Revised mannual 2

GOVERNMENT OF KARNATAKA

DEPARTMENT OF HANDLOOMS &

TEXTILES

MANUAL ON

PACKAGE OF INCENTIVES UNDER

SUVARNA VASTRA NEETHI

(TEXTILE POLICY)

2008 - 2013

Manual 1

INDEX

Sl.No PARTICULARS

Page No.

1 Introduction 52 Chapter I Definition 7

3Chapter II Applicability, validity, dovetailing

of support under other schemes.9

4 Chapter III Incentives Offered 10

5 Chapter IV

Guidelines for administering incentives for textiles and garment industriesA) ADMINISTRATIVE PROCEDURES.I. PROCEDURE TO BE FOLLOWED BY THE INDUSTRIALISTS FOR CLAIMING VARIOUS INCENTIVES UNDER THE POLICY.

13

II PROCEDURE FOR SCRUTINY, INSPECTION AND VERIFICATION OF THE CLAIMS RECIEVED UNDER THE POLICY BY THE DISTRICT LEVEL OFFICERS.

14

III PROCEDURE FOR SCRUTINY, INSPECTION, VERIFICATION OF THE CLAIMS AND SANCTION OF FINANCIAL ASSISTANCE TO THE UNITS UNDER THE POLICY BY THE HEAD OFFICE LEVEL OFFICERS.

15

B) COMPONENTWISE OPERATIONAL PROCEDURES.1. Credit Linked Capital Subsidy.

16

2. Entry tax reimbursement. 173. Stamp duty reimbursement. 204. Reimbursement of cost of land /Acquisition cost on the industrial land allotted though KIADB / KSSIDC.

20

5. Reimbursement of cost of establishment of Common Infrastructure for Green Field Textile parks / SITP approved project.

21

6. Reimbursement for the cost of Power 22

Manual 2

5Chapter IV cont.

7. Reimbursement cost of the project for establishment of Common effluent treatment plant & hazardous waste disposal Facility.

23

8. Reimbursement of cost of the Market Development & Branding / Design Development & Product Diversification / Standards & Compliances.

24

9. Reimbursement of the cost of establishment of Mega Projects

2610. Establishment of new skill development centers and up gradation of existing training centers.

2711. Skill up gradation programs. 2912. Reimbursement of expenditure incurred on setting up of specialised institute for implementation of standards / Accreditation / Certification system.

30

6 Annexure-1 Application for sanction of credit linked capital subsidy on the investment made on the fixed assets

31

7 Annexure-2 Fixed investment certificate from the bank / financial institutions

34

8 Annexure-3 Chartered accountant certificate 379 Annexure-4 Engineer’s / architect’s certificate 40

10 Annexure-5 Form of declaration regarding employment of of “local persons”

41

11 Annexure-6 Investigation report 4312 Annexure-7 Agenda notes for SLPC 4613 Annexure-8 Model Sanction order 49

14 Annexure-9 Proforma for executing Memorandum of undertaking to claim credit linked capital subsidy

53

15 Annexure-10 Application for claiming reimbursement of entry tax

56

16 Annexure-11 Application for claiming reimbursement of stamp duty

59

Manual 3

17 Annexure-12 Application for claiming reimbursement of land cost / land acquisition cost on land allotted through K.I.A.D.B / KSSIDC.

63

18 Annexure-13 Application for claiming reimbursement of the investment made on common infrastructure for green field textile park

67

19 Annexure-14 Application for claiming reimbursement of power subsidy

71

20 Annexure-15

Application for claiming reimbursement of the investment made on Common effluent treatment plant & hazardous waste disposal facility

75

21 Annexure-16 Statement of fixed assets created by the unit 79

22Annexure-17 Application for claiming reimbursement of the

investment made on Capacity building support81

23 Annexure-18 Application for claiming financial assistance for establishment of new skill development centre

86

24 Annexure-19 Application for claiming financial assistance for strengthening of existing training institute

92

25 Annexure-20

Application for claiming reimbursement of the investment made on setting up specialised institute for implementation of standards / accreditation / certification system.

98

26 Annexure-21 Format of application for skill up gradation Program

100

27 Annexure-22 Classification of zones 101

Manual 4

THE PACKAGE OF INCENTIVES FOR TEXTILE & GARMENT INDUSTRIES IN

KARNATAKA 2008 – 2013 INTRODUCION: -

The package of incentives reproduced in this manual is a part of the Textile policy “Suvarna Vastra Neethi” 2008 – 2013 These incentives are offered vide Government order No. CI 47 JAKAIYO 2008, Bangalore. Dated. 1-10-2008 to the New Textile & Garment Industries where investment is made in the specified sector, in order to achieve the following objectives.

To achieve balanced, higher and sustainable growth in the entire textile value chain from fiber to finish products, with emphasis on balanced regional development.

To increase the income levels of the people dependent on the SMEs within the Textile and garment sector thereby creating additional employment opportunities to at least 5 lakh people during the policy period.

To facilitate emerging units in critical areas such as production technology, market research and development, HRD & ITES for exploiting the emerging global and domestic trade opportunities.

In administrating the package of incentives, the focus will be on.a) A uniform procedure for the implementing officers throughout the State. b) An environment conducive for the entrepreneurs to operate with ease.c) Extend simplified procedures, reduction in number of documents etc., to

entrepreneurs at the entry/ modernization/ implementation levels as well as during operation.

Manual 5

d) A responsive and transparent administration based on mutual trust. This manual deals with the following incentives.

1. Credit linked Capital Subsidy.

2. Entry Tax Reimbursement

3. Stamp Duty Reimbursement

4. Reimbursement of Land cost /Land Acquisition cost on land allotment

through KIADB / KSSIDC

5. Common Infrastructure for Green field Textile Parks

6. Power subsidy

7. Reimbursement of investment made on Common Effluent Treatment Plant

& Hazardous waste disposal facility

8. Incentives for Capacity Building support

9. Incentives for Mega Projects.

10. Assistance for establishment of Skill Development Centres

Manual 6

CHAPTER - I

Definitions:-

Textiles & Garments: The Textile and Garment Industry to be covered under this policy

will include all units, which are engaged in various value chain activities of the industry such as Spinning, Weaving (Power loom and Handloom) including pre - loom activities, Knitting, Processing, Garmenting, Embroidery, units engaged in manufacturing Technical textiles and all other supporting ancillary activities including Textile machinery manufacturing.

Mega Projects:- Textile and Garment units investing Rs.100 Crores and above in capital expenditure, in a single project, in Zone - 1 and Zone - 2, and providing a minimum of 500 direct employment would be classified as Mega Projects. These Mega Projects would be provided special support on a case - to - case basis.

Fixed Assets:- Fixed Assets shall mean the total investments made on land, building and plant and machinery and such other productive assets like tools, jigs and fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes, material handling equipments and such other equipments directly related to production purposes.

Capital Assets:- Capital Assets shall means the total investments made on plant and machinery and such other productive assets like tools, jigs and fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes, material handling equipments and such other equipments directly related to production purposes. Capital Assets assessment should not include land and building.

Manual 7

New Textile Units:- A unit in which the investment has been made on or after 1st April 2008.

Government Order:- The Government Order No. CI 47 Jaikayo 2008 Dated 01-10-2008 issued

by Government of Karnataka notifying Suvarna Vastra Neethi (Textile Policy) 2008 - 2013.Date of Commencement of Commercial Production:- The Date on which “First sale Invoice” is issued by the unit. Women Entrepreneur:-

An industrial unit exclusively promoted by a women entrepreneur where the unit is a proprietorship unit. / An industrial unit where the women partners hold more than 50% of the investment in the partnership unit. It shall be further verified that the woman promoter / partner actually participates in day - to - day management of the unit. In case of private limited companies, share of the women entrepreneur is more than 50% and the women entrepreneur participates in the day - to - day functioning of the unit.

Schedule Caste & Schedule Tribe Entrepreneurs:

A unit is said to be promoted by SC/ST entrepreneurs provided the unit is promoted by SC/ST entrepreneur in case of a proprietary concern, whereas in case of partnership unit, if partner belonging to SC/ST category and holds more than 50% of investment. The promoter shall produce the appropriate Caste Certificate issued from the competent authority. In respect of private limited company the share holding of entrepreneurs belonging SC/ST category shall be more than 50%. The SC/ST Entrepreneurs shall participate in the day - to - day management.

Manual 8

CHAPTER – IIApplicability:-

With the issuance of the Government Order No. CI 47 Jakaiyo 2008 Bangalore dated 1st October 2008, the new Textile Policy & packages of Incentives shall be deemed to have come into effect from 1-4-2008. The Incentives made available as per the policy and package of incentives vide Govt. Order No. CI 50 Jakaiyo 2002 Dt. 21-2-2004 and subsequent amendments / modifications thereto stands withdrawn.

The incentives under this policy shall be available to all new investments both for establishment of new units and for expansion, diversification and modernization of existing industries - both in the manufacturing and non - manufacturing categories [the extent they are applicable).Validity:-

The incentives covered under this policy will come into force with effect from 1st April 2008 and will be valid for a period of FIVE YEARS there from i.e., up to 31st March 2013.

Dovetailing of Support under other Schemes:-

The assistance available under various schemes of Central and State Governments may be dovetailed by the group of Entrepreneurs / Industry Associates / SPVs / Units with support available under this policy. However the contribution by the industry shall not be less than 15% of the cost of each project, in case of such dovetailing.

The projects approved under this policy will NOT be eligible to claim incentives and concessions under Industrial Policy of Govt. of Karnataka.

Manual 9

CHAPTER – III1. Incentives Offered:

Sl.No.

Incentives Zone-1 Zone-2 Zone-3

1 Credit linked Capital subsidya) General

b) Additional subsidy

(i) Units within Designated

Textile Parks.

(ii)SC/ST/Persons with disabilities/ Minority/Ex-servicemen/ Women

20% on the value of fixed assets or Rs.20.00 lakhs, whichever is less.






Nil



2 Entry Tax reimbursement

Full reimbursement on Plant & Machinery and Capital Goods including equipments for captive power generation and for Common Effluent Treatment and waste disposal facilities.



3 Stamp Duty reimbursement

Full reimbursement with respect to : (i) Execution

of Lease, Lease-cum-sale and Sale deeds in respect

50% reimbursement with respect to : (i) Execution of

Lease, Lease-cum-sale and sale deeds in respect of

Nil

Manual 10

of industrial land / plots allotted.

(ii) Execution of Lease Deeds in case of industrial sheds / plots taken on Lease.

(iii) Loan and credit deeds, including security documents such as mortgage deed, pledge deed etc., executed for availing long term funds from banks / FIs and other agencies of GoK/GoI.

(iv) Use-on Stamp Duty paid on Imports

industrial land / plots allotted.

(ii) Execution of Lease Deeds in case of industrial sheds / plots taken on Lease.

