IMPORTANT SOCIO-ECONOMIC DEVELOPMENT IN THE DISTRICT

The District has a very few reputed organizations in the private sector like T.V.Sundaram Iyengar & Sons, Madura Coats, Fenner (I) Ltd., George Oaks Ltd. etc. which are engaged in the production of variety of goods like tyres and tubes, machineries, textile, conveyor belts etc. and also provided employment opportunities.

The District offers ample scope for the field of textiles, readymade garments, bakery units, and floriculture, dairy and cold storage units, Agro and Herbal products, Granite stones, Blue metal jelly, Chamber bricks, Rubber and plastic based industries. There is also a very good scope for starting food processing and agro based industries.

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EXISTING INDUSTRIAL SCENARIO

In Madurai District, industrial development is at a slow pace and there are vast disparities between different areas and taluks in terms of industrial growth.

The following are the block-wise data of existing SSI units & LMI units as on 28-02-2002.

The following are the activity-wise data of existing SSI units.

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INFRASTRUCTURE FACILITIES & CLIMATE FOR INDUSTRIAL DEVELOPMENT:

Besides for achieving parity in industrial growth and for distributing economic activities evenly all over the District, there is a need for building up the infrastructure facilities uniformly.

The District Annual Credit Plan envisages implementation of good numbers of innovative and hi-tech projects in the field of agriculture, horticulture, farm forestry, wasteland development, dairy and small-scale industries.

The system of transport plays a pivotal role in overall economic development of any area. Madurai District has well laid out roads and railways lines connecting all major towns within and outside the State. The District has possessed a very good communication network. Water that is essential for industrial use and human consumption are also available plenty in most areas of the District.

37 banking groups along with their branches are operating in this District. Banks and other financial institutions play a crucial role in promoting rapid industrial growth. They should formulate the lending strategy taking into consideration of the following factors.

1. Taking lending decisions expeditiously based upon the viability of project reports.

2. Focusing increased attention on developing backward and most backward areas of the District.

Promoting new entrepreneurship based upon the genuine requirements of the borrowers

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ONLINE SMALL SCALE INDUSTRY REGISTRATION

• Tamil Nadu Computers, 11, Karpagavinayagar Shopping Complex, K. Pudur, Madurai - 625 007 Ph: 25 68 538
• Alpha Net Internet Cafe, 178 A, North Veli Street, I Floor, Madurai - 625 001 Ph: 26 32 732
• Priya Consultancy Services, 91, Navalar Nagar, Bye Pass Road, Madurai - 625 010. Ph: 
• Business Information Centre, MADITSSIA Hall, Dr. Ambedkar Road, Madurai - 625 020 Ph: 25 23 966
• Windows Cyber Cafe, 3 P K N Complex, Near Bus Stand, Tirumangalam, Madurai Dt. Ph: 283193 
• Usilai Net Browsing Centre, 7-3-321 II Floor, Peraiyur Road, Usilampatti, Madurai Dt. Ph: 251 844

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INDUSTRIAL ESTATES

The most appropriate technique for fostering rapid, balanced and decentralized development of SSI is setting up of the Industrial Estates.

In Madurai District, five industrial estates are functioning as follows.

1. SIDCO Industrial Estate, K.Pudur, Madurai.

2. SIDCO Industrial Estate, Kappalur, Madurai.

3. Hosiery Industrial Estate, Uranganpatti, Madurai.

4. Electrical & Electronic Industrial Estate, Kappalur

5. Automobile Co-operative Industrial Estate, Kappalur.

Total extent of land -- 56.054 acres

No. of work sheds -- 74 sheds.

Total extent of land -- 136 acres.

Developed plots -- 148 in various sizes &

allotted to 133 entrepreneurs.

Total extent of land -- 69 acres

No. of work sheds -- 147 sheds

This Estate was formulated specially for cluster-based activity of hosiery. Since no response is received from such type of entrepreneurs and most of the existing entrepreneurs have changed their place of location, it has been converted as common estate. It has been proposed to utilize the vacant sheds of 72 by inviting the new entrepreneurs especially from women entrepreneurs.

This estate is owned by the Department of Industries & Commerce exclusively for promoting electrical and electronic industries.

Total extent of land -- 35 acres

No. of developed plots -- 105 nos.

This is a Co-operative industrial estate under the control of the Department of Industries & Commerce. Owners of automobile service centers have formed this Estate and become members.

