RULES FOR PROVIDING FINANCIAL ASSISTANCE TO BLOCK RUBBER FACTORIES UNDER PROCESSING, QUALITY UPGRADATION AND PRODUCT DIVERSIFICATION SCHEME

Transcription

1 RULES FOR PROVIDING FINANCIAL ASSISTANCE TO BLOCK RUBBER FACTORIES UNDER PROCESSING, QUALITY UPGRADATION AND PRODUCT DIVERSIFICATION SCHEME Title These rules shall be called the Rubber Board s rules for providing financial assistance to Block Rubber Factories under Processing, Quality Upgradation and Product Diversification Scheme, Objective The objective of the scheme is to provide financial assistance to Block Rubber Processors in the country to improve quality, increase quantity, attain economy in cost of processing and modernize environmental protection systems. 3. Eligibility All Block Rubber Processors in the country, having factories for processing block rubber with valid processors license issued by the Board and in existence as on are eligible for this financial assistance. The processing factories in the estate sector which process small holder rubber in addition to estate crop will also be eligible for financial assistance under this scheme. The Block Rubber processors in the entire rubber growing areas in India except those in the North-Eastern Region will be eligible for financial assistance under this scheme. :: 1 ::

2 4. Components/Activities Financial assistance will be given for activities undertaken for quality upgradation, cost reduction in processing, improving labour productivity, and strengthening environmental protection systems. Financial assistance will also be considered for expansion of existing units having adequate infra-structural facilities provided the additional raw material requirement is met from latex in the form of cup lump, latex lump/coagulum, unsmoked sheet or poor quality sheet. The assistance will also be provided for producing high quality rubber and for making rubber meeting specific requirement of the consumers. The following activities will be eligible for financial assistance. Facility for blending FC grades with latex in the form of cup lumps, Latex coagulum/lumps, unsmoked or poor quality sheet so as to improve the quality and consistency. 1. Additional blending tanks for dirt removal and consistency in quality including modification to existing systems including stirrors, devices for removal or separation of non rubbers, agitators, pumps, pipelines, lining with ceramic tiles. 2. Additional machinery for blending field coagulum grades with latex grades 3. Modification/replacement/addition of machinery for quality improvement and to meet specific requirements of consumers. 4. Modification/addition/replacement of machineries like slab cutter, pre-breaker, hammer mill, shredder, crepers, driers, hydraulic press, etc. :: 2 ::

3 5. Modification of drier/driers to improve quality of rubber, enhance thermal efficiency, reduce drying time, reduce operating cost including addition/modification of bio mass gasification systems. 6. Modification of standby diesel generating system to reduce operating cost by adding biomass gasification system. 7. Procurement of material handling systems like belt conveyor, screw conveyor, roller conveyors, bucket elevators, solids pump, vibrating screen, etc. to improve handling and labour productivity. 8. Modification/addition to environmental protection systems to control air and water pollution including generation of energy from waste. 9. Procurement of additional testing equipment and implementation of ISO 9000/14000 certification systems. 10. Providing facility for PRI improvement through chemical treatment. 11. Facility for cleaning of dryer boxes. 12. Additional storage area for raw material and finished products. 13. Procurement of computer and its accessories including software 14. Implementation of recommendations of the energy audit such as power factor improvement (on load and on no load), replacement of transformer, use of high efficiency motors, replacement/modification/overhauling of old diesel generating sets. 15. Acoustic enclosures for diesel generating sets under environmental protection. :: 3 ::

4 5. Financial Assistance The financial assistance under this scheme will be as follows. 1. RPS/Co-operative sector 50% of the expenditure approved subject to a ceiling amount for each activity as in Annexure 4. The total financial assistance to a processor in the RPS/Co-operative Sector in the Tenth Five Year Plan Period ( ) will be further limited to Rs. 40 lakhs for existing units and 20 lakhs upon expansion 2. Private sector 25% of the expenditure approved subject to a ceiling for each activity as in Annexure 4. The total financial assistance to a processor in the private sector in the Tenth Five Year Plan Period ( ) will be further limited to Rs.20 lakhs. 3. A 5% interest subsidy on loans availed from nationalised banks for implementing the scheme. The contribution of the processor has to be minimum 25% of the expenditure. The interest subsidy will not be available beyond 10 th Five Year Plan Period (i.e. from ). The total interest subsidy payable to a processor during the Tenth Five Year Plan Period ( ) will be limited to 50% of the financial assistance eligible under 5.1 or 5.2 above as the case may be. Those beneficiaries who opt for financial assistance as per clause 5.1 or 5.2 above will not be eligible for this interest subsidy. 4. The ceiling amount of financial assistance for each activity is given in Annexure 4. Separate ceiling amounts have been provided for expansion. :: 4 ::

