from remaining cluster members for utilisation of
the created facilities (by becoming Type-B members)

B. Following documents are required to be submitted prior to final approval:

(i) Registered land document in the name of SPV (if land is on lease basis, registered
lease deed for a minimum period of 30 years).

27
 (ii) SIDBI Appraisal Report.
(iii) Certificate of SPV formation.
(iv) Details of SPV members and their shareholding pattern.
(v) Details of SPV’s bank account/ Mandate form.
(vi) Details of production capacity of CFC.
(vii) NOC from State Pollution Control Board.
(viii) Copy of Article of Association and Memorandum of Association.
(ix) Certificate from State Government that more than 50% units in the cluster are
Micro/ SC/ST/ Women Enterprises, as the case may be.
(x) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(xi) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre in Hosiery & Readymade Garments Cluster, Nellore, Andhra Pradesh.

********

28
Agenda No. 51.3.32 (S): Proposal for setting up of Common Facility Centre (CFC) in
Printing Cluster, Kakinada, East Godavari District, Andhra
Pradesh.
Background

 The proposal was recommended by State Level Project Steering Committee (SLPSC)
of Andhra Pradesh in its meeting held on 28.08.19.
 Vide application ref. No. 14568 dated 01.09.19 MSME-DI, Hyderabad recommended
and forwarded the proposal.
 Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded by
MSME-DI, Hyderabad vide email dated 01.09.19.
 Proposal was considered by Techno Economic Appraisal Committee (TEAC) in its
68th Meeting held on 04.09.19 and Committee recommended the proposal to place
before Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Printing Cluster

District East Godavari
Location of Cluster Kakinada
Lok Sabha Constituency Kakinada
Main Product Business cards Print, Text Books Print, Pamphlets Print,
Journals Print, Wedding cards Print, Poster Print, Letter heads
Print, Diaries print, Hotel menus Print, Calendars Print, Receipt
books Print, ID Cards Print.
No. of Enterprises Micro- 150
including break up (Micro,
Small, Medium)
Turnover for the last five 2014-15 : 59.82
years (Rs in Crore) 2015-16 : 64.67
2016-17 : 70.31
2017-18 : 78.21
2018-19 : 82.50
Exports for the last five Nil
years (Rs in Crore)
Employment in Cluster 3900 (Direct – 900 & Indirect – 3000)
Technology Details The Cluster Members are using Traditional Methods mostly
offset Printing Machinery and Screen Printing Technology,
Single/Two colour Printing, Drum type and Plate type Press
based Impression Printing Methods.
Whether DS Conducted Yes
Main findings of DSR The cluster units lack modern CTP Processing technology, high
resolution Multi colour printers, variable data printing
technology, modern finishing and post press machining facilities.
There is very little product diversification and value addition
taking place due to lack of modern equipment. The cluster
products are unable to meet market quality requirements and
parameters. The Cluster lack Training facility for upgrading the
skills of the cluster entrepreneurs and work force.
Main Problems of Cluster  The cluster units modern CTP Processing technology
 The cluster units high resolution Multi colour printers,
 The cluster units lack variable data printing technology,
 The cluster units modern finishing and post press machining
29
 facilities.
 There is very little product diversification and value addition
taking place due to lack of modern equipment.
 The cluster products are unable to meet market quality
requirements and parameters.
 The Cluster lack Training facility for upgrading the skills of
the cluster entrepreneurs and work force.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for The progressive printers of today are equipped --
CFC with the latest computer controlled printing
machines and flow lines for binding, while state
of the art digital technologies are being used in
pre-press. Leading print companies have
optimized the use of information technology in
each and every area of their business. These
printers are today equipped at par with the best
print production facilities in the world. A
common facility center is very much needed in
order to keep up with the changing trends
necessary interventions are needed at the base
level. If a CFC is established, the cluster units
will be tremendously benefited. The original
licensed version software at the CFC will only
be used for training purpose but also for
designing the graphical content with activated
and updated tools to satisfy the industrial and
training needs of the cluster units. The cluster
members who are at present dependent upon
customer service kind of market will be able to
produce and launch their own products like
diaries, books, labels, calendars etc. as the CFC
will be able to provide necessary infrastructure.
The CFC will be able to give the cluster
members to enhance their market [Link]
shortage of skilled workforce that the cluster
units faced can be easily overcome with the
training facilities which will be able to train the
existing workforce and also to the new
workforce who could easily be absorbed by the
industry. The most important contribution of
the CFC to the cluster members is the
availability of advanced multi colour and
variable data printers, pre-press printing and
post press finishing equipment that will boost
their production activities and will decrease the
critical gaps present in the present process. A
common facility center at will help the cluster
units tremendously as they will be less
dependent on Rajahmundry city leading to
increase in revenue as unnecessary expenditure
of travelling, transportation, work force
diversion will be reduced leading to the overall
development of the cluster units. The CFC will
help to improve the competitiveness of the
cluster members and will provide the strength
to the cluster members to compete with larger
national and multinational brands and
companies
(b.) Location of CFC Kakinada, east Godavari Dist, Andhra Pradesh --

30
 Description Proposed by Implementation Agency (IA) Remarks
% age of units in 0 --
radius of 5km
% age of units in 100 --
radius of 10km
(c.) Land for CFC
i. Whether land Yes, on lease Registered lease
acquired deed for land and
ii. Title is in name of SPV building in the
name of SPV for a
iii. Valuation and its - period of 30 years
basis is required.
iv. Land is sufficient Yes
v. Change of land use Nil
vi. If on lease, duration 30 years
of lease
vii Whether lease is yes
legally tenable
(d.) Total Building area(sq 5700 sft
ft)
(e.) Rate of construction 48.75 Lakhs
of building
(f.) Main Facility  Common Facility Center with computer --
Proposed to Plate Making Facility.
 Common Facility Center with high
resolution Multi colour offset printer.
 Common Facility Center with advance
variable printing facility.
 Common Facility Center with Post
 Press Finishing Machines.
 Common Facility Center with
 Marketing and Display center.
 Common Raw Material Bank.
 CFC with Training, and Design
facility.
(g.) Prod capacity of CFC Computer to Plate CTP can produce 60,000 --
plates per annum, Multi Colour Offset
Printing Single Dummy Setup can print
36000000 prints per annum, Multi Colour
Printing Machine Double Dummy Setup can
print 9600000 prints per annum, Automatic
Paper Cutting can earn revenue of Rs
1,80,000/-,per annum Folding Machine can
earn Rs 600000/- per annum ,Gumming
Machine can earn Rs 120000/-per annum
(h.) Major S. No. Particulars Before CFC After CFC
Outputs/Deliverables of (i) No. of units 150 250
CFC, Projected (ii) Turnover Rs. 82.00 Rs. 110.00
performance of the cluster (Rs. in within 3 years of
after proposed crore) CFC
intervention (in terms of (iii) Exporting Nil 25 units
production, Units
export/domestic sales and (iv) Employment Direct - 900 Direct -1000
direct/indirect Indirect - 3000 Indirect -5000
employment, etc.) (v) Others, if Low profit Improvement in
any margin profit margin by
Profit 30%
margin of

31
 Description Proposed by Implementation Agency (IA) Remarks
individual
units
(i.) Pollution clearance SPV will apply for pollution control board Required
required or not for NOC for the proposed activity after in-
principle approval.
(j.) Man Power in CFC Total 20 persons consist of Maintenance --
Engineers, Skilled and supporting staff
required for smooth functioning of CFC.
(k.) Revenue generation Total revenue generated at 100% utilization --
mechanism for is Rs 1023.50 lakhs
sustainability of
assets(service/user
charges to be levied, any
other-to be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Sri Satyadeva Printing Cluster Association, Certificate
Kakinada required
(b.) Nature of Society --
SPV(company or Society
or Trust)
(c.) Name of the state State Govt and MSME-DI will appoint their --
Govt. and MSME officials officials after final approval of cluster
in SPV
(d.) Date of formation of 30.08.19 --
SPV
(e.) Number of Members 130 --
(f.) Bye Laws or MA and Submitted Received
AOA submitted
(g.) Authorized Share -- --
Capital
(h.) Paid up capital as Nil --
on............
(i.) Shareholding Pattern Equal Required
(j.) Commitment letter for submitted Received
contribution
(k.) SPV specific A/c SPV will open Bank Account after in- Required
principle approval of proposal
(l.) Trust Building of SPV, SPV has already organised trust building --
Previous track record of programmes like awareness workshop of
co-operative initiatives CDP, conducted skill development
pursued by SPV members programmes, exposure visits, selection of
need to be highlighted with machinery etc
support documentation
(m.) Technical Institution There are several institutions that are --
supporting SPV namely Commissioner of
Industries, MSME-DI, Hyderabad, DIC,
Local Engg Colleges and Financial
institutions Etc
(n.) CFC may be utilised Undertaking submitted by SPV assuring that Received
by SPV members as also 60% capacity of Plant & machinery will be
others in a cluster. utilized by cluster firms.
However, evidence should
32
 Description Proposed by Implementation Agency (IA) Remarks
be furnished with regard to
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o.) Utilities
(a) Power requirement for 144.55 KW --
commercial/domestic
purpose
(b) Water 500 lts per day --
(c) Gas/Oil/Other -- --
Utilities

4. Implement Arrangements

Description Proposed by Implementing Agency (IA) Remarks

(a.) Implementing Agency Andhra Pradesh Trade Promotion As per guidelines
(b.) Fund receiving Corporation (APTPC), Vijayawada
Agency
(c.) Implementation PeriodThe project will be implemented within 20 24 months from the
months from the date of final approval and date of issuance of
releasing of sanction order by the Office of final approval letter
DC-MSME, New Delhi
(d.) Appraisal of DPR and The present proposal is for in-principle SIDBI appraisal
main Recommendations approval report to be
submitted prior to
final approval.
(e.) Comments of Techno Economic Appraisal Committee (TEAC) in its 68th
Technical Division Meeting held on 04.09.19 recommended the proposal to place
(f.) Approval of Technical before Steering Committee for In-principle approval.
Committee
(g.) Comments of Cluster
Development Division:
(h.) Working capital(In- The SPV will approach bank after getting --
principle sanction of loan in-principle approval
from a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementing Agency (IA) Remarks

(a.) BEP 43% --
(b.) IRR, Payback period 27% --
(c.) DSCR Not Applicable --
(d.) Return on Capital 31% --
employed (ROCE)
(e.) NPV 32% --
(f.) DER Not Applicable --
(g.) Sensitivity Analysis
Sensitive analysis is calculated on decrease --
in revenue at 5 to 10%, the key financial
indicators are economically viable
(h.) Status of CFCs Two CFCs viz Gold Ornaments cluster, --
approved in the State Vijayawada and Machilipatnam Imitation
33
 Description Proposed by Implementing Agency (IA) Remarks
Jewellery cluster successfully implemented
in the state of Andhra Pradesh

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Amount
(i) Land Cost 0.5 Acres for 30 years 45.00
(ii) Buildings 66.75
(iii) Plant and Machineries 1245.25
(iv) Misc. Fixed Assets 20.00
(v) Pre operative expenses 20.00
(vi) Provision for Contingencies 63.60
(vii) Margin Money 15.40
Total Project Cost 1476.00

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars % Amount
(i) Government of India grant 80 1180.80
(ii) State Government contribution 10 147.60
(iii) SPV contribution 10 147.60
Total 100 1476.00

8. Plant and machinery (with Brief Specification)

(Rs. in lakh)
S. No. Particulars Nos. Total Cost
1. Computer to Plate CTP Machine Setup 1 61.00
2. Multi Colour Offset Printing Single Dummy Setup 1 373.92
3. Multi Colour Printing Machine Double Dummy 1 511.68
Setup
4. Automatic Paper Cutting Machine, Size 45” 1 28.53
5. Folding Machine 23 x 36 1 27.55
6. Gumming Machine 6 Clamp 1 17.71
7. Lamination Machine 1 7.88
8. 4 Hi Web Double Reel Stand with Quarter Page 1 127.92
Folder
9. Digital Offset Machine 1 45.26
10. Sheetfed Offset Machine Double Crown 1 23.62
11. Diesel Generator-200kva 1 14.76
12. Computers, Scanner, Printer 1 5.42
Total 1245.25

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered lease deed for land and building in the name of SPV for a period of 30
years.
(ii) SIDBI Appraisal Report.
(iii) Certificate of SPV formation.
(iv) Details of SPV members and their shareholding pattern.
(v) Details of SPV’s bank account/ Mandate form.
(vi) NOC from State Pollution Control Board.
(vii) Certificate from State Government that more than 50% units in the cluster are
Micro/ SC/ST/ Women Enterprises, as the case may be.

34
 (viii) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(ix) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.
(x) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre in Printing Cluster, Kakinada, East Godavari District, Andhra Pradesh.

****

35
Agenda No. 51.3.33 (S): Proposal for In-principle approval for setting up of Common
Facility Centre in Dairy Products Cluster, Teradal, Bagalkot,
Karnataka.
Background:

(i) The proposal was recommended by State Level Project Steering Committee
(SLSC) of Karnataka in its meeting held on 30.08.19.
(ii) Proposal was received from Karnataka Council for Technological Upgradation
(KCTU), Bangalore, vide online ref. No. 14557 dated 02.09.19 & recommended
by MSME-DI, Hubli.
(iii) Proposal along with Detailed Project Report (DPR) & Focus Report was
forwarded by MSME-DI, Hubli vide email dated 02.09.19.
(iv) Proposal was deliberated during 68th meeting of Techno Economic Appraisal
Committee (TEAC) held on 04.09.19 and committee recommended the proposal
to place before the Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Dairy Products Cluster

District Bagalkote
Location of Cluster : Terdal
Lok Sabha Constituency : Bagalkot
Main Product : Paneer, Cheese, Milkmaid Cream, Curd, Butter & Ghee, Sweets
like Khoa, Shrikand, Kalakan, Basundi.
No. of Enterprises including Micro -121
break up (Micro, Small,
Medium)
Turn over for the last five Year Amount
years : (Rs. in Crore) 2013-14 94.11
2014-15 102.31
2015-16 118.14
2016-17 126.03
2017-18 135.32
2018-19 141.22
Exports for the last five Nil.
years : (Rs. in Crore)
Employment in Cluster : 4250 Nos. (Direct-750 & Indirect-3500)
Technology Details :
 Old and Traditional methods of producing dairy products.
Whether DS Conducted : Yes.
Main findings of DSR :  The Diagnostic Study is conducted by Intaglio Technical
and Business Services and it is found that the cluster
members are using traditional methods of processing Dairy
and lack major facilities such as advance pre-processing
machineries like the Automatic Paneer De-hydration,
Lactose extraction Unit and Whey extraction facility with
post processing machineries like thermo foam packing
facility, Automatic Cutting Facility for Paneer and Cheese
and Advanced packing machinery as a result the cluster
members are unable to compete with the large scale
processors and are not able to cater the demands of the
urban national and international market.
Main Problems of Cluster :  Traditional methods of processing dairy takes place at the
Cluster.
 Limited diversification in products due to lack of
technological advancement.
 Lack of advanced packaging machinery like advanced
packing where the product is given a superior packaging
36
 and aesthetically pleasing look.
 Lack of whey processing machinery, where 40 percent of
waste can be utilized to process products such as Whey and
Casein.
 Lack of new moulding and large scale cutting machineries
that mould paneer and cut Cheese into different sizes and
shapes.
 No marketing taking place through right channels.
 There is no branding taking place.
Other Information : --

2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Justification for CFC  CFC helps the cluster members to --
improve their present product quality,
undertake processing of new dairy
products.
 With the establishment of CFC, the
cluster members will be able to under-
take processing of new edibles,
addition varieties and product
diversification.
 The advanced machines proposed will
reduce the milk wastage and help to
produce hygienic products.
 Advanced Packaging and cold storage
facility improves the shelf life of the
products produced by the cluster
members.
(b.) Location of CFC Survey No. 258/1 part-A, at Terdal --
village, Bagalkote Dist.
% age of units in radius of 86
5km
% age of units in radius of 100
10km
(c.) Land for CFC
i. Whether land acquired Yes. Registered land
ii. Title is in name of SPV. lease deed from
iii. Valuation and its basis 60.00 lakh. Revenue
Department of
Government of
Karnataka for a
period of 30 years
or more is
required.
iv. Land is sufficient Yes. --
v. Change of land use Applied for NA conversion Clearance
Required
vi. If on lease, duration of Yes. 30 years 30 years required.
lease
vii Whether lease is legally Yes.
tenable
(d.) Total Building area(sq 19,300 Sq. ft. --
ft)
(e.) Rate of construction of Rs 1189 Sq. ft. --
building
(f.) Main Facility Proposed  Common Raw Material Bank/Milk --
Collection and Storage Facility.
 Automatic Paneer De-Hydration,
Paneer Cutting, and Packing Facility.
 Cheese Pressing, Cutting and Packing
37
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
Facility.
 Automatic Butter and Ghee Packing
Machinery.
 Sweet products Packaging Facility
 Common Whey Processing/Waste
Milk Water Recycling and Lactose
Extraction Facility from used Milk
water.
 Common Dedicated Training Facility
 Value Addition and Product
Diversification.
 Common FSSAI Grade Testing
Facility.
 Common Finished Product Cold
Storage Facility .
 Common Effluent Treatment Plant.
g.) Prod capacity of CFC Milk Processing - 20KLD, Whey
Processing - 20KLD, Butter - 300
KG/Hour, Panner-300KG/hour, Cheese -
300KG/Hour.
(h.) Major Outputs/ Sl. Parameters Before CFC After
Deliverables of CFC, No. intervention Intervention
Projected performance of (i) No. of units 125 200
the cluster after proposed (ii) Turnover Rs. 141.22 Rs. 200 Crores
intervention (in terms of (Rs. in crore) Crores
production, export/domestic (iii) Export (Rs. Indirect export Direct Export
sales and direct/indirect in crore) taking place Likely By 5 Units-
employment, etc.) through traders Rs. 15 crores
(iv) Employment Direct:750 Direct:1500
Indirect:3500 Indirect:5000
(v) Profit 12% to 14% 20%-25%
Margins
(vi) Testing and Not available Dedicated Testing
Quality and Certification
Improvement and product
Centre diversification
centre for new
product
development
(vii) Training and Not available Dedicated training
Skill and skill up-
Development gradation
Centre
(i.) Pollution clearance SPV has applied for NOC from KSPCB. NOC from PCB is
required or not required.
(j.) Man Power in CFC 32 Nos. --
(k.) Revenue generation Total Revenue generating Section – Rs. Total Revenue
mechanism for 1186.70 lakh. generation figures
sustainability of not matching
assets(service/user charges
to be levied, any other-to be
specified)

3. Information about SPV

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Name and Address Aman Milk Dairy Products Producers --
Association,
Survey No. 412, Ambedkar Circle Terdal
Taluk, Bagalkot District.
(b.) Nature of Society. Registered under Karnataka --
38
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
SPV(company or Society or Societies Registration Act 1960.
Trust)
(c.) Name of the state Govt. MSME-DI, Hubli and Managing --
and MSME officials in SPV Director, KCTU.
(d.) Date of formation of 26.12.18. --
SPV
(e.) Number of Members 105 nos. --
(f.) Bye Laws or MoA and Bye laws enclosed in section 9. Not submitted
AOA submitted
(g.) Authorized Share Rs. 150.00 lakh. -
Capital
(h.) Paid up capital Rs. 12.00 lakh. -
(i.) Shareholding Pattern Enclosed in section 9. Not submitted
(j.) Commitment letter for SPV has submitted the Commitment Not submitted
contribution letter for their contribution.
(k.) SPV specific A/c Axis bank bearing A/c No: Not submitted
91901001520159. Indiranagar NM Road,
Chikodi.
(l.) Trust Building of SPV, SPV has completed the necessary Soft Not submitted
Previous track record of co- Intervention activities like Trust building,
operative initiatives pursued capacity building, etc.
by SPV members need to be
highlighted with support
documentation.
(m.) Technical Institution Intaglio Technical and Business Services --
Bangalore.
(n.) CFC may be utilised by SPV will utilize at least 60 percent of Declaration Not
SPV members as also others installed capacity. submitted
in a cluster. However,
evidence should be
furnished with regard to
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o)
(a) Power requirement for 145 KVA --
commercial/domestic
purpose
(b) Water 10,000 Ltrs --
(c) Gas/Oil/Other Utilities - --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Implementing Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(b.) Fund receiving Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(c.) Implementation Period 24 months 24 Months from
date of final
approval.
(d.) Appraisal of DPR and DPR will be submitted to SIDBI after in- Required prior to
main Recommendations principle approval. final approval.
(e.) Comments of Technical Proposal was deliberated during 68th meeting of Techno
Division Economic Appraisal Committee (TEAC) held on 04.09.19 and
(f.) Approval of Technical committee recommended the proposal to place before the
Committee Steering Committee for In-principle approval.
(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP.
Development Division:
39
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
(h.) Working capital(In- SPV will obtain In-principle sanction of Document
principle sanction of loan loan from bank before Final Approval. Required.
from a bank,if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) BEP 41% As per MSE-CDP
(b.) IRR, Payback period 29%, 4 Year guidelines.
(c.) DSCR N/A
(d.) Return on Capital 32%
employed (ROCE)
(e.) NPV 30% --
(f.) DER N/A
(g.) Sensitivity Analysis Sensitivity analysis is performed for 5%
and 10% reduction of capacity or fall in
sales and the figures are satisfactory and
as per the limits specified in the
guidelines.
(h.) Status of CFCs a) Cluster Implemented --
approved in the State 1. Auto components Cluster, Hubli
2. Readymade Garment Cluster, Hubli
3. Food Cluster, Gulbarga
4. Raisin Processing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. Raisin Processing Cluster, Athani,
Belgaum.
7. ELCIA Cluster, Bangalore.
8. Heat Treatment & Engg Cluster Hubli,
9. Printing Cluster Bangalore
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
[Link] Puffed Rice Cluster, Chitradurga.

