Chief Minister J Jayalalithaa on Saturday allocated Rs 16 crore as share capital to the Tamil Nadu Small Industries Development Corporation (SIDCO), in addition to the present share capital of `8.70 crore, so that the corporation can set up more industrial estates and improve the infrastructure in the existing ones.
The SIDCO has been setting up new industrial estates across Tamil Nadu to help the growth of the Micro, Small and Marginal Enterprises (MSME). As of now, 94 industrial estates are being maintained by this Corporation. Already, the Chief Minister has sanctioned Rs 26.68 crore for setting up four new industrial estates and to improve the infrastructural facilities of two existing industrial estates at a cost of `6.32 crore.
To implement these projects, the fiscal resources of the SIDCO have to be enhanced to enable it to avail of loans from banks and other financial institutions. Hence, the CM has allocated Rs 16 crore to be provided as share capital to the SIDCO. With this, the total share capital of this Corporation would go up to Rs 24.70 crore.
Five chemical testing laboratories are located at Chennai, Madurai, Salem, Coimbatore and Thoothukudi. These are equipped with modern and sophisticated instruments required for conducting testing of raw material and finished goods to meet the needs of chemical, metallurgical and other industries.
Since the laboratories in these places are functioning in 40-year-old buildings, the Chief Minister has granted Rs 2 crore for renovating these buildings and to improve the infrastructure facilities there.
The New Entrepreneur-Cum-Enterprise Development Scheme (NEEDS) has been implemented from 2012-13 to assist the educated youth to become first generation by giving entrepreneurship training, to prepare their business plans and helping to tie up with financial institutions to set up new business ventures, besides linking them with major industrial clients.
The selected beneficiaries will be assisted to avail of term loans from banks and Tamil Nadu Industrial Investment Corporation Limited (TIIC) with a capital subsidy at the rate of 25 per cent of the project cost (not exceeding Rs 25 lakh), with three per cent interest subvention on bank loan by the government.