5 6. Terms and Conditions 1. This scheme will be implemented during the 10 th Five Year Plan Period (i.e ). 2. The management committee of the processing factory proposing to avail the financial assistance under these rules shall authorise its Chief Executive to make an application (as per Annexure 1) and shall pass a resolution (as per Annexure - 2) agreeing to abide by these rules and execute an agreement in the form appended to these rules as Annexure The processor applying for the financial assistance under the rules shall make an application in the prescribed form (Annexure 1). The application shall be supported by attested copies of the following documents: (i) (ii) (iii) Processor s Licence Articles of Association of the Company/Society. Audited Financial Results of the factory for the past three years 4. The applicant shall give a detailed proposal for the activities proposed along with the expected results along with recommendations of consultants engaged by the Processor. Board reserves the right to scrutinize the requirement /priority of the proposals of the applicant, and the financial assistance will be based on the decision of the Board on the above. 5. Approval for financial assistance under the scheme shall be considered only if proper evidence with respect to the contribution of the share of finance by the applicant (50% in RPS and co-operative sectors and 75% in private sector) is made available. :: 5 ::

6 6. For availing the interest subsidy the processor shall take approval of the Board on the various terms and conditions of the credit before signing the loan agreement with the financial institutions. Payment of interest subsidy will be considered for loans availed from Nationalized banks. Besides, payment of the interest shall be subject to the following conditions. 1) The interest paid during Xth Plan period only is eligible for financial assistance. 2) The interest subsidy will be released directly to the beneficiary. 3) A certificate from the bank regarding the interest paid has to be produced with the application. 4) Copy of the agreement with the bank, with amendments if any, should be produced with the application. 5) The interest subsidy is applicable only for those loans availed for the procurement of machinery/equipment/works/service under the scheme. 6) The interest subsidy shall be paid subject to production of an agreement by the applicant in the prescribed format. 7. Applicants for financial assistance for expansion must have achieved a minimum of 75% of the licenced capacity in any of three preceding financial years. The expansion in capacity must be at least 50% of the present installed/achievable capacity whichever is higher.. The applicant will obtain a licence from the Rubber Board for creating additional capacity. The processors must also have adequate infrastructural facilities like land, water, power and pollution control systems for carrying out the expansion proposed. Consent/approval of all statutory bodies like local bodies, town planning, :: 6 ::

7 Directorate of Factories and Boilers, Pollution Control Board, Electrical Inspectorate etc. should be obtained. 8. If any subsidy is received from Central Govt / Organizations or any State Govt / Organizations for any of the items for which financial assistance is accepted from Rubber Board under this scheme, such subsidy amount in full will have to be remitted to Rubber Board. 9. Preference will be given to those processors with BIS certification. Others may be considered on merit basis. 10. Other things being equal, preference will have to be given for offers from BIS for ISO 9000 / Certification systems. 11. The financial assistance will be released only after obtaining of the final statutory approvals from all the concerned authorities. 12. On receipt of the approval by the Rubber Board, quotations shall be invited by the applicant for the supply of materials, machinery, works or other services. Such tender documents shall be prepared in consultation with the Rubber Board. The offers have to confirm to the guidelines given in Annexure Rubber Board will advise on placing orders / award of work after scrutiny of the offers. 14. The applicant shall permit any officer of the Board authorized by the Chairman, Rubber Board to inspect the premises books of accounts, registers etc. of the processor. The processor shall also submit to the Board reports/details the manner and time as prescribed by the Board from time to time. :: 7 ::