Total extent of land -- 23.90 acres

No. of developed plots -- 201 nos.

No. of members in the society -- 209 nos.

Paid up share capital amount -- Rs. 22.07 lakhs

State Govt. participation -- Rs. 20.00 lakhs

It has been proposed to establish an exclusive industrial Estate for women in Madurai. The required land has also been identified at Maruthankulam Kanmoi, Madurai District and the alienation work is under process.

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FOCUS ON POSSIBLE NEW INDUSTRIAL ACTIVITIES IN MADURAI DISTRICT

By virtue of having infrastructure facilities and geographical climate, the following industrial activities are seems to be encouraging.

1. Instant food mixes

2. Bakery & biscuit

3. Sugar candy and confectionery

4. Cardamom oil, pepper oil.

5. Fruit jams & jelly

6. Tomato ketch up, juice, pickles

7. Peanut candy

8. Dehydration of fruits & vegetables

9. Dairy product

10. Potato chips & roasted cashew nuts

11. Fruit squashes, cordials and fruit juices.

12. Mushroom processing

13. Jasmine cultivation and extraction

14. Appalam/papadam manufacturing

15. Cold Storage of Vegetables and fruits

CHEMICAL INDUSTRIES

1. Detergent soaps

2. Injection moulded plastic industrial items

3. PVC—Electrical conduct pipes

4. FRP—Light roofing

5. Disposable cups & sauces

6. Gummed paper tapes

7. HDPE blow moulded containers, furniture

8. Auto rubber moulded goods

9. Rubber play balls

10. Card Board cartons

11. PVC—dairy covers, money pouches, spectacle frames

12. Adhesives (rubber based)

13. Liquid soap

14. Zinc sulphate.

1. Aluminum builders hardware

2. Bolts & nuts

3. Rolling shutters

4. Automobile repaid workshops & servicing station

5. Small springs used in various mechanisms

6. Drums up to 60 litres capacity

7. Ferrous and non-ferrous foundry unit

8. Powder coating unit

1. Printed circuit board

2. Emergency lamps

3. Small transformers for electronic application

4. Assembling of digital clock

5. Electronic ignition system for automobiles

6. TV booster amplifier

1. Cotton vests & briefs

2. Readymade garments

1. Industrial hand gloves

2. Leather goods like hand bags, belts, key purses.

1. Gear cuttings

2. Plastic mouldings

3. Foundry

4. Machine shop for precision spares

5. Motor rewinding

6. Jigs for textile spares

7. Heat treatment plant

8. Material handling equipments

9. Quality leather parts

10. Diesel engine spare parts

11. FRP articles and components.

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FUNCTIONING OF DIC IN DEVELOPING SSI INDUSTRIES

To solve unemployment problem and to have an equitable growth of small-scale industries in rural area, District Industries centres were formed through out the Country. The object of the District Industries Centre is to provide all assistance under one roof. In Madurai, the District Industries Centre was formed during 1979. The District Industries Centre is headed by one General Manager and assisted by four Functional Managers.

1. MOTIVATION CAMPAIGNS

This team identifies the entrepreneur and renders all assistance by co-ordinate effort to commission the small-scale industrial units chosen by them. The motivation conducted yields the result of desire by changing the student population to an entrepreneur. There are many agencies providing avenue for development of entrepreneurship including Government. The District Industries Centre, Madurai conducts motivation campaigns in all the Blocks with the assistance of Panchayat Presidents and also for the Final-year students of Colleges of Engineering and Arts, Polytechnics and also Industrial Training Institutes. Likewise, seminars on specific areas viz. Information technology, silk weaving, etc. are being arranged in co-ordination with the voluntary organisations. The motivation and seminars have at gross root level creates a desire among the student population to choose self-employment opportunity instead of waiting for wage employment.

The District Industries Centre, Madurai is equipped with a Technical Information Library. The Library contains more than 1000 technical books of various Industrial projects ranging from Rs.50, 000 to Rs.60 lakhs. The journals and periodicals are also provided for the benefit of the entrepreneurs to have fair knowledge on the latest technology and market potential prevalent in the Country. This Library encourages the entrepreneurs to choose industrial ventures and to equip them with sufficient knowledge to face the competition in the market.