(iii) Loan and credit deeds, including security documents such as mortgage deed, pledge deed etc., executed for availing long term funds from banks / FIs and other agencies of GoK/GoI.


4 Land Acquisition / Allotment through KIADB/KSSIDC

Reimbursement of 25% of the cost of land including acquisition charges, if any, as charged by KIADB / KSSIDC or Rs.25.00 lakhs, whichever is less.

Reimbursement of 50% of only the acquisition charges levied by KIADB / KSSIDC or Rs.15.00 lakhs, whichever is less.

Nil

5 Common infrastructure for Greenfield Textile Parks(i) SITP

approved projects

40% of the project cost or Rs.12.00 crores, whichever is less.9% of the project cost or Rs.5.00 crores, whichever

20% of the project cost or Rs.8.00 crores, whichever is less.9% of the project cost or Rs.5.00 crores, whichever

Nil

9% of the project cost or Rs.5.00 crores, whichever

Manual 11

is less. is less. is less.

Manual 12

6 Power subsidy(i) Readymade

garment units(ii) Hi-tech Power

loom units with power connection above 20 HP

(iii) Spinning units

Reimbursement of cost of power paid @ Rs.1.00 per unit.



7 Common Effluent Treatment Plant and Hazardous waste disposal facility

(a) 50% of the project cost or Rs.5.00 crores, whichever is less.

(b) Incase of projects funded under any GOI scheme – 20% of project cost or Rs.2.00 crores, whichever is less.

8 Capacity building support(i) Market

Development and Branding

(ii) Design development and Product diversification

(iii) Standards and compliances

Reimbursement of 50% of the project cost or Rs.50.00 lakhs, whichever is less.

Reimbursement of 50% of the project cost or Rs.25.00 lakhs, whichever is less.

Reimbursement of 50% of the cost or Rs.2.00 lakhs, whichever is less.

9 Mega Projects Special support on a case-to-case basis.

Manual 13

CHAPTER – IV GUIDELINES FOR ADMINISTERING INCENTIVES FOR TEXTILE AND

GARMENT INDUSTRIES.

A) ADMINISTRATIVE PROCEDURES.I PROCEDURE TO BE FOLLOWED BY THE INDUSTRIALISTS FOR

CLAIMING VARIOUS INCENTIVES UNDER THE POLICY.

The eligible Textile and Garment units shall file the prescribed application claiming the eligible subsidy or incentives as per the provisions of the policy. The format of the prescribed application forms are given in Annexures.

The applications should be supported by the relevant document as prescribed under the various components. The completed applications in all respects shall be submitted to the office of the Deputy Director / Assistant Director, Handlooms and Textiles of the concerned district where the unit is situated. The unit should prefer the claim within six months of establishment of the unit in case of new unit OR within six months of expansion/modernization in case of existing units for sanction of investment subsidy and within six months of the events in case of claims pertaining to entry tax, stamp duty, land cost / acquisition cost and power subsidy reimbursement.

The unit claiming any assistance under the policy should have been established on or after 1-4-2008. Any existing Textile industries which have taken up expansion or modernization after this date are also eligible to claim the financial assistance to the extent of investment made on such expansion. However it is required to make an investment of not less than 25 % of the original project cost to get eligibility on such expansions. The requirement of various documents to claim the financial assistance under various components is mentioned against each of the components. The completed applications so filed at the district level offices are then taken up for scrutiny and physical verification by the district level officers concerned.

Manual 14

II PROCEDURE FOR SCRUTINY, INSPECTION AND VERIFICATION OF THE CLAIMS RECIEVED UNDER THE POLICY BY THE DISTRICT LEVEL

OFFICERS.

The applications filed by Textile & Garment Units for sanction of incentives under the policy with the officer in - charge of concerned districts as per the provisions of the clause I above should be taken up for physical verification immediately. The District Officer should scrutinize the application and verifies the details of machinery installed and working and ensure that none of the parts of the machinery are old / used / second hand with exception to those imported from outside the country and Particulars of employment provided to local persons. After verification of the proposal the district should send the proposal to the Head Office with his/her investigation report in the format given at Annexure-6 and specific recommendations with duly attested all relevant documents.

In case of units undertaking expansion, diversification and modernization.

The concerned district level officer shall verify:

1. During the implementation of the project:

The details furnished in the application for incentive in the prescribed format indicating the date of purchase order of the machinery as the date of commencement of expansion of the project.

2. On completion of expansion, diversification, modernization.

The quantum of investment made on fixed assets for expansion, diversification, modernization on the date of completion of such investment. He/she should also verify the following.

Manual 15

(i) The date of commencement of commercial production thereof. (ii) The extent of additional capacity created out of investment made by

expansion, diversification, and modernization.(iii) Details of Machinery installed with specific reference to the effect that no

part of the machinery is old / second hand with exception to those imported from outside the country.

(iv) Particulars of additional employment provided to local persons under such expansion.

III PROCEDURE FOR SCRUTINY, INSPECTION, VERIFICATION OF THE CLAIMS AND SANCTION OF FINANCIAL ASSISTANCE TO THE UNITS

UNDER THE POLICY BY THE HEAD OFFICE LEVEL OFFICERS.

The personnel at Head Office after due scrutiny, shall arrange to prepare an agenda notes in the format given at Annexure–7 and place the case before the State Level Project Implementation Committee (SLPIC) for approval and sanction of incentives to the applicant unit if the proposal is in order in all respects. Physical verification if found necessary may also be carried out by the officers of the Head office to ensure that the claim is in order in all respects. Head Office should ensure that the sanction order sanctioning the incentive is issued to the eligible unit within 30 days from the date of receipt of application (which is in order in all respects) in Head Office or otherwise, issue a rejection letter indicating the reason for such rejection. A model sanction order is given at Annexure – 8. However, the release of the sanctioned assistance is made in full or part by part subject to availability of funds but in no case such parts shall be more than three.

Manual 16

B) COMPONENTWISE OPERATIONAL PROCEDURES.

1. CREDIT LINKED CAPITAL SUBSIDY:-1(a) ELIGIBILITY:

(1)All the new Textile and Garment units in which investment has been on or after 1-4-2008 are eligible to claim subsidy under this component.

(2)The existing Textile and Garment units in which investment has been made on or after 1-4-2008 for their expansion / modernization / diversification are also eligible to claim subsidy under this component.

(3)Only the units to which term loan has been sanctioned by the financial institution (KSFC, SIDBI, DBI. etc.,) or Banks are eligible to claim subsidy under this component.

1(b) PROCEDURE FOR CLAIMING CREDIT LINKED CAPITAL SUBSIDY:-The eligible Textile / Garment units should file the application as

prescribed above with the district level officer.Keeping the facts that the banks or financial institutions would have

sanctioned the loan to the units after verifying the legal documents and examining the proposals in detail with reference to location of industry, sanction of electric power, approval of building plan, approval of factories and boilers & other statutory requirements in view, only the following documents are prescribed to be obtained for sanction of credit linked capital subsidy.

(a) Application in the prescribed form (in duplicate) – (Annexure-1)(b) Copy of Entrepreneur Memorandum.(c) Investment Certificate issued by the Bank or financial institution.(Annexure-2)(d) Form of declaration regarding employment of local persons. (Annexure-5)(e) Agreement bond (MOU) on 100 rupees bond paper. (Annexure-9)Manual 17

(f) Copies of receipts / bills / vouchers etc in respect of the payments made towards investment.(g) Copy of the loan appraisal report of the concerned bank/ financial institution.(h) Details of loan released to the unit by the bank.Note: - 1. All eligible units shall prefer the claim of credit linked capital subsidy within six months from the date of commencement of commercial production in case of new units.2. The eligible units shall prefer the claim of credit linked capital subsidy within six months from the date of commencement of commercial production on expanded / modernized portion of the unit in case of existing units.3. The credit linked capital subsidy will be available on the value of fixed assets created by the units.

1(c) Scrutiny of application:-

(i) The machineries installed in the unit have to be verified with reference to the list furnished by the Bank/ Financial institutions and value indicated in the investment Certificate has to be accepted.

(ii) Value of the building has to be accepted as certified by the Bank/ Financial institutions including the office building and compound wall.

(iii) Any other investment directly made by the unit on eligible items, which are not certified by the Bank/ Financial institutions or other development corporations have to be considered on obtaining the bills and vouchers.

(iv) Investments made on the Guest House and vehicles should not be considered for computing the eligibility.

(v) Any necessary information left out by the unit while filing the application, may be obtained at the time of inspection, so that the delay on correspondence could be avoided.

2. ENTRY TAX REIMBURSEMENT:

2(a) Eligibility

Entry Tax reimbursement shall be available to all Textile and Garment Units as detailed below.

Manual 18

Plant & Machinery and capital goods including equipments for captive power generation and equipment for common effluent treatment and waste disposal facilities.

2(b). PROCEDURE FOR CLAIMING ENTRY TAX REIMBURSEMENT

The eligible Textile & Garment Units shall file the application with the officer In - Charge of District along with the following documents.

2(b) (i) In case of new units(a). During implementation of Project: (i) Application in the prescribed format. (Annexure-10)(ii) Copy of Entrepreneur Memorandum. (iii) Copy of order placed for purchase of Machinery & Equipments.(iv) Copy of documentary evidence (bills, vouchers, etc.,) indicating the entry

tax paid.(v) Copy of Project Report.

(b). During operational Phase i.e. on commencement of commercial production: (i) Application in the prescribed format. (Annexure-10)(ii) Copy of Entrepreneur Memorandum (iii) First sale Invoice (iv) Form of declaration regarding employment of local persons in prescribed

proforma. (v) Copy of the documentary evidence (bills, receipts, vouchers etc)

indicating the entry tax paid.

2(b) (ii) In case of the units undertaking expansion, diversification, modernization:(a). During the implementation of the project.

Manual 19

(i) Application in the prescribed format. (Annexure-10)(ii) Copy of Entrepreneur Memorandum (iii) Proposed investment under expansion, diversification, modernization:(iv) Copy of the Project report in respect of expansion, diversification,

modernization:(v) Copy of orders placed for purchase of machinery & equipments. (vi) Copy of the documentary evidence (bills, receipts, vouchers etc)


(b) On Completion of expansion, diversification, modernization:(i) Application in the prescribed format. (Annexure-10)(ii) Copy of Entrepreneur Memorandum (iii) First sale Invoice raised on completion of expansion, diversification,

modernization.(iv) Form of Declaration regarding employment of local persons after

expansion, diversification and modernization. (Annexure-5)(v) Copy of the documentary evidence (bills, receipts, vouchers etc)


2(c) The scrutiny of application:-

(i) The machineries installed in the unit have to be verified with reference to the list furnished by the Bank/ Financial institutions and payment of entry tax made as per the tax invoice.