8 15. The applicant should undertake to carry out the instructions issued by the Rubber Board from time to time in all matters relating to technical aspects of processing. 16. The applicant shall hypothecate the equipment/ machinery purchased and any building constructed / work done under this scheme to the Rubber Board for a minimum period of 10 years. 17. Notwithstanding the fulfillment of any or all of the conditions under these rules, the Chairman, Rubber Board has discretionary powers to grant or refuse the claim or to limit the assistance to a particular amount. 18. The Chairman, Rubber Board will have the powers to alter / modify any of the provisions of these rules for the smooth operation of the scheme. 19. The actual release of the amount shall only be made on compliance with all the formalities/conditions as stated above and on production of the following documents: a. Machinery Quotation, evaluation statement, invoice, cash receipt, proof of delivery, installation etc. b. Details of cost of building / works with estimates, measurements and bills. c. Installation of the machinery / equipment indicating basic price, installation charges, transportation, taxes etc. d. Entry of items in Stock Register/ Asset Register e. Performance certificate by the Authorized Engineer of the Rubber Board. :: 8 ::

9 f. Interest Subsidy Certificate from Financial Institution showing the details of interest paid during the relevant period. g. Reports/recommendations of the consultants engaged by the processor. 7. No part of this document shall be reproduced in any form without the written consent of the undersigned. However this does not preclude the above person / processor from its free use for the implementation of objectives/purposes envisaged in the Scheme for Processing, Quality Upgradation and Product Diversification under the Tenth Five Year Plan : Receipt of Application The last date for receipt of application and for submission of claims for financial assistance for each year will be separately notified. Sd/ DIRECTOR (P&PD) Annexure - I :: 9 ::

10 APPLICATION FOR FINANCIAL ASSISTANCE TO TSR AND RUBBERWOOD FACTORIES 1. Name & address of the Processor : 2. Processor s Licence No. : 3. Sector : RPS / Co-op / Private 4. Address of the Factory : 5. Date of commissioning : 6. Name of Product : 7. Installed Capacity : 8. Average Production : 9. Details of machinery / Equipment/Works proposed under modernization, showing cost of each and total. (Attach additional sheet, if required) 10. Name of the Chief Executive Officer 11. Signature with date and seal of the applicant : : : :: 10 ::

11 Annexure II FORM OF RESOLUTION (Please retype the form with applicable terms only) True copy of the Resolution to be passed by the Board of Directors of in connection with their application for financial assistance under Rubber Board s Scheme for modernization of Technically Specified Rubber (TSR) and Rubberwood Processing Factories in India for their Latex Centrifuging / Block Rubber / Rubberwood Processing Factory located at with Processor s License No. Board Resolution No...dt. Resolved to apply to Rubber Board for grant of financial assistance of Rs (Rupees.) under Rubber Board s Rules for Financial Assistance to TSR and Rubberwood Processing Factories for the modernization of its Latex Centrifuging / Block Rubber / Rubberwood Processing Factory located at Board Resolution No...dt Resolved further to authorize the Chief Executive Shri... (Name and designation) of the Society / Company / Concern to apply for financial assistance from Rubber Board and to execute necessary agreements prescribed by the Rubber Board, on behalf of the Society / Company / Partnership / Proprietorship Concern Board Resolution No...dt Resolved to abide by the terms and conditions specified by the Rubber Board in the Rules for providing financial assistance to TSR factories, as amended from time to time. (On Rs.50/- stamp paper) Annexure - 3 :: 11 ::

12 THIS AGREEMENT made on the... day of Two Thousand Two and executed between M/s.. a company / co-operative society/ partnership / proprietorship concern registered under with registered office at (hereinafter referred to as the Processor which expression where the context admits shall also mean and include it s successors and assigns) represented by its Managing Director / Director /Managing Partner/ Sole Proprietor Shri aged son of Shri. residing at.on the one part and the Rubber Board, a statutory body corporate constituted under the Rubber Act, 1947 (Central Act XXIV of 1947) and having its head office at Kottayam in Kottayam District, Kerala State (hereinafter called the Board which expression where the context admits shall also mean and include its successors and assigns) on the other part. WHEREAS the Processor requested the Board for financial assistance of Rs... (Rupees.. only) under the rules of the Scheme for modernization of Technically Specified Rubber (TSR) and Rubberwood Processing Factories in India (hereinafter referred to as Rules ). AND WHEREAS the Board has agreed to sanction a sum of Rs... (Rupees.. only) as financial assistance under the rules, subject to the terms and conditions herein contained. NOW THEREFORE it is agreed between the parties as follows: 1) That the Processor hereby undertakes to carry out all instructions issued from time to time by the Board and abide by the terms and conditions of the rules. 2) That the processor has to purchase the machinery / equipment as per the schedule attached herewith for which prior approval was obtained from the Board and produced the bills / vouchers of the machinery before the Board for financial assistance under the scheme. :: 12 ::