6. Proposed project cost:

(Rs. in lakh)
S. No. Particulars Amount
1 Land – 2 acres on lease for 30 years 60.00
2 Building Construction with compound and internals roads – 216.90
19300 sq. ft. built- up area
3 Plant & Machinery (including electrification) 1103.93
4 Misc. fixed assets 20.00
5 Preliminary and Pre-operative expenses 20.00
6 Contingencies (2% on building & 5% on P&M) 59.53
7 Margin money for working capital 14.00
Total 1494.36

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Percentage Amount
1 Grant-in-aid from Govt. of India 80.00 1195.48
2 Grant-in-aid from Govt. of Karnataka 10.00 149.44
3 SPV contribution 10.00 149.44
Total 100.00 1494.36

40
 8. Plant and machinery
(Rs. in lakh)
S. No. Particulars Nos. Total Cost
I-Milk Storage Section
1. Raw Milk Storage Tank Setup 1 29.9505
2. Milk Pasteurizer PLC Based 1 8.61
3. Milk Homogenizer 1 31.98
4. Pasteurized Milk Storage Tank Setup 1 18.45
5. CIP Process Cleaning System 1 24.60
II-Waste Paneer/Cheese Water/Whey Processing
Section: Capacity: 2K-LPH
6. Whey Collection Section 1 47.601
7. Lactos/WPC Protein Extraction Section 1 356.70
III-Butter Section
8. Butter Cutting/Filling & Thermo Form Packing Machine 1 40.59
IV-Ghee Section
9. Ghee Pouch Packing Machine 1 9.84
V-Paneer Section
10. Paneer Moulds 1 3.444
11. Paneer Pneumatic Press/ De-hydrator Setup 1 5.535
12. Paneer Socking Tank 1 8.61
13. Automatic Paneer Cutting 1 10.455
14. Double Chamber Nitrogenous Paneer Vaccum Packing 1 15.5595
15. Paneer Thermofome Packing and sealing Machine 1 32.595
VI-Khova Basundi/Shrikhand
16. Automatic Thermo Foam Packing & Sealing Machine 32.595
VII-Cheese Section
17. Cheese Pneumatic Press with Molds 1 10.455
18. Cheese Cutting Machine 1 6.765
19. Long Duration Stored Cheese Steam Treatment 1 14.145
20. Automatics Cheese Thermo Foam Packing & Sealing 1 32.595
VIII- Miscellaneous Section
21. Cold Storage 1 104.55
22. Testing Setup 1 18.45
23. Effluent Treatment Plant 1 30.75
24. RO Water Plant 1 12.30
25. Air Compressor 1 33.21
26. Boiler Setup 1 54.12
27. Refrigeration System 1 39.36
28. DG Set 1 27.06
29. Electrical Fitting, SS Piping, Plant Fabrication 1 43.05
Total 1103.925

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report.
(ii) NOC from State Pollution Control Board.
(iii) Details of all units in the cluster.
(iv) English version of registration of SPV formation.
(v) Bye Laws or MoA and AoA in English version.
41
 (vi) List of SPV members and details of shareholding pattern.
(vii) Commitment letter from SPV for their contribution.
(viii) Details of Project specific bank account / Mandate form.
(ix) Details of trust Building of SPV, Previous track record of co-operative initiatives
pursued by SPV members need to be highlighted with supported documentation.
(x) Commitment letter from SPV members to utilise at least 60 percent of installed
capacity.
(xi) Letter regarding working capital(In-principle sanction of loan from a bank, if
applicable arrangement made)
(xii) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(xiii) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be.
(xiv) Certificate from State Government for compliance of GFR/ CVC guidelines.
(xv) Registered deed documents for land and building in the name of SPV (if land is
on lease basis, registered lease deed for a minimum period of 30 years is
required).
(xvi) Document regarding Non Agriculture conversion for change of land use
(xvii) Total Revenue generation figures not matching, hence corrected figures certified
by MSMEDI.
(xviii) Undertakings from State Government as well as SPV that CFC will not sell the
products.
10. Proposal for Steering Committee:
Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre (CFC) in Dairy Products Cluster, Teradal, Bagalkot, Karnataka.

*******

42
Agenda No. 51.3.34 (S): Proposal for In-principle approval for setting up of Common
Facility Centre in Grapes & Raisin Processing Cluster,
Jamkhandi, Bagalkot, Karnataka.
Background:
(i) The proposal was recommended by State Level Project Steering Committee
(SLSC) of Karnataka in its meeting held on 30.08.19.
(ii) Proposal was received from Karnataka Council for Technological Upgradation
(KCTU), Bangalore, vide online ref. No. 14555 dated 02.09.19 & recommended by
MSME-DI, Hubli.
(iii) Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded
by MSME-DI, Hubli vide email dated 02.09.19.
(iv) Proposal was deliberated during 68th meeting of Techno Economic Appraisal
Committee (TEAC) held on 04.09.19 and committee recommended the proposal to
place before the Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster
Name of Cluster : Grapes & Raisin Processing Cluster
District Bagalkote
Location of Cluster : Jamkhandi
Lok Sabha Constituency : Bagalkot
Main Product : Yellow Raisins, Golden Raisins, Black Raisins & Green
Raisins.
No. of Enterprises including Micro -164
break up (Micro, Small,
Medium)
Turn over for the last five Year Amount
years : (Rs. in Crore) 2014-15 59.60
2015-16 78.40
2016-17 92.65
2017-18 105.80
2018-19 112.50
Exports for the last five Year Amount
years : (Rs. in Crore) 2014-15 5.96
2015-16 6.27
2016-17 9.265
2017-18 10.58
2018-19 16.52
Employment in Cluster : 9900 Nos. (Direct-1900 Indirect-8000)
Technology Details :
 Traditional processing practices like open air Drying,
Mechanical vibrator type Grading machine,Manual Sorting
and packaging.
Whether DS Conducted : Yes.
Main findings of DSR :  The Diagnostic Study found that there is abundant
availability of raw materials in the cluster region. The
Diagnostic Study recommends for the hard interventions
which help to produce better quality products and provides
good returns for the cluster members.
Main Problems of Cluster :  Traditional Sun drying Process for resins leading to uneven
drying.
 Prolonged production process.
 Lack of Automatic Grading Machinery.
 Lack of Automatic Sorting Machinery.
 Lack of Cleaning and Packaging facilities in the cluster.
 Non affordability of cold storage facilities by the cluster
units. Poor marketing channels.
 Low profits due to middlemen and agents.
Other Information : --
43
2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Justification for CFC  The Hard Intervention Proposed in --
CFC will help to increase the turnover
of the cluster units to 30%.
 Improve the production process of
raisins.
 Increase raisins production in the
cluster region up to 25% every year.
 Maintain International standards of
raisins and comply with the quality
certifications like ISO, HACCUP etc.
 Hygienic Packaging of the raisins.
(b.) Location of CFC Survey 277/1, Todalabagi Village, --
Jamkhandi Taluk and Bagalkot District.
% age of units in radius of 80
5km
% age of units in radius of 100
10km
(c.) Land for CFC
i. Whether land acquired Yes. 1Acres 10 Guntas of land. Registered land
ii. Title is in name of SPV. lease deed from
iii. Valuation and its basis 90.00 lakh. Revenue
Department of
Government of
Karnataka for a
period of 30 years
or more is
required.
iv. Land is sufficient Yes. --
v. Change of land use NA Converted. Document
required
vi. If on lease, duration of Land on lease basis for 15 years. 30 years required.
lease
vii Whether lease is legally Yes.
tenable
(d.) Total Building area(sq 30,000 Sqft. --
ft)
(e.) Rate of construction of Not Applicable since SPV is obtaining --
building constructed building on lease.
(f.) Main Facility Proposed  Common Facility Center with --
Automatic raisins drying plant
 Common Raisin cleaning and grading
center
 Common Raisins Sorting Facility
 Common packaging Facility
 Dedicated Raisin Cold storage Unit
 Common Testing laboratory Center.
g.) Prod capacity of CFC 32 Tons/ Day.
(h.) Major Outputs/ S. No. Particulars Before CFC After CFC
Deliverables of CFC, (i) No. of units 164 200
Projected performance of
the cluster after proposed (ii) Turnover Rs. 112.50 Rs. 200.00
intervention (in terms of (Rs. in crore) (2-3 years of
production, export/domestic CFC)
sales and direct/indirect (iii) Exporting Nil 4
employment, etc.) Units
(iv) Employment Direct -1900 Direct -3000
Indirect - 8000 Indirect -15000
(v) Others, if any Extra recurring Increase in
44
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
Increase in expenditure, profit margin
Production excess process by 20%-25%,
cost and low higher
profit margins productivity, no
extra recurring
expenditure.
(i.) Pollution clearance Yes. NOC obtained from KSPCB. NOC from PCB is
required or not required.
(j.) Man Power in CFC 40 Nos. --
(k.) Revenue generation Total Revenue /Annam is Rs. 480.00 lakh
mechanism for from Cold Storage for Raisins & Fresh
sustainability of Grapes Storage.
assets(service/user charges
to be levied, any other-to be
specified)

3. Information about SPV

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Name and Address “Basaveshwara Grape Processing Cluster” --
Todalabagi villages, Jamkhandi Taluk and
district Bagalkot, Karnataka.
(b.) Nature of Society. Registered Under Karnataka --
SPV(company or Society Societies Registration Act 1960.
or Trust)
(c.) Name of the state MSME-DI, Hubli and Managing Director, --
Govt. and MSME officials KCTU.
in SPV
(d.) Date of formation of 15th May 2019 --
SPV
(e.) Number of Members 150 nos. --
(f.) Bye Laws or MoA and Bye laws enclosed in section 9. Required.
AOA submitted
(g.) Authorized Share Rs. 150.00 lakh. -
Capital
(h.) Paid up capital Rs. 10.00 lakh. -
(i.) Shareholding Pattern Enclosed in section 9. Required.
(j.) Commitment letter for Copy enclosed in section 9. Required.
contribution
(k.) SPV specific A/c Indian Bank bearing A/c No : 6778064002 Required.
(l.) Trust Building of SPV, SPV has completed the necessary Soft Required.
Previous track record of Interventions activities like capacity
co-operative initiatives building, Trust building , exposure visit etc.
pursued by SPV members
need to be highlighted
with support
documentation.
(m.) Technical Institution Intaglio Technical and Business Services --
Bangalore.
(n.) CFC may be utilised Yes. SPV has submitted the Commitment Required.
by SPV members as also letter for utilization of 60 percent capacity.
others in a cluster.
However, evidence should
be furnished with regard
to SPV member ability to
utilise at least 60 percent
of installed capacity.
(o)
(a) Power requirement for 210 KW --
45
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
commercial/domestic
purpose
(b) Water 10,000 Ltrs/day --
(c) Gas/Oil/Other - --
Utilities

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Implementing Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(b.) Fund receiving Karnataka Council for Technological --
Agency Upgradation (KCTU), Bangalore.
(c.) Implementation 24 months 24 Months from
Period date of final
approval.
(d.) Appraisal of DPR and DPR will be submitted to SIDBI after in- Required prior to
main Recommendations principle approval. final approval.
(e.) Comments of Proposal was deliberated during 68th meeting of Techno
Technical Division Economic Appraisal Committee (TEAC) held on 04.09.19 and
(f.) Approval of Technical committee recommended the proposal to place before the
Committee Steering Committee for In-principle approval.
(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP.
Development Division:
(h.) Working capital(In- Yes. Document
principle sanction of loan Required.
from a bank,if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) BEP 44% As per MSE-CDP
(b.) IRR, Payback period 29% guidelines.
(c.) DSCR N/A
(d.) Return on Capital 33%
employed (ROCE)
(e.) NPV 28% --
(f.) DER N/A
(g.) Sensitivity Analysis Sensitivity analysis is calculated on
decrease in revenue at 5-10%. The key
financial indicators are economically
viable.
(h.) Status of CFCs a) Cluster Implemented --
approved in the State 1. Auto components Cluster, Hubli
2. Readymade Garment Cluster, Hubli
3. Food Cluster, Gulbarga
4. Raisin Processing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. Raisin Processing Cluster, Athani,
Belgaum.
7. ELCIA Cluster, Bangalore.
8. Heat Treatment & Engg Cluster Hubli,
9. Printing Cluster Bangalore
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
[Link] Puffed Rice Cluster, Chitradurga.
46
6. Proposed project cost:
(Rs. in lakh)
S. No. Particulars Amount
1 Land and Building Cost (Land – 50 gunta with 30000 sq. ft and 90.00
Building – 15 years lease)
2 Plant and Machinery cost 1288.29
3 Misc. fixed assets 21.00
4 Preliminary and Pre-operative expenses 20.00
5 Contingencies 64.41
6 Margin money for working capital 15.00
Total 1498.70

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Percentage Amount
1 Grant-in-aid from Govt. of India 80.00 1198.96
2 Grant-in-aid from Govt. of Karnataka 10.00 149.87
3 SPV contribution 10.00 149.87
Total 100.00 1498.70

8. Plant and machinery

(Rs. in lakh)
S. No. Particulars Nos. Total Cost
1. Cold Storage for Raisins & Fresh Grapes 1 424.965
Storage
2. Raisin Wet Processing/Washing Setup 1 38.168
3. Resins Drying Setup 1 171.9056
4. Raisins Dry Process-Cleaning, Grading Setup 1 105.304
5. Raisins De-Stemming/Stem Removing Setup 1 111.588
6. Raisins Weighing Setup 1 72.84
7. Metal Detector Setup 1 15.6825
8. Raisins/Dry Grapes Colour Sorting Setup 1 137.9544
9. Raisins/Dry Grapes Box -Packaging Setup 1 12.1155
10. Raisins/Dry Grapes Poly Packaging Setup 1 15.9285
11. Testing Laboratory Machinery Setup 1 10.455
12. RO-Plant 1 6.4575
13. ETP Plant 1 14.8215
14. Material Handling Equipments 1 7.38
15. Electrical Installation 1 16.58778
16. Roof Top Solar Power Plant 1 126.13650
Total 1288.28978

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report.

(ii) NOC from State Pollution Control Board.
(iii) English version of registration of SPV formation.
(iv) Bye Laws or MoA and AoA.
(v) List of SPV members and details of shareholding pattern.
(vi) Commitment letter from SPV for their contribution.
(vii) Details of Project specific bank accoun
(viii) Commitment letter from SPV members to utilise at least 60 percent of installed
capacity.
(ix) Letter regarding working capital(In-principle sanction of loan from a bank, if
applicable arrangement made)

47
 (x) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(xi) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be.
(xii) Certificate from State Government for compliance of GFR/ CVC guidelines.
(xiii) Document regarding Non Agriculture conversion for change of land use.
(xiv) Registered deed documents for land and building in the name of SPV (if land is on
lease basis, registered lease deed for a minimum period of 30 years is required).
(xv) Undertakings from State Government as well as SPV that CFC will not sell the
products.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre (CFC) in Grapes & Raisin Processing Cluster, Jamkhandi, Bagalkot,
Karnataka.

*******

48
Agenda No. 51.3.35 (S): Proposal for In-principle approval for setting up of Common
Facility Centre in Jaggery Manufacturers Cluster Teradal,
Bagalkot, Karnataka.
Background:

(i) The proposal was recommended by State Level Project Steering Committee
(SLSC) of Karnataka in its meeting held on 30.08.19.
(ii) Proposal was received from Karnataka Council for Technological Upgradation
(KCTU), Bangalore, vide online ref. No. 14556 dated 02.09.19 & recommended by
MSME-DI, Hubli.
(iii) Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded
by MSME-DI, Hubli vide email dated 02.09.19.
(iv) Proposal was deliberated during 68th meeting of Techno Economic Appraisal
Committee (TEAC) held on 04.09.19 and committee recommended the proposal to
place before the Steering Committee for In-principle approval.
Details of the proposal are as under:
1. Basic Information of Cluster
Name of Cluster : Jaggery Manufacturers Cluster
District Bagalkote.
Location of Cluster : Terdal
Lok Sabha Constituency : Bagalkot
Main Product : Solid Jaggery, Powder Jaggery and Liquid Jaggery
No. of Enterprises including Micro -115
break up (Micro, Small,
Medium)
Turn over for the last five Year Amount
years : (Rs. in Crore) 2014-15 38.45
2015-16 46.64
2016-17 59.30
2017-18 67.53
2018-19 86.90
Exports for the last five Nil
years : (Rs. in Crore)
Employment in Cluster : 5700 Nos. (Direct-950 & Indirect-4750)
Technology Details :  Conventional and old traditional practices followed in
making jaggery.
Whether DS Conducted : Yes.
Main findings of DSR :  It is found that the cluster members are using traditional
methods of Processing Jaggery and lack major facilities
such as Asthetic packaging, proper storage, Marketing and
Branding, Testing and Training.
 The present day customer demands value for money and
better quality products with good packaging is the demand
of the hour.
 As the purchase price of the customer has increased the
quality standards are the factors that maintain the
competitiveness of the product in the market.
 The diagnostic study SWOT analysis found that concrete
measures are needed to make the product marketable in
urban national and international market.
Main Problems of Cluster :  The Process of solid jaggery Moulding is manual and
Unhygenic.
 The Moulds are not Uniform in Shape, Size, and are used
to be packed in gunny bags. This is not suitable for selling
in the urban market.
 The Process of liquid jaggery Filling is Manual and is very
unhygienic.
 No Labeling and Branding.
 Improper Packaging and Storage
49
2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Justification for CFC  The Facilities proposed in CFC helps --
to Produce better quality and Hygenic
jaggery. Advanced packaging helps to
attract urban markets. Branding
improves the marketing and increases
the profit margins.
(b.) Location of CFC Survey No 446/6K situated at Terdal --
village, Bagalote Dist.
% age of units in radius of 80
5km
% age of units in radius of 100
10km
(c.) Land for CFC
i. Whether land acquired Yes, 1 acre of land. Registered land
ii. Title is in name of SPV. lease deed from
iii. Valuation and its basis 75.00 lakh. Revenue
Department of
Government of
Karnataka for a
period of 30 years
or more is
required.
iv. Land is sufficient Yes. --
v. Change of land use NA Converted. Document
required
vi. If on lease, duration of Land on lease basis for 30 years. --
lease
vii Whether lease is legally Yes.
tenable
(d.) Total Building area(sq 10,200 Sq. ft. --
ft)
(e.) Rate of construction of Rs 1179.38 Sq. ft. --
building
(f.) Main Facility Proposed  Automatic Closed Chamber Jaggery --
Solidification and Chemical
Balancing Facility
 Automatic Solid Jaggery Molding
and Packaging Unit
 Liquid and Powder Jaggery
Packaging Unit
 Clean Room With Humidification
and De-humidification Chamber
 Testing Laboratory
 Clean Room/Cold Storage for
Jaggery
 Common Marketing and Export
Centre
 Training and Research Centre
 Captive power generation facility for
CFC
g.) Prod capacity of CFC 33 Tons/ Day
(h.) Major Outputs/ Sl. Parameter Before CFC After
Deliverables of CFC, No. s intervention Intervention
Projected performance of (i) Units 115 150
the cluster after proposed (Nos.)
intervention (in terms of (ii) Employment Direct = 950 New direct =
production, export/domestic (Nos.) Indirect = 4750 1500
sales and direct/indirect New Indirect =
50
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
employment, etc.) 8000
(iii) Average Rs. 86.90 crores Rs. 100 crores in
Turn over two to three
years of CFC
(iv) Individual 1 ton/day 1.5 tons/day
Unit
Capacity
(v) Export Nil or very little
Direct export
indirect trade likely by 5 units
(vi) Profits Inconsistent profit
Consistent and
margins due to 20 to 25%
price fluctuations,
higher profits
product quality for producers
inconsistencies due to better
and inefficiencies
quality and price
in production and increased
production
efficiencies.
(i.) Pollution clearance SPV has applied for NOC from KSPCB. NOC from PCB is
required or not required.
(j.) Man Power in CFC 42 Nos. --
(k.) Revenue generation Total revenue – Rs. 10,62,65,000/- from --
mechanism for Slurry / Jaggery – Steam Treatment set
sustainability of up – Purification and Concentrator
assets(service/user charges Process Stage, Powder Jaggery
to be levied, any other-to be Processing Equipments – 5 tons / day,
specified) Jaggery Hygenic Storage setup: Cold
Storage / Clean Room Setup – 1000 tons
capacity, Solid Jaggery Moulding and
Packaging Setup, Powder Packaging
Setup, Liquid Jaggery packaging setup,
Testing Laboratory Setup, Value Added
Products-Processing Setup - Chikki
Rolling, Cutting and Packaging, Cashew,
Walnuts Enrobbing / Coating and
Packaging setup and Revenue from
Training etc.

3. Information about SPV

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Name and Address “United Jaggery Manufacturers Cluster --
Association”.
Teradal Rabakavi Banahatti Bagalkot,
Karnataka - 587315
(b.) Nature of Society. Registered under Karnataka --
SPV(company or Society Societies Registration Act 1960.
or Trust)
(c.) Name of the state MSME-DI, Hubli and Managing Director, --
Govt. and MSME officials KCTU.
in SPV
(d.) Date of formation of 18th April 2019 --
SPV
(e.) Number of Members 79 nos. --
(f.) Bye Laws or MoA and Bye laws enclosed in section 9. Required.
AOA submitted
(g.) Authorized Share Rs. 125.00 lakh. --
Capital
(h.) Paid up capital Rs. 15.00 lakh. --
(i.) Shareholding Pattern Enclosed in section 9. Required.
51
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
(j.) Commitment letter for SPV has submitted the Commitment letter Required.
contribution for their contribution.
(k.) SPV specific A/c Syndicate Bank bearing A/c No : Required.
08183070001572, Terdal Branch.
(l.) Trust Building of SPV, SPV has completed the necessary Soft --
Previous track record of Intervention activities like Trust building,
co-operative initiativesCapacity building, exposure visits etc.
pursued by SPV members
need to be highlighted
with support
documentation.
(m.) Technical Institution Intaglio Technical and Business Services --
Bangalore.
(n.) CFC may be utilised SPV has submitted the commitment letter Required.
by SPV members as also for utilization of atleast 60% of the
others in a cluster. installed capacity.
However, evidence should
be furnished with regard
to SPV member ability to
utilise at least 60 percent
of installed capacity.
(o)
(a) Power requirement for 200 HP. --
commercial/domestic
purpose
(b) Water 5000 liters/day. --
(c) Gas/Oil/Other - --
Utilities

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Implementing Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(b.) Fund receiving Karnataka Council for Technological --
Agency Upgradation (KCTU), Bangalore.
(c.) Implementation 24 months 24 Months from
Period date of final
approval.
(d.) Appraisal of DPR and DPR will be submitted to SIDBI after in- Required prior to
main Recommendations principle approval. final approval.
(e.) Comments of Proposal was deliberated during 68th meeting of Techno
Technical Division Economic Appraisal Committee (TEAC) held on 04.09.19 and
(f.) Approval of Technical committee recommended the proposal to place before the
Committee Steering Committee for In-principle approval.
(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP.
Development Division:
(h.) Working capital(In- Yes. In-principle sanction of loan obtained Required.
principle sanction of loan from Syndicate Bank, Terdal Branch,
from a bank,if applicable Bagalkote Dist.
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) BEP 41% As per MSE-CDP
(b.) IRR, Payback period 30%. guidelines.
(c.) DSCR N/A
(d.) Return on Capital 32% --
52
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
employed (ROCE)
(e.) NPV 30% --
(f.) DER N/A
(g.) Sensitivity Analysis Particulars 5% 10% --
reduction reduction of
of capacity capacity or
or fall in fall in sales
sales.
IRR 29% 27%
NPV 29% 27%
BEP 43% 44%
ROCE 30% 29%
(h.) Status of CFCs a) Cluster Implemented --
approved in the State 1. Auto components Cluster, Hubli
2. Readymade Garment Cluster, Hubli
3. Food Cluster, Gulbarga
4. Raisin Processing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. Raisin Processing Cluster, Athani,
Belgaum.
7. ELCIA Cluster, Bangalore.
8. Heat Treatment & Engg Cluster Hubli,
9. Printing Cluster Bangalore
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
[Link] Puffed Rice Cluster, Chitradurga.