(ii) Any other investment directly made by the unit on eligible items, which are not certified by the Bank/ Financial institutions or other development corporations have to be considered by obtaining the bills and vouchers.

(iii) Any necessary information left out by the unit while filing the application, may be obtained at the time of inspection, so that the delay on correspondence could be avoided.

Manual 20

3. STAMP DUTY REIMBURSEMENT:3(a) EligibilityReimbursement of stamp duty paid is admissible with respect to:(i) Execution of Lease, Lease-cum-sale and Sale deeds in respect of

industrial land / plots allotted. (ii) Execution of Lease Deeds in case of industrial sheds / plots taken on

Lease. (iii) Loan and credit deeds, including security documents such as mortgage

deed, pledge deed etc., executed for availing long term funds from banks / FIs and other agencies of GOK/GOI.


3(b). Procedure for claiming Stamp Duty Reimbursement:The eligible Textile and Garment Units shall file the application with the

Officer In- Charge of the District along with the following documents(i) Application in the prescribed format. (Annexure-11)(ii) Copy of Entrepreneur Memorandum.(iii) Copy of lease deed/lease cum sale deed/ credit deed / stamp duty paid

on imports / sale deed / pledge deed.(iv) Copy of documentary evidence (receipts, bills, vouches etc.,) indicating

the amount of stamp duty paid. (v) First sale Invoice raised on completion of new unit / expansion,

diversification, modernization.(vi) Form of declaration regarding employment of local persons in new unit

/ after expansion, diversification and modernization. (Annexure-5)

4. Reimbursement of cost of land /Acquisition cost on the industrial land alloted though KIADB / KSSIDC. 4(a) Eligibility

Manual 21

Reimbursement of the cost of land / acquisition cost as charged by KIADB / KSSIDC or is admissible.

4(b). Procedure for claiming reimbursement of cost of land acquisition / allotment though KIADB / KSSIDC.

The eligible (New / expanded / diversified / modernized) Textile and Garment Units shall file the application with the Officer in- Charge of the District along with the following documents

(i) Application in the prescribed format. (Annexure-12)(ii) Copy of Entrepreneur Memorandum.(iii) Copy of the Allotment letter / Sale Deed / Possession certificate from

KIADB / KSSIDC for the cost of land. (iv) Copy of the documents for payment made towards the cost of land and

/or acquisition charges as the case may be.(v) Form of Declaration regarding employment of local persons in new unit

/ unit after expansion, diversification and modernization. (Annexure-5)

5. Reimbursement of cost of establishment of Common Infrastructure for Green Field Textile parks / SITP approved project.5(a) Eligibility

Financial assistance in the form of subsidy is available on the investment made by the Organisations on creating basic infrastructure for development of the Textile parks in not less than 25 acres of land.

5(b). Procedure for claiming the reimbursement of cost of establishment of Common Infrastructure for Green Field Textile parks / SITP approved project.

The eligible Textile and Garment Units shall file the application with the Officer in- Charge of the District along with the following documentsManual 22

(i) Application in the prescribed format. (Annexure-13)(ii) Copy of the entrepreneur Memorandum.(iii) Detailed project report.(iv) Form of Declaration regarding employment of local persons in new unit

/ after expansion, diversification and modernization. (Annexure-5)(v) Copy of the approval letter from Government of India (in case SITP

projects)(vi) Clearance letter from the local authority.(vii) Copy of SPV / MOU.(viii) Copy of documents (receipts, bills, vouchers etc.,) indicating the

payment made for the setting up of the common infrastructure for Green Filed Textile Parks / SITP approved projects.

6. Reimbursement for the cost of Power(a) EligibilityReimbursement of cost of power paid @ Rs.1.00 per unit is available for(i) Readymade garment units(ii) Hi-tech Power loom units with power connection above 20 HP(iii) Spinning units

6(b). Procedure for claiming the reimbursement for the cost of Power incurred by the Readymade Garment Units / Hi-Tech Power loom Units with Power Connection above 20. H.P. /Spinning UnitsThe applications should be filed by the units with the district in charge

officer along with the following documents. i) For new units:-

(i) Application in the prescribed format. (Annexure-14)(ii) Copy of the entrepreneur Memorandum.(iii) Copy of the power sanction letter or power connection letter.(iv) Copy of bills, receipts, vouchers in respect of cost incurred towards

power utilized. (v) Copy of rent / lease deed as the case may be.

Manual 23

(vi) Form of Declaration regarding employment of local persons.(Annexure-5)

ii) For expansion / diversification / modernization:-a) Copy of additional power sanction letter. b) Proof of power consumption in the preceding 6 months prior to

expansion / diversification / modernization.c) Average 6 months cost of power consumption during the immediate 6

months after expansion / diversification / modernization supported by bills, receipts, vouches etc.,

d) Copy of rent / lease deed as the case may be in case of rental / leased buildings.

7. Reimbursement cost of the project for establishment of Common effluent treatment plant & hazardous waste disposal Facility.

7(a) Eligibility

Assistance in the form of subsidy is available for establishment of Common Effluent Treatment Plant and Hazardous waste disposal facility in the Textile industries.

7(b). Procedure for claiming reimbursement cost of the project for establishment of Common Effluent Treatment Plant &

Hazardous waste Disposal Facility. The eligible (New / expanded / diversified / modernized) Textile and

Garment Units shall file the application with the Officer in- Charge of the District along with the following documents(i) Application in the prescribed format. (Annexure-15)(ii) Copy of the entrepreneur Memorandum.(iii) Detailed project report (iv) Fixed Investment Certificate issued by the Financial Institution / Bank

(Annexure-2)(v) Fixed Investment Certificate issued by the C. A. (Annexure-3)

Manual 24

In case the project is funded under any Government of India scheme, in addition to the above,

(i) Documentary proof regarding the same is to be furnished. (ii) Copy of Clearance Certificate from Pollution Control Department(iii) Copy of the documentary evidence (bills, receipts, vouchers etc)

indicating the expenditure incurred towards establishment of Common Effluent Treatment Plant & Hazardous Waste Disposal Facility.

(iv) Statements of fixed assets in the prescribed format certified by the Engineers / Architect / Environment Consultants. (Annexure-4)

(v) Copy of the Allotment letter / Sale Deed / Possession certificate from KIADB / KSSIDC for the cost of land.

(vi) Form of Declaration regarding employment of local persons.(Annexure-5)

(vii) Copy of the Special Purpose Vehicle (SPV) registration done by the user industry comprising of a group minimum 10 entrepreneurs.

8. Reimbursement of cost of the Market Development & Branding / Design Development & Product Diversification / Standards & Compliances.8(a) EligibilityFinancial assistance in the form of subsidy is available for

(i) Market Development and Branding(ii) Design development and Product diversification(iii) Standards and compliances

8(b). Procedure for claiming reimbursement of cost of the Market Development & Branding / Design Development & Product Diversification Standards & Compliances.The eligible (New/expanded/diversified/modernized) Garment, Handloom

and Textile units shall file the application to the Officer in-charge of the District along with the following documents(i) Application in the prescribed format. (Annexure-17)

Manual 25

(ii) Copy of the entrepreneur Memorandum. In addition to these documents, copies of the following documents are to be furnished in respect of the expenditure incurred on the items given below wherever applicable.

(1) MARKET DEVELOPMENT & BRANDING COST INCURRED TOWARDS

1. Participation in International Exhibitions 2. Business Delegations Abroad and Inward Missions 3. Development of Websites / Brochures, etc.4. Undertaking Market Research Studies5. Engagement of International Market Development Consultants6. Development of Brands7. Publicity8. Other Marketing Initiatives9. Copies of the documents indicating the cost incurred towards market

development and branding. 10.Proof of the following documents as the case may bea) Proof of minimum five entrepreneur involved in the market development

and branding OR

b) Proof of SPV’s registration for developing textile parks through Central or State Government Assistance.

(2) DESIGN DEVELOPMENT & PRODUCT DIVERSIFICATION (HANDLOOM) COST INCURRED TOWARDS:

1. Designers engaged in Design & Product Development. 2. Raw Materials, Specialized Machinery, if any, etc. 3. Testing, Standardization Expenses, etc. 4. Copies of the documents indicating the cost incurred towards the design

development and product diversification (Handloom) 5. Proof of the following as the case may beManual 26

a) Proof of minimum 5 handloom entrepreneurs having units in the State /industrial association/co-operative societies. OR b) Proof of SPVs formed for developing textile parks (Handloom) to Central or State Government assistance

(3) STANDARD & COMPLIANCES COST INCURRED FOR:1. ISO-9000 Quality Management System.2. ISO-14000 Environmental Management System. 3. ISO-18000 Occupational Health and Safety Standards.4. Social Accountability Standards.5. Internationally accredited eco-labels OKE-TEX 100, etc.6. Any other internationally accredited certification that will enable better

market positioning. 7. Copy of the Allotment letter / Sale Deed / Possession certificate/ Rent or

Lease Deed from KIADB / KSSIDC / Landlord.8. Copies of the documents indicating cost incurred towards Standard and

Compliance. 9. Form of Declaration regarding employment of local persons in new unit /

after expansion, diversification, modernization. (Annexure-5)

9. Reimbursement of the cost of establishment of Mega Projects

9(a) Eligibility

Financial assistance is available in the form of subsidy for establishment of Mega Textile and Garment units investing Rs.100 crores and above in capital expenditure, in a single project, in Zone - 1 and Zone - 2, and providing a minimum of 500 direct employments. These Mega Projects would be provided special support on a case - to - case basis.

9(b). Procedure for claiming reimbursement cost of establishment of Mega Projects

Manual 27

a) The detailed project report should be submitted to the District Officer in-

charge. The special support to these projects will be dealt on a case to case

basis.

b) Details of other concessions sought by the unit.

10. Establishment of new skill development centers and up gradation of existing training centers.

10(a) EligibilityFinancial assistance is made available for establishment of new skill

development centers and up gradation of existing training centers in the policy. The assistance is available in the form of 100% subsidy. The objective of this program is to create skilled manpower for the benefit of the Textile industry. This would attract new investors in the sector thereby creating enormous employment opportunities. The proposed skill development centers would act as facilitators for the forthcoming industries. These skill development centers are expected to impart quality training to the beneficiaries so as to enable them work confidently in the industries where they get absorbed after their training. A capsule project is designed for establishment of skill development centers in the field of readymade garment manufacturing. The assistance is given to some outstanding organizations which possess good experience and hold over the industry to the extent of ensuring employment to the persons trained in their institute. However proposals for establishment of skill development centers in other sectors can also be submitted by the enthusiastic persons and organizations that have social commitment, service orientation and command over the field.

10(b). Procedure for claiming financial assistance for establishment of new

skill development centers and up gradation of existing training centers.