13 3) That the Processor hereby agrees to permit the Board or its authorized representatives for periodic inspection of the equipment / machinery for which financial assistance is granted by the Board, to ensure its proper utilization. 4) That the processor hereby agrees to submit periodic reports to the Board as prescribed by the Board on the quantitative and qualitative benefits accrued as a result of the implementation of the scheme. 5) That any identification mark / sticker affixed by the Board to the machinery / equipment will be maintained properly by the Processor for the purpose of the inspection by the Board. 6) That the machinery / equipment for which financial assistance is granted by the Board, shall be hypothecated to the Board for ten years and remain installed in the premises of the processing factory and shall be kept free from any other hypothecation, pledge, of lien or any encumbrance whatsoever that may affect the right and interest of the Board over the machinery and equipment, except with the prior approval of the Board. 7) That the Processor will maintain the machinery / equipment in good working condition. 8) That the Processor will not relocate, lease, transfer or dispose off the machinery / equipment without the prior approval of the Board. 9) If the Processor violates any of the terms and conditions herein contained or any provision of the rules or any of the instructions, from the Board or in case of any misappropriation of financial assistance granted by the Board or if any excess billing or manipulation in the bill / voucher is detected, the Board shall have the right to demand and enforce repayment forthwith of the entire amount of financial assistance granted by the Board along with penal interest as decided by the Board. 10) For matters not specifically provided herein, the Processor hereby agrees to abide by all the terms and conditions contained in the rules, as may be amended from time to time as if these rules are set out herein and form part of the agreement. :: 13 ::

14 Signed, Sealed and Delivered for and on behalf of. By (Authorised Signatory) In presence of Witnesses 1).. 2).. Signed and Sealed for and on behalf of the Rubber Board by the Chairman. In the presence of Witnesses 1). 2). Important Note Please insert the following as clause 3 in the case of expansion The processor hereby undertakes to meet the additional raw material requirement from latex in the form of latex, cup lump, latex coagulum/lump, unsmoked sheet/blanket or poor quality sheet and to obtain a licence from the Rubber Board for creating the additional capacity..also change the subsequent numbers as 4,5,6 etc. :: 14 :: Annexure 4 CEILING AMOUNT FOR FINANCIAL ASSISTANCE FOR BLOCK RUBBER PROCESSORS EXISTING FACTORIES

15 Item COMPONENT Financial Assistance Rs, Lakhs Rate Ceiling amount RPS / Private RPS/Co Private Co-op. Qty. -op. 1. Addition/replacement/modification of machinery for size reduction, creping, drying and baling for improving quality/enhancement of capacity/cost reduction/making high quality rubber to meet specific requirement of customers. a. Slab cutter b. Pre Breaker c. Hammer mill d. Creper e. Shredder -- Indian -- OR Shredder -- Imported f. Drier g. Press-60 T - OR Press-100 T CEILING AMOUNT FOR ITEM Blending and Storage areas a. Additional blending tanks/drains/modification of existing facilities b. Storage of raw material and finished goods c. Sheds for Gassifier and bio-mass CEILING AMOUNT FOR ITEM Biomass Gasifier for Heat and Power 4 (a) Generation a. Modification of drier to reduce fuel cost including addition/modification of bio-mass gasification systems b. Power generation using bio-mass gasification systems (part/full) CEILING AMOUNT FOR ITEM Addition/replacement/modification of material handling systems to improve productivity and reduce cost of production a. Conveyors b. Bucket Elevators c. Crumb pumping and filling station with vibrating screen d. Pumps e. Monorails/Gantry f. Vibrating screens g. Multi layer storage-bins/crates etc :: 15 ::

16 (b) Energy conservation measures Implementation of recommendations of the energy audit such as power factor improvement (on load and on no load), replacement of transformer, use of high efficiency motors, replacement/ modification/ overhauling of old diesel generating sets. CEILING AMOUNT FOR ITEM Environmental Protection a. Modification/Addition to pollution control systems, Acoustic enclosures for generating set CEILING AMOUNT FOR ITEM Quality Control a. Additional testing equipment and ISO 9000/14000 certification systems b. Computer and accessories including software c. Weighing scales for raw materials and finished goods d. Facilities for chemical treatment for PRI improvement and cleaning of drier boxes CEILING AMOUNT FOR ITEM Installation of machinery/equipment Foundation, cabling, earthing, starter, switch, capacitor for various machinery/equipment RPS/Co-op. 50% of the expenditure approved or 15% of the ceiling amount whichever is less Private - 25% of the expenditure approved or 15% of the ceiling amount whichever is less Note : 1. The financial assistance will be 50% / 25% of the expenditure approved by the Board for the Machinery/Equipment/Works/Service as the case may or the ceiling amount as specified above whichever is less. 2. The financial assistance to private sector will be further limited to Rs. 20 lakhs. 3. The financial assistance to RPS/Co-operative sector will be further limited to Rs. 40 lakhs. :: 16 :: Annexure 4