To remove the hurdles of the entrepreneur in their chosen ventures, Government under the Chairmanship of the District Collector constitutes a Committee called ‘SINGLE WINDOW COMMITTEE’. The General Manager, District Industries Centre is a Member-Secretary and other departmental heads of the District are members in the Committee. The Committee meets once in a month and clears the pendency where statutory provisions are to be fulfilled. On account of this, considerable delay in getting clearance is reduced. This indirectly helps the entrepreneurs to commission the project within the targeted time schedule.

The Government of Tamilnadu encourages entrepreneurship among Women through 5 LAKHS WOMEN E.D.P. IN 5 YEARS. The Government also extends incentives such as Margin money subsidy for First Generation Women Entrepreneur who are Single, Widow, Destitute or Divorcee at 10% on the project cost or Rs.50, 000 whichever is less. Women entrepreneurs are entitled for preferential treatment in allotment of sheds/developed plots in the Industrial Estates.

Small scale Industries Registration is one of the main functions for recognition to obtain incentives and concessions from Government. Provisional Small-scale industries the District Industries Centre having validity of 5 years issues Registration. This facility now extended through selected Internet Browsing centers for issuing online SSI provisional registration immediately on paying Rs.50 each. This is converted into Permanent Registration after the unit commences its production. Further registration of Cottage Industries and Handicraft Industries are also done.

To encourage small-scale industries and for equitable distribution and growth in the District, the Government has announced various concessions. The Government has notified SEDAPATTI and KOTTAMPATTI blocks as Industrially Most Backward blocks and MADURAI (EAST), ALANGANALLUR, VADIPATTI, USILAMPATTI, CHELLAMPATTI, KALLIKUDI and T.KALLUPATTI blocks and all Industrial Estates as Industrially Backward.

7.NEW ANNA MARUMALARCHI THITTAM

The Government of Tamilnadu is keen on promoting industrial investment in rural areas under small scale sector particularly on Agro based industries in order to have employment generation in rural areas.

Having understood the fact that the engine of industrial growth lies in Agro –business sector , the Government have announced a scheme called " NEW ANNA MARUMALARCHI THITTAM" wherein the Government direct that the scheme shall be implemented in 385 blocks of the State. Small Scale Industrial units not exceeding three Agro-based economic activity with a minimum capital investment of Rs.1 Crore and more with the capacity to generate employment would be encouraged in each of the 385 blocks in the State under the scheme

The Agro-based industries including processing of Horticulture produce, flower based extracts, coir and food processing, shall be encouraged under the scheme. The following are some of the agro-based projects which can be started in Madurai district under the scheme.

1. Oyster and milky mushroom

2. Sugarcane & Jaggery

3. Poultry & cattle feed

4. Flour products & Germinated cereal & Vermicelli

5. Banana chips

6. Sago products

7. Tomato pulp & Mango pulp

8. Aromatics & Natural dyes

9. Drumstick powder

10. Jatropha fuel oil

11. Groundnut product

12. Tamarind paste

13. Egg powder

14. Herbal Medicines

15. Oil seeds

16. Bio-fertilizer

17. Agri-clinics

18. Coir & Coconut based products

The following incentives will be granted as a "Special Package Scheme" to the units set up under New Anna Marumalarchi Thittam.

1. There will be a special 'Capital Incentives Scheme which provides for a 15% subsidy on investment in plant and machinery limited to Rs.15 lakhs per block in all the 385 blocks for investments made by the entrepreneurs under this scheme. TIIC will be the Nodal Agency for giving the subsidy.

2. The unit set up under this scheme will be entitled to Low Tension Power Tariff subsidy (LTPT) of 30%, 20%, 10% of energy charges in the first, second and third year respectively from the date of commencement of production or date of power connection which ever is later.

3. The units set up under this scheme will be eligible for Generator subsidy of 15% on the cost of the generator with a maximum ceiling of Rs.5 lakhs.

4. The units employing more than 50% of their work force as women will be eligible for additional 5% capital subsidy subject to a limit of Rs.5 lacs.

5. The units set up under this scheme will be eligible for an Interest rate of Prime Lending Rate (PLR) + 4% (The PLR at present is 11.25%)

6. The entrepreneurs will be eligible for priority in power supply, allotment of plot/industrial sheds of SIPCOT, SID CO and other Government/ Cooperative institutions.

7. The units will be eligible for market development assistance for products to be given TIIC and reimbursed from Government of India Agencies.

8. The entrepreneurs will be allowed as part of the project cost to avail of reimbursement of consultancy charges for preparation of detailed project report upto 1% of the project cost subject to a maximum Rs.1 lac to be paid directly by TIIC on approved projects.