Manual 28

Proposal claiming financial assistance for establishment of new skill development centers and up gradation of existing training centers shall be submitted by the eligible organizations / persons with the following documents,

1. Application in the prescribed format. (Annexure 18)2. A detailed project report containing orientation and objective of

the project, with details of machinery, courses offered, duration of the course, cost of the project, source of finance and strategy being derived for ensuring employment for the trained beneficiaries.

3. Proof of floor space available with them for establishment of the skill development center. (A minimum floor space of 1400 sft. is required)

4. Rent / Lease agreement bond executed with the owner of the building in case of rented building for a period not less than 5 years.

5. An agreement bond to the effect that they will run the institute for the entire policy period of five years irrespective of the sponsorship of the candidates from Govt. failing which the Govt. is at liberty to take action what so ever deemed fit.

6. Credentials of the organization.7. A brief note on experience of the organization in the proposed

field, if not included in the project report.8. A letter of commitment to the effect that they will ensure

placement of the trained beneficiaries with copies of commitment letters obtained from the existing industries to that effect.

10(c). Procedure for claiming financial assistance for up gradation of existing

training centers.Proposal claiming financial assistance for up gradation of existing training centers shall be submitted by the eligible organizations with the following documents,

1. Application in the prescribed format. (Annexure 19)

Manual 29

2. A detailed project report containing orientation and objective of the project, with details of machinery, courses being offered at present, courses proposed, duration of the course, cost of the project, source of finance and strategy being derived for ensuring employment for the trained beneficiaries.

3. Proof of floor space available with them for proposed up gradation. (An additional floor space of 1400 sft. is required)

4. Rent / Lease agreement bond executed with the owner of the building in case of rented building for a period not less than 5 years.

5. An agreement bond to the effect that they will run the institute for the entire policy period of five years irrespective of the sponsorship of the candidates from Govt. failing which the Govt. is at liberty to take action what so ever deemed fit.

6. Credentials of the organization.7. A brief note on experience of the organization in the proposed

field, if not included in the project report.8. A letter of commitment to the effect that they will ensure

placement of the trained beneficiaries with copies of commitment letters obtained from the existing industries to that effect.

11. Skill up gradation programs.The policy has a target of creating employment to the tune of 5 lakh

people over a period of five years. Rendering quality training is therefore necessary to fulfill this objective. Skill development centers are expected to impart quality training and generate skilled workers who are capable of working confidently in the industries after their training. It is obvious to state that the district level officers should ensure proper dispersement of beneficiaries through the most backward, more backward and backward taluks to alleviate regional imbalances as envisaged in Dr. Nanjundappas report for redressal of the regional imbalance.

11(a). Procedure for conducting Skill up gradation training programs.

Manual 30

The applications for various training programs should be invited by giving wide publicity through various media and with the help and guidance of honorable public representatives at various levels.

1. The application for training shall be filed by the eligible candidates in the prescribed proforma. (Annexure 21)

2. Section of Candidates: Candidates should be selected through the district level sub committees through interviews.

3. Selection of training Centers: Training centers shall be identified by the district level officers concerned taking the technical aspects and infrastructural facilities available with them.

4. Criteria for selection of training Centre a. The training centre should be registered as SSI/ NGO/ Trust / Society/

Company.b. The Training Centre should be well accommodated and well equipped

with necessary plant and machineries.c. The Centre should be equipped with 1:1 machine and Trainees ratio for

ready made Garment Training, 1:2 for power loom, 1:4 for Handloom Training.

d. The Centre should be well equipped with Qualified Trainers with a minimum of 1:10 trainer & trainees ratio for all types of training programs.

e. For imparting RMG training Programs the Centre should be equipped with a minimum of 20 single needle industrial power operated sewing machines along with supporting machines like button holing and button stitching machines. (like Juki or equivalent machine)

f. Training should be conducted as per the approved syllabus provided by the Department.

g. The training Institute must have computer along with projector.

12. REIMBURSEMENT OF EXPENDITURE INCURRED ON SETTING UP OF SPECIALISED INSTITUTE FOR IMPLEMENTATION OF STANDARDS /

Manual 31

ACCREDITATION / CERTIFICATION SYSTEM.12(a) Eligibility

Financial assistance in the form of subsidy is made available for setting up of specialized institute for implementation of standards / accreditation / certification system. The organizations which interested in establishing such institutes can avail this facility.

12(b). PROCEDURE FOR CLAIMING REIMBURSEMENT OF EXPENDITURE INCURRED ON SETTING UP OF SPECIALISED INSTITUTE FOR IMPLEMENTATION OF STANDARDS / ACCREDITATION / CERTIFICATION SYSTEM.

The eligible organizations shall apply for the reimbursement of expenditure made on establishment of specialized institute for implementation of standards / accreditation / certification system in the application prescribed at Annexure 20 along with relevant documents such as bills and vouchers in support of the expenditure made in this regard.

Manual 32

ANNEXURE-1APPLICATION FOR SANCTION OF CREDIT LINKED CAPITAL SUBSIDY

ON THE INVESTMENT MADE ON THE FIXED ASSETS1. Name & Address of the Unit :

2. Zone : 3. Location of the Unit 4. Reg. No. & Date : (As mentioned in Entrepreneur Memorandum(EM))5. VAT Regn No and Date : (Copy enclose) 6. Nature of industry : (Spinning/Weaving/RMG/ Processing/Preloom activity/ Others Specify.)7. Products manufactured :8. Constitution of Industry (PROPRIETORY / PARTNERSHIP/ COMPANY/ OTHERS SPECIFY) 9. Category of the entrepreneur*** : (SC/ST/PH/Women/ Ex-Servicemen/ Minority/ General)10. Whether unit situated in Yes / No Designated Textile Park11. Is it new industry or Existing : Industry undertaken expansion / Modernization/ Diversification12. Project Cost : i) Land: : ii) Building : iii) Plant & Machinery : iv) Others :

Manual 33

v) Working Capital Margin : vi) Total : 13. Name of the Term loan lending : Institution / Banking a) Date of loan sanctioned : b) Amount of loan sanctioned :14. Employment provided in the : New Unit

(Please furnish in the prescribed format)15. Additional Employment Created : (Please furnish in the prescribed format after expansion / modernization/ diversification)16. Investment on project components :

Note: Furnish the following documents.i) Investment Certificate in the prescribed form issued by the financial

institution / bank.ii) Investment Certificate in the prescribed format issued by the charted

accounts iii) Statements of the fixed assets in the prescribed format certified by the

unit.iv) Engineers / Architects Certificates in the prescribed format regarding

investment on land / Building.Declaration by the applicant.

I / We hereby certify that the particulars given above are to be the best of my / our knowledge and belief and true are correct.

Place. Signature(s)Date. Name & designation.

Manual 34

Certificate by the District Officer.

I hereby certify that the particulars given by the applicant were verified by me with reference to documents furnished by the applicant and found to be true and correct. I further certify that the eligible total investment in fixed assets in new units / in expansion diversification, modernization of the existing unit is Rs……………….., and it is eligible for 15% / 20% Credit Linked Capital subsidy of Rs. ………………….A sum of Rs……….. …being investment made on items on which subsidy, is not admissible as per details shown in the statement is dis - allowed.

Place. Signature(s) Date. Deputy Director / Assistant Director

(***) copy of the partnership deed / memorandum of articles of association to be furnished in case of units claiming subsidy under special category.

Manual 35

ANNEXURE-2

FIXED INVESTMENT CERTIFICATE FROM THE BANK / FINANCIAL INSTIUTIONS

M/S--------------------------------------------------------------------- of (location of the unit)-------------------------------------------------------------------------------------------------------have been disbursed as on this date amounts under the loan amounting to Rs---------------sanctioned under letter No.------------- dated------------------as shown below.

a) Term loan sanctioned : Date----------------- Rs.----------------------b) Loan amount disbursed on Date:--------------- Amount (Rs.)----------i)ii)iii)Total amount disbursed upto date: Rs.---------------------------------

c) Value of investment in fixed assets: As per project Actual investment Appraisal (mentioned period)

i) LAND ( excluding leasehold) Rs. -------------------- Rs.-----------------

ii) Building (excluding residential quarters guest houses) Rs.----------------------- Rs.-----------------

iii) Plant and machinery

excluding-

a) Expenses regardingManual 36

technical know-how.

b) Engineering fees

c) Cost of feasibility study

d)Promotion and preoperative

expenses capitalized Rs.--------------------------- Rs.---------------------

iv) Other assets: tools, jigs, dies, etc.

utilities viz., DG sets/ items Boilers etc Rs.-------------- Rs.------------

Certified that the sanction of financial assistance to ………………………….

M/s …………………………. for the plant at …………………………………. has been

considered on the basis of the company’s assessed requirements of factory

buildings and the cost is estimated at Rs…………………………. as per the project

report.

We certify that this investment certificate is issued after verifying the bills and vouchers made available by the unit for purposes to release of Term loan installments and based on the physical verification of the inspecting officers. Items for which subsidy is not admissible are not included in the investment certified above.

We further certify that the investments made after 1-4-2008 are only included.

We are in possession of relevant bills and vouchers on which this investment certificate is issued and we agree to make available the same as and when required for any verification purpose, before the loan liability is discharged.

Manual 37

NOTE: 1. Please specify the period during which investment has been made on

land, building and plant and machinery. 2. Please verify the list of machineries with corresponding values.3. The investment made on old machine / building should be excluded.4. Investment made earlier to the date of eligibility for subsidy should not be

included.

Signature of the Branch Manager / Manager

Place : Name of the Institutions.

Date: (SEAL )

Manual 38

ANNEXURE-3

CHARTERED ACCOUNTANT CERTIFICATE

Name of the Charted Accountant(s) ………………………………………..We hereby certify that M/s. (name of the Industrial Unit )………………………………………………………………………………….have acquired the following assets upto ……….fort the unit at …………….(address) …………………..for manufacture of …………………………….(name of products)………………………………………………………………………………….item of fixed assets Period during which value

investment is made (date of payment)

…………………… ……………………… Rs. 1. Land ……………………... Rs. 2. Cost of Development of land: Rs. 3. Factory building (Pl. specify period) …………………………………………………..a. Amount paid to the building contractor. From ………to ....……Rs.b. . Amount paid for building materials. From ………to..………Rs.c. . Amount paid for wages & salaries etc., for the building construction. From ……..to …… Rs.(excluding architect’s fees & wages paid for supervision staff etc.) 4. Electrical installations (excluding KEB deposits) Rs.