17 (contd.) CEILING AMOUNT FOR FINANCIAL ASSISTANCE FOR BLOCK RUBBER PROCESSORS UPON EXPANSION Item COMPONENT Financial Assistance Rs, Lakhs Rate Ceiling amount RPS/Co-op. Private Qty RPS/Co Private -op. 1 Addition/replacement/modification of machinery for size reduction, creping, drying and baling for improving quality/enhancement of capacity/cosot reduction/making high quality rubber to meet specific requirement of customers. a. Pre Breaker b. Hammer mill c. Creper d. Shredder -- Indian -- OR Shredder -- Imported e. Drier f. Press-60 T OR Press-100 T CEILING AMOUNT FOR ITEM Blending and Storage areas a. Additional blending tanks/drains/modification of existing facilities :: 17 :: b. Storage of raw material and finished goods c. Sheds for Gassifier and bio-mass CEILING AMOUNT FOR ITEM Biomass Gasifier for Heat and Power 4 Generation a. Modification of drier to reduce fuel cost including addition/modification of bio-mass gasification systems b. Power generation using bio-mass gasification systems CEILING AMOUNT FOR ITEM Addition/replacement/modification of material handling systems to improve productivity and reduce cost of production a. Conveyors b. Bucket Elevators c. Crumb pumping and filling station with vibrating screen d. Pumps e. Monorails/Gantry f. Vibrating screens

18 5 6 7 g. Multi layer storage-bins/crates etc CEILING AMOUNT FOR ITEM Environmental Protection a. Modification/Addition to pollution control systems, Acoustic enclosures for generating set CEILING AMOUNT FOR ITEM Quality Control a. Additional testing equipment and ISO 9000/ certification systems b. Computer and accessories including software c. Weighing scales for raw materials and finished goods CEILING AMOUNT FOR ITEM Installation of machinery/equipment Foundation,cabling,earthing,starter,switch,capacitor for various machinery/equipment RPS/Co-op. 50% of the expenditure approved or 15% of the ceiling amount whichever is less Private 25% of the expenditure approved or 15% of the ceiling amount whichever is less Note : 1. The financial assistance will be 50% / 25% of the expenditure approved by the Board for the Machinery/Equipment/Works/Service as the case may or the ceiling amount as specified above whichever is less. 2. The financial assistance to private sector will be further limited to Rs. 20 lakhs. 3. The financial assistance to RPS/Co-operative sector will be further limited to Rs. 20 lakhs. :: 18 :: Annexure 5

19 GENERAL GUIDELINES 1. The processor should obtain all statutory clearances for modification/installation of additional machinery/ equipment from authorities like, Local Bodies. Factories and Boilers, KSEB, Electrical Inspectorate etc. 2. Approval from Pollution Control Board should be obtained for modification/alteration of the effluent treatment system.. 3. The machinery/equipment should carry ISI mark as far as possible. 4. The biomass gasifier should preferably be capable of working on different types of biomass depending on price and availability. The gasifier must have safety features to take of CO emission, fire hazards, flame failure etc. The supplier should give in plant training to the operators in operation, maintenance, trouble shooting and safety and safety features/precautions. 5. The machinery/equipment should have adequate safety features to ensure the safety of men, materials, machinery and the surroundings. 6. The enquiry for procurement of machinery/equipment should contain specifications including material specifications. 7. The machinery/equipment should perform satisfactorily with respect to output and its quality and should suited for continuous duty and the working environment. They must also conformed to the standards prescribed by all statutory authorities like Pollution Control Board, Electrical Inspectorate, Directorate of Factories and Boilers etc 8. Only proven and brand-new machinery/equipment with adequate after sales service will be considered for financial assistance under the scheme. 9. The supplier should guarantee satisfactory performance at least for 12 months from the date of commencing or 18 months from the date of supply whichever is earlier. :: 19 ::