6. Proposed project cost:

(Rs. in lakh)
S. Particulars Amount
No.
1 Land – 1 acre on lease for 30 years 75.00
2 Building and other Civil Constructions 138.56
3 Plant & Machinery (including electrification) 974.01
4 Misc. fixed assets 20.00
5 Pre-operative expenses 20.00
6 Contingencies (2% building and 5% on plant and machinery) 51.47
7 Margin money for working capital 18.52
Total 1297.56

7. Proposed means of finance:

(Rs. in lakh)
S. Particulars Percentage Amount
No.
1 Grant-in-aid from Govt. of India 80.00 1038.04
2 Grant-in-aid from Govt. of Karnataka 10.00 129.76
3 SPV contribution 10.00 129.76
Total 100.00 1297.56

8. Plant and machinery

(Rs. in lakh)
S. No. Particulars Nos. Total
Cost
I-Steam Generation and Captive Power Generation Set up
Setup
1. Steam Generator Boiler and Setup-5000kgs/Hour 1 90.66
2. Turbo Alternator and Power Generation Setup-300KW 1 70.6698
3. II-Slurry /Jaggery-Steam Treatment Setup-Purification Set up
53
S. No. Particulars Nos. Total
Cost
Stage-200kld
4. Tubular Slurry Heater 1 95.46
5. Gravity Settler
6. Floation Clarifier
7. Micro-Filter
8. III-Slurry Concentrator Setup for Jaggery Set up
Molding/Powder Jaggery/Liquid -200KLD
9. Evaporator -Boilers 1 66.966
10. Jaggery Concentrator-for Small Jaggery Injection Molding
11. Vapour Extractor
12. Receiving Tanks with accessories
Powder Jaggery Processing Equipments-10 tons/day Set up
13. Jaggery Powder Miller 1 99.222
14. Powder Jaggery Jacketed Tray
15. Jaggery Powder Dryers
16. Re-Circulation Conveyors
17. Air Heaters
18. Blower Fan
19. Instrumentation and Control
20. Jaggery Hygenic Storage Setup: Cold Storage/Clean
Room Setup-1500tons capacity
21. Clean Room Storage with HVAC SYSTEM:, 1 114.576
22. Packaging Section
23. Automatic Jaggery Injection Moudling, Demoulding and 1 114.30
packing machine-18tons/day
24. Automatic Liquid Jaggery Bottle Filling setup with rotary 1 70.20
capping system
25. Liquid Jaggery Bottle Labeling Machine and Sealing Setup- 1 40.62
2 tons/day
26. Automatic Powder Jaggery Packing Machine-10 tons/day 2 108.672
27. Testing Laboratory Setup
28. Item wise Description as per Section-. 1 26.526
29. Value Added Products-Processing Setup
30. Jaggery Enrober-Machine for Jaggery Coated Dry Fruits 1 21.60
processing-1Ton/day
31. Pillow pack machine for coated dryfruits 1 7.20
32. Chikki Roller and Cutting Machine-4 tons/day 1 5.40
33. Chikki packing machine 1 7.20
34. Office and Training Setup
35. Computers, Windows Software 5 2.79
36. Digital Intaractive Classroom Board 1 0.1776
37. High Resolution Projector with Auto Lock ScreenProjector 1 0.582
with Auto Lock Screen
38. Audio System Amplifier, Speakers with Cordless and 1 0.6384
Podium Mic-set
39. All in One Laser Colour Printer Scanner and Copier 1 0.57
40. Accounting Software-Tally 1 3.54
41. Website and ERP Software Design and Development 1 2.34
42. CCT Camera and DVR and EPABX Intercomm setup 1 0.7902
43. Fire fighting Equipments-set 1 5.46
44. Air-conditioner A/C 2.0 Ton 2 1.572
45. DG Set 1 16.27923
Total 974.01123

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report.

(ii) NOC from State Pollution Control Board.
54
 (iii) Details of cluster units.
(iv) English version of registration of SPV formation.
(v) Bye Laws or MoA and AoA in English version.
(vi) List of SPV members and details of shareholding pattern.
(vii) Details of Authorized Share Capital and Paid up Capital.
(viii) Commitment letter from SPV for their contribution.
(ix) Details of Project specific bank account
(x) Details of trust Building of SPV, Previous track record of co-operative initiatives
pursued by SPV members need to be highlighted with supported documentation.
(xi) Commitment letter from SPV members to utilise at least 60% of installed capacity.
(xii) Letter regarding working capital(In-principle sanction of loan from a bank, if
applicable arrangement made)
(xiii) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(xiv) Certificate from State Government that more than 50% units in the cluster are
Micro/SC-ST/Women Enterprises, as the case may be.
(xv) Certificate from State Government for compliance of GFR/ CVC guidelines.
(xvi) Registered deed documents for land and building in the name of SPV (if land is on
lease basis, registered lease deed for a minimum period of 30 years is required).
(xvii) Document regarding Non Agriculture conversion for change of land use.
(xviii) Undertakings from State Government as well as SPV that CFC will not sell the
products.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre (CFC) in Jaggery Manufacturers Cluster Teradal, Bagalkot, Karnataka.

*******

55
Agenda No. 51.3.36 (S): Proposal for In-principle approval for setting up of Common
Facility Centre in Borgaon Textile Manufacturing Cluster,
Nippani, Belgaum, Karnataka.
Background:

(i) The proposal was recommended by State Level Project Steering Committee (SLSC)
of Karnataka in its meeting held on 30.08.19.
(ii) Proposal was received from Karnataka Council for Technological Upgradation
(KCTU), Bangalore, vide online ref. No. 14558 dated 02.09.19 & recommended by
MSME-DI, Hubli.
(iii) Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded
by MSME-DI, Hubli vide email dated 02.09.19.
(iv) Proposal was deliberated during 68th meeting of Techno Economic Appraisal
Committee (TEAC) held on 04.09.19 and committee recommended the proposal to
place before the Steering Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Borgaon Textile Manufacturing Cluster

District Belgavi
Location of Cluster : Nippani
Lok Sabha Constituency : Chikkodi
Main Product : Cotton Cloth Material, Cotton Mixed Sarees, Cotton and Poly
cotton suiting and shirting material, Cotton Based Towels and
Cotton & Silk Mixed Cloth Materials.
No. of Enterprises including Micro -150
break up (Micro, Small,
Medium)
Turn over for the last five Year Amount
years : (Rs. in Crore) 2014-15 50.14
2015-16 69.58
2016-17 76.19
2017-18 89.50
2018-19 96.58
Exports for the last five Nil
years : (Rs. in Crore)
Employment in Cluster : 4250 Nos. (Direct-750 & Indirect-3500)
Technology Details :
 Traditional Power looms, Automatic Power looms, Air jet
looms.
Whether DS Conducted : Yes.
Main findings of DSR :  The Diagnostic Study found that the cluster needs hard
interventions such as Common Fabric dyeing facility,
Common Fabric Calendaring Facility and Fabric Testing
Facility and ETP.
Main Problems of Cluster :  Lack of Proper Raw Material Bank & Insufficient Dyeing
Facilities.
 Lack of Design Development Facility.
 Lack of Post Looming Processing Machineries.
 Lack of Testing Facility Lack of Effluent Treatment Plant
Poor Direct Marketing Facility, Dominance of Traders.
Other Information : --

56
2. Information about Proposed CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster Division
(a.) Justification for CFC  Common Fabric Dyeing Process and --
Common Fabric Testing Setup in the
Common Facility Centre will help in,
increase in quality, Service and
profitability & will also generate the
employment in the product cycle.
 Advance Fabric Calendaring Facility
will help the cluster members to process
the fabric in the cluster itself. Hence
saving of time and money.
 The establishment of Common Effluent
Treatment Plant with Zero Liquid
Discharge capacity will help in treating
the waste water of the cluster units and
the water can be reused.
(b.) Location of CFC Survey no 117/1, Kasanal Village, Nippani --
Tq, Belagavi Dist.
% age of units in radius of 70
5km
% age of units in radius of 100
10km
(c.) Land for CFC
i. Whether land acquired Yes. 2.5 Acre of land. Registered land
ii. Title is in name of SPV. lease deed from
iii. Valuation and its basis 60.00 lakh. Revenue
Department of
Government of
Karnataka for a
period of 30
years or more is
required.
iv. Land is sufficient Yes. --
v. Change of land use SPV. --
vi. If on lease, duration of Land on lease basis for 30 years. -
lease
vii Whether lease is legally Yes.
tenable
(d.) Total Building area(sq 14,600 Sq. ft. --
ft)
(e.) Rate of construction of Rs 1179 Sq. ft. --
building
(f.) Main Facility Proposed  Common Fabric Dyeing Facility. --
 Common Design Development Centre.
 Common Facility Centre with Post
Loom cloth Finishing Facilities.
 Common Fabric Calendaring Facility.
 Common Fabric Inspection and
Folding, Packing Facility.
 Common Testing & Training Facility
 Common Effluent Treatment Plant.
g.) Prod capacity of CFC 11 Tons of Fabric/Day
(h.) Major Outputs/ S. Particulars Before CFC After CFC
Deliverables of CFC, No.
Projected performance of (i) No. of units 150 250
the cluster after proposed
intervention (in terms of (ii) Turnover (Rs. Rs. 96.58 Rs. 125
production, export/domestic in crore)
sales and direct/indirect (iii) Export (Rs. in Indirect export Direct Export
57
 Description Proposed by Implementation Agency Comments by
(IA) Cluster Division
employment, etc.) crore) taking place Likely By 4 Units
through
traders
(iv) Employment Direct:750 Direct:1500
Indirect:3500 Indirect:5000
(v) Profit 12% to 14% 20% to 25%
Margins
(vi) Testing and Not available Dedicated Testing
Quality and Certification
Improvement and product
Centre diversification
centre for new
product
development
(vii) Training and Not available Dedicated training
Skill and skill up
Development gradation
Centre
(i.)Pollution clearance required SPV will apply for NOC from Karnataka NOC from
or not State Pollution Control Board. PCB is
required.
(j.) Man Power in CFC 40 Nos. --
(k.) Revenue generation Year 2020 - 2029
mechanism for sustainability of Net Profit after tax : 167.22 - 302.35 (25%)
assets(service/user charges to Net profit as % to net revenue : 25%- 40%
be levied, any other-to be Average net profit to revenue : 34.43%
specified)

3. Information about SPV

Description Proposed by Implementation Agency Comments by

(IA) Cluster
Division
(a.) Name and Address Borgaon Textile Cluster Federation, --
Borgaon Town, Nippani Taluk, Belgaum,
Karnataka.
(b.) Nature of SPV(company or Company Document
Society or Trust) Registered as Company under section 8. required
(c.) Name of the state Govt. MSME-DI, Hubli and Managing --
and MSME officials in SPV Director, KCTU.
(d.) Date of formation of SPV 1st July 2019 --

(e.) Number of Members 150 nos. --

(f.) Bye Laws or MoA and Bye laws enclosed in section 9. --
AOA submitted
(g.) Authorized Share Capital Rs. 150.00 lakh. -
(h.) Paid up capital Rs. 15.00 lakh. -
(i.) Shareholding Pattern Enclosed in section 9. Not submitted
(j.) Commitment letter for SPV has submitted the Commitment --
contribution letter for their contribution. Copy
enclosed in section 9.
(k.) SPV specific A/c -- Not submitted
(l.) Trust Building of SPV, SPV has completed necessary documents Not submitted
Previous track record of co- like trust building, capacity building.
operative initiatives pursued by
SPV members need to be
highlighted with support
documentation.
(m.) Technical Institution Intaglio Technical and Business Services --
Bangalore.
58
 Description Proposed by Implementation Agency Comments by
(IA) Cluster
Division
(n.) CFC may be utilised by SPV will provide Commitment letter for Document
SPV members as also others in utilization of at least 60 percent of Required.
a cluster. However, evidence installed capacity.
should be furnished with
regard to SPV member ability
to utilise at least 60 percent of
installed capacity.

(o)
(a) Power requirement for 482 KVA. --
commercial/domestic purpose
(b) Water 10,000 Ltrs/day --
(c) Gas/Oil/Other Utilities - --

4. Implement Arrangements

Description Proposed by Implementation Agency Comments by

(IA) Cluster
Division
(a.) Implementing Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(b.) Fund receiving Agency Karnataka Council for Technological --
Upgradation (KCTU), Bangalore.
(c.) Implementation Period 24 months 24 Months from
date of final
approval.
(d.) Appraisal of DPR and DPR will be submitted to SIDBI after in- Required prior
main Recommendations principle approval. to final
approval.
(e.) Comments of Technical Proposal was deliberated during 68th meeting of Techno
Division Economic Appraisal Committee (TEAC) held on 04.09.19
(f.) Approval of Technical and committee recommended the proposal to place before
Committee the Steering Committee for In-principle approval.
(g.) Comments of Cluster Recommended for in-principle approval under MSE-CDP.
Development Division:
(h.) Working capital(In- SPV will obtain In-principle sanction of Document
principle sanction of loan from loan from a bank for Working capital. Required.
a bank,if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Comments by

(IA) Cluster
Division
(a.) BEP 39% As per MSE-
(b.) IRR, Payback period 28%, 4th year CDP guidelines.
(c.) DSCR N/A
(d.) Return on Capital 31%
employed (ROCE)
(e.) NPV 27% As per MSE-
(f.) DER N/A CDP guidelines.
(g.) Sensitivity Analysis Sensitivity analysis is performed for 5%
and 10% reduction of capacity or fall in
sales and the figures are satisfactory and
as per the limits specified in the
guidelines.
(h.) Status of CFCs approved a) Cluster Implemented --
in the State 1. Auto components Cluster, Hubli
59
 Description Proposed by Implementation Agency Comments by
(IA) Cluster
Division
2. Readymade Garment Cluster, Hubli
3. Food Cluster, Gulbarga
4. Raisin Processing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. Raisin Processing Cluster, Athani,
Belgaum.
7. ELCIA Cluster, Bangalore.
8. Heat Treatment & Engg Cluster Hubli,
9. Printing Cluster Bangalore
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
[Link] Puffed Rice Cluster, Chitradurga.

6. Proposed project cost:

(Rs. in lakh)
S. No. Particulars Amount
1 Land and Building Cost (Land - 2.5 acres for 30 years lease) 60.00
2 Building Constructions – 14600 sq. ft. 185.00
3 Plant & Machinery (including electrification) 1135.00
4 Misc. fixed assets 20.00
5 Preliminary and Pre-operative expenses 20.00
6 Contingencies 60.45
7 Margin money for working capital 15.00
Total 1495.45

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Percentage Amount
1 Grant-in-aid from Govt. of India 80.00 1196.35
2 Grant-in-aid from Govt. of Karnataka 10.00 149.55
3 SPV contribution 10.00 149.55
Total 100.00 1495.45

8. Plant and machinery

(Rs. in lakh)
S. No. Particulars Nos. Total Cost
Fabric Grey Processing Section
1. Gray Inspection Machine 1 3.69
2. Gray Big Batching Machine 1 17.22
3. Singeing Machine With Desize Application 1 43.05
4. Rotating Station 8 Stations 1 10.46
5. Hydraulic Jiggers 1000 Kgs 5 110.70
6. Mercerizing 1 102.09
7. Drying Range 12 Cyl. 1 20.91
8. Jet Dyeing 500 Kg Capacity 1 14.76
9. Jigger 200 Kg (Dyeing) 900 Mtrs/Batch, 16 47.23
10. Stenter Machine 6 Chambers 1 110.70
11. Callender Machine 1 20.91
12. Sanforising Machine 1 39.36
13. Decatising 1 20.43
14. Folding Inspection Machine 1 2.214
15. Rolling Inspection Machine 1 3.69
Effluent Treatment Plant With Zero Liquid
Discharge
16. Water Recycling With Ufo & Ro 1 258.24
17. Multiple Evaporator Atfd 1 115.01
Laboratory Testing Facility
60
 S. No. Particulars Nos. Total Cost
18. Fabric Testing Equipments Setup 1 18.42
Utilities Section
19. Electrification Cost Of Cfc Including Transformer And
Cabeling For Machinery & Equipments & Lighting 1 55.35
20. Steam Boiler Of 6 Tons / Hour Capacity 1 39.36
21. Thermic Fluid Heater 8 Lakh Kcl/ Hour 1 34.44
22. Steam, Thermic Oil, Water Supply & Compressed Air-
Piping With Valves , Insulation & Controls 1 11.69
23. Water Softening Plant 9000 Ltrs/Hour 1 4.92
24. 200 Cfm Air Compressor 1.172 8.65
Material Handling And Other Supporting
Machinery Section
25. Material Handling Equipments-Incuding Frame Trolly- 1
Basket Trally-Batch , Pallets, Monorail, Racks, 21.53
Total 1135.00

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI appraisal report.

(ii) NOC from State Pollution Control Board.
(iii) Details of all cluster units
(iv) Registration certificate regarding formation of SPV.
(v) List of SPV members and details of shareholding pattern.
(vi) Details of Project specific bank account
(vii) Details of trust Building of SPV, Previous track record of co-operative initiatives
pursued by SPV members need to be highlighted with supported documentation.
(viii) Commitment letter from SPV members to utilise at least 60% of installed capacity.
(ix) Letter regarding working capital(In-principle sanction of loan from a bank, if
applicable arrangement made)
(x) Commitment letter from State Government / SPV to meet the escalation cost, if any,
over and above the approved project cost.
(xi) Certificate from State Government that more than 50% units in the cluster are Micro
/ SC/ST / Women Enterprises, as the case may be.
(xii) Certificate from State Government for compliance of GFR/ CVC guidelines.
(xiii) Document regarding Non Agriculture conversion for change of land use.
(xiv) Registered deed documents for land and building in the name of SPV (if land is on
lease basis, registered lease deed for a minimum period of 30 years is required).

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre (CFC) in Borgaon Textile Manufacturing Cluster, Nippani, Belgaum, Karnataka.

*******

61
Agenda No. 51.3.37 (S): Proposal for In-principle approval for setting up Common
Facility Centre (CFC) in Fabrication (Agricultural
Implements) Cluster, Perambalur, Tamil Nadu.
Background

 The proposal was recommended by State Level Project Steering Committee in its
meeting held on 03.09.18.
 Proposal was received from Government of Tamil Nadu vide online ref. No. 13399
dated 10.06.19 & recommended by MSME-DI, Chennai.
 Focus Report was forwarded by MSME-DI, Chennai vide letter dated 30.05.19.
 Proposal was deliberated by Techno Economic Appraisal Committee (TEAC) in its
68th meetings held on 04.09.19 and recommended the same to place before Steering
Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Fabrication (Agricultural Implements) Cluster

District : Perambalur
Location of Cluster : Perambalur
Lok Sabha Constituency : Perambalur
Products Fabrication of Corn Thresher, Cultivators,Gauge Wheel,
Land Leveler, Multi Crop Thresher, Offset Disc Harrow
Ridger, Seed Drill, Two-wheel Tipping Trailer & Weeder
No. of Enterprises including 162 nos. (Micro –162 )
break up (Micro, Small,
Medium) :
Turnover for the last five years Year (Rs. in crore)
2013-14 : 7.30
2014-15 : 7.80
2015-16 : 8.20
2016-17 : 8.70
2017-18 : 9.27
Exports for the last five years Nil
Employment 453 Nos.
Technology Details : All the micro units have only the basic indigenous
machineries which are used in any fabrication work shop
viz., Lathe, Drilling Machine, Cutting Machine, Welding
Machine, Gas Cutting. They do not have latest technology
CNC machineries for cutting, bending, slotting etc. For
completing part of their jobs they approach bigger units at
Trichy, Salem or Coimbatore.
Whether DS Conducted : Yes
Main findings of DSR : All cluster units are micro in nature Their capacities are
very limited They do not have latest technology
machineries They outsource a major portion of their job The
units do not go for test certification Their market is mostly
within the neighboring districts and within Tamilnadu They
do not have own brand They find it difficult to compete
with organized big players
Main Problems of Cluster : Capacity at the unit level is very low No advanced
technology for various operations and for welding More
labour oriented. Cost of production at the unit level is high.
Stiff competition from organized big players Limited
62
 market segment Unable to supply to farmers availing
subsidy schemes for purchase
Other Information : -

2. Information about Proposed CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Justification for CFC There is a need to enhance the capacity --
of the micro players through
technology intervention. Investment in
latest technology machineries is
beyond the reach of micro players. The
micro units at present outsource a
portion of the work which increases
their cost. Establishment of CFC will
increase the capabilities of the micro
units, stop their dependency on bigger
units in other districts, reduce cost to a
great extent, increase their product
range and their market segment.
(b.) Location of CFC DP No. 82, SIDCO Industrial Estate, --
Elambalur, Perambalur District, PIN:
621220
% age of units in radius of 60 --
5km
% age of units in radius of 100 --
10km
(c.) Land for CFC
i. Whether land acquired Yes. Registered lease of
ii. Title is in name of SPV - Perambalur Fabrication India land document in
Private Limited the name of SPV
for a minimum
iii. Valuation and its basis Purchase Price + Registration & period of 30 years.
Incidental Expenses
iv. Land is sufficient Yes
v. Change of land use Industrial purpose - Located within
SIDCO Industrial Estate
vi. If on lease, duration of NA
lease
vii Whether lease is legally NA
tenable
(d.) Total Building area(sq ft) 14740 Sq. Ft. --
(e.) Rate of construction of Civil Rs. 360 per sq. ft. (excluding --
building GST) Fabrication Rs.450 per sq. ft.
(excluding GST)
(f.) Main Facility Proposed CNC Laser Cutting M/C, CNC Profile --
Cutting Press, Break Shearing, Sheet
Rolling, Pipe Bending, CNC Flat Bed
Lathe Radial Drilling, Lathe Bench
Grinder , Polishing Press 300 Tonn ,
Bandsaw Cutting, MIG Welding,
Hydraulic Press Power Press.
(g.) Prod capacity of CFC Different Machineries have different --
capacities.
(h.) Major Outputs/ S. Parameter Before After --
Deliverables of CFC, Projected No. Interv interv
63
Description Proposed by Implementation Agency Remarks
(IA)
performance of the cluster after entions entions
proposed intervention (in terms 1. Nos. of 490 520
of production, export/ domestic units
sales and direct/indirect (nos.)
employment, etc.) 2 Turnover 150.54 170.00
(Rs. in
crore)
3 Export -- --
(Rs. in
crore)
4 Employment3489 3800
(i.) Pollution clearance required No NOC from State
or not Pollution Control
Board is required.
(j.) Man Power in CFC 55 --
(k.) Revenue generation -- --
mechanism for sustainability of
assets(service/user charges to
be levied, any other-to be
specified)

3. Information about SPV

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Name and Address Perambalur Fabrication India Private --
Limited 5 A Vivekanandar Street,
Perambalur Post, Perambalur 621212
(b.) Nature of SPV(company Private Limited Company --
or Society or Trust)
(c.) Name of the state Govt. Yet to be nominated by State Govt. and --
and MSME officials in SPV MSME-DI.
(d.) Date of formation of SPV 08-09-2017 --
(e.) Number of Members 26 --
(f.) Bye Laws or MA and AOA MOA and AOA enclosed as Annexure. --
submitted
(g.) Authorized Share Capital Rs. 40.00 lakh --
(h.) Paid up capital Rs. 12.00 lakh
(i.) Shareholding Pattern Given --
(j.) Commitment letter for -- --
contribution
(k.) SPV specific A/c Current Account No. --
360802000000051 with Indian
Overseas Bank, SME Branch,
Perambalur.
(l.) Trust Building of SPV, Awareness programme on Cluster --
Previous track record of co- Development conducted by MSME-DI,
operative initiatives pursued by Chennai. Members of the Cluster
SPV members need to be visited the CFC at Engineering Cluster,
highlighted with support Paramakudi and Steel Cluster, Salem.
documentation After several meeting among the
members, they formed the SPV. Out of
the 92 members in the clusters, 26
members have joined and contributed

64
Description Proposed by Implementation Agency Remarks
(IA)
for the capital of SPV.
(m.) Technical Institution Rover Engineering College, Elambalur --
(n.) CFC may be utilised by Commitment letter from SPV enclosed --
SPV members as also others in as Annexure.
a cluster. However, evidence
should be furnished with
regard to SPV member ability
to utilise at least 60 percent of
installed capacity.
(o.)
(a) Power requirement for 278.90 KW --
commercial/domestic
purpose
(b) Water Only for Civic purposes --
(c) Gas/Oil/Other Utilities Nitrogen Gas 18 Cylinders (20 Kg) per --
month Welding Rod 600 meters per
month

4. Implement Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency TANSIDCO, Chennai --
(b.) Fund receiving Agency TANSIDCO, Chennai --
(c.) Implementation Period 15 Months from date of receipt of Final As per guidelines.
approval.
(d.) Appraisal of DPR and - SIDBI Appraisal
main Recommendations Report is
required
(e.) Comments of Technical - --
Division
(f.) Approval of Technical - TEAC
Committee recommended the
proposal
(g.) Comments of Cluster - --
Development Division:
(h.) Working capital(In- Rs. 15 lacs proposed for the first year of --
principle sanction of loan from operation
a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) BEP 50.56% --
(b.) IRR, Payback period 13.70%, 6 years --
(c.) DSCR 25.35 --
(d.) Return on Capital 27.12% --
employed (ROCE)
(e.) NPV Rs. 195.30 lacs --