5. Plant and Machinery Rs. a. value paid for items at site:

Manual 39

(excluding advance payments to machinery suppliers and payments made to machine not delivered, LC’s opened etc.,)

6. Loading, unloading, transportation, Rs. erection expenses etc.,

7. Misc. fixed assets (Pl. specify items) :a) jigs, fixture and dies etc., b) utilities like boilers, compressors, D.G. Sets, cranes, materials handling equipments, (Pl. exclude water - coolers / air conditioners, Cars / vans for transport of personnel etc.)

we have checked the books of accounts of the unit, bills, invoice and payment vouchers etc., and certify that the aforesaid items have been duly paid for and no credit is raised against them in the books of the unit

Certified that the investments certified above do not include items for

which subsidy is not allowed. Expenditure incurred on following items are not included. A. LAND.i) Value of the open land not utilized for construction, leaving the area

proposed for immediate expansion.ii) Expenditure incurred for land scaping for beautification and

expenditure on unsuccessful open wells / bore wells. B. BUILDINGS.i) Expenditure on unproductive construction like guest house, workers /

staff quarters, canteens, cycle / scooter stands, garages etc. ii) Expenditure incurred on beautification of buildings, arches, decorative

lights including street lights, furniture and air - conditioners, water

Manual 40

coolers, refrigerators and such of the gadgets not directly connected with production.

iii) Expenditure incurred on purchase of old buildings.C. PLANT AND MACHINERY: i) All consumable materials like tools bits, files, oils etc., ii) Investments on tool jigs / fixtures, moulds etc., which are required

repeatedly, should not be allowed for the second time and onwards. While considering the investments made on first purchases, only the required quantity of such items are too allowed. Extra quantities taken as spares are not allowed.

iii) Second hand machines purchased shall not be included.

Place : CHARTERED ACCOUNTANT(s)Date: (SEAL)

Manual 41

ANNEXURE-4ENGINEER’S / ARCHITECT’S CERTIFICATE

I, hereby certify that as against the estimated cost of Rs…………(Rupees)

………………………………………………… of the building and civil works for M/s…………………………………………..for their proposed project at Plot No. ……………………………the unit has so far completed the civil works as under. 1. Value of completed civil : Rs…………………………. Works as per estimates. 2. Amount certified for : Rs………………………….

payment of the building (civil and structural) contractors. 3. Retention money : Rs…………………………. (from civil contractor) 4. Value of materials utilized : Rs…………………………. for the completed portion of building.

The value of completed building certified above does not involve the area built for guest houses, and residential building in the factory site.

It is further certified that built area of the building is absolutely essential for manufacturing / processing activity of the industry. A detailed estimate sheet is appended to this certificate.

Place : Signature and full address.Date: ( SEAL )

Manual 42

ANNEXURE-5

FORM OF DECLAREATION REGARDING EMPLOYMENT OF “LOCAL PERSONS”

(To be executed by the new / expanding industrial undertaking)

1. Name of the industrial undertaking:

2. Address : OFFICE FACTORY Village Town Taluk District

3. Major products Manufactured.

4. Registered as : Type of Industries Regn. No.

Date:

5. Employment Details ITEM GROUP -C & D GROUP -B GROUP -A TOTAL

A. Total No. employees :

B. No. of local persons therein:

C. Percentage of local persons to total. :

6. I /We understand the percentage of local people in group C & D categories

Manual 43

i.e., workers / non managerial categories has to be 100% and the overall local employment in the unit not less than 80% (inclusive of all categories).

I /We hereby undertake to make up the deficiency before the disbursement of subsidy.7. I /We further understand the eligibility of my / our industrial units / undertaking for incentives and concessions from the Government of Karnataka is contingent upon my fulfilling the above requirement of providing minimum local employment to the satisfaction of the State Govt.

Place : Signature of authorized person Date: (SEAL )

“Verified by me”

Deputy Director/Assistant Director

Dept. of Handlooms & Textile, …………… District

1. “ LOCAL PERSON” is defined as one who has at least fifteen years domicile in

the State of Karnataka.

2. This declaration should be signed by a person duly authorized to do so by the

industrial undertaking.

Manual 44

ANNEXURE-6

INVESTIGATION REPORT OF OFFICER IN - CHARGE OF THE DISTRICT viz, DEPUTY DIRECTOR / ASSISTANT DIRECTOR DEPARTMENT HANDLOOMS

AND TEXTILES.

1. Name and address of the unit : 2. Location of the unit : Zone -1 / Zone - 2 / Zone – 3

3. Constitution : (with name of directors / partners)

4. Whether new unit or / expansion / : modernization / diversification of an existing unit.

5. In case of new industrial unit the : date of commencement of production

6. In case of expansion, actual date of : Commencement of production of existing Industrial unit and date of completion of Expansion / modernization / diversification of project.

7. Items manufactured by the unit :

8. Size of the unit :

Manual 45

9. Project Cost (RS) (Please indicate item wise details)

10. Means of finance :

a) KSFC /Bank / term Loan :

b) Others (Please Specify) :

____________________

Total Rs. ____________________

11. Details of fixed capital investment:

Sl. No.

Particulars Details of Capital investment made by

the unit

Investment accepted by the

officer in- charge

1. 2.3. 4.

Land BuildingPlant & Machinery Others miscellaneous fixed assets (please specify) Total

12. Period during which the investment shown

in col 11 above is made (please specify

the investment made in different periods)

Manual

Land Building Plant & Machinery Others Working Capital Margin

Total Rs.

46

13. Employment provided: Sl.No Particulars Original (in

case of new units) Additional (in case of expansion units)

i)ii)iii)iv)v)

Managerial Supervisor / Tech. Skilled Semi - Skilled Others

Total

Percentage of local employment in the unit.

14. Amount of Subsidy recommended (at …………………………….%) : Rs.

15. General remarks / recommendation (a brief report on working of the unit) :

Name and signature of the officer with designation.

Manual 47

ANNEXURE-7

AGENDA NOTES FOR PLACING BEFORE THE SLPIC MEETING FOR SANCTION OF CAPITAL LINKED INVESTMENT SUBSIDY HELD

ON……………….

1. Name and address of the unit.

2. Constitution.

3. Name of the proprietor / partner / Director.

4. Unit type

i) New

ii) Expansion

iii) Diversification

iv) Modernization

5. Date of receipt of application 6. Employment

i) Existing % of local persons.

ii) Additional % of local persons

7. End product details

8. Production date

9. PMT Registration No………………… Date ………………..

10. Category of entrepreneur

Manual 48

i) Women / SC / ST / Physical Handicap/

Ex – servicemen / Minority

11. Zone : 1 / 2 /312. Financial Institution

i) KSFC

ii) Bank

iii) Co-operative Bank

13. Fixed Capital Investment

Sl.No.

Land Building Plant & Machinery

Others Total

1.2.3.4.5.

As per unit As per financial Institutions As per C.AAs accepted by Officer in - charge of H&T

As per the details, the unit located in ……………….. zone is eligible for

sanction of investment subsidy on the fixed investment of Rs. ………….. .as

under.

1. Credit Linked Capital Subsidy at …………….%

Limited Rs………………lakhs Rs. ……………………………..

Manual 49

2. Additional Credit Linked Capital Subsidy Admissible

to special category of entrepreneurs under

………………………………..category at

5% subject to maximum of Rs. one lakh

(to ensure that the total subsidy is within

the overall monitoring ceiling prescribed

therein)

Rs…………………………………

Total ________________________________

The subject is placed before the committee for consideration

Member Secretary SLPIC.

Manual 50

ANNEXURE-8MODEL SANCTION ORDER

GOVERNMRNT OF KARNATAKADEPARTMENT OF HANDLOOM AND TEXTILES

No…………………. Commissioner for Textile Development & Director Handlooms & Textile

N.T.Road . Bangalore - 1 Date :

SANCTION ORDER

SUB: Sanction of Credit Linked Capital Subsidy to M/s …………………………………………………

REF: Your application for Credit Linked Capital Subsidy received on …….2. G.O. No. CI 47 Jakaiyo2008 Bangalore Dt.1-10-2008

*************** We are pleased to inform you that the SLPIC in its…………………………… meeting held on …………………….has sanctioned a Credit Linked Capital subsidy of Rs…………………(Rupees………………………………………only) to your unit at ………….…………………………...on the basis of the investment made by your unit, the State Level Project Implementation Committee has accepted the investment as detailed below:a. Land Rs.b. Building & Civil Work Rs.c. Plant & machinery Rs.d. Electrical Installation Rs.e. Tools, Jigs, Dies, & Moulds Rs.f. Other Fixed assets Rs.

………………………………. Total Rs. ………………………………..

Manual 51

Accordingly, the amount of the subsidy to which you are eligible is determined at Rs…………..(Rupees………………………………only) of the above investment.

You shall have to claim the amount sanctioned above on Payee’s receipt duly countersigned by the Deputy Director / Assistant Director of Handlooms & Textiles,……………After executing an agreement, a draft of which is enclosed to this sanction order. The original agreement should be on stamp paper of Rs………….The agreement should be executed by

a) The proprietor in case of proprietor concern.b) By one or more directors duly authorized by the board of directors of the

company. The execution of the agreement should be under the common seal of the company.

c) By all the partners in case of the partnership concern. However, if anyone of the partner holds a general power of attorney, he may execute the agreement on behalf of the remaining partners and furnish the certified true copy of the power of attorney. When the agreement is executed by a holder of general power of attorney, a certificate signed by all the partners on behalf of the firm to the effect that the general power of attorney is in force and not revoked as on the date of execution of the agreement, should be furnished.

Erasures, if any, should be properly attested and no blanks should be left in the agreement form.

The above agreement should be executed in the presence of officers of Handloom & Textile Department.

Manual 52

THE SANCTON OF THIS CREDIT LINKED CAPITAL SUBSIDY IS SUBJECT TO FOLLOWING CONDITIONS

(a) If the State Government is satisfied that the credit linked capital

subsidy has been obtained by mis - representation of the essential

facts, furnishing of false information or if the unit goes out of

production within one year after receipt of subsidy, the State

Government shall have the right to claim refund of the subsidy of Rs.

…………………sanctioned, together with interest as the State

Government may charge.

(b) The grantee shall not to change the location of the whole or any part of

the industrial unit or effect any contraction or disposal of a part of its

total fixed capital investment within a period of one year after the unit

receives this grant.

(c) In the event of the subsidy being sanctioned, and if found at a later

date that the subsidy is not actually due, the grantee shall refund to

the Government such portion or whole amount determined by the

Commissioner for Textile Development and Director Handlooms &

Textile. In the event of the grantee failing to refund such amount, the

same shall be recovered as arrears of land revenue.

(d) Where the industrial unit goes out of production or remains closed

without production activities within one year from the date of receipt of

subsidy except in case where the unit remains out of production for

short period extending not more than six months due to reasons

beyond its control, such as shortage of raw materials, power. etc., the

Manual 53

grantee shall refund to Government the entire subsidy received. If the

unit fails to refund the subsidy amount the same shall be recovered as

arrears of land revenue.

(e) The subsidy sanctioned herein is in the nature of “Grant-in-Aid” and

shall not be construed as a “Contract” with Government of Karnataka.