9. The promoter shall contribute a minimum of 20% of the project cost.

To converge the efforts of all the concerned departments at the District level, Government constitute a District Level Committee under the Chairmanship of the District Collector with the General Manager, District Industries Centre as the Nodal Officer. The Project Officer, District Rural Development Agency(DRDA), Joint Director, Agriculture, Deputy Director Horticulture and the Regional Manager, TamilNadu Industrial Investment Corporation (TIIC) will be other members of the Committee.

The application in the prescribed format duly filled in should be submitted to 
The General Manager, District Industries Centre, Alagarkoil Road, Madurai.

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COIR SUBSIDY

To encourage the coir industries, the COIR BOARD is releasing the subsidy on the machineries installed at lump sum depending on the end products.

MARGIN MONEY ASSISTANCE BY THE K.V.I.C. :

To encourage the industries in rural area level, the Khadi and Village Industries Commission is sanctioning margin money assistance to the industries located in the rural areas, which are within the population of 20,000 at the rate of 25% on the project cost approved by the financial institutions.

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This scheme was first introduced through out the Country by the Honourable Prime Minister of India on the Independence Day of 1993 and implemented with effect from 2nd October 1993. The object of the scheme is to provide self-employment opportunities in the field of Industry, Service and Business sector to the educated unemployed youth. The scheme is further modified with some concessions during the year 1999-2000.

The following are the norms to qualify for assistance under this National Programme.

1. The individual should be within the age group of 18 to 35 and relaxation of 10 years will be given to SC/ST, Ex-servicemen, Women and physically handicapped.

2. The family income including all sources should not exceed Rs.40,000 per annum.

3. The individual should have a minimum qualification of VIII standard and those who have undergone technical training certificate conducted by the Government for a minimum period of at least six months.

4. The individual should be a continuous residence for a period of three years in the District from where he/she would like to avail the benefit and should not be a defaulter in repayment of loan borrowed already from any of the financial institutions including co-operative banks.

5. The quantum of finance extended by commercial banks to a maximum of Rs.1,00,000 for setting up of Business ventures and RS.2,00,000 for setting up of service and Industrial ventures with a marginal contribution of 5% to 16.25% by the promoter.

6. The scheme also provides opportunity for setting up self-employment units under partnership upto RS.10,00,000 for 5 persons at the above rate per individual.

7. The Reserve Bank of India provides subsidy to a maximum extent of Rs.7500 or 15% on the project cost whichever is less.

8. A moratorium ranging from 6 to 18 months by the Commercial banks depending on the cash-flow of the sector chosen by the individual.

9. The advance extended by the commercial banks is to be repaid within a period of 3 to 7 years depending on the project.

10. The beneficiary for whom sanction was accorded by the Commercial banks has to undergo a management training for a period of 10 days in respect of Service and Business sector and 20 days in respect of Industrial sector with a stipend at the rate of Rs.15 per day.

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REGIONAL TESTING LABORATORY, K.PUDUR.

The Regional Testing Laboratory is functioning in the complex of SIDCO Indl.Estate, K.Pudur, Madurai. This assists more than 1000 small scale industries in and around of Madurai District by way of testing their raw materials and end-products and issue Certificate. A separate Library is functioning within the Regional Testing Laboratory, which helps the entrepreneurs to gain knowledge about the specific field of various SSI units and project reports.

ELECTRICAL & ELECTRONIC TESTING & DEVELOPMENT CENTRE, KAPPALUR.

This centre is issuing Quality control certificate to the Electrical and Electronic products. A separate library is functioning within the complex of this centre. It helps the entrepreneurs to gain knowledge regarding the specific field of various SSI units and its project reports. Further the developed plots are available for the setting up of Electronic industries

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INDUSTRIAL CO-OPERATIVE WING

An Industrial Co-operative wing is functioning in the Complex of this Centre under the head of Asst.Director of Industries & Commerce (Coir)(Indl.Co-ops) various types of Industrial Co-operative societies such as Coir Indl. Cop-op. Society, Brick Indl.Co-op.society, Tailoring Indl.Co-op.society, Auto drivers’ Indl. Co-op.society, Coal and Coak Indl. Co-op.society, Automobile Indl. Co-op. Society is functioning with a total investment of Rs.4 crores. It extends employment opportunities to about 2000 members. It is also proposed to start new industrial co-operative societies and to extend more employment.