65
Description Proposed by Implementation Agency Remarks
(IA)
(f.) DER 0.32 --
(g.) Sensitivity Analysis With 5% drop in the Income of the --
CFC, IRR will be 11.72% and DSCR
will be 20.83
(h.) Status of CFCs approved - --
in the State

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Amount
1. Land 17.00
2. Building 140.81
3. Plant & Machinery (including electrification) 975.00
4. Misc. fixed assets 5.00
5. Preliminary & Pre-operative expenses 24.30
6. Contingencies (2% on building and 5% on plant and machinery) 51.57
7. Margin money for working capital 5.00
Total 1218.68

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars %age Amount
1 Grant-in-aid from Govt. of India 78.20 953.05
2 Grant-in-aid from Govt. of Tamil Nadu 8.20 100.00
3 SPV contribution 10.31 125.63
4 Bank loan 3.29 40.00
Total 100.00 1218.68

8. Plant and machinery (with Brief Specification)

(Rs. in lakh)
S. No. Description No. Power Requirement Cost
(HP/KW)
1. Stainless Steel Laser Cutting Machine 1 32.8 384.00
with Auto Pallet Changer
2. CNC Profile Cutting & Drilling 1 17.5 79.95
Machine
3. CNC PRESS BRAKE 110/3200 1 16.2 65.00
4. SHEARING MACHINE 1 24.0 28.95
5. SHEET ROLLING MACHINE 1 22.8 49.95
6. CNC PIPE BENDING MACHINE 1 12.8 49.95
7. CNC FLAT BED LATHE MACHINE 1 13.5 37.90
8. CNC LATHE MACHINE 1 8.5 19.91
9. Radial Drilling Machine 1 8.8 14.00
10. ALL GEARED LATHE MACHINE 1 6.0 7.95
11. BENCH GRINDER AND 1 2.5 4.99
POLISHING MACHINE

66
S. No. Description No. Power Requirement Cost
(HP/KW)
12. PRESS-300 TON 1 28.0 14.99
13. SLOTTING MACHINE 1 5.0 17.99
14. CNC Bandsaw Cutting Machine 1 2.2 10.00
15. MIG WELDING-400 Amps 2 8.00 4.90
16. MIG WELDING-600 Amps 2 10.00 5.00
17. HYDRAULIC PRESS MACHINE 1 10.00 5.00
18. MAGNET DRILLING MACHINE 1 1.0 1.71
19. NOTCHING MACHINE 1 5.0 8.00
20. POWER PRESS MACHINE 1 14.00 5.00
21. AIR-COMPRESSOR 1 7.5 9.90
22. DG SET-125 KVA 2 - 25.81
23. EOT- CRANE-10 TON 1 22.8 35.00
24. 500 KVA TRANSFORMER 1 - 14.95
25. GAUGE ROOM TESTING 1 - 7.74
EQUIPMENTS WITH A/C
26. ELECTRICAL INSTALLATIONS 1 - 66.46
Total 975.00

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) Registered land document in the name of SPV for a minimum period of 30 years.
(ii) SIDBI Appraisal Report.
(iii) NOC from State Pollution Control Board.
(iv) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(v) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be
(vi) Certificate from State Government for compliance of GFR/ CVC guidelines.
(vii) Commitment letter from SPV members to utilize at least 60% of installed
capacity.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up Common
Facility Centre (CFC) in Fabrication (Agricultural Implements) Cluster, Perambalur, Tamil
Nadu.

*********

67
Agenda No. 51.3.38 (S): Proposal for In-principle approval for setting up Common
Facility Centre (CFC) in Print and Pack Products Cluster,
Hosur, Krishnagiri, Tamil Nadu.
Background

 The proposal was recommended by State Level Project Steering Committee in its
meeting held on 03.09.18.
 Proposal was received from Government of Tamil Nadu vide online ref. No. 13407
dated 17.09.18 & recommended by MSME-DI, Chennai.
 Focus Report was forwarded by MSME-DI, Chennai vide letter dated 30.05.19.
 Proposal was deliberated by Techno Economic Appraisal Committee (TEAC) in its
68th meetings held on 04.09.19 and recommended the same to place before Steering
Committee for In-principle approval.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Print and Pack Products Cluster

District : Krishnagiri
Location of Cluster : Hosur
Lok Sabha Constituency : Krishnagiri
Main Products Cards Greeting, Visiting, Invitation Cards, Annual Report,
Newslette, Labels, Brochure, Catalogue, Flyers, Mono Carton
Boxes Diaries, Calendars, Books, Magazines, Letter Heads,
Memo Pads, Envelopes etc
No. of Enterprises 490 nos. (Micro –426 & Small - 64)
including break up
(Micro, Small, Medium) :
Turnover for the last five Year (Rs. in crore)
years 2012-13 : 112.64
2013-14 : 121.12
2014-15 : 130.24
2015-16 : 140.04
2016-17 : 150.54
Exports for the last five Nil
years
Employment in Cluster : 3489 (Direct - 2774 Indirect - 715)
Technology Details : Most of the cluster units have only outdated /second hand mini
offset machines.
Whether DS Conducted : Yes
Main findings of DSR : Most of the units have only mini offset machines (second hand &
old) and none of the micro and small units have multi-colour
offset machine with latest technology. The production technology
in the offset and screen printing are out dated. DTP units do not
have latest softwares. Investment for multi-colour offset machine,
CTP, foiling machine etc., at the unit level requires huge
investment which the micro and small players cannot afford There
is huge untapped market potential within Hosur for printing as
well as paper board packaging products. Medium-sized
companies having multi-colour offset machine in the adjacent
state compete with the micro units of the cluster posing threat to
survival to these micro units.
Main Problems of Cluster  Outdated technology & second-hand offset machines with the
: micro units.
68
  Non-availability of multi-colour offset machine with the
cluster units which is beyond their reach.
 Tough competition from medium size units from Bangalore.
 Low productivity of old machines and increasing cost of
operation.
 Most of the units procure raw materials and consumables
locally from traders, resulting in high input costs.
 Poor market penetration due to stiff competition.
Other Information : -

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC  Presently the Micro players do not have the --
5 colour printing technology which is a
barrier preventing them to execute high
end printing.
 Need for latest technology machine which
is beyond the reach of the micro players.
 There is a huge untapped market within
Hosur for both printing and paper board
packaging products.
 Installation of Die Punching Machine,
Foiling, lamination and box pasting facility
at the CFC along with the Multi-colour
offset machine would enable the cluster
members to undertake more mono carton
boxes orders from more than 50 industrial
clients at Hosur.
(b.) Location of CFC Survey No. 448/2A3, (Extent Acre. 0.47 Cents) --
Achettipalli Village, Hosur Taluk,
Kelamangalam Sub Registration District,
Krishnagiri Registration District.
% age of units in radius 60 --
of 5km
% age of units in radius 90 --
of 10km
(c.) Land for CFC
i. Whether land Yes --
acquired
ii. Title is in name of SPV-M/s Hosur Cluster Pack Prints Private
Limited
iii. Valuation and its Purchase Price plus registration and stamp
basis charges.
iv. Land is sufficient Yes
v. Change of land use Applied
vi. If on lease, duration NA
of lease
vii Whether lease is NA
legally tenable
(d.) Total Building 7700 sq. ft. (6000 sq. ft. + Mezzine Floor 1700 --
area(sq ft) sq. ft.)
(e.) Rate of construction Rs.922/ - sq. ft. --
of building
(f.) Main Facility  Multi-Colour Offset Printing (5 Colour + --
Proposed Coating) Facility
 Plate making Facility Foiling Facility
69
Description Proposed by Implementation Agency (IA) Remarks
 Lamination Facility
 Die Punching Facility (for paper board box
making)
 Box Pasting Facility Cover Punching &
Pasting Facility
 UV Screen Printing Facility
(g.) Prod capacity of CFC Offset Machine 13000 prints / hour The --
capacities of other machines are variable,
depending upon the job size.
(h.) Major Outputs/ Sl. Parameter Before After --
Deliverables of CFC, No. intervention Intervention
Projected performance of 1. Nos. of 490 520
the cluster after proposed units (nos.)
intervention (in terms of 2 Turnover 150.54 170.00
production, export/ (Rs. in
domestic sales and crore)
direct/indirect 3 Employment 3489 3800
employment, etc.)
(i.) Pollution clearance No. Consent to establish to be obtained by NOC from State
required or not SPV. Pollution
Control Board
is required.
(j.) Man Power in CFC 33 (Factory 26 / Admin 7) --
(k.) Revenue generation 5 Colour Offset Printing Machine with Coater --
mechanism for & Plate setter Machine Rs.5000/- First 1000
sustainability of copies printing including plate making cost
assets(service/user Rs.650/- For every subsequent 1000 copies or
charges to be levied, any part. Rs.1000/- for Additional coating for 1000
other-to be specified) copies Die Punching (Automatic) Machine
Rs.3500 for 10000 copies Die Punching
(Manual) Machine Rs.350 for 1000 copies
Foiling Machine 0.05 paise / sq. inch
Lamination Machine Rs.2500 for 1000 copies
UV -Screen Printing Machine Rs.3500 per job
Box Pasting Machine Rs.300 for 1000 Nos
Cover Punching & Pasting Machine Rs.300 for
1000 Nos Case Making Machine Rs.2500 for
1000 cases

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address M/s Hosur Cluster Pack Prints Private Limited --
36/D, SHANTHI NAGAR,, 1ST STREET,,
HOSUR, Krishnagiri, Tamil Nadu, India,
635109
(b.) Nature of Private Limited Company --
SPV(company or Society
or Trust)
(c.) Name of the state Provisions made in the AOA for inclusion of --
Govt. and MSME State Govt. and MSME officials in SPV. Yet to
officials in SPV be appointed by State Government and MSME-
DI, Chennai
(d.) Date of formation of 15.02.2017 --
SPV
(e.) Number of Members 32 --
(f.) Bye Laws or MA and MOA and AOA enclosed as Annexure --
AOA submitted
70
Description Proposed by Implementation Agency (IA) Remarks
(g.) Authorized Share Rs.150.00 lacs --
Capital
(h.) Paid up capital Rs.75.65 lacs --
(i.) Shareholding Pattern Shareholding pattern enclosed as Annexure --
(j.) Commitment letter for Commitment letter for contribution by SPV --
contribution enclosed as Annexure
(k.) SPV specific A/c Current Account No. 6506936327 with Indian --
Bank, NGGO Colony, Hosur
(l.) Trust Building of The SPV members are all members of their --
SPV, Previous track industry association, Hosur Achchaga
record of co-operative Urimaiyalargal Sangam. It is a registered
initiatives pursued by society registered in the year 2005. As on date
SPV members need to be it has 125 members. The Association has been
highlighted with support educating their members on various aspects of
documentation printing and packaging through workshops and
seminars. The association regularly conducts
various training programmes for their members
to enhance their knowledge on the latest
technological developments in the printing
industry. During the last two years the
association has conducted number of
programmes for the members of the association
and their members have also visited various
print and pack exhibitions. Details of Trust
Building Activities during last 2 years is
enclosed as Annexure.
(m.) Technical Institution - --
(n.) CFC may be utilised Commitment letter for utilisation by SPV --
by SPV members as also enclosed as Annexure.
others in a cluster.
However, evidence should
be furnished with regard
to SPV member ability to
utilise at least 60 percent
of installed capacity.
(o.)
(a) Power requirement 170 KW --
for
commercial/domestic
purpose
(b) Water 2000 liters / Day Civic Purposes --
(c) Gas/Oil/Other Diesel 200 liters per month --
Utilities
4. Implement Arrangements
Description Proposed by Implementation Agency (IA) Remarks
(a.) Implementing Agency TANSIDCO, Chennai --
(b.) Fund receiving TANSIDCO, Chennai --
Agency
(c.) Implementation 24 Months As per
Period guidelines.
(d.) Appraisal of DPR and - SIDBI
main Recommendations Appraisal
Report is
required
(e.) Comments of - --
71
Description Proposed by Implementation Agency (IA) Remarks
Technical Division
(f.) Approval of Technical - TEAC
Committee recommended
the proposal
(g.) Comments of Cluster - --
Development Division:
(h.) Working capital(In- - --
principle sanction of loan
from a bank, if applicable
arrangement made)
5. Financial Analysis of CFC
Description Proposed by Implementation Agency (IA) Remarks
(a.) BEP 50.63% --
(b.) IRR, Payback period 12.37%, 6 years --
(c.) DSCR NA. No Term Loan --
(d.) Return on Capital 28.62% --
employed (ROCE)
(e.) NPV Rs.152.19 Lacs --
(f.) DER 0.01 --
(g.) Sensitivity Analysis With 5% drop in User Charges Income, IRR --
10.51% and NPV Rs.31.91 Lacs
(h.) Status of CFCs - --
approved in the State
6. Proposed Project Cost:
(Rs. in lakh)
S. No. Particulars Amount
1. Land 68.00
2. Building 79.00
3. Plant & Machinery (including electrification) 1151.18
4. Misc. fixed assets 5.00
5. Preliminary & Pre-operative expenses 27.90
6. Contingencies (2% on building and 5% on plant and machinery) 59.14
7. Margin money for working capital 5.00
Total 1395.22
7. Proposed means of finance:
(Rs. in lakh)
S. No. Particulars %age Amount
1 Grant-in-aid from Govt. of India 81.94 1143.22
2 Grant-in-aid from Govt. of Tamil Nadu 7.16 100.00
3 SPV contribution 10.90 152.00
Total 100.00 1395.22
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. Description No. Power Cost
No. Requirement
(HP/KW)
1. Five Colour Offset Machine 1 85.00 767.68
2. Kodak Trendsetter Q800 – X SPEED- 1 2.25 98.50
Platesetter

72
 S. Description No. Power Cost
No. Requirement
(HP/KW)
3. Automatic Programmable Paper Cutting 1 4.85 50.82
Machine
4. Automatic Die Punching Machine 1 10.50 39.88
5. Automatic Foil Stamping & Die Cutting 1 8.00 47.19
Machine
6. Auto Folder Gluer Machine for Lock Bottom 1 8.60 25.59
with Side Pasting Application
7. Fully Automatic Envelope & Red Packet 1 4..50 16.20
Forming Machine
8. UV Screen Nano Print Plus Unit 1 2.25 21.94
9. Heavy Duty Die Punching Embossing & 1 2.25 7.26
Creasing Machine
10. Thermal Lamination Machine 1 6.00 6.96
11. Case Making Unit 1 3.00 10.29
12. Single Clamp Perfect Book Binding 21― 1 2.25 6.30
Machine
13. Semi-Automatic Strapping Machine VPS 306 1 0.20 0.43
HD
14. Acer Veriton Desktop Computer 10 2.00 4.22
15. Acer 18.5 LED Monitor 10 0.20 0.74
16. DELL Poweredge Server 1 0.75 0.76
17. Genset - 160 kvA, 3 Phase 415 Volts 50 Hz 1 - 8.46
18. Online UPS 10KVA 1 - 4.62
19. 11.0 Ton Ductable Air Conditioner 2 26.40 13.07
20. Hydraulic Hand Pallet 1 - 0.27
21. Electrical Installations 1 - 20.00
Total 1151.18

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI Appraisal Report.

(ii) NOC from State Pollution Control Board.
(iii) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(iv) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be
(v) Certificate from State Government for compliance of GFR/ CVC guidelines.
(vi) Commitment letter from SPV members to utilize at least 60% of installed
capacity.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up Common
Facility Centre (CFC) in Print and Pack Products Cluster, Hosur, Krishnagiri, Tamil Nadu.

*********
73
Agenda No. 51.3.39 (S): Proposal for In-principle approval for setting up Common
Facility Centre (CFC) in Weaving Cluster, Erode, Tamil Nadu.
Background

 The proposal was recommended by State Level Project Steering Committee in its
meeting held on 03.09.18.
 Proposal was received from Government of Tamil Nadu vide online ref. No. 13407
dated 17.09.18 & recommended by MSME-DI, Chennai.
 Focus Report was forwarded by MSME-DI, Chennai vide letter dated 30.05.19.
 Proposal was deliberated by Techno Economic Appraisal Committee (TEAC) in its
68th meetings held on 04.09.19 and recommended the same to place before Steering
Committee for In-principle approval.

1. Basic Information of Cluster

Name of Cluster : Weaving Cluster

District : Erode
Location of Cluster : Erode
Lok Sabha Constituency : Erode
Main Product : Shirting, Suiting, Wider width fabrics
No. of Enterprises including 2290 nos. (Micro –1500, Small -700 & Medium - 90)
break up (Micro, Small,
Medium) :
Turnover for the last five years Year : Rs. in crore
2013-14 : 5500.00
2014-15 : 6100.00
2015-16 : 6400.00
2016-17 : 6800.00
2016-17 : 7000.00
Exports for the last five years : Year : Rs. in crore
2013-14 : 3025.00
2014-15 : 3172.00
2015-16 : 3200.00
2016-17 : 3264.00
2016-17 : 3150.00
Employment in Cluster : 25000 Nos. (Direct – 10000 & Indirect – 15000)
Technology Details : Size of Cluster and Type of Units: The cluster has around
18000 shuttleless looms comprising of Air jet, Rapier and
Projectile type looms. The sector is highly decentralized
with most of the operators/owners have 2 to3 looms. The
major products woven are of narrow and wider width
fabrics such as bed linen, shirting, suiting towels, etc for
domestic and export markets. The growth of shuttleless
looms is increasing by 5 to 10 percentage YoY basis due to
the operational difficulties and low market demand for
conventional power looms. Weaving preparatory i.e.
warping and sizing which forms a part of weaving also has
presence in the cluster. There are about 120 warping and
sizing units in the cluster, of this only 40 are modern units
capable of catering to shuttleless looms. Only 5 to 10 units
are stand alone units undertaking job work for small
shuttleless units.
Whether DS Conducted : Yes
Main findings of DSR : Key Concern Areas of Cluster: Shortage for quality sized
yarn required by Modern shuttleless looms, especially Air

74
 Jet Looms running at high speeds of 1200 RPM. The yarns
sized using local machines can be operated on the Air jet
looms at a maximum of 700 RPM only. Due to higher
investment only, corporate companies have modern sizing
machines for their captive consumption as small weavers
owning less number of shuttleless looms dont have enough
facility to source size yarn. Conventional and local sizing
machines are limited to counts upto 80s Ne and warp ends
upto 8000 and length of 2000 mts mostly suitable for power
loom or narrow width looms, whereas shuttleless looms are
mostly wider width that requires 9000 to 12000 ends of
4000 mts length which is possible only in modern sizing
machines. Social Benefits: Improvement in working
environment. Improvement in skill set of workers. Impact
on wages and other emoluments due to increase in
production and productivity. Improvement in warp behavior
tends to increase the loom speed by 30 percentage which in
turn increase the over loom productivity. Environment
benefit such as reduction in flies that emanates from warp
yarn due to improper sizing. Encourage weavers to adopt
modern weaving technologies such as rapier and Airjet
looms instead of conventional shuttle looms. The total
shuttleless loom weaving community will be benefited
directly due to the improvement in behavior of warping that
improves the overall performance in terms of speed, end
breaks, quality etc.
Main Problems of Cluster : There are about 120 warping and sizing units in the cluster,
of this only 40 are modern units capable of catering to
shuttleless looms. Only 5 to 10 units are stand alone units
undertaking job work for small shuttleless units. Shortage
for quality sized yarn required by Modern shuttleless looms,
especially Air Jet Looms running at high speeds of 1200
RPM. Conventional and local sizing machines are limited to
counts upto 80s Ne and warp ends upto 8000 and length of
2000 mts mostly suitable for power loom or narrow width
looms, whereas shuttleless looms are mostly wider width
that requires 9000 to 12000 ends of 4000 mts length which
is possible only in modern sizing machines.
Other Information : --

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC High speed warping and sizing. Controlled yarn --
elongation. Better size pick up that improves
weaving performance and gives more strength to
warp ends. Electronically controlled machines
provide an opportunity for standardization in size
pick and drying of sized yearn depending upon
count and material used by which sizing cost can
be optimized. Increase in Production and
productivity. Improved warp beam performance in
weaving ends up in increased production and
productivity in loom shed. 1 set of weaving
preparatory (2 warping and 1 sizing) tends to cater
more number of shuttleless looms. Technically the
uniformity in warp weight per linear meter has
increased. High flexibility and no limitation in
processing more number of ends and length in
beam. More length of warp will give more length
of fabric without any cuts. Over all weaving
performance in terms of production & productivity
will improve by nearly 25 to 35 percentage as well
75
Description Proposed by Implementation Agency (IA) Remarks
as quality as it creates more opportunities for
increase in exports.
(b.) Location of CFC S.F. No -163pt, 166pt, 177pt, Plot No. A-2, --
SIPCOT Industrial Growth Centre, Perundurai,
Erode District, Tamil Nadu
% age of units in radius 25 --
of 5km
% age of units in radius 75 --
of 10km
(c.) Land for CFC
i. Whether land Yes Received
acquired
ii. Title is in name of SPV on Lease Land in SIPCOT
iii. Valuation and its 83.87 lakhs from SIPCOT LAND (Cost
basis contributed by SPV and not included in Project
Cost)
iv. Land is sufficient Yes
v. Change of land use Industrial Land in SIPCOT
vi. If on lease, duration 99 Years From 26.02.2018
of lease
vii Whether lease is Yes
legally tenable
(d.) Total Building area(sq 56595.41 --
ft)
(e.) Rate of construction of 431.26 lakhs --
building
(f.) Main Facility Proposed Yarn Sizing and Warping --
(g.) Prod capacity of CFC 7500 Kg (120000 Mts/day) of sized yarn per day --
(h.) Major Outputs/ Sl. Parameter Before After --
Deliverables of CFC, No. intervention Intervention
Projected performance of 1. Nos. of units 2290 3050
the cluster after proposed (nos.)
intervention (in terms of 2 Turnover 5500 6000
production, export/ (Rs. in crore)
domestic sales and direct/ 3 Export (Rs. 3025 3100
indirect employment, etc.) in crore)
4 Employment 25000 26250
(i.) Pollution clearance SIPCOT Land NOC from
required or not State
Pollution
Control
Board is
required.
(j.) Man Power in CFC 74 Nos --
(k.) Revenue generation Service and Job Work --
mechanism for
sustainability of assets
(service/user charges to be
levied, any other-to be
specified)
3. Information about SPV

Description Proposed by Implementation Agency Remarks

(IA)
76
Description Proposed by Implementation Agency Remarks
(IA)
(a.) Name and Address Erode Sizing Common Facility Centre --
Private Limited Saraswathi Enclave,
No.374/5, M.C. Road, Perundurai 638
052, Erode, Tamil Nadu.
(b.) Nature of SPV (company Company --
or Society or Trust)
(c.) Name of the state Govt. MSME, Tamil Nadu --
and MSME officials in SPV
(d.) Date of formation of SPV 21 November 2017 --
(e.) Number of Members 29 --
(f.) Bye Laws or MA and AOA Yes --
submitted
(g.) Authorized Share Capital Rs.500000.00 --
(h.) Paid up capital -
(i.) Shareholding Pattern Given ---
(j.) Commitment letter for Yes Required
contribution
(k.) SPV specific A/c Indian Overseas Bank Account - --
002502000014775 Erode Main branch
(l.) Trust Building of SPV, - --
Previous track record of co-
operative initiatives pursued by
SPV members need to be
highlighted with support
documentation
(m.) Technical Institution South India Textile Research Association --
(SITRA) Southern India Mills'
Association (SIMA) Powerloom
Development & Export Promotion
Council (PDEXCIL) Tiruppur Exporters
Association (TEA)
(n.) CFC may be utilised by Yes Required
SPV members as also others in
a cluster. However, evidence
should be furnished with
regard to SPV member ability
to utilise at least 60 percent of
installed capacity.
(o.)
(a) Power requirement for 114.77 KW --
commercial/domestic
purpose
(b) Water 29 KL --
(c) Gas/Oil/Other Utilities - --

4. Implement Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency TANSIDCO, Chennai --
(b.) Fund receiving Agency TANSIDCO, Chennai --
(c.) Implementation Period 24 Months As per guidelines.