The Grantee shall not exercise his right of privities of contract in the

matter of release of subsidy by the Government of Karnataka, who

shall release the subsidy amount as and when the grantee is eligible

for the same, in such proportions and installments as the Government

may regulate.

Commissioner for Textile Developmentand Director Handlooms & Textiles

Manual 54

ANNEXURE-9PROFORMA OF UNDERTAKING TO BE EXECUTED FOR CREDIT LINKED

CAPITAL SUBSIDY

UNDERTAKING

This undertaking executed on this day the..........day of .....month, 200…….by Sri/Mrs .................………….. carrying on the business of ……………………under the name and style of M/s ..........………………… herein after called “the Grantee” of the one part in favor of the Governor of Karnataka, represented by the Commissioner for Textile Development & Director for Handloom and Textile, herein after called the Government of other part.WITNESSETH. Where as the Commissioner for Textile Development & Director for Handloom and Textile in order No. ………………..dated …………has sanctioned a subsidy of Rs. ……………(Rupees ……………………….only) under the Government of Karnataka scheme of package of Incentives under Suvarna Vastra Neethi 2008-2013 investment made in the state of Karnataka to the grantee for the purpose of his industry.

In consideration of the grant of Rs. ……(Rupees ..........…….only) as per the Order No...……………………….dated ……………………of the Commissioner for Textile Development & Director for Handloom and Textile, District ………………………………the receipt whereof the grantee hereby acknowledges, the grantee agrees & covenants as follows:

(i) If the State Government concerned believes that the Credit linked capital subsidy has been obtained by the misrepresentation of essential fact, furnishing false information or if the unit goes out of production within ....... years after the date of disbursal of subsidy, the State Government concerned shall have the right to claim refund of the grant /

Manual 55

subsidy of Rs……………(Rupees ……………………only) paid to the grantee together with such interest as the State Government concerned may charge.

(ii) The grantee shall not change the location of the whole or any part of the industrial unit or effect any contraction or disposal of a part of its total fixed capital investment mentioned in the schedule below within a period of .........years after the date of disbursal of subsidy.

(iii) In the Event, the industrial unit goes out of production or is closed without production activities within one year from the date of disbursal of subsidy, except in case where the unit remains out of production for short periods not extending to more than six months due to reasons beyond its control such as shortage of raw materials, power, etc., the grantee shall refund the subsidy amount together with such interest as the State Government / financial institution concerned may charge.

(iv) In the event of the subsidy being sanctioned, which at later date is found to be not actually due, the grantee shall refund to the Government such portion or the whole amount as determined by the Assistant Director/Deputy Director. /Commissioner for Textile Development and Director Handlooms and Textiles. On failure to do so, such amount shall be recovered by the Government as arrears of land revenue.

(v) That this grant shall not be construed as a contract and shall be of the nature of “Grant - in - aid” only and the provisions of the Indian Contract Act or that of Specific Relief Act or any other relative statutory Acts / provisions shall not apply in the instant case.

(vi) That the grantee shall not exercise his right of claiming release of subsidy amount out - of - turn either directly or through his attorney and

Manual 56

that the decision of the government in the matter of periodic release based on the availability of funds shall be final and binding on the grantee.

SCHEDULE

Land Rs.

Building Rs.

Plant & Machinery Rs.

Other fixed assets Rs.

(Please specify)`

------------------------------------------

Total

------------------------------------------

In witness whereof the Grantee has set his hand and seal on the

………………………. day of …………....month two thousand ……………

………………….year as above mentioned.

Witness: Signature of the Grantee

1.2.

Attested Officer in Charge

// Common seal of the company //

shall be affixed here.

Manual 57

ANNEXURE-10APPLICATION FOR CLAIMING REIMBURSEMNT OF ENTRY TAX

1. Name & Address of the Unit :

2. Zone :

3. Location of the Unit :

4. Reg. No. & Date :

( as mentioned in Entrepreneur Memorandum(EM))

5. VAT Regn No and Date :

(Copy enclose)

6. Nature of industry : Spinning/Weaving/RMG/Processing/

Pre loom activity/ Others Specify.

7. Products manufactured :

8. Constitution of Industry :

(PROPRIETORY / PARTNERSHIP /

COMPANY/ OTHERS SPECIFY)

Category of the entrepreneur *** : (SC/ST/PH/Women/ Ex-Servicemen/ Minority/ General)10. Whether unit situated in : Yes / No Designated Textile Park11. Is it new industry or Existing :

Industry undertaken expansion

/ Modernization/ Diversification

12. Project Cost :

i) Land:

ii) Building:

iii) Plant & Machinery:Manual 58

iv) Others:

v) Working Capital Margin:

vi) Total: 13. Name of the Term loan lending :

Institution / Banking

a) Date of loan sanctioned :

b) Amount of loan sanctioned :

14. Employment provided in the New Unit :

(Please furnish in the prescribed format)

15. Additional Employment Created :

(Please furnish in the prescribed format

After expansion / modernization/ diversification)

16. Particulars of plant & machinery

and capital goods purchased :

Sl.No.

Items / Particulars

Name of the supplier & address

Vat. Reg. No. of supplier

Invoice No. & date

Value of Invoice

Duty Tax Paid

Challan No. / Ch. No. of Entry tax paid.

DECLARATION

Manual 59

I / We hereby declare that the above particulars are true and correct to

the best of my / our knowledge and we further state that / we are claiming the

reimbursement of the entry tax which we have already paid.

Place: Signature of the PROPRIETOR

Date: with seal

Certificate of the District officers :

I here by certify that the particulars given by the applicant were verified by

me with reference to the documents submitted by the applicant and fount

correct.

I further certify that the unit is eligible for Rs________________

reimbursement of entry tax.

Place: Signature

Date: Deputy Director / Assistant Director

Manual 60

ANNEXURE-11

APPLICATION FOR CLAIMING REIMBURSEMENT OF STAMP DUTY


2. Zone :

3. Location of the Unit


( As mentioned in EM)

5. VAT Regn. Number & Date

(Copy enclosed)

6. Nature of industry : (Spinning/Weaving/RMG/Processing/

Preloom activity/ Others Specify.)





9. Category of the entrepreneur *** : (SC/ST/PH/Women/ Ex-Servicemen/ Minority/ General)10. Whether unit situated in Yes / No Designated Textile Park

11. Is it new industry or Existing :



12. Project Cost :

Manual 61

i) Land:

ii) Building:

iii) Plant & Machinery:

iv) Others:


vi) Total:

13. Name of the Term loan lending :









16. Stamp Duty Paid :

i) Nature of stamp duty paid : Lease Deed/ Sale Deed

ii) Nature of Assets : Industrial plot/Industrial shed

iii) Document executed and its :

regd. No. & date

iv) Value of assets as per above document :

v) Stamp Duty Paid :

Manual 62

vi) Authority to whom stamp duty paid :

vii) Receipt No. & date. :

17. Stamp Duty On Loans & Advances :

i) Nature of loan & its period :

ii) Purpose of loans :

iii) Stamp Duty Paid :

iv) Authority to whom stamp duty paid :

v) Receipt No. & date. :

18. Use – On Stamp Duty On Imports :

i) Nature of Goods imported :

ii) Name of the supplier, Invoice No. & date. :

iii) Nature of goods imported and its value :

iv) Amount of stamp duty paid on above imports :

v) Authority to whom stamp duty paid. :

vi) Receipt no. & date. :

DECLARATION

I / We hereby declare that the above particulars are true and correct to

the best of my / our knowledge and we further state that / we are claiming the

reimbursement of the stamp duty which we have already paid.


Date: with seal

Manual 63




correct.


reimbursement of Stamp Duty.

Place: Signature


Manual 64

ANNEXURE-12APPLICATION FOR CLAIMING REIMBURSEMENT OF LAND ACQUISATION /

ALLOTMENT THROUGH K.I.A.D.B / KSSIDC.


2. Zone :




5. VAT Regn. Number & Date :

(Copy enclosed)


Preloom activity/ Others Specify.



(PROPRIETORY / PARTNERSHIP/


9. Category of the entrepreneur *** : (SC/ST/PH/Women/ Ex-Servicemen/ Minority/ General)10. Whether unit situated in : Yes / No

Designated Textile Park



/ Modernization/ DiversificationManual 65

12. Project Cost :

i) Land:

ii) Building:


iv) Others:


vi) Total:










16) Details of the land acquired :

i) Survey No. :

ii) Extent of land :

iii) Nature of Land :

Private land / Agriculture land / others

17) Cost of the land :

(Documents attached)

18) Nature of Acquisition :

Manual 66

KIADB / KSSIDC

19) Acquisition charges :

(Documents to be attached

from competent Authority)

Zone – 1

20) Reimbursement applied for:

i) 25% of cost of land

ii) Acquisition charges:

Land by KIADB / KSSIDC: ………………………………….

Total: ……………………………………

ZONE – 2


i) 50% of acquisition charges

levied by KIADB / KSSIDC = Rs…………………….

DECLARATION

I / we hereby declare that the above particulars are true and are

correct to the best of my knowledge and further we state that I / We are

claiming the reimbursement for Rs. ______________ being the cost of land and

acquisition charges / Acquisition Charges and I/ We have not claimed any

reimbursement for the above said incentives from any other department.

Place: Authorized Signature person

Manual 67

Date: with Seal

Certificate of the District officers:


me with reference to the documents submitted by the applicant and found to be

correct.

I further certify that the proposed / unit is set up in Zone – 1 & 2 and

is eligible for ……………………..% of the cost of the land and ……………………% of

acquisition charges which have been charged by the KIADB / KSSIDC and is

limited to ………………….. lakhs as per Government Order No. CI 47 JAKAIE 2008

Dt. 01-10-2008

Place: (Signature)


Manual 68

ANNEXURE-13

APPLICATION FOR CLAIMING REIMBURSEMENT OF COMMON INFRASTRUCTURE FOR GREEN FIELD TEXTILE PARK:


2. Zone :




5. VAT Regn. Number & Date:

(Copy enclosed)












Manual 69

12. Project Cost :

i) Land:

ii) Building:


iv) Others:


vi) Total:










16) Details of the land acquired :

i) Survey No. :

ii) Extent of land :

iii) Nature of Land :

Private land / Agriculture land / others

17) Cost of the project :

(Documents attached)

Manual 70

18) Nature of Acquisition :

KIADB / KSSIDC/ others

19) Development charges :

(Documents to be attached

from competent Authority)

Zone – 1


i) 40% of cost of project:

OR

ii) 9% of cost of project in case of SITP approved project

ZONE – 2


i) 20% of project cost:

OR

ii) 9% of cost of project in case of SITP approved project

DECLARATION

I / we hereby declare that the above particulars are true and are

correct to the best of my knowledge and further we state that I / We are

claiming the reimbursement for the 40% / 20% / 9% of cost of the project and I/

We have not claimed any exemption for the above said incentives from any

other department.


