Modifications in the Scheme of Integrated Infrastructural Development (IID)

OFFICE OF THE DEVELOPMENT COMMISSIONER (SSI)
Ministry of SSI, Agro & Rural Industries
Govt. of India
Nirman Bhavan (South Wing), 7^th Floor,

Maulana Azad Road, New Delhi 110011

No.18(57)/03-IID Dated, the December 5, 2003.

To

The Secretary (Industries),

All States/UTs

Subject: Integrated Infrastructural Development (IID) Scheme for the Development of Small Scale and Tiny Units.

Sir,

With a view to streamline the implementation of IID scheme, this Office gathers feedback from the Implementing Agencies of various State Governments. On the basis of the information received, we carry out review of the scheme as and when required. Recently, Development Commissioner (SSI) reviewed the implementation of the scheme with the Senior Officers of the SIDBI. After a detailed discussion on various issues, the following decisions were taken to facilitate the setting up of IID centers:

1. Appraisal Fee - SIDBI, being the only authorized agency to conduct techno-economic appraisal of the proposals, is authorized to charge half per cent of the cost as appraisal fee. Some of the Implementing Agencies had requested that this fee should be limited to the model estimated project cost of Rs. 5 crores. SIDBI has agreed to charge half per cent of the project cost as appraisal fee limited to maximum of rupees two and a half lakhs for a project.



2. Time Frame for appraisal of the Proposals - Some of the Implementing Agencies had reported that SIDBI takes a long time to complete appraisal and submission of the report to the Office of the DC(SSI). It has now been decided that SIDBI will complete the appraisal work in a period of two months. In cases where the IID proposals are found deficient in some respect, the Implementing Agencies shall be informed immediately and the Office of the DC(SSI) shall be kept informed.

OFFICE OF THE DEVELOPMENT COMMISSIONER (SSI)
Ministry of SSI, Agro & Rural Industries
Govt. of India
Nirman Bhavan (South Wing), 7^th Floor,
Maulana Azad Road, New Delhi 110011

No.18(57)/2003-IID Dated, the 24th November, 2003

You may be aware that IID Scheme for small scale industries is in operation since 1994. Under the Scheme an IID Centre is estimated to cost Rs.5.00 crores (excluding cost of land), the Central Government provides grant upto Rs.2.00 crores (upto Rs.4.00 crores in case of North-East, J&K, Himachal Pradesh and Uttranchal) and the remaining amount may be obtained as loan from SIDBI, equity from State Governmnet or the internal funds of the Implementing Agencies. SIDBI has been provided imprest money to release grant and loan in the ratio of 2:3. This provision created an impression that the loan portion has to come only from SIDBI and not from other banks/financial institutions. The High Powered Committee in its meeting held on 06-10-03 considered the matter and clarified that the loan portion may be obtained from any bank/financial institutions, as considered feasible by the Implementing Agencies. SIDBI will, however, continue to provide loan to the Implementing Agencies which opt for this kind of funding pattern. It has also been clarified by the H.P.C. that once the project is declared as feasible, the SIDBI will not insist on the guarantee from the State Governments.

(K.S. Ludu)

Addl. Development Commissioner