77
Description Proposed by Implementation Agency Remarks
(IA)
(d.) Appraisal of DPR and Appraisal will be conducted post In- SIDBI Appraisal
main Recommendations principle approval. Report is
required
(e.) Comments of Technical - --
Division
(f.) Approval of Technical - TEAC
Committee recommended the
proposal
(g.) Comments of Cluster - --
Development Division:
(h.) Working capital(In- - --
principle sanction of loan
from a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) BEP 56.70 --
(b.) IRR, Payback period 12.50% --
(c.) DSCR NA --
(d.) Return on Capital 26% --
employed (ROCE)
(e.) NPV 253.76 --
(f.) DER - --
(g.) Sensitivity Analysis S. Financial IRR BEP NPV(Rs. --
No. Indicators (%) (%) in lakh)
1 Base Case 12.5 56.70 253.76
2 5% Drop 11.2 60.20 114.34
in
Revenue
3 10% Drop 10.3 62.50 28.65
in
Utilization
(h.) Status of CFCs - --
approved in the State

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Total Project
Cost
1. Land 19.54
2. Building 431.26
3. Plant & Machinery (including electrification) 1200.33
4. Misc. fixed assets 8.00
5. Preliminary & Pre-operative expenses 186.50
6. Contingencies (2% on building and 5% on plant and machinery) 22.45
7. Margin money for working capital 0.00
Total 1868.08

7. Proposed Means of Finance

(Rs. in lakh)
S. No. Particulars Percentage Amount

78
 1 Grant-in-aid from Govt. of India 56.20 1050.00
2 Grant-in-aid from Govt. of Tamil Nadu 5.36 100.00
3 SPV contribution 38.44 718.08
Total 100.00 1868.08

8. Plant and machinery (with Brief Specification)

S. No Particulars Total
1 Warping & Sizing 880.98
2 Cone Winder 8.65
3 Boilers 92.64
4 Starch Preparation 19.27
5 Humidification Plant 5.00
6 Crane Trolley, Beams, material handling etc 65.86
7 ETP and RO 17.67
8 Steam hood, split ends hood 21.02
9 Weighing Scale 5.56
10 Compressor 6.09
Total 1122.74

9. Observations:

Following documents are required to be submitted prior to final approval:

(i) SIDBI Appraisal Report.

(ii) NOC from State Pollution Control Board.
(iii) Commitment letter from SPV for their contribution.
(iv) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.
(v) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(vi) Certificate from State Government that more than 50% units in the cluster are
Micro / SC/ST / Women Enterprises, as the case may be
(vii) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up Common
Facility Centre (CFC) in Weaving Cluster, Erode, Tamil Nadu.

*********

79
Agenda No. 51.3.40 (S): Proposal for In-principle approval for setting up New
Industrial Estate at Kurukalpatti, Tirunelveli, Tamil Nadu.

Background

 The proposal was recommended by State Level Steering Committee (SLSC) of

Government of Tamil Nadu in its meeting held on 14.12.17.
 Proposal along with Detailed Project Report was forwarded by Government of Tamil
Nadu vide letter dated 10.06.19.
 Proposal was received from Tamilnadu Small Industries Development Corporation
Limited, Chennai vide application ref. No. 13166 dated 05.06.18 & recommended by
MSME-DI, Chennai.
 MSME-DI, Chennai vide letter dated 21.06.19 forwarded the proposal along with
their recommendations.

Details of the proposal are as under:

Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation

Ltd
State : Tamil Nadu
District : Tirunelveli
Industrial Estate : New Industrial Estate at Kurukalpatti, Tirunelveli
District

2. Basic Information about Proposal:

Particulars Description
Whether appraised DPR with approved No
layout plan
Total Area of industrial estate/ area 68.80 acres
(acre)
Area to be developed (acre) 37.40 acres
Number and sizes of plots to be 88 Nos.
developed Area (in acres) No. of plots
0.10 to 0.15 acre 45
0.16 to 0.25 32
0.26 to 50.00 11
Total 88
Implementing Period 24 months
Other ID projects sanctioned in same Nil
district: year of sanction, number of
plots allotted, units set up, etc.
Performance of ID projects in State Total ID projects - 18, completed 16, under process -
2, Total unit functioning - 2942

80
3. Details about Proposal:

Description Proposal by Implementing Agency (IA) Remarks

Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP
Development Corporation Ltd (SIDCO) guidelines.
Track Record of the IA IA has so far implemented --
Appraisal by SIDBI Attached Required
(Observations and
recommendations). Attach
SIDBI report.
Whether sufficient facilities Yes --
available at site. (Proximity
to railway stations / state
highways, availability of
water supply, adequate
power supply, telecom
facilities, dwelling places
of workers)
Whether land is in Yes Document
possession in the name of required.
IA with Clear Title
Whether Zoning Yes
regulations and non-
agricultural conversion etc
complied with):
Whether State Level Yes Required.
Committee to coordinate
and monitor progress has
been Constituted :
Whether confirmation Yes Required
received form IA that it will
meet the cost in excess of
approved project cost and
any escalation in cost :
Basis of elements of project As per Public Works Department, Govt.
Cost : of Tamil Nadu schedule of rate for 2017-
18.
Tangible Outcomes of the TANSIDCO has indicated that the 88 --
project units which will operate will be able to
create direct employment of around 1000
persons and indirect employment of
around 1500 persons.
Justification of the Proposal The proposal is justifies as it will satisfy --
the space requirement of MSMEs in that
area and also generate employment to
local people.

4. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Estimated by IA
(i) Land filling/levelling including boundary wall and 50.00
fencing:
(ii) Laying roads 200.00
(iii) Road side greenery & social forestry 10.00
(iv) Water supply including overhead tanks, and pump 54.00

81
 S. No. Particulars Estimated by IA
houses
(v) Water harvesting 5.00
(vi) Drainage 60.00
(vii) Power distribution, Street light arrangements, etc. 48.00
(viii) Road side greenery 0.00
(ix) Administrative and Other Services Complex 20.00
(x) Telecom/Cyber/Documentation centre 0.00
(xi) Conference Hall/Exhibition centre 25.00
(xii) Bank/Post office 20.00
(xiii) Raw material storage facility, Marketing outlets 40.00
(xiv) First aid centre, Creche Canteen 20.00
(xv) Effluent Treatment Facilities 0.00
(xvi) Contingencies & Pre operative expenses : 20.00
(xvii) Other (GST 18%): 117.00
Total 689.00

5. Proposed means of finance:

S. No. Particulars Proposed by IA

(i) GoI Grant under MSE-CDP: 413.40
(ii) State Government / TANSIDCO, Chennai 275.60
Total 689.00

6. Observations:

Following documents are required to be submitted prior to final approval:

(i) Land documents in the name of Implementing Agency.

(ii) Copy of approved Layout plan.
(iii) Constituted for State Level Committee to coordinate and monitor progress
(iv) SIDBI Appraisal Report.
(v) Commitment letter from State Government / IA to meet the escalation cost, if
any, over and above the approved project cost.
(vi) Certificate from State Government for compliance of GFR/CVC guidelines.
(vii) TANSIDCO, Chennai should consider laying of roads with Cement Concrete in
place of Bituminous and proper drainages built in a professional manner to serve
the purpose for relatively longer period of time. The additional cost on this
account shall be borne by the Government of Tamil Nadu / TANSIDCO, Chennai
(viii) Undertaking from Implementing Agency regarding basis of estimates of
component Costs.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval setting up New Industrial
Estate at Kurukalpatti, Tirunelveli, Tamil Nadu.

*****

82
Agenda No. 51.3.41 (S): Proposal for In-principle approval for setting up New
Industrial Estate at Perundurai, Erode District, Tamil Nadu.

Background

 The proposal was recommended by State Level Steering Committee (SLSC) of

Government of Tamil Nadu in its meeting held on 14.12.17.
 Proposal along with Detailed Project Report was forwarded by Government of Tamil
Nadu vide letter dated 06.05.19.
 Proposal was received from Tamilnadu Small Industries Development Corporation
Limited, Chennai vide application ref. No. 13837 dated 07.01.19 & recommended by
MSME-DI, Chennai.
 MSME-DI, Chennai vide letter dated 21.06.19 forwarded the proposal along with
their recommendations.

Details of the proposal are as under:

Pre-registration Information

Name of Organization : Tamilnadu Small Industries Development Corporation

Ltd
State : Tamil Nadu
District : Erode
Industrial Estate : New Industrial Estate at Kurukalpatti, Tirunelveli
District

2. Basic Information about Proposal:

Particulars Description
Whether appraised DPR with approved Yes
layout plan
Total Area of industrial estate/ area 49.465
(acre)
Area to be developed (acre) 49.465
Number and sizes of plots to be 85
developed Area (sq. mtr.) No. of plots
Up to 0.25 50
0.25 to 0.5 20
0.50 to 1.00 15
Total 85
Implementing Period 24 Months
Other ID projects sanctioned in same Upgradation of Existing Industrial Estate
district: year of sanction, number of Nanjaiuthukuli, Erode Dist. The project has been
plots allotted, units set up, etc. approved by Steering Committee, Govt. of India held
on 12.11.2018
Performance of ID projects in State Total ID project of creation of Industrial estate- 18
completed - 16, under process-2 and ongoing project
-4

83
3. Details about Proposal:

Description Proposal by Implementing Agency (IA) Remarks

Implementing Agency (IA): Tamil Nadu Small Industries As per MSE-CDP
Development Corporation (TANSIDCO) guidelines.
Track Record of the IA IA has so far implemented --
Appraisal by SIDBI Yes Required
(Observations and
recommendations). Attach
SIDBI report.
Whether sufficient facilities Yes --
available at site. (Proximity
to railway stations / state
highways, availability of
water supply, adequate
power supply, telecom
facilities, dwelling places
of workers)
Whether land is in Yes Document
possession in the name of required.
IA with Clear Title
Whether Zoning Yes
regulations and non-
agricultural conversion etc
complied with):
Whether State Level Yes Required.
Committee to coordinate
and monitor progress has
been Constituted :
Whether confirmation Yes Required
received form IA that it will
meet the cost in excess of
approved project cost and
any escalation in cost :
Basis of elements of project As per Public Works Department, Govt.
Cost : of Tamil Nadu schedule of rate for 2017-
18
Tangible Outcomes of the TANSIDCO has indicated that the 85 --
project plots which will operate will be able to
create direct employment of around 2000
person and indirect employment of around
5000 persons
Justification of the Proposal The proposal is justifies as it will satisfy --
the space requirement of MSMEs in that
area and also generate employments to
local people

4. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Estimated by IA
(i) Land filling/leveling including boundary wall and 17.00
fencing:
(ii) Laying roads 154.00
(iii) Road side greenery & social forestry 0.00
(iv) Water supply including overhead tanks, and pump 13.00

84
 S. No. Particulars Estimated by IA
houses
(v) Water harvesting 2.00
(vi) Drainage 60.00
(vii) Power distribution, Street light arrangements, etc. 26.00
(viii) Road side greenery 3.00
(ix) Administrative and Other Services Complex 0.00
(x) Telecom/Cyber/Documentation centre 0.00
(xi) Conference Hall/Exhibition centre 0.00
(xii) Bank/Post office 0.00
(xiii) Raw material storage facility,Marketing outlets 0.00
(xiv) First aid centre,Creche Canteen 0.00
(xv) Effluent Treatment Facilities 0.00
(xvi) Contingencies & Pre operative expenses : 19.00
(xvii) Other (nil): 0.00
(xviii) GST @ 18% 60.00
Total 354.00

5. Proposed means of finance:

S. No. Particulars Proposed by IA

(i) GoI Grant under MSE-CDP: 212.40
(ii) State Government / TANSIDCO Chennai 141.60
Total 354.00

6. Observations:

Following documents are required to be submitted prior to final approval:

(i) Land documents in the name of Implementing Agency.

(ii) Copy of approved Layout plan.
(iii) Constituted for State Level Committee to coordinate and monitor progress
(iv) SIDBI Appraisal Report.
(v) Commitment letter from State Government / IA to meet the escalation cost, if any,
over and above the approved project cost.
(vi) Certificate from State Government for compliance of GFR/CVC guidelines.
(vii) TANSIDCO, Chennai should consider laying of roads with Cement Concrete in
place of Bituminous and proper drainages built in a professional manner to serve
the purpose for relatively longer period of time. The additional cost on this account
shall be borne by the Government of Tamil Nadu / TANSIDCO, Chennai
(viii) Undertaking from Implementing Agency regarding basis of estimates of
component Costs.

7. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval setting up New Industrial
Estate at Perundurai, Erode District, Tamil Nadu.

********

85
Agenda No. 51.3.42 (S): Proposal for In-principle approval for setting up Common
Facility Centre (CFC) in Terracotta Pottery Cluster, Bhathat
& Chargawan Blocks, Gorakhapur, Uttar Pradesh.
Background

(i) The proposal was recommended by State Level Project Steering Committee
(SLPSC) of Uttar Pradesh held on 12.07.18.
(ii) Proposal was received from Entrepreneurship Development Institute of India (EDII),
Ahmadabad, vide online ref. No. 12069 dated 07.01.19 & recommended by MSME-
DI, Kanpur.
(iii) Proposal along with Detailed Project Report (DPR) & Focus Report was forwarded
by MSME-DI, Kanpur vide email dated 17.07.19.
(iv) Techno Economic Appraisal Committee (TEAC) in its 67th meeting held on
09.08.19 recommended the proposal to be placed before the Steering Committee for
In-principle approval subject to the above observations:
a) Implementation in phased manner i.e. 50% of proposed machinery in phase-I
and remaining machinery in phase-II based on the assessment.
b) MSME-DI, Kanpur should study and submit a report with machinery details.
(v) Vide email dated 22.08.19, MSME-DI, Kanpur submitted the justification /
comments in response to the observations of 67th TEAC meeting.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Terracotta Pottery Cluster

District Gorakhapur
Location of Cluster Bhathat & Chargawan Blocks
Lok Sabha Constituency Gorakhpur
Main Product Decorative Terracotta items, Pottery Traditional items,
Terracotta Kitchen items, Terracotta worship items.
No. of Enterprises including Micro-200
break up (Micro, Small,
Medium)
Turnover for the last five Year (Rs. in crore)
years 2014-15 : 1.62
2015-16 : 1.84
2016-17 : 2.00
2017-18 : 2.16
2018-19 : 2.26
Exports for the last five years Nil
(Rs in Crore)
Employment in Cluster Direct- 640 Indirect- 2500
Technology Details Ball Mill, Pug Mill, Electric Pottery wheel, Electric Furnace
etc
Whether DS Conducted Aurangbad, Gulariya, Bharwalia, Jungle Akla etc by EDII
Main findings of DSR In Gorakhpur Terracotta Pottery Cluster, there are 200 (two
hundred) principal firms which are producing terracotta house
hold goods. However, these are all individuals who make
their own separate efforts to achieve their own bits of success,
and there is hardly any association between them. They have
not received any grants or monetary support from either the
State or the Central governments, and handle all their

86
 manufacturing needs personally. Due to the lack of any
industrial infrastructural basis, they still need to seek
assistance from Thangadh, Delhi, etc. for issues regarding
mould-making, tool-making, or machinery repairing. The
presence of an unifying infrastructural body that provides
these services, along with the establishment of a design
facility providing instant digital rendering of designs provided
by stakeholders and manufacturing of moulds and tools
through CAD/CAM technology, shall allow these individuals
to pool in their efforts and interests and bring about rapid and
progressive development in the pottery industry of Uttar
Pradesh.
Main Problems of Cluster The variety of products and the process required to produce
those items have made the units of this cluster prone to facing
various bottleneck. Basically all the plant and equipments
installed in different units in individual level are procured
from different regions of India who might not have service
centers even in the state capital, Lucknow.
Other Information Any sort of setback due to malfunction / breakage of
component of those machines lead to serious implications on
the output performance of the factories. In addition to this the
general development of ancillaries in this cluster locality is
dismal due to absence of corporate manufacturing /
engineering industry.

2. Information about Proposed CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Justification for CFC The Common Facility Centre, to be done --
by Gorakhpur Terracotta Vikas Sahkari
Samiti, Gulhariya, Gorakhpur is going to
play the most vital role in the cluster
development in the true sense of the
word. The role of CFC starts from
providing DESIGN SERVICE to the
stakeholders. It will maintain an
ARCHIVE of traditional and innovative
designs of numerous household articles,
brought by the stakeholders. Another
very important role of CFC is going to
help the stakeholders get high quality
moulds/tooling at cheaper rates than
what they are presently getting from
Kolkata and also helping them in
maintenance of their existing
machineries ad moulds as and when
required. The CFC will play a very
important role in overall economic
development of this cluster as the
economy of Gulariya-has been
considerably dependant on this terracotta
cluster. Once with the valuable support
from the CFC the stakeholder-members
of the SPV can start growing
economically, and non-member
manufacturers will become members to
be a part of this economic growth
process.
(b.) Location of CFC Aaurangabad, Gulariya, Bharwaliya,
Jungle Akla etc villages under Bhatahat
and Chargawan Blocks Dist Gorakhpur
87
 Description Proposed by Implementation Agency Remarks
(IA)
of Uttar Pradesh. This cluster is located
at a distance of 25 km approx from the
district headquarter of Gorakhpur on
Gorakhpur Maharajganj road NH 24.
The distance of the state capital
Lucknow is 290 km. However Lucknow
is well connected to this place by road
and rail. Also this cluster is having
road/rail connectivity with all most all
parts of the country as well as
neighboring country Nepal
% age of units in radius of 80
5km
% age of units in radius of 20
10km
(c.) Land for CFC
i. Whether land acquired SPV will provide Registered land
ii. Title is in name of Gorakhpur Terracotta Vikas Sahkari document in the
Samiti, Gulhariya, Gorakhpur name of SPV, in
case of leased land,
iii. Valuation and its basis NA the lease period
iv. Land is sufficient Yes should be for a
minimum of 30
v. Change of land use NA years.
vi. If on lease, duration of NA
lease
vii Whether lease is legally NA
tenable
(d.) Total Building area(sq ft) 6200 sq. ft. --
(e.) Rate of construction of NA --
building
(f.) Main Facility Proposed  Computer Aided Product and Tool --
Design
 Product Model Making
 Raw Material Making & Colour
Making
 Workshop
 Store & Tool Room
 Testing Laboratory
 Training Centre
 Information Hub
(g.) Prod capacity of CFC year wise capacity chart --
(h.) Major S. No. Particulars Before CFC After CFC
Outputs/Deliverables of (i) No. of units 200 (micro) 316
CFC, Projected performance (ii) Turnover Rs. 2.00 crore Rs. 5.00 crore
of the cluster after proposed (iii) Export Rs. 0.02 crore Rs. 0.50 crore
intervention (in terms of (iv) Employment 3140 4900
production, export/domestic
sales and direct/indirect
employment etc.)
(i.) Pollution clearance Eco friendly products. Required
required or not
(j.) Man Power in CFC Manpower requirements and --
establishment expenses
(k.) Revenue generation Rate of Return, Payback period % net --
88
 Description Proposed by Implementation Agency Remarks
(IA)
mechanism for sustainability present value
of assets(service/user charges
to be levied, any other-to be
specified)

3. Information about SPV

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Name and Address Gorakhpur Terracotta Vikas Sahkari --
Samiti, Gulhariya, Gorakhpur
(b.) Nature of SPV(company Cooperative Society --
or Society or Trust)
(c.) Name of the state Govt. GM-DIC, MSME --
and MSME officials in SPV
(d.) Date of formation of SPV 24.09.18 --
(e.) Number of Members 20 --
(f.) Bye Laws or MA and submitted Required
AOA submitted
(g.) Authorized Share Capital NA --
(h.) Paid up capital NA --
(i.) Shareholding Pattern SPV share holding pattern submitted --
(j.) Commitment letter for SPV members are agreed. Required
contribution
(k.) SPV specific A/c A/c will open. Required
(l.) Trust Building of SPV, Good track record --
Previous track record of co-
operative initiatives pursued
by SPV members need to be
highlighted with support
documentation
(m.) Technical Institution EDII, Design Institute etc --
(n.) CFC may be utilised by 60% of installed capacity Required
SPV members as also others
in a cluster. However,
evidence should be furnished
with regard to SPV member
ability to utilise at least 60
percent of installed capacity.
(o.)
(a) Power requirement for Cost of electricity --
commercial/domestic purpose
(b) Water water --
(c) Gas/Oil/Other Utilities generator --

4. Implement Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency Uttar Pradesh Trade Promotion --
(b.) Fund receiving Agency Authority (UPTPA) --
89
 Description Proposed by Implementation Agency Remarks
(IA)
(c.) Implementation Period 12 Months --
(d.) Appraisal of DPR and NA SIDBI Appraisal
main Recommendations Report is required
(e.) Comments of Technical NA --
Division
(f.) Approval of Technical NA TEAC
Committee recommended the
proposal
(g.) Comments of Cluster NA --
Development Division:
(h.) Working capital(In- NA --
principle sanction of loan
from a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Remarks

Agency (IA)
(a.) BEP 27.49% --
(b.) IRR, Payback period 23.26% --
(c.) DSCR -- --
(d.) Return on Capital 28.17% --
employed (ROCE)
(e.) NPV 251.99 lakh --
(f.) DER -- --
(g.) Sensitivity Analysis -- --
(h.) Status of CFCs approved 6 CFC approved in the State --
in the State

6. Proposed Project Cost is as follow:

(Rs. in lakh)
Sr. Particulars Amount
No
1. Land & Site Development 19.72
2. Building & Civil Works 30.00
3. Plant & Machinery 154.08
4. Miscellaneous Fixed Assets 50.56
5. Preliminary Expenses 11.25
6. Pre-operative Expenses 6.60
7. Provision for contingencies 5.22
8. Working Capital Margin 25% 5.62
Total 283.05

7. Proposed means of finance are as follows:

(Rs. in lakh)
Sr. No Particulars Amount
1. Grant from Govt. of India 201.39
2. Grant from Govt. of UP 36.87
3. Contribution by Consortium / SPV 44.79
Total 283.05

90
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
Sl. No. Particulars Nos. Power (KVA) Rate per Unit Total Cost
1 Ball Mill 04 7.50 3.55 14.20
2 De-Airing Pug Mill 03 5.50 3.75 11.25
3 Electric Potter’s Wheel 30 0.75 0.26 7.80
4 Designing Wheel 50 0.00 0.02 1.00
5 Complete CAD centre and 01 2.00 1.50 1.50
Model Making Set-up
6 Air Compressor with 05 0.25 2.20 11.00
Touch up Spray Gun
7 Complete Pottery Tools- 100 0.00 0.03 3.00
Set
8 Electric Furnace 05 7.50 8.00 40.00
9 Bore well with Motor & 01 2.00 3.75 3.75
Water storage tank
10 Power Generator 03 20.00 7.75 23.25
11 4.30
3 phase Electrification 01 125.00 4.30
Total 121.05
GST @ 18% 21.79
Packing charges @ 6% 7.26
Electrification, Installation and Commissioning charges @ 3% 3.63
Transportation charges 0.35
GRAND TOTAL 154.08
9. Observations:
Following documents are required to be submitted prior to final approval:

(i) Registered land document in the name of SPV (if land is on lease basis, registered
lease deed for a minimum period of 30 years.).
(ii) SIDBI Appraisal Report.
(iii) Details of Revenue generation mechanism.
(iv) NOC from State Pollution Control Board.
(v) Copy of Article of Association and Memorandum of Association.
(vi) Commitment letter from SPV for their contribution.
(vii) Details of SPV’s bank account/ Mandate form.
(viii) Commitment letter from State Government / SPV to meet the escalation cost, if
any, over and above the approved project cost.
(ix) Commitment letter from SPV members to utilise at least 60 percent of
installed capacity.
(x) Certificate from State Government for compliance of GFR/ CVC guidelines.