Date: with Seal

Manual 71



me with reference to the documents submitted by the applicant and find to be

correct.

I further certify that the proposed / unit is set up in Zone – 1 , 2 & 3

and is eligible for reimbursement of ……………………..% of the cost of the

project and is limited to ………………….. lakhs as per Government Order No. CI

47 JAKAIE 2008 Dt. 01-10-2008

Place: (Signature)


Manual 72

ANNEXURE-14APPLICATION FOR CLAIMING REIMBURSEMENT OF POWER SUBSIDY:


2. Zone :





(Copy enclosed)












Manual 73

12. Project Cost :

i) Land:

ii) Building:


iv) Others:


vi) Total:










16) Power :

a) Sanctioned power in H.P:

& Date (enclose)

b) R.R. No. :

17) Claims (Quarterly Claims): Apr/ Jun/ Sept/ Dec.

Manual 74

Sl. No

Months R.R No.

Total Bill Amount paid to

BESCOM

Receipt No. & date.

No. of Units

Consumed

Amount claimed for

reimbursement (@ Re.1/

Unit)

Remarks

1 2 3 4 5 6 7 8

18) Details of earlier Power Subsidy claims from the Department under this

policy (w.e.f. 1-4-2008)

a) Period

b) No. of Units

c) Reimbursed Claimed

d) Amount Sanctioned & Release

DECLARATION

I / we hereby declare that the above particulars are true and correct to

the best of my / our knowledge and I / we further state that I / we are claiming

the reimbursement of power subsidy at the rate of Re.1 / Unit and I / we have

not claimed any reimbursement form any other Department and also from the

earlier Bills. Further I / we declare that we are not availing power at subsidized

rate from other departments.

Place: Authorized person

Date: Signature with Seal

Manual 75

Certificate from the District Officers:

I hereby certify that the particulars given by the applicant were verified

by me with reference to the documents submitted by the applicant and found to

be correct and I have personally inspected the unit on…………Date …………….

I further certify that the unit is New / Expansion / Diversification /

Modernization set up in ________zone and the unit is eligible for reimbursement

of Rs.__________ as power subsidy for __________Units for the period from

__________ to _________ @ the rate of Re.1/- Unit vide Government Order No.

CI 47/ JAKAIYO / 2008 dated. 1-10-2008

Place: (Signature)


Manual 76

ANNEXURE-15

APPLICATION FOR CLAIMING REIMBURSEMENT OF COMMON EFFLUENT TREATMENT PLANT & HAZARDOUS WASTE DISPOSAL FACILITY


2. Zone :





(Copy enclosed)












Manual 77

12. Project Cost :

i) Land:

ii) Building:


iv) Others:


vi) Total:










16.Investment details on Effluent Treatment Plant

i) Land

ii) Building:

iii) Infrastructure like roads, water supply, power etc.

iv) Plant & Machinery:

Manual 78

v) Transportation

vi) Installation Charges

vii) Others:

viii) Total:

17. Furnish the following details:

1. Detailed project report

2. Investment Certificate issued by the Financial Institution / Bank

3. Investment Certificate issued by the Charted Accountant

4. If the project is approved / sponsored by Government of India.

Copy of the same

5. Copy of Clearance Certificate from Pollution Control Department

6. Statements of fixed assets in the prescribed format certified by the

7. Engineers / Architect / Environment Consultants Certificate

8. Copies of bills, vouchers, receipts etc. indicating documentary proof of expenditure incurred towards common effluent treatment plant & hazardous waste disposal facility.

9. Copy of Special Purpose Vehicle (SPV) Regn. done by the User Industry comprising a group of minimum 10 entrepreneurs.

Manual 79

DECLARATION

I/ we hereby certify that the particulars given above are to he best of my /

our knowledge and belief and true are correct.


Date: with Seal

Certificate by the District Officer

I hereby certify that the particulars given by the applicant were verified by me

with reference to documents furnished by the applicant and found to be true

and correct. Out of which a sum of Rs………………………. being investment

made on items a sum of Rs. _________. is eligible of reimbursement on the

expenditure incurred towards establishment of common effluent treatment

plant & hazardous waste disposal facility.

Date:

Place: Signature of Deputy Director / Assistant Director

Manual 80

ANNEXURE-16STATEMENT OF FIXED ASSETS CREATED BY THE UNI T

PART – A

Sl No

Particulars on fixed assets

From whom purchased

Date of placements of order

Date of invoice bill

Amount of bill / Invoice

Date of payment

Mode of payment

Vouchers / Bill Receipt No. Date

Remarks

I

II

III

IV

V

VI

Land / Land Development

Building

Plant & Machinery Other Productive assets

Transportation& Transit Insurance

Erection

Electrification

1)2)

1)2)

1)

2)

(Note: Please submit separate statement for each items of assets)

Signature of the proprietor / Partner/

Managing Director of the applicant.

Industrial Units

Manual 81

PART – B

Certified that verification has been done by me in respect of the Vouchers / Bills

at Sl.No. ……………………….......with reference to originals produced by the unit

and found correct.

No items for which subsidy is inadmissible is included in the statement.

Following items which are included in statement are disallowed as they are not

eligible for subsidy for the reasons stated against each item.

1)

2)

3)

Signature of the officer in-charge of

Deputy Director/Assistant Director

Manual 82

ANNEXURE-17

APPLICATION FOR CLAIMING REIMBURSEMENT OF CAPACITY BUILDING

SUPPORT

(Market Development and Branding / Design Development and

Product Diversification (Handlooms only) / Standards and Compliances)


2. Zone :





(Copy enclosed)



7. Products manufactured:



COMPANY/OTHERS SPECIFY)




Manual 83



12. Project Cost :

i) Land:

ii) Building:


iv) Others:


vi) Total:










16. Investment on project components :

Manual 84

PART –A

MARKET DEVELOPMENT & BRANDING

1. Participation in International Exhibitions

2. Business Delegations Abroad and Inward Missions

3. Development of Websites / Brochures, etc.

4. Undertaking Market Research Studies

5. Engagement of International Market Development

Consultants

6. Development of Brands

7. Publicity

8. Other Marketing Initiatives

9. Proof of the following documents as the case may be.

a) Proof of minimum five entrepreneur involved in the market

development and branding

b) Proof of SPV registrations for developing textile parks through

Central/State Government assistance.

10. Copies of the documents indicating cost incurred towards market

development and branding.

(Enclose all the supporting Documents)

Manual 85

PART – B

DESIGN DEVELOPMENT & PRODUCT DIVERSIFICATION (HANDLOOM)

i) Cost of Designers engaged in Design & Product Development.

ii) Cost of Raw Materials, Specialized Machinery, if any, etc.

iii) Testing, Standardization Expenses, etc.

iv) Proof of the following documents as the case may be.

a. Proof of minimum five handloom entrepreneurs having

units in the State / Industry Association / Co-operative

Societies.

b. Proof of SPV’s formed for developing Textile Parks

(Handloom) through Central or State Government

assistance

v) Cost incurred towards design development and Product

diversification (Handloom) documents may be attached.


PART – C

STANDARD & COMPLIANCES

Cost incurred for obtaining following certification / Accreditation

i) ISO-9000 Quality Management System.

ii) ISO-14000 Environmental Management System.

iii) ISO-18000 Occupational Health and Safety Standards.

Manual 86

iv) Social Accountability Standards.

v) Internationally accredited eco-labels OKE-TEX 100, etc.

vi) Any other internationally accredited certification that will enable better

market positioning.

vii) vii) Copies of the documents indicating cost incurred towards Standard

& Compliances


DECLARATION I / We hereby declare that the above particulars are true and correct to

the best of my / our knowledge


Date: with seal




correct.


reimbursement of market development and branding / design development and

Product diversification (Handloom) / Standard and Compliances.

Place: Signature


Manual 87

ANNEXURE-18

APPLICATION FOR CLAIMING FINANCIAL ASSISTANCE FOR

ESTABLISHMENT OF NEW SKILL DEVELOPMENT CENTRE

a. Name & Address of the Institute :

b. Name of the Promoter :

c. Institutions Registration details :

1. Details of Existing Centers/Training Programmes:

Sl.

No.

Location &

Address

Year of

Establis

hment

Details of Trade

Trade Course

Duration

Annual

Intake

2. Profile of the Institution:

a) Extent of Campus Area :

b) Extent of Open Area :

c) Extent of Built up Area

i) Teaching Block :

ii) Class Rooms : iii) Laboratory for Practical :

d) Administration Block :

e) Hostel :

f) Canteen :

Manual 88

g) Number of Faculty :

h) Number of non-teaching Staff :

i) Infrastructure for practical training :3. Performance during last Three years:

Year Trade Number of Candidates

Trained

Male Female

Total

4. Details of Institutions proposed to be set up under the scheme:

Sl.No

.

Location &

District

Vocation to be covered

Trade Course

Duration

Months

Intake per

Batch

5. Vocations to be offered by the Institute:

Sl.No

.

Vocation Duration

of the

Course

(Months

)

Batch

Size No.

of

Trainees

No. of

Batche

s in the

Year

Total

No. of

Trainee

s

Manual 89

6. Cost of the Project (Rs. in Lakhs)

Sl.No. Particulars

Funding Support

from GOKRs. in Lakhs

Funding Support

from Institute & Banks

Rs. in Lakhs

Project CostTotal

Amount Rs. in Lakhs

01. Land

02. Building

03. Equipments04. Furniture

05.Teaching Equipments Aids and Content Development

06. Preliminary & pre-operative Expenses

07. Margin money for working Capital

08. Others ContingencyTOTAL

6 (a) Eligible items for availing grants

Sl. No

Particulars Unit Cost Total No.

Total Amount in Rs.

1 Plant and Machinery2 Support Infrastructure3 Teaching Aids4 Content Development

Grand Total

Note: All the claims should be supported by documentary evidence such as bills, receipts, vouchers etc.,

Manual 90

7. Means of Finance:

Sl.No. Source Amount in Lakhs

01.02.

03.

Applicant ContributionGrant Under the Scheme (GOK)Bank Loan

TOTAL

8. LIST OF EQUIPMENTS:

Sl.No. Particulars of the Equipment Quantity Amount Rs. in Lakhs

9. Estimated recurring expenditure, revenue streams & surplus Generated: (Rs. in Lakhs)

ITEMS 1st Year

2nd

Year3rd Year

4th Year

5th

Year

I. Expenditure:1. Salary2.Repair & Maintenance3.Utilities4.Teaching Aids Stationery5. Office Expenditure6.Consumables7. Miscellaneous

TOTAL

II.Revenue Streams

1.Support under the SchemeManual 91

2.Student3.Other Funding4.Product Making

TOTAL

III. Surplus Generated

10.PLAN OF ACTION:

Sl.No. Activity Time Frame

01.02.03.04.05.06.07.08.09.10.