10. Proposal for Steering Committee:

Committee may consider the proposal for In-principle Approval for setting up of Common
Facility Centre in Terracotta Pottery Cluster, Bhathat & Chargawan Blocks, Gorakhapur,
Uttar Pradesh.
********

91
Agenda No. 51.4.12 (S): Proposal for Final approval for setting up Common Facility
Centre (CFC) in Signage and Advertising Cluster, Mugal
Majra, Karnal, Haryana.
Background

 Proposal was accorded In-principle approval during the 49th SCM held on 27.02.19,
subject to submission of requisite documents prior to final approval.
 Vide letter dated 06.09.19, MSME-DI, Karnal has forwarded the following documents
submitted by Director of Industries and Commerce, Government of Haryana and
requested to consider the proposal for final approval.

Documents required Status

(i) Registered land documents in the name of SPV. Notary document on
stamp paper of Rs. 10/-
regarding agreement to
sell has been received.
To be submitted
(ii) SIDBI Appraisal Report. Received
(iii) NOC from State Pollution Control Board. To be submitted
(iv) Commitment letter from SPV for their contribution. Received
(v) Details of SPV’s bank account/ Mandate form. Received
(vi) Commitment letter from SPV members to utilise at Received
least 60 percent of installed capacity.
(vii) Commitment letter from State Government / SPV to Received
meet the escalation cost, if any, over and above the
approved project cost.
(viii) Certificate from State Government for compliance of Received
GFR/ CVC guidelines.
(ix) Documentary proof from SPV for utilisation of CFC To be submitted
facilities by at least 51% of the cluster members.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Signage and Advertisement Cluster

District Karnal
Location of Cluster Mugal Majra
Lok Sabha Constituency Karnal
Main Product Banners, Bill Boards, Display boards, LED, LCD, Flex
boards, Hoardings, Motion Displays, Novelties, Gift
items, Posters, Road Signs
No. of Enterprises including break Micro- 144
up (Micro, Small, Medium)
Turnover for the last five years Year (Rs. in crore)
2011-12 : 120.00
2012-13 : 125.00
2013-14 : 145.00
2014-15 : 140.00
2015-16 : 150.00
Exports for the last five years (Rs in Nil
crore)
Employment in Cluster Direct- 1600 & Indirect- 500
Technology Details Almost all the micro and small scale units in the cluster
deploy manual practices and obsolete technologies for
manufacturing of signage & advertising products. Cluster
units are presently relying on vinyl and plastic as
substrate for printing while digital textile printing has
started replacing the vinyl substrate. Digital textile
printing also known as soft signage provides an attractive
new service opportunity for sign printers that are looking
92
 to expand their offerings and clientele. Other advantages
of digital textile printing include its positive
environmental impact, the ability to expand product
offerings, improved operating cost structure, and greater
flexibility in production. The cluster units do not have
printing facility soft signage printing which has led to
reduced market for these units.
Whether DS Conducted Yes
Main findings of DSR Obsolete level of technology, Production inefficiencies
due to manual operations, sub-standard product quality
hampering market outreach, prevalence of job-work from
advanced unit in Delhi resulting in higher costs, adverse
impact of current practices and technology on
environment.
Main Problems of Cluster  Use of obsolete technologies and limited access to
advanced technologies.
 Production inefficiencies leading to higher production
cost and inability to cater bulk market.
 Units do not have appropriate technology for printing
on various substrates as per demand of the market.
Due to non-existence of these facilities, the units are
facing cost inefficiencies, material wastage's and poor
quality of products which has resulted in reduced market
shares for these units.
Other Information Detailed SWOT Analysis of cluster has been successfully
completed.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC Presently cluster has 3 limitations in printing --
technology:
 Cluster units rely solely on vinyl and
plastic as substrate for printing while fabric
has started replacing vinyl;
 Cluster units do not have facility to print
substrate beyond 3m width and market is
progressively demanding super-wide
prints; &
 Cluster units do not have UV curable inkjet
printing facility.
 These limitations have hindered the cluster
units to meet the market standards and
manufacturing of quality products. To
address these limitations CFC is essential.
(b.) Location of CFC Mugal Majra, Karnal
% age of units in radius of 5km 90
% age of units in radius of 10
10km
(c.) Land for CFC
i. Whether land acquired Will be acquired post In-principle approval. Registered
ii. Title is in name of Will be in the name of Karnal Signage CFC land
Pvt. Ltd document in
iii. Valuation and its basis Rs. 146.36 lakhs inclusive of stamp duty and the name of
land development charges SPV is
iv. Land is sufficient Yes required.
v. Change of land use Not required
vi. If on lease, duration of lease Land purchased by SPV
vii Whether lease is legally NA
tenable
(d.) Total Building area(sq ft) 19,500 --
(e.) Rate of construction of Rs. 952 per sq ft --
building

93
 Description Proposed by Implementation Agency (IA) Remarks
(f.) Main Facility Proposed  Advanced Super wide format dedicated --
Roll to Roll UV Printing Tech. Facility
 Digital printing facility for Direct Printing
on Fabric
 Dye sublimation transfer facility
 Value added print and cut rigid media
manufacturing facility.
(g.) Prod capacity of CFC The CFC has been proposed for job work and --
will be operational for 8 hours shift basis for
300 working days in a year.
(h.) Major Outputs/ Area Before After
Deliverables of CFC, Projected Units 144 200
performance of the cluster after Employment 1600 (Direct) 2500 (Direct)
proposed intervention (in terms Exports -- 25% units are expected
of production, export/domestic to start exports
sales and direct/indirect Turnover Rs.150 crore Rs.165 crore
employment, etc.) ISO -- 100 units
certification
(i.) Pollution clearance required Yes Received
or not
(j.) Man Power in CFC Total requirement of 26 people --
(k.) Revenue generation With user charge, UV printing machine, --
mechanism for sustainability of Digital printing, Dye Sublimation and Value
assets(service/user charges to Added Print & Cut are expected to generate
be levied, any other-to be revenue of Rs.25,000, Rs.9,150, Rs.6,100 and
specified) Rs.6100 per hour respectively.

3. Information about SPV

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Name and Address Karnal Signage CFC Pvt. Ltd. --
Address: Agro Park, Block C, Mugal
Majra, Karnal
(b.) Nature of SPV (company Company --
or Society or Trust)
(c.) Name of the state Govt. Will be done after In-Principal --
and MSME officials in SPV Approval.
(d.) Date of formation of SPV 15th June 2016 --
(e.) Number of Members 46 As per DPR,
there are 46
SPV’s members.
(f.) Bye Laws or MA and Yes Received
AOA submitted
(g.) Authorized Share Capital Rs.50.00 lakh (increased from initial --
authorized cap of Rs.1.00 lakh)
(h.) Paid up capital Rs.37.20 lakhs --
(i.) Shareholding Pattern Details submitted. No individual Received
shareholder stake is more than 10 per
cent.
(j.) Commitment letter for Will be provided before In-principle Received
contribution approval.
(k.) SPV specific A/c Account already opened Received
(l.) Trust Building of SPV, The cluster stakeholders are quite --
Previous track record of co- mature and have already undertaken
operative initiatives pursued number of initiatives together.
by SPV members need to be
highlighted with support
documentation
(m.) Technical Institution NA --
(n.) CFC may be utilized by The SPV members are primarily of Received
SPV members as also others printing units in Karnal. The projections
in a cluster. However, have been made on the basis of their
94
 Description Proposed by Implementation Agency Remarks
(IA)
evidence should be furnished requirements, though proof of same will
with regard to SPV member be submitted before Steering
ability to utilize at least 60 Committee.
percent of installed capacity.
(o.)
(a) Power requirement for 180 KW --
commercial/domestic purpose
(b) Water 17000 ltrs. per day --
(c) Gas/Oil/Other Utilities Inks, wipes, cleaning solution, paper --
blades and stationery amounting to
Rs.396.00 lakh annually.

4. Implementation Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency Bureau of Industrial Policy and As per guidelines
(b.) Fund receiving Agency Promotion (BIPP) , Chandigarh
(c.) Implementation Period 24 months --
(d.) Appraisal of DPR and Appraisal will be conducted post In- Received
main Recommendations principle approval.
(e.) Comments of Technical -- --
Division
(f.) Approval of Technical -- TEAC
Committee recommended the
proposal
(g.) Comments of Cluster --. --
Development Division:
(h.) Working capital(In- As per DPR, SPV shall be requiring a --
principle sanction of loan working capital limit of Rs. 51.38 lakh.
from a bank, if applicable SPV would be approaching to J&K Bank
arrangement made) for sanction of working capital limit.

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) BEP 57.78% As per SIDBI-
87.36 %
(b.) IRR, Payback period IRR 53.16% and Payback period is 2.25 As per SIDBI-
years with grant in aid assistance from Post Tax: 34.84 %
GoI
(c.) DSCR NA --
(d.) Return on Capital 55.44 % (calculated on SPV As per SIDBI-
employed (ROCE) contribution) 28.53 %
(e.) NPV 1860.16 --
(f.) DER NA --
(g.) Sensitivity Analysis Analysis has been done with decline in --
user charges from 5% to 15%, the project
is viable even with 15% decline in user
charges.
(h.)Status of CFCs 1 CFC is completed & operational and 5 --
approved in the State are under implementation.

95
6. Proposed Project Cost:
(Rs. in lakh)
S. Particulars Earlier cost (At Revised As per
No. the time of In- Cost (As MSE-
principle per CDP
approval) SIDBI)
1. Land & Site Development 146.36 145.67 145.67
2. Building & Other Civil Works 185.64 185.82 185.82
3. Plants & Machinery (including 1343.98 1331.16 1331.16
electrification)
4. Miscellaneous Fixed Assets 5.00 8.25 8.25
5. Preliminary Expenses 17.00 17.00 17.00
6. Pre-Operative Expenses 22.88 30.93 30.93
7. Contingency (@ 2% & @ 5 % on 67.71 67.11 67.11
Building and Plant & Machinery
respectively)
8. Margin money for working capital 17.40 12.84 12.84
Total 1805.97 1798.78 1798.78

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Earlier cost (At Revised As per
the time of In- Cost (As MSE-
principle per SIDBI) CDP
approval)
(i) Grant-in-aid from Govt. of India 1050.00* 1050.00* 1050.00*
(ii) Grant-in-aid from Govt. of Haryana 452.98 449.39 449.39
(iii) SPV contribution 302.99 299.39 299.39
Total 1805.97 1798.78 1798.78
* 70% of the eligible project cost of Rs. 15.00 crore.

8. Plant and machinery (with Brief Specification)

(Rs. in lakh)
S. No. Name of the Machine Qty. Amount
Primary Machines
1. Advanced Super Wide -Format 5 meter (16.4 feet) 1 595.90
dedicated Roll -to-Roll UV printing Machine
2. 3 meter (10.5 feet) Digital Dye sublimation printing 1 265.50
machine for fabric
3. Rotary Thermo processing equipment (Calendar / Heat 1 115.64
Press)
Value added Print & Cut rigid media manufacturing facility
4. Structural design, Editing and Nesting software 1 21.84
5. Flatbed 3 meter by 2 meter cutting table 1 234.41
Secondary Machines
6. Genset (100 KVA) 1 8.09
7. Computer / Desktop 15 10.80
8. HP Laserjet MFP 1005 Printer 2 0.35
9. HP Scanjet Enterprise 7000 S3 1 0.88
10. UPS with battery circuit breaker and inbuilt isolation 1 14.80
transformer (1) Battery 12V, 150AH (34), Battery Rack,
Battery Interconnecting Cable, UPS to Battery Cable 4m
along with installation (1)
11. Screw Air Compressor (SXC 8 SCB-8 bar) with 1 4.28
integrated Ref. Air Dryer & Air Receiver of 215 litre
capacity
12. Carbon Combination Filters 2 0.40
13. Air Conditioners 10 7.08
Total 1279.97

96
9. Observations:

Following documents are required to be submitted prior to issue of final approval:

(i) Registered land documents in the name of SPV.

(ii) NOC from State Pollution Control Board.
(iii) Affidavit from Shri Naresh Saluja, Director (SPV) that he is not the same person as
appearing in the Defaulter list (issued by RBI/CIBIL/ Central Fraud Registry).
(iv) Further, Directors of SPV are advised to clear all dues, if any, as appearing in the
CIBIL report.
(v) Compliance of terms & conditions as mentioned in SIDBI Appraisal Report.

10. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for setting up Common Facility
Centre (CFC) in Signage and Advertising Cluster, Mugal Majra, Karnal, Haryana at a total
project cost of Rs. 1798.78 lakh with GoI assistance of Rs. 1050.00 lakh, Government of
Haryana contribution of Rs. 449.39 lakh and SPV contribution of Rs. 299.39 lakh.

********

97
 Agenda No. 51.4.13 (S): Proposal for Final approval for setting up of Common Facility
Centre in Spices Manufacturing Cluster, Betageri, Gadag,
Karnataka.
Background

 Proposal was accorded In-principle approval during the 47th SCM held on 25.07.18,
subject to submission of following documents prior to final approval.
 Vide letter dated 07.09.19, KCTU, Bangalore has submitted the documents and
requested to consider the proposal for final approval.

Documents required Status

(i) SIDBI Appraisal Report of revised DPR with plant and machinery MSME-DI,
(for primary Packaging machine only), to be vetted by MSME-DI, Hubli
Hubli before SIDBI appraisal. submitted to
SIDBI..
(ii) Shareholding pattern of SPV members. Received
(iii) Certificate from State Government for compliance of GFR / CVC Received
guidelines.

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Spices Manufacturing Cluster

District : Gadag
Location of Cluster : Betageri
Lok Sabha Constituency : Bagalkot
Main Product : Black pepper, Chilli Powder, Dhaniya Powder, Ginger Powder and
Paste, Jeera, Mixed Masala Powders, Solid Chilli, Turmeric
Powder
No. of Enterprises Micro – 63
including break up (Micro,
Small, Medium) :
Turnover(Rs in Crore) for Year Amount
the last five years : 2012-13 16.75
2013-14 19.50
2014-15 28.96
2015-16 40.95
2016-17 62.35
Exports(Rs in Crore) for Nil
the last five years:
Employment in Cluster : 1315 nos. (Direct: 315 & Indirect:1000)
Technology Details : The Cluster Members are using Traditional Methods /
Conventional Technology like Pulverizers, Crushers, Vibrator,
Mechanical Mesh Grader etc.
Whether DS Conducted : Yes.
 DSR is conducted by Intaglio Technical and Business
Services, Bangalore.
 DSR is validated by the Cluster Members, DIC Gadag, KCTU
and MSME-DI Hubli.
 The DSR recommends Hard Interventions for the Cluster.
 The SPV members have accepted the Proposed Interventions.
 State Government and MSME-DI Hubli have supported the
proposed interventions.

98
Main findings of DSR :  Spices Cluster Gadag has good availability of Raw Material
about 1.5 lakh tons of spices per year and has good demand
for its products in both national and international market.
 The units are using conventional and semi automatic
machinery and are catering to the Domestic market.
 Few of the units products are exported indirectly.
 The cluster products have good demand but the quality of the
product is to be upgraded.
 The time of processing is large and the cluster lack proper
storage, packaging and testing facilities.
 The DSR recommends the establishment of CFC for the
Cluster.
Main Problems of Cluster :  The cluster members are using conventional and Semi
automatic machinery.
 The cluster lacks automatic cleaning machinery for spices.
 The cluster lacks automatic size grading machinery.
 The cluster lacks automatic colour sorting machinery.
 The cluster lacks automatic advance packaging machines.
 The cluster lacks Testing facility of BIS & FSSAI Standards.
 The Cluster lacks research facility, resulting no value addition
& product diversification.
 The cluster lacks skill upgradation training facility.
 The cluster lacks cold storage facility for storage of raw
material and finished products.
 The cluster lacks marketing support infrastructure for Export
There is dominance of traders in the cluster business.
Other Information : India is known as the home of spices and boasts of a long history
of trading with the ancient civilizations of Rome and China.
Today, Indian spices are the most sought-after globally, given their
exquisite aroma, texture and taste. India has the largest domestic
market for spices in the world. India is the largest producer,
consumer and exporter of spices, with a 46 per cent share by
volume and 23 per cent share by value, in the world market. The
Indian spice export basket consists of around 50 spices in whole
form and more than 80 products in value added form. The Gadag
District is blessed with nature with soil suitable to grow most of
the basic spices like chili, garlic, turmeric etc. Gadag is famous for
its spices. The cluster has very good availability of raw material
and huge potential for attracting international market.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC  Spices market in India has registered a -
double digit growth of 10.0% over the
period FY'2007-FY'2013 in terms of
revenue.
 The leading factors which have been
propelling the market over the period of
last six fiscal years include demand for
packaged spices, emerging market of
organic spices, swelling demand for spice
mixes and influx of regional as well as
global players in the market.
 In India, unorganized segment dominates
the spices market share. Gadag is blessed
with abundant of raw material for
manufacturing verities of spices. However
the cluster industries are unorganized
earlier before the formation of SPV also
the technology level of the cluster is poor
as the cluster units are not financially
strong to invest in high end technology.
99
 Description Proposed by Implementation Agency (IA) Remarks
 The cluster units are facing threat from big
brands and are dependent on traders. If the
cluster is supported with advance
technology proposed in the DPR the
cluster units will flourish and will be able
to compete globally.
 The CFC will be helpful to improve the
quality of the product and the cluster
members can reach national and
international market.
 The CFC will further help in value
addition, product diversification and thus
will have positive impact on increase of
employment, revenue and will help in
socio-economic development of the
cluster region.
 The project of establishment of CFC is
need based and support worthy.
(b.) Location of CFC The land for the proposed CFC is located in
KIADB Industrial Area, Narsapura, Betgeri,
bearing survey No. 18 & plot Nos. 49/A, 49/B.
50 & 53 plot with total extent of 2.5 acres
% age of units in radius 70
of 5km
% age of units in radius 30
of 10km
(c.) Land for CFC
i. Whether land acquired Yes Registered land
lease deed from
Revenue
Department of
Government of
Karnataka for a
period of 30
years or more is
required.
ii. Title is in name of SPV on Lease for 99 years
iii. Valuation and its As per Government Rates
basis
iv. Land is sufficient Yes
v. Change of land use Yes Land is Industrial Land from KIADB -
vi. If on lease, duration 99 years
of lease
vii Whether lease is Yes
legally tenable
(d.) Total Building area(sq 43,727.33 sq feet
ft)
(e.) Rate of construction of 574.00 lakh
building
(f.) Main Facility Proposed  Common Facility Center with
Automatic Spices Cleaning and drying.
 Common Spices Grading and Sorting
Facility.
 Common Packaging Center.
 Common testing facility.
 Common Facilities for marketing.
 Common Brand identity.

100
 Description Proposed by Implementation Agency (IA) Remarks
 Cold Storage Facility.
(g.) Prod capacity of CFC The total production capacity of the cluster
units (63 units) per day = 32.65 Tons. Hence,
the total production capacity for 1 months of
25 day working = 815.25 Tons. Therefore, the
cluster require about 800 to 900 tons of raw
material every month for processing.
(h.) Major Sl. Parameters Present After
Outputs/Deliverables of No. intervention Intervention
CFC, Projected 1. Units (Nos.) 63 83
performance of the cluster 2. Production per 32 tons of spices Further
after proposed intervention day per day improvement in
(in terms of production, production
export/domestic sales and 3. Turnover Rs. 62.35 crore Increase of Rs.
direct/indirect 25.00 crore
employment, etc.) within 2-3
years of CFC
4 Employment Additional Direct –
Direct – 315 150
Indirect- 1000 Additional
Indirect- 400
5. ISO No certification No certification
Certification
(i.) Pollution clearance Not Applicable NOC from PCB
required or not is required.
(j.) Man Power in CFC 32 -
(k.) Revenue generation Revenue generation from Cold Storage -
mechanism for Section, Cleaning Section, Drying Section, De-
sustainability of Stemming and De-Stoning Section, Sorting &
assets(service/user charges Grading Section, Packaging Section & Testing
to be levied, any other-to Section amounting to Rs. 10,51,20,000/-
be specified)
(l.) NA

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Lobosa Spices Manufacturing Cluster -
Association Address: Lobosa Food &
Beverages Plot No.L-6, KSSIDC Industrial
Estate, Hatalageri Road, Gadag-582101,
Karnataka.
(b.) Nature of SPV(company SPV is registered under Karnataka Society -
or Society or Trust) (Registration) Act, 1960.
(c.) Name of the state Govt. Representatives from DIC Gadag, KCTU -
and MSME officials in SPV Bangalore Government of Karnataka and
MSME-DI Hubli Government of India
(d.) Date of formation of 16.05.2014
SPV
(e.) Number of Members 63 Nos.
(f.) Bye Laws or MA and Yes. -
AOA submitted
(g.) Authorized Share 10% of the project cost. -
Capital
(h.) Paid up capital - -

101
 Description Proposed by Implementation Agency (IA) Remarks
(i.) Shareholding Pattern Shareholding pattern in % received. Received.
(j.) Commitment letter for - Commitment
contribution letter submitted.
(k.) SPV specific A/c Yes. State Bank Of Hyderabad Mandate form is
A/c No:62344231425 required.
(l.) Trust Building of SPV,  The Cluster members have completed
Previous track record of majority of the Soft Interventions activities
co-operative initiatives like Trust Building and capacity building
pursued by SPV members activities.
need to be highlighted with  Visits of other Cluster Awareness about
support documentation. cluster development and other Schemes
/Policies. Hence the Diagnostic Study
recommends the Hard Interventions for the
cluster.
(m.) Technical Institution IntaGlio Technical and Business Services,
Bangalore
(n.) CFC may be utilized by The SPV is an open type and has provision Submitted.
SPV members as also others for incorporation of newer members. The
in a cluster. However, capacity proposed is as per the requirement
evidence should be of SPV and members will be able to use the
furnished with regard to required capacity.
SPV member ability to
utilize at least 60 percent of
installed capacity.
(o.)
(a) Power requirement for 300 KVA
commercial/domestic
purpose
(b) Water 3000 litres
(c) Gas/Oil/Other Utilities Not Required

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Remarks

(a.) Implementing Agency Karnataka Council for Technological -
Upgradation (KCTU), Bangalore, Govt. of
Karnataka.
(b.) Fund receiving Agency Karnataka Council for Technological -
Upgradation (KCTU), Bangalore, Govt. of
Karnataka.
(c.) Implementation Period 18 months 24 months after
Final approval.
(d.) Appraisal of DPR and Submitted Received.
main Recommendations
(e.) Comments of Technical -- --
Division
(f.) Approval of Technical Approved. TEAC has
Committee recommended
the proposal.
(g.) Comments of Cluster Recommended for Final approval under MSE-CDP.
Development Division:
(h.) Working capital(In- NA -
principle sanction of loan
from a bank, if applicable
arrangement made)
102
5. Financial Analysis of CFC

Description Proposed by Remarks

Implementation Agency
(IA)
(a.) BEP 36% As per SIDBI appraisal report – 29.98%
(b.) IRR, 28% As per SIDBI appraisal report – 14.51%
Payback period
(c.) DSCR Not Applicable
(d.) Return on 32% As per SIDBI appraisal report – 25.89%
Capital
employed
(ROCE)
(e.) NPV 28% Rs. 923.26 lakh (Before tax) & Rs. 393.50 lakh
(Post tax)
(f.) DER Not Applicable
(g.) Sensitivity Yes, the figures are Case IRR NPV ROCE BEP
Analysis positive as required by (post (Post
guidelines The ratios with tax) tax)
sensitivity of 5% Base 14.51% 393.50 25.89% 29.98%
reduction in revenue: value
a)IRR 26% b)NPV 26 % 10% 11.21% 101.85 19.22% 35.59%
c)Breakeven Point 37% reduction
d)ROCE 29 % The ratios in
with sensitivity of 10 % revenue
reduction in revenue: (user
a)IRR 24 % b)NPV 24 % charges)
c)Breakeven Point 39 % 10% fall 11.66% 140.24 20.28% 29.99%
d)ROCE 27 % in
capacity
utilisation
(h.) Status of a) Cluster Implemented
CFCs 1. Auto components Cluster, Hubli
approved in the 2. Readymade Garment Cluster, Hubli
State 3. Food Cluster, Gulbarga
4. Raisin Proce4ssing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. ELCIA Cluster, Bangalore.
7. Heat Treatment & Engg Cluster Hubli,
8. Printing Cluster Bangalore.
9. Raisin Processing Cluster, Athani,
Belgaum.
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
2. Global Puffed Rice Cluster, Holalkere Road, Chitradurga.

6. Project Cost:
(Rs. in lakh)
S. No. Particulars Proposed by IA at the Recommended by
time of in-principle SIDBI as per revised
approval DPR
(i) Land and its Development 32.00 80.89
(ii) Building and other Civil Constructions 251.00 260.95
(iii) Plant & Machinery(including 1110.77 1090.45
electrification)
(iv) Misc. fixed assets 12.00 12.00

103
 S. No. Particulars Proposed by IA at the Recommended by
time of in-principle SIDBI as per revised
approval DPR
(v) Preliminary & Pre-operative expenses, 15.00 15.00
maximum 2% of project cost
(vi) Contingency (2% building and 5% on 63.07 59.74
plant and machinery)
(vii) Margin money for Working Capital 13.93 15.97
Total Project Cost 1497.77 1535.00

7. Means of Finance:
(Rs. in lakh)
S. No. Particulars Proposed by IA at Recommended Proposed for
the time of in- by SIDBI as per final approval
principle approval revised DPR
(i) Grant-in-aid from 1198.21 1200.00 1176.38
Govt. of India
(ii) Grant-in-aid from 149.78 150.00 150.00
Govt. of Karnataka
(iii) SPV contribution 149.78 185.00 208.62*
Total 1497.77 1535.00 1535.00
* The enhanced cost towards land & building of Rs.58.84 crore to be borne by SPV.
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)
S. Description No. of machines Total Cost
No. including GST
1. Cold storage 1 set 748.09
2. Cleaning system for chilly capacity 1-1.2 tons / 1 set 37.80
hr@98-99% efficiency) in MS along with
accessories
3. KWSG-600-60 Microwave steam combination 1 set 156.76
drying equipment
4. Red Chilli Sorter setup 1 set 52.68
5. Automatic Chilly d-De-steming / Tail Removing 1 set 10.21
& De Stoning Plant
6. Automatic form fill seal machine Model Auto – 1 set 18.06
200 along with accessories
7. Semi – Auto Weigh & filling machine (1 no.) and 1 set each 8.88
continuous sealing machine (1 No.)
8. Hot air oven, colour comparatore, Muffle 1 set 21.38
Furnance, Digital Balance 220 gm 0.1mg. pH
meter, UV visible Spectrometer single beam, high
performance liquid chromatography, vaccum
pump, magnetic stirrer, kheldhal digestion unit,
filtration assembly, No. 18 sieve, rotary shaker,
Lab grinding mill, Moisture distillation apparatus
(1 no. each)
9. Computer 5 2.76
10. 100 KVA generator diesel 1 set 11.52
11. ETP of capacity 25 KLD 1 set 22.33
Total 1090.47
Rounded to
1090.45
104
9. Observation:

Following documents are required to be submitted prior to issue of final approval:

(i) Registered land documents in the name of SPV (if land is on lease basis,
registered lease deed for a minimum period of 30 years is required).
(ii) NOC from State Pollution Control Board.
(iii) Details of Project specific bank account.

10. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for setting up of Common Facility
Centre in Spices Manufacturing Cluster, Betageri, Gadag, Karnataka at a total project cost of
Rs. 1535.00 lakh with GoI grant of Rs. 1198.21 lakh, State Government’s contribution of Rs.
150.00 lakh and SPV’s contribution of Rs. 186.79 lakh.

*********

105
 Agenda No. 51.4.14 (S): Proposal for Final approval for setting up of Common Facility
Centre in Jaggery Processing Cluster Jalalapur, Raibag,
Belagavi, Karnataka.

Background

(i) Proposal was accorded In-principle approval during the 48th SCM held on 12.11.18,
subject to submission of following documents prior to final approval.
(ii) Vide letter dated 07.09.19, KCTU, Bangalore has submitted the documents and
requested to consider the proposal for final approval.

Documents required Status

(i) Confirmation from State Government regarding enhancement of their Awaited.
contribution towards the Project.
(ii) SIDBI appraisal report. Received
(iii) Certificate from State Government regarding compliance of Awaited.
GFR/CVC guidelines.
(iv) Details of authorized Share Capital and Paid up capital. Received

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster : Jaggery Processing Cluster

District Belagavi
Location of Cluster : Jalalapur Village, Raibag Taluk, Karnataka.
Lok Sabha Constituency : Chikkodi
Main Product : Granular Jaggery, Jaggery based Snacks Items, Liquid Jaggery,
Powder Jaggery, Solid Jaggery
No. of Enterprises Micro 45
including break up (Micro, Small 0
Small, Medium) Medium 0
Turn over for the last five Year Amount
years : 2012-13 38.26
(Rs. in Crore) 2013-14 49.29
2014-15 50.79
2015-16 66.80
2016-17 78.59
Exports for the last five Nil
years : (Rs.
in Crore)
Employment in Cluster : 4810 nos. (Direct – 810 and Indirect – 4000)
Technology Details : The Cluster Members are using Traditional Methods mostly
Conventional Technology.
Whether DS Conducted : Yes, the DSR is conducted by Intaglio Technical and Business
Services, Bangalore. The DSR is validated. The DSR recommends
the Hard Interventions for the Cluster. The SPV members have
accepted the Proposed Interventions and the State Government and
the MSME-DI Hubli has supported the proposed interventions as
need based and support worthy.
Main findings of DSR : The DSR found that the Cluster Members are havind good market
and are using conventional technology. the technological level of
the cluster is to be improved. The DSR recommends the
Establishment of CFC for the Cluster.
Main Problems of Cluster :  The improper Moulding and Packaging of Jaggery is imposing
problems of reduced shelf life and poor aesthetic.
 Non homogenous granular and powder jaggery with improper
drying due to lack of automatic dryers has reduced shelf life
106
  Improper packaging of the powder and liquid jaggery leads to
reduced shelf life, and poor aesthetic look.
 The product is facing stiff competition from sugar industries.
 The cluster members are not scientifically equipped with the
testing machineries as a result is not able to upgrade the quality
of the product to match the BIS and EU standards for export.
 The dominance of traders is resulting in reduced profit to the
cluster units.
 The lack of storage facility locally in the cluster region is
leading to degradation of the jaggery.
 There is very little value addition taking place, though there is
good scope of value added products that can be produced using
the jaggery.
 There is no branding taking place.
 There is no training and skill upgradation taking place in the
Cluster as a result there is continuous migration of work force.
Other Information :  Belgaum district within it play a predominant role in production
of sugarcane. In India Karnataka stands 3rd in cane production
next to Uttar Pradesh and Maharashtra States and 2nd with
respect to sugar recovery after Maharashtra. The Cluster Jaggery
Huge Domestic and International Market demand as jaggery is
regarded as ayurvedic medicine and is better substitute to sugar.
The Demand for Gur/Jaggery in African, European, and Gulf
Countries are rapidly increasing. But international market, need
high quality jaggery qualifying the EU/BIS Standards, with
standard and uniform size, aesthetic packaging.

2. Information about Proposed CFC

Description Proposed by Implementation Agency (IA) Remarks

(a.) Justification for CFC  The issues of productivity and efficiency of --
production needs to be addressed in a
systematic manner.
 There could be scope for direct supplies to
bulk jaggery for segments such as
organized large retail, confectionery
industry, and also ayurvedic and health
foods industry among others.
 The potential for direct exports and futures
trading has also to be considered in the
growth plan.
 Promotion of product quality-testing and
certification facilities could be a useful
intervention contribution both to quality and
marketing efforts.
 With the support of technology upgradation
the jaggery industry in the cluster will be
able to compete globally and will be able to
further progress and provide huge
employment.
 The Establishment of CFC is expected to
bring about holistic change in the cluster
and will be a factor of Socio economic
Development of Region.
(b.) Location of CFC Jaggery Processing Cluster Jalalpur is located --
in Jalalpur village of Raibag. Jalalpur is located
7 Km away from Raibag taluk of Belgaum
district, 120 kms away from Belgaum and 40
kms from Sangli (the main jaggery mandi of
Maharashtra).
% age of units in radius of 80
5km
% age of units in radius of 20
10km
(c.) Land for CFC
107
Description Proposed by Implementation Agency (IA) Remarks
i. Whether land acquired Yes. Lease deed for a
period of 30 years
has been
submitted.
ii. Title is in name of Land on Lease for 30 years
iii. Valuation and its basis Rs. 60 lakhs for 30 years lease, as per guidance -
value and market value.
iv. Land is sufficient Yes --
v. Change of land use Yes. --
vi. If on lease, duration of 30 years --
lease
vii Whether lease is legally Yes. --
tenable
(d.) Total Building area(sq 9300 sq. ft. --
ft)
(e.) Rate of construction of 1018.00 --
building
(f.) Main Facility Proposed  Automatic closed chamber Jaggery --
solidification and chemical balancing
facility.
 Automatic Solid Jaggery Molding and
Packaging unit.
 Liquid and Powder Jaggery Packaging
Unit.
 Clean room with Humidification and De-
humidification Chamber.
 Testing Laboratory.
 Clean Room / Cold Storage for Jaggery.
 Common Marketing and Export Centre.
 Training and Research Centre.
 Captive power generation facility for
CFC.
g.) Prod capacity of CFC Presently, the production capacity of CFC is 1
to 1.5 ton per day
--
(h.) Major Outputs/ Sl. Paramet Present After
Deliverables of CFC, No. ers intervention Intervention
Projected performance of 1. Units 45 70
the cluster after proposed (Nos.) (additional 20 already
intervention (in terms of enrolled)
production, 2 Employme Direct – 810 Direct – 1500
export/domestic sales and nt (Nos.) Indirect- 4000 Indirect- 6000
direct/indirect 3 Turnover Rs. 78.59 crore Rs. 100 crore in 2-3 years
employment, etc.) of CFC.
4 Profits Inconsistent Consistent and 20-25%
profit margins. higher profits for
producers due to better
quality and price and
increased production
efficiencies.
5. Marketing Domestic and Urban, National and
village / local international market.
market
6. Production 1 to 1.5 ton /day 2 to 2.5 tons/day
7. ISO No certification SPV will obtain ISO &
Certificatio FSSAI certification on
n commencement of
commercial operations.
(i.) Pollution clearance -- Submitted.
required or not
(j.) Man Power in CFC 42
(k.) Revenue generation Total revenue generation from training section
mechanism for is Rs. 41.20 lakh from 125 participants.
sustainability of
108
 Description Proposed by Implementation Agency (IA) Remarks
assets(service/user charges
to be levied, any other-to
be specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Shri Mallikarjun Jaggery Processing Cluster --
Association, Jalalpur, Taluk: Raibag, District –
Belgaum, Karnataka.
(b.) Nature of Registration under the Karnataka Society --
SPV(company or Society or Registration Act, 1960.
Trust)
(c.) Name of the state Govt. Representatives from DIC Belgaum, , KCTU --
and MSME officials in SPV Bangalore Government of Karnataka and
MSME-DI Hubli/Bangalore Government of
India.
(d.) Date of formation of 17/02/2014 --
SPV
(e.) Number of Members 65 nos. Details of
(SPV members increased from 45 to 65 nos.) additional list
of SPV
members are
required.
(f.) Bye Laws or MoA and Yes. --
AOA submitted
(g.) Authorized Share Rs. 110.00 lakh --
Capital
(h.) Paid up capital Rs. 10.00 lakh. --
(i.) Shareholding Pattern Submitted. Revised
shareholding
pattern is
required.
(j.) Commitment letter for Submitted. --
contribution
(k.) SPV specific A/c State Bank of Mysore Mandate form
A/c No: 64138879678 required.
(l.) Trust Building of SPV, The Cluster members have completed majority --
Previous track record of co- of the Soft Interventions activities like Trust
operative initiatives pursued Building and capacity building activities. Visits
by SPV members need to be of other Cluster Awareness about cluster
highlighted with support development and other Schemes /Policies.
documentation. Hence the Diagnostic Study recommends the
Hard Interventions for the cluster.
(m.) Technical Institution Intaglio Technical and Business Services,
Bangalore
(n.) CFC may be utilised by The SPV is an open type and has provision for --
SPV members as also others incorporation of newer members. The capacity
in a cluster. However, proposed is as per the requirement of SPV and
evidence should be members will be able to use the required
furnished with regard to capacity.
SPV member ability to
utilise at least 60 percent of
installed capacity.
(o)
(a) Power requirement for 149 KW
commercial/domestic
purpose
(b) Water The water require by the CFC is estimated to
be about 5000 liters per day and the same will
be made available through borewell as the
cluster region has very good ground water
availability.
109
 Description Proposed by Implementation Agency (IA) Remarks
(c) Gas/Oil/Other Utilities Not required

4. Implement Arrangements

Description Proposed by Implementation Agency (IA) Remarks

(a.) Implementing Karnataka Council for Technological --
Agency Upgradation (KCTU), Bangalore, Govt. of
Karnataka.
(b.) Fund receiving Karnataka Council for Technological --
Agency Upgradation (KCTU), Bangalore, Govt. of
Karnataka.
(c.) Implementation 18 months 24 Months from
Period date of final
approval as per
guidelines.
(d.) Appraisal of DPR and Submitted Received.
main Recommendations
(e.) Comments of -- --
Technical Division
(f.) Approval of Technical Approved. TEAC has
Committee recommended
the proposal.
(g.) Comments of Cluster Recommended for Final approval under MSE-CDP.
Development Division:
(h.) Working capital(In- The SPV will avail working capital from bank. --
principle sanction of loan
from a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Remarks

Implementation
Agency (IA)
(a.) BEP 41% As per SIDBI appraisal report – 32%
(b.) IRR, Payback 30% --
period
(c.) DSCR N/A --
(d.) Return on Capital 32% As per SIDBI appraisal report – 29.06%
employed (ROCE)
(e.) NPV 30% As per SIDBI appraisal report –
Rs. 1338.69 lakh (before tax).
Rs. 774.41 lakh (post tax) for FY 2021.
(f.) DER Not Applicable --
(g.) Sensitivity Yes, the figures are Case IRR NPV ROCE BEP
Analysis positive as required (post (Post
by guidelines The tax) tax)
ratios with Base 23.06% 774.71 29.06% 32%
sensitivity of 5% value
reduction in 10% 18.18% 467.33 21.66% 37.60%
revenue: reduction
a)IRR 27% b)NPV in
29 % c)Breakeven revenue
Point 43 % (user
d)ROCE 29% charges)
The ratios with 10% 22.09% 712.65 27.56% 32.99%
sensitivity of 10% increase
reduction in in raw
revenue: material
a)IRR 25 % b)NPV cost
25 % c) Breakeven 10% fall 18.82% 507.43 22.47% 32.01%
110
 Description Proposed by Remarks
Implementation
Agency (IA)
Point 46 % in
d)ROCE 26 % . capacity
utilisation
(h.) Status of CFCs a) Cluster Implemented
approved in the State 1. Auto components Cluster, Hubli
2. Readymade Garment Cluster, Hubli
3. Food Cluster, Gulbarga
4. Raisin Proce4ssing Cluster, Bijapur.
5. Auto Cluster, Bidar
6. ELCIA Cluster, Bangalore.
7. Heat Treatment & Engg Cluster Hubli,
8. Printing Cluster Bangalore.
9. Raisin Processing Cluster, Athani,
Belgaum.
b) Clusters Under implementation
1. Utopia Cashew Cluster, Kumta, Uttara
Kannada.
2. Global Puffed Rice Cluster, Holalkere Road, Chitradurga.

6. Proposed project cost:

(Rs. in lakh)
S. No. Particulars Proposed by Recommended by
IA at the time SIDBI as per revised
of in- DPR
principle
approval
1 Land and its Development 60.00 60.00
2 Building and other Civil Constructions 102.75 118.28
3 Plant & Machinery(including electrification) 803.11 863.38
4 Misc. fixed assets 16.00 16.00
5 Preliminary & Pre-operative expenses, 18.00 18.00
maximum 2% of project cost
6 Contingency (2% building and 5% on plant 43.24 45.40
and machinery)
7 Margin money for Working Capital 11.84 11.92
Total Project Cost 1054.94 1132.98

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Proposed by IA Recommended Proposed for
at the time of in- by SIDBI as final approval
principle per revised
approval DPR
(i) Grant-in-aid from Govt. of 843.96 906.40 892.17
India
(ii) Grant-in-aid from Govt. of 105.49 113.30 113.30
Karnataka
(iii) SPV contribution 105.49 113.30 127.53
Total 1054.94 1133.00 1133.00

8. Plant and machinery (with Brief Specification)

(Rs. in lakh)
S. No. Description No. Power Cost
Requirement
(HP/KW)
1. Steam Generator Boiler and Setup 1 76.62
5000kgs/Hour
2. Turbo Alternator and Power Generation Setup 1 300 KW 58.51
3. Slurry Jaggery-Steam Treatment-Purification- 1 11.325 KVA 74.18
111
 S. No. Description No. Power Cost
Requirement
(HP/KW)
150KLD
Tubular Slurry Heater, Gravity Settler, Floation
Clarifier, Micro – Filter
4. Slurry Concentrator Setup for Jaggery 18.625 KVA 47.48
Molding/Powder Jaggery/Liquid -150KLD
Evaporator – Boilers,
Jaggery Concentrator for Small Jaggery Injection
Molding
Vapour Extractor,
Receiving Tanks with accessories
5. Powder Jaggery Processing Equipments-5 tons/day 1 14.9 KVA 74.81
Jaggery Powder Miller, Powder Jaggery Jacketed
Tray, Jaggery powder dryers, Re-circulation
conveyors, Air Heaters, Blower Fan,
Instrumentation and Control
6. Jaggery Hygenic Storage Setup: Cold Storage/Clean 1 22.35 KVA 95.63
Room – 1000 tons capacity.
Clean Room Storage with HVAC System
7. Automatic Jaggery Injection Moudling, 1 6.7 KVA 103.03
Demoulding and packing machine- 18tons/day
8. Automatic Liquid Jaggery Bottle Filling setup with 1 1.76 KVA 67.80
rotary capping system
9. Liquid Jaggery Bottle Labeling Machine and 1 2.2 KVA 38.22
Sealing Setup-2 tons/day
10. Automatic Powder Jaggery Packing Machine-5 2 2.425 KVA 73.44
tons/day
11. Testing Machinery and apparatus 1 7.45 KVA 20.17
12. Jaggery Enrober-Machine for Jaggery Coated Dry 1 7.265 KVA 21.60
Fruits processing-1Ton/day
13. Pillow pack machine for coated dry fruits 1 2.59 KVA 7.20
14. Chikki Roller and Cutting Machine-4 tons/day 1 11.36 KVA 5.40
15. Chikki packing machine 1 2.95 KVA 7.20
16. Computers, Windows Software 5 4.61 KVA 2.70
17. Digital Interactive Classroom Board 1 1.92 KVA 1.75
18. High Resolution Projector with Auto Lock Screen 1 1.16 0.58
Projector with Auto Lock Screen
19. Audio System Amplifier, Speakers with Cordless 1 4.49 KVA 0.63
and Podium Mic-set
20. All in One Laser Colour Printer Scanner and Copier 1 2.72 KVA 0.56
21. Accounting Software-Tally 1 00 3.42
22. Website and ERP Software Design 1 00 2.22
23. CCT Camera and DVR and EPABX Intercomm 1 3.49 KVA 0.79
setup
24. Fire fighting Equipment-set 1 00 0.90
25. Air conditioner A/C 2 10.35 KVA 1.48
26. DG Set 1 160 KVA 16.79

9. Observation:

Following documents are required to be submitted prior to issue of final approval:

(i) List of SPV members and shareholding pattern of all the SPV members (65 nos.).
(ii) Confirmation from State Government regarding enhancement of their contribution
towards the Project.
(iii) Certificate from State Government regarding compliance of GFR/CVC guidelines.
(iv) Details of SPV specific bank account / Mandate form.

112
 (v) Certificate from State Government that more than 50% units in the cluster are
Micro / SC-ST / Women Enterprises, as the case may be consequent upon the
enhancement of no. of SPV members from 45 to 65.

10. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for setting up of Common Facility
Centre in Jaggery Processing Cluster Jalalapur, Raibag, Belagavi, Karnataka at a total project
cost of Rs. 1133.00 lakh with GoI grant of Rs. 892.17 lakh, State Government’s contribution
of Rs. 113.30 lakh and SPV’s contribution of Rs. 127.53 lakh.

*********

113
Agenda No. 51.4.15 (S): Proposal for Final approval for setting up Common Facility
Centre (CFC) in Wood Carpentry Cluster, Baktawng, Serchip,
Mizoram.

Background

(i) Proposal was accorded In-principle approval during the 50th SCM held on
02.07.19, subject to submission of following documents prior to final approval.
(ii) Vide letter dated 30.08.19 & 02.09.19, IIE, Guwahati (Implementing Agency) has
submitted the documents and requested to consider the proposal for final approval.

Documents required Status

(i) SIDBI Appraisal Report. Received
(ii) NOC from State Pollution Control Board. Received
(iii) Commitment letter from State Government / SPV to meet the Received
escalation cost, if any, over and above the approved project cost.
(iv) Documentary proof from SPV for utilisation of CFC facilities by Received
at least 51% of the cluster members

Details of the proposal are as under:

1. Basic Information of Cluster

Name of Cluster Wood Carpentry Cluster, Baktawng

District Serchip
Location of Cluster Baktawng
Lok Sabha Constituency Mizoram (ST)
Main Product : Bed, Chest of Drawer, Cupboard, Dining Set, Doors,
Frames, Shelf, stand, Tables, Bench, Chokut, Almira, Stair
Raylling, Ventilators and Windows
No. of Enterprises including Micro: 107
break up (Micro, Small,
Medium) (Nos)
Turnover for the last five years Year Amount
(Rs. in crore)
2013-14 : 3.80
2014-15 : 4.13
2015-16 : 4.50
2016-17 : 4.90
2017-18 : 5.35
Exports for the last five years Nil

Employment in cluster 937 Nos.