11.

12.13.14.

15.16.

Formation of governing councilAdvisory body with industrial representativesEstablishment & housing plan of training centreAcquisition of landConstruction of buildingRecruitment of training staffAdvertisement of training programmesDevelopment of syllabiDevelopment of training manualsMOU with garment industries for training & placementAcquiring equipments & machineries & teaching aidsGoverning council meetingAdvisory council meetingBy-laws of training centre

Visiting to industries & other similar centreMOU with other institutes, industries, Govt. organizations to take up training cum service activities

Enclosers: 1. Institutions Registration Details 2. Bylaw / MOA of the Institute 3. Detailed Project report 4. Past Academic performance of the Institute 5. Documentary evidence for having made expenditure in

respect of above four items mentioned in Sl. no. 7 (a) should be furnished.

Manual 92

6. Memorandum of understanding with Government of Karnataka.


the best of my / our knowledge


Date: with seal




correct.


reimbursement for Establishment of New Skill Development Centre (SDC).

Place: Signature


Manual 93

ANNEXURE-19APPLICATION FOR CLAIMING ASSISTANCE FOR STRENTHENING OF

EXISTING TRAINING INSTITUTE

a. Name & Address of the Institute:

b. Name of the Promoter

c. Institutions Registration details

1. Details of Existing Centers/Training Programmes:

Sl.

No.

Location &

Address

Year of

Establishment

Details of Trade

Trade Course

Duration

Annual

Intake

2. Profile of the Institution:

j) Extent of Campus Area : k) Extent of Open Area : l) Extent of Built up Area :

i) Teaching Block : ii) Class Rooms : iii) Laboratory for Practical :

m)Administration Block : n) Hostel : o) Canteen :p) Number of Faculty :q) Number of non-teaching Staff : r) Infrastructure for practical training :

3. Performance during last Three years:Manual 94

Year Trade Number of Candidates Trained

Male Female

Total

4. Eligible items for availing grants

Sl. No


Total Amount in Rs.

1 Plant and Machinery2 Support Infrastructure3 Teaching Aids4 Content Development5 CAD/ CAM Centre6 Testing lab7 Any other items directly

related to conducting the textile education related coursesGrand Total


5. Details of Institutions proposed to be set up under the scheme:

Sl.No.

Location & District

Vocation to be covered

Trade Course DurationMonths

Intake per Batch

6. Vocations to be offered by the Institute:

Manual 95

Sl. No.

Vocation Duration of the Course

(Months)

Batch Size No. of

Trainees

No. of Batches in the Year

Total No. of

Trainees

7.Cost of the Project (Rs. in Lakhs)

Sl.No. Particulars

Funding Support from GOKRs. in Lakhs

Funding Support from Institute & Banks Rs. in Lakhs

Project CostTotal Amount Rs. in Lakhs

01. Land02. Building03. Equipments04. Furniture

05.Teaching Equipments & Aids and Content Development

06. Preliminary & pre-operative Expenses

07. Margin money for working Capital

08. Others Contingency

TOTAL

8. Means of Finance:

Manual 96

Sl.No. Source Amount in Lakhs01.02.03.

Applicant ContributionGrant Under the Scheme (GOK) Bank LoanTOTAL

9. LIST OF EQUIPMENTS:

Sl.No. Particulars of the Equipment Quantity Amount Rs. in Lakhs

10. Estimated recurring expenditure, revenue streams & surplus Generated: (Rs. in Lakhs)

ITEMS 1st Year 2nd Year 3rd Year 4th Year 5th Year

I. Expenditure:

1. Salary2.Repair & Maintenance3.Utilities4.Teaching Aids Stationery5. Office Expenditure6.Consumables7. Miscellaneous

TOTAL

II.Revenue Streams

1.Support under the Scheme2.Student3.Other Funding4.Product Making

TOTALIII.Surplus Generated

Manual 97

11.PLAN OF ACTION:

Sl.No.

Activity Time Frame

01.02.03.04.05.06.07.08.09.10.

11.

12.13.14.

15.16.

Formation of governing councilAdvisory body with industrial representativesEstablishment & housing plan of training centreAcquisition of landConstruction of buildingRecruitment of training staffAdvertisement of training programmesDevelopment of syllabiDevelopment of training manualsMOU with garment industries for training & placementAcquiring equipments & machineries & teaching aidsGoverning council meetingAdvisory council meetingBy-laws of training centre

Visiting to industries & other similar centreMOU with other institutes, industries, Govt. organizations to take up training cum service activities

Enclosers: 1. Institutions Registration Details 2. Bylaw / MOA of the Institute 3. Detailed Project report 4. Past Academic performance of the Institute 5. Documentary evidence for having made expenditure in

respect of above items mentioned in Sl. no. 7 (a) should be furnished.

6. Memorandum of understanding with Government of Karnataka.

Manual 98

DECLARATION I / We hereby declare that the above particulars are true and

correct to the best of my / our knowledge

Place: Signature of the PROPRIETORY

Date: with seal

Certificate of the District officers:



correct.


reimbursement for Strengthening Of Existing Training Institute

Place: Signature


Manual 99

ANNEXURE-20APPLICATION FOR CLAIMING REIMBURSEMENT OF EXPENDITURE

INCURRED ON SETTING UP OF SPECIALISED INSTITUTE FOR IMPLEMENTATION OF STANDARDS / ACCREDITATION / CERTIFICATION

SYSTEM.1. Name & address of the promoter institute :

2. Name of the promoter :

3. Institutions Regs. Details :

4. Profile of Promoter Institute :

5. Performance during last three years :

6. Details of programme frame work :

7. Detailed project report

ii) Background & Experience

iii) Justification

iv) Cost of project

v) Means of Finance

vi) Plan of action.

8. Eligible items for availing grants

Sl. No


Total Amount in Rs.

1 Development & Updating of content for various skills

2 Formulating and conducting Training of trainers (TOT)

3 Devising and conducting proficiency testing of the trainees and awarding certificates.

4 Periodical monitoring of the SDCs

Manual 100

Grand Total


9. Encloses:

1. Institutions Registration Details 2. Bylaw / MOA of the Institute 3. Detailed Project report 4. Past Academic performance of the Institute 5. Documentary evidence for having made expenditure in

respect of above items mentioned in Sl. no. 8 should be furnished.


the best of my / our knowledge.

Place: Signature of the PROPRIETORY

Date: with seal




correct.

I further certify that the unit is eligible for Rs________________ reimbursement for setting up specialised institute for implementation of standards / accreditation/ certification system.

Place: Signature

Manual 101


Manual 102

Annexure -21APPLICATION FORM FOR TRAINING UNDER SUVARNA VASTRA NEETHI

Deputy/ Assistant Director,Zilla Panchyat,_______________

1. Name of the Beneficiary :2. Beneficiary father / Mother’s Name :3. Full address of the Beneficiary : 4. Required craft of Training :5. Category of the Beneficiary : (SC / ST / minority / OBC / Women / Physically challenged.)

I hereby agree to undergo fulltime training. In the case of absence for the training I hereby agree to refund the full cost of the training to the Government

Place: Signature of the beneficiary

Date:

FOR OFFICE USE ONLY

This application has been verified in the selection committee held on _____________ and this beneficiary has been selected for ______ training.

Place: Signature


Manual 103

Applicants Photo

ANNEXURE-22 CLASSIFICATION OF ZONES

In order to reduce the regional imbalances and promote employment and

growth in the backward areas of the State, the policy will focus on geographical

dispersion of the textile and garment units and creation of skilled employment

in identified regions.

The State is classified into the following 3 Zones:

(These Zones are different from New Industrial Policy 2006-11 classifications)

Sl.No District Zone -1 Zone -2 Zone - 3

Taluks Taluks Taluks1 Bagalkot Bilagi

HungundBadami

BagalkotMudholJamakhandi

-

2 Bangalore Rural

- Hoskote DoddaballapurNelamangalaDevanahalli

3 Bangalore Urban

- Anekal Bangalore NorthBangalore SouthBangalore East

4 Belgaum Athani GokakSaudattiRaibagBailhongalRamdurgHukkeri

BelgaumKhanapurChikkodi

-

5 Bellary SandurKudligiSiruguppaHagaribommanahalliHadagali

Bellary Hospet

-

Manual 104

6 Bidar BhalkiHumnabadAuradBasavakalyan

Bidar -

7 Bijapur MuddebihalBasavanabagewadiIndiSindagi

Bijapur -

8 Chamarajanagar

ChamarajanagarGundlupetKollegal

Yelandur -

9 Chikkaballapur

BagepalliGowribidanurSidlaghattaChintamaniGudibande

Chikkaballapur

-

10 Chickmagalur KadurTarikere

ChickmagalurShringeriMudigereKoppaNarasimharajapura

-

11 Chitradurga HosadurgaHiriyurMolakalmurHolalkereChallakere

Chitradurga -

12 Dakhsina Kannada

- MangaloreBantwalPutturSulyaBelthangadi

-

13 Dharwad Kalaghatagi NavalgundKundagol

DharwadHubli

-

14 Davanagere ChannagiriHarapanahalliHonnaliJagalur

DavanagereHarihara

-

15 Gadag MundargiRonShirahatti

GadagNargund

-

Manual 105

16 Gulbarga SedamShorapurYadgirChittapurAfzalpurShapurAlandChincholiJewargi

Gulbarga -

17 Hassan ArakalgudHolenarasipurBelurChannarayapatnaArasikere

HassanAlurSakleshpura

-

18 Haveri SavanurShiggaonHirekerurHaveriByadagiHangal

Ranebennur -

19 Kolar SrinivasapuraMalurMulbagalBangarpet

Kolar -

20 Koppal KustagiYelburgaKoppalGangavathi

- -

21 Kodagu - MadikeriSomawarpetVirajpet

-

22 Mandya MalavalliNagamangalaKrishnarajapetSrirangapatnaMaddurPandavapura

Mandya -

23 Mysore H.D.KoteHunsurT.NarasipuraNanjangudPiriyapatnaK.R.Nagar

Mysore -

Manual 106

24 Raichur SindhanoorManviLingasugurDevdurgaRaichur

- -

25 Ramanagara - KanakapuraMagadiChannapatna

Ramanagara

26 Shimoga SorabaShikaripura

ShimogaBhadravathiSagarHosanagaraThirthahalli

-

27 Tumkur KunigalMadhugiriGubbiSiraPavagada TuruvekereKoratagereChikkanayakanahalli

TumkurTiptur

-

28 Udupi - UdupiKundapuraKarkala

-

29 Uttara Kannada

Supa (Joida)BhatkalAnkolaSiddapur

KarwarHaliyalSirsiMundagodYellapuraHonnavarKumta

-

Manual 107