Technology details After gathering the raw material from the forest, the product
goes through primary processing that includes debarking/
seasoning/chemical treatments plank cutting etc, then to
secondary processing that is manual operation with few
small tools, then the tertiary processing that is the manual
operation with few power small tools, then the products are
sent for final assembling, the last manual operation includes
polishing and painting, lastly inspection and the product is
then dispatched.
Whether DS conducted Yes
Main findings of DSR  Common Facility Center would act as a common ground
for the developmental and commercial activities and
would ensure the involvement of all the units
114
 irrespective of their size of business operation in the
cluster development programme.
 The artisans have not been able to afford some
machinery like Width Sizing/ Planning/ Sizing
Machine/Designing machine, Lathe Machine, Hydraulic
Machine and other hi-tech and advanced timber working
machine etc.
 Due to improper seasoning, the finished products are
having low durability as well as low level of reliability.
A seasoning plant is urgently required to be set up.
 The existing market is not organized well. The artisans
are not getting proper exposure for their products.
 To improve the efficiency of logistics operations as a
means to cutting cost, faster supply of goods to the
buyers, there is the need of a facilitating agency in the
cluster area.
 Artisans and entrepreneurs who are now earning their
livelihood in this sector needs proper training on
handling of machinery, time managements, business
managements, waste management etc. CFC may act as
training centre for them.
 The chain of raw material suppliers and artisans is not
well organized. CFC may function as common raw
material/ Sales depot to remove the hurdles of sales and
raw material procurement.
 The CFC is required for undertaking Research &
Development on wood related technology.
Main Problems of Cluster :  High Raw Material Procurement Cost
 Outdated machines under developed Marketing System
 Lack of proper working place
 Lack of social capital
 Lack of proper management system of the cluster units
Weak Linkage
Other Information : Nil

2. Information about Proposed CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Justification for CFC  Process study carried out in units in --
the cluster, involves processes as
shown in the flow chart and interactive
discussions with the concerned
artisans consequently dug out several
critical problems being faced.
 The problems exist in every stage right
from raw material availability/
Seasoning/chemical treatment through
low value primary processes, and
wastage of both raw material and
energy to the final manufacturing step
of polishing/finish, such problems are
impossible to be solved without
modern implements and machines.
 They are not enough capable of
purchasing such high tech machines
on to their individual levels.
 Thus the setting up of the CFC is very
crucial for their development.
(b.) Location of CFC The Common Facility Centre is planned to --
be located in the central area of the cluster
so as to enable all unit owners to avail of
115
Description Proposed by Implementation Agency Remarks
(IA)
the proposed modern wood working
facilities without incurring handling cost
for the heavy and bulky
lumberers/planks/panels.
% age of units in radius of 100
5km
% age of units in radius of 0
10km
(c.) Land for CFC
i. Whether land acquired Yes, SPV has acquired the land Documents received
ii. Title is in name of admeasuring 9.49 bighas (12703.655 sq.
mtr.) on lease for 25 years from State
iii. Valuation and its basis Government by paying annual land
iv. Land is sufficient revenue of Rs. 46,463/- (upto 4000 sq.
mtr. @Rs. 4.00 per sq. mtr. And above
v. Change of land use 4000 sq. mtr. @ Rs. 3.50 per sq. mtr.) for
vi. If on lease, duration of setting up of CFC.
lease
vii Whether lease is legally
tenable
(d.) Total Building area 8000 sq. ft. --
(e.) Rate of construction of Rs 750.00 --
building
(f.) Main Facility Proposed  Seasoning Facility. --
 Chemical Treatment Facility.
 Debarking of logs.
 Modern Joint Making Facilities.
 Panel Saw, Cross Cut Saw, Band
Saw Facility.
 Automatic Sanding.
 Mortise, Tenoner Facility.
 Modern Edge Banding Facility.
 High Frequency Plank Joining.
 Powered Small Tools.
 Finishing Facilities.
 Laminating Facility.
 Quality Control Service.
 Skill Upgradation Facility.
 Marketing network through
optional common branding.
(g.) Prod capacity of CFC CFC will be Capable of processing 10000 --
to 10500 cft of raw wood per month in
200 hours/month of operation hours
(h.) Major Outputs/ Sl. Parameters Before After
Deliverables of CFC, No. interventions Interventions
Projected performance of 1 Total no. of units 107 130-150
the cluster after proposed 2 Total annual 535 Around Rs. 800.00
intervention (in terms of turnover (Rs. in lakh after two
production, export/ lakh) years.
domestic sales and direct 3 Export Nil Expected Rs.
/indirect employment, etc.) 100.00 lakh
4 Investment (Rs. 154 Expected Rs.
in lakh) 250.00 lakh
5 Profitability 15-20% 20-25%
(percentage)
6 Employment 937 Nos. Expected 1450-
generation 1500 Nos.
(Direct &
116
Description Proposed by Implementation Agency Remarks
(IA)
Indirect)
7 ISO & Other NA Expected to be
certification introduced
(i.) Pollution clearance Yes Received
required or not
(j.) Man Power in CFC 55 --
(k.) Revenue generation Rs. 361.01 Lac --
mechanism for
sustainability of assets
(service/user charges to be
levied, any other-to be
specified)

3. Information about SPV

Description Proposed by Implementation Agency (IA) Remarks

(a.) Name and Address Baktawng Carpentry Industrial Co-operative --
Society (Registered under the Mizoram Co-
operative Societies Act 1991 under
Registration Number AE 233 or 96-97)
Baktawng, Tlangnuam, Mizoram, Pin-
796161
(b.) Nature of Registered Industrial Cooperative Society --
SPV(company or Society
or Trust)
(c.) Name of the State Pi Elizabeth Lalremthangi , Functional --
Govt. and MSME officials Manager, DIC, Serchhip
in SPV
(d.) Date of formation of 2.3.2017 --
SPV
(e.) Number of Members 107 --
(f.) Bye Laws or MA and Submitted Received
AOA submitted
(g.) Authorized Share -- --
Capital
(h.) Paid up capital -- --
(i.) Shareholding Pattern Submitted Received
(j.) Commitment letter for Submitted Received
contribution
(k.) SPV specific A/c State Bank of India, Khumtung, District --
Serchhip, Mizoram
Saving A/c No. – 36462418039
IFSC-SBIN0009443
(l.) Trust Building of SPV, SPV in the names of Baktawng Carpentry --
Previous track record of Industrial Cooperative Society has been
co-operative initiatives formed and. A copy of the registration
pursued by SPV members certificate is enclosed at Annexure III. A
need to be highlighted land measuring 13.50 bighas has been
with support acquired by the SPV in the closed proximity
documentation of the Baktawng village. Prepared and
submitted by SPV . The members of SPV is
expected to have equal number of shares in
the CFC as far as the contribution of the
shareholder is concerned. Project specific
account with State Bank of India, Khumtung
117
Description Proposed by Implementation Agency (IA) Remarks
Branch. Several meetings have been held for
awareness regarding the MSECDP scheme,
technology and implements selected and the
process of the CFC.
(m.) Technical Institution NIT Mizoram/ NID --
(n.) CFC may be utilised Submitted Received
by SPV members as also
others in a cluster.
However, evidence should
be furnished with regard
to SPV member ability to
utilise at least 60 percent
of installed capacity.
(o.)
(a) Power requirement for Yes, 150 kw --
commercial/domestic
purpose
(b) Water Yes --
(c) Gas/Oil/Other Utilities Yes, Disel --

4. Implement Arrangements

Description Proposed by Implementation Agency Remarks

(IA)
(a.) Implementing Agency Indian Institute of Entrepreneurship, As per guidelines.
(b.) Fund receiving Agency Guwahati, Ministry of Skill Development
and Entrepreneurship, Govt. of India
(c.) Implementation Period 18 months 24 months
(d.) Appraisal of DPR and To be submitted Received
main Recommendations
(e.) Comments of Technical -- --
Division
(f.) Approval of Technical Approved TEAC has
Committee recommended the
proposal.
(g.) Comments of Cluster -- --
Development Division
(h.) Working capital(In- NA --
principle sanction of loan
from a bank, if applicable
arrangement made)

5. Financial Analysis of CFC

Description Proposed by Implementation Agency Remarks

(IA)
(a.) BEP 56.66% (of installed capacity) As per SIDBI, BEP
during optimum
year 2025 works
out to 39.55%
Cash BEP in
optimum year 2025
is 16.14%
(b.) IRR, Payback period 15.82 % after tax 22.85% before tax Pay As per SIDBI

118
Description Proposed by Implementation Agency Remarks
(IA)
Back Period 4 Years 5 Months Before tax- 13.46%
After tax- 10.54%
(c.) DSCR NA --
(d.) Return on Capital 30.80% before tax As per SIDBI,
employed (ROCE) ROCE in optimum
year (3rd year) is
13.85%. The ROCE
for subsequent
years would be
17.76%, 21.29%,
24.95% and 28.66%
p.a. As the ROCE is
increasing in the
subsequent years,
the same may be
considered by the
Committee / GoI.
(e.) NPV Positive As per SIDBI,
108.77 (Positive)
(f.) DER NA --
(g.) Sensitivity Analysis Positive As per SIDBI,
sensitivity analysis
is carried out at 5%.
(h.) Status of CFCs NA --
approved in the State

6. Proposed Project Cost:

(Rs. in lakh)
S. No. Particulars Proposed Recommended As per
by IA by SIDBI MSE-
CDP
(i) Land & site development (land leased) 25.41 25.41 25.41
(ii) Building & Other Civil Construction 60.00 60.00 60.00
(iii) Plant & Machinery (including 390.63 390.63 390.63
electrification)
(iv) Misc. fixed assets 8.09 8.09 8.09
(v) Preliminary & Pre-operative expenses 11.80 11.80 11.80
(vi) Contingencies (2% on building and 5% 20.73 20.73 20.73
on plant and machinery)
(vii) Margin money for working capital 18.34 13.54 13.54
535.00
Total 530.20 530.20

7. Proposed means of finance:

(Rs. in lakh)
S. No. Particulars Percentage (%) Amount
(i) Grant-in-aid from Govt. of India 83.40 442.20
(ii) Grant-in-aid from Govt. of Mizoram 10.00 53.00
(iii) SPV contribution 6.60 35.00
Total 100.00 530.20

119
8. Plant and machinery (with Brief Specification)
(Rs. in lakh)

S. No. Particulars Nos. Power, Total

kW Cost
A Main Equipments
1. SCM MINIMAX Band Saw S400 P (Non CE) 1 1.50 2.50
2. SCM sSliding Table Panel Saw 400 Nova 1 7.50 5.50
3. SCM Cut-off Saw 1 5.00 4.10
4. SCM, SPINDLE MOULDER WITH TILTING 1 10.00 9.20
SPINDLE & LL Version
5. FEED 44, SCM Feeder STANDARD MACHINE 1 1.00 0.80
6. CMS Balestrini, Automatic Twin Table Round-End 1 2.55 17.00
Tenoner
7. MICRON - CMS BALESTRINI, Automatic Twin 1 2.55 9.35
Table Slot Mortiser MICRON
8. NOVA-F-(x) - SCM SURFACE PLANER 1 2.00 6.15
STANDARD MACHINE
9. SCM THICKNESSING PLANER - STANDARD 1 3.00 6.15
MACHINE
10. SCM SANDYA AUTOMATIC WIDE BELT 1 15.00 36.60
SANDER S600 RCS 135 - STANDARD
EQUIPMENT
11. SCM Universal Belt Sanding Centre - with 1 3.00 6.95
Oscillating Belt BASIC MACHINE
12. SCM, Automatic Throughfeed Planer Moulder, 1 5.00 15.30
PROFISET 40CE. STANDARD MACHINE
13. Festool Domino Joining Machine Domino Df 500 1 1.00 1.18
Q
14. Festool Domino Assortment Box DE - Beechwood 1 0.32
Domino Assortment Ds 4/5/6/8/10 1060Xbu
Assortment Sys Sort-Sys Domino
15. Festool Mobile Dust Extractor Ctl Midi Fitted 1 1.00 0.57
Filter Bag
16. Festool Domino Joining Machine Df 700 Eq Plus 1 1.00 1.50
Domino Cutter
17. Festool Beechwood Domino x1 Assortment Ds/Xl 1 0.25
D12/D14 128X Bu Dowel Range
18. Festool Beechwood Domino x1 Assortment Ds/Xl 1 0.29
D8/D10 306X Bu Dowel Range Domino
19. Festool Pendulum Jigsaw Carvex Ps420 1 0.50 0.76
20. Festool Jig Saw Blades HS 75/3 Bi 5X 1 0.03
21. Festool Jig Saw Blades S 105/4 5X 1 0.02
22. Festool Jig Saw Blades HS 75/25 Bi 5X 1 0.03
23. Festool Jig Saw Blades HS 75/25 Bi R 5X 1 0.03
24. Festool Planer H1 850 Eb-Plus Parallel Side Fence 1 0.75 0.75
Rebate Depth Stop Extraction Adapter Operation
Tool In A Sysytainer Sys 3 T - Loc
25. Festool Planer Head Hk 82 Sd Rustic Design Fine 1 0.22
With Spiral Blade Hs 82 Rf
26. Festool Planer Head Hk 82 Sd Rustic Design 1 0.21
Coarse With Spiral Blade Hs 82 Rf With Spiral
Blade Hs 82 Rg Depth Limiter
27. Festool Planer Head Hk 82 Sd Rustic Design 1 0.22
Undulating With Hs Spiral Blade Hs 82 Rw Depth
Limiter
28. Festool Dove Tail Kit Vs600 1 0.26
29. Festool Cutt. Template Vs 600 Sz 14 copying ring 1 0.11
Ø 17 mm (for OF 1010)
30. Festool Cutters Hw S8 D138/135/15◦ 0.05
31. Festool Copy Ring Kr-D 17/Of1400/Vs 600 1 0.03
32. Festool Cutt. Template Vs 600 Szo 20 copying 1 0.22
ring Ø 13.8 mm (for OF 1010). copying ring Ø 24
120
S. No. Particulars Nos. Power, Total
kW Cost
mm (for OF 1010)
33. Festool Dovetail Cutter Hw Vs600 D20X26X8 Z2 1 0.07
Rl
34. 119,750 Festool Mobile Dust Extractor Cleantec 3 1.00 3.50
Ctm 36 E Selfclean Filter Bag Suction Hose Ø 27
Mm X 35 M-As End Cap For Intake Adapter Hose
Holder Sys Dock Cable Holder In A Carton
35. 67,750 Festool Eccentric Sander Ets Ec 150/3 Eq 3 1.50 2.03
StickFix sanding pad Ø 150 mm FUSION-TEC
(extra-soft). operation tool
36. Festool Eccentric Sander Ets Ec 150/5 Eq StickFix 3 1.50 2.03
sanding pad Ø 150 mm FUSION-TEC (soft HT).
operation tool
37. Festool Suction Hose D 27 22X3 5M As Gq Ct 3 0.72
"Bleeder resistor (DIN IEC 312) <1 m?/m
Diameter 27/22 mm Length 3 5 m"
38. Festool Workcenter Wcr 1000 3 2.91
39. Festool Holder For Spra Wcr 1000 Lph 2x screw. 3 0.12
2x square nut
40. Festool Dry Guide Coat Hb-Set hand sanding 1 0.04
block. 2 guide control black powder cartridges
(each 30 g)
41. Festool Systainer Sys-Stf D 150 4S 3 0.29
42. Festool Sanding Discs Stf D150/16 P80 Gr/50 1 0.04
Sanding Discs Stf D150/16 P80 Gr/50
43. Festool Sanding Discs Stf D150/16 P180 Gr/100 1 0.07
44. Festool Sanding Discs Stf D150/16 P280 Gr/100 1 0.07
45. Festool Stickfix Qty. Stf 115X228 P400 Gr 100X 1 0.08
NA
46. Festool Cleaning Cloth Rt Premium 240X380/200 1 0.07
Ideal In Sanding Preparation
47. Rotary Polisher SHINEX Wood Set Shinex RAP 3 3.05
150-21 FE Additional Side-Mounted Hand Grip
Stickfix Polishing Pad Ø 150
48. Festool Swirl Mark Set Ro150/Mpa/Ps/Mf Set 2 1.34
49. Festool Sliding Compound Mitre Saw Kapex Ks 1 1.00 3.24
120 Ug-Set Items Included 561283
50. Festool Circular Saw Ts 55 Rebq-Plus-Fs Fine 1 0.50 0.77
Tooth Saw Blade Hw W48 Guide Rail Fs 1400/2 -
491498
51. Festool Multifunction Table Mft/3 Table With 1 1.15
Perforated Top And Foldway Legs Swivel Unit
Support Unit Angle Stop Adjustable Stop Guide
Rail Fs1080/2 Deflector Fs-Aw Additional Clamp
In A Carton
52. Festool Rustofix BMS 180 E Ld 85 Brush Kb 80 1 1.38
Brush Extractor Hood With Handle Tool Arbour
Clamping Flange Operationg Tools In Carrying
Case.
53. Festool Orbital Sander Rutscher Rs 200 Eq-Plus 1 0.67
StickFix sanding pad 115 x 225 mm. filter cartridge
54. Festool Compressed Air Eccentric Sander Lex 3 2 1.40
77/25 Set Stickfix Sanding Pad Ø 77 Mm W-Ht
(Soft) Ias-Connection Ias 3-Sd Compressed-Air
Hose Ø 124X 5M Interface Pad Ø 77 Mm
Operation Tool In A Systainer Sys 2 T-Loc
55. 82,000 Festool Oscillator Vecturo Os 400 Eq-Set 1 0.82
Wood Saw Blade Hsb 50/35/J Wood Saw Blade
Hsb 100/Hcs Universal Saw Blade Usb 78/32/Bi
Positioning Aid/Depth Stop Set Os-Ah/Ta Set In A
Systainer Sys 2 T-Loc Df
56. Festool Laminate Trimmer OFK 700 Eq-Plus 8Mm 1 0.78

121
S. No. Particulars Nos. Power, Total
kW Cost
Clamping Collet Extraction Hood Edge Trimming
Cutter D19X16 Operation Tool In Asystainer Sys 2
T - Loc
57. Festool Hole Drilling Set Lr 32-Sys • Guide Plate • 1 0.59
Centring Mandrel • Operation Tool • Hinge
Location Cutter Hm Ø 35 Mm • Dowel Drill Hw Ø
5 Mm (V-Shaped Tip) • Dowel Drill Hm Ø 5 Mm
(With Centring Bit And Pre-Cutter) • 2 Parallel
Side Fences With Adjustable Stop • 2 Clamps Fsz
120 • 2 Longitudinal Stops
58. Festool Routing Template Mfs 400 • 2 Angle Stops 1 0.33
• Tilt Protection • Circle Routing Insert • Operation
Tool
59. Festool Routing Template Mfs 700 2 Angle Stops 1 0.52
Tilt Protection Circle Routing Insert Operation
Tool
60. Festool Bench-Mounted Router Tf 2200-Set Router 1 2.88
Of 2200 Eb-Plus Basic Unit With Foldaway Legs
Module Support Router Stop Guard Press-Down
Fixture Assembly Lugs Ø 8 Mm Clamping Collet
Ø 12 Mm Clamping Collet Copying Ring Ø 30
Mm Extraction Hood Chip Deflector Operation
Tool
61. Festool Cordless Drills Txs Li 26 Plus Eu 230V 2 0.62
62. Bessey K Body Revo Kr 600/95 10 0.58
63. Bessey Band Clamp Ban700 3 0.12
64. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0.31
200/100
65. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0.40
300/120
66. Bessey Malleable Cast Iron Screw Clamp Tg-2K 10 0.79
1000/140
67. Bessey Deep Throat Clamp Tgnt 400/30 10 0.98
68. Bessey Heavy Duty Malleable Cast Iron Screw 10 0.88
Clamp Tgk 1500/120
69. Bessey Malleable Cast Iron Screw Clamp Tpn-Be- 10 0.24
2K 200/100
70. Bessey Kikilamp Kli 200/80 10 0.22
71. Bessey Die-Cast Zinc Screw Clamp Lm 200/100 10 0.23
72. Bessey Angle Clamps Ws6 4 0.29
73. Bessey Mitre Clamp Gall 10 2.10
74. Bessey Angle Clamps Ws1 10 0.08
75. Bessey K Body Revo Kr 800/95 10 0.67
76. Bessey K Body Revo Kr 1250/95 10 0.83
77. Bessey K Body Revo Kr 1500/95 10 0.90
78. Bessey Angle Clamps Ws3 10 0.51
79. Bessey Kliklamp Kli 120/80 10 0.21
80. Bessey Heavy Duty Malleable Cast Iron Screw 10 0.60
Clamp Tgk-2K 600/120
81. Bessey Heavy Duty Malleable Cast Iron Screw 10 0.76
Clamp Tgk-K 1000/120
82. Bessey One-Handed Clamp Ezs 150/80 10 0.28
83. Bessey One-Handed Clamp EZS 300/80 10 0.31
84. Bessey One-Handed Clamp EZS 600/80 10 0.38
85. Seasoning Kiln,700 1 11.23
86. Chemical Treatment Plant 1 7.75
87. Norwood LumberPro HD 36 Saw mill machine 1 38.90
88. Integrated Dust Collection and Recycling System 1 23.73
Support Service Equipment
Water Supply system 1 2.00 12.00
Fire Prevention system 1 8.00
Pollution Control System 1 2.00 7.08
122
 S. No. Particulars Nos. Power, Total
kW Cost
Air Compressor 1 5.00 10.50
Captive D G set, Transformer and other electricals 1 15.31
Sub-Total 305.34
Extra Cost for GST, P&F, Insurance, Installation 67.17
etc.
Power Connection 18.12
Grand Total 390.63

9. Proposal for Steering Committee:

Committee may consider the proposal for Final Approval for setting up Common Facility
Centre (CFC) in Wood Carpentry Cluster, Baktawng, Serchip, Mizoram at a total project cost
of Rs. 530.20 lakh with GoI grant of Rs. 442.20 lakh, State Government’s contribution of Rs.
53.00 lakh and SPV’s contribution of Rs. 35.00 lakh.

*********

123
Agenda No.51.6.1 (S): Extension of Time for setting up of CFC in Footwear
Cluster, Bahadurgarh, Haryana.

S. No. Description Status

1. Name of the proposal Setting up of CFC in Footwear Cluster, Bahadurgarh,
and location Haryana.
2. Approval accorded 29th SCM held on 24.02.12 and later on file.
3. Final approval order 03.12.12
issued on
4. Name of the IA Bureau of Industrial Policy and Promotion (BIPP),
Chandigarh
5. Means of Finance (Rs. in lakh)
Govt. of India grant : 916.68
State Govt. contribution : 150.00
SPV contribution : 443.14
Total : 1509.82
6. Project Costs and (Rs. in lakh)
component wise details (i) Land and its development : 250.00
(ii) Building & Other Civil : 239.38
construction
(iii) Plant & Machinery (including : 906.94
5% electrification charges)
(iv) Misc. fixed assets : 25.00
(v) Preliminary & pre-operative : 30.00
expenses, maximum 2% of
project cost
(vi) Contingency (2% building and : 50.14
5% on plant and machinery)
(vii) Margin money for working : 8.36
capital
Total : 1509.82
7. Total GOI grant
released Instalments & Date (Rs. in lakh)
1st on 09.01.17 : 366.67
nd
2 on 13.03.18 & : 275.00
10.04.18
Total : 641.67
8. Project validity 31.05.18
9. Time Extension sought 31.03.20
up to
10. Reason for Delay There had been delay in implementation of the project,
due to change in Plant & Machinery. Due to new trends
in the market and the latest technologies, the machines
proposed in the DPR are now out of the requirement and
are being replaced by the latest and modern machines
which may be useful.
11. Proposal for steering Time Extension requested up to 31.03.20
Committee

********

124