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FORMATION OF NEWSIDCO INDUSTRIAL ESTATEAT VANIY AMBADI, INVELLORE ils about the Implementing3About the Industrial4Demand Potential5Development Works7-86E timation of Development Works9-117Amenitie128Detail of Plots proposed139Implementation1410Layout plan15 -1611Project cost1712Pricing of plot13Financial viability2014Conclusion2115AnnexureAgencyE tateprogramme2-34-5618-19 I-VI

1.0. INTRODUCTIONThe Micro, Small and Medium Enterprises play a major role in the socioeconomic development of the country since independence through its contribution tothe ionand creationintheofeconomicdevelopment of the State has forced the Government of Tamilnadu to extend severalincentives and concessions by framing a new policy in 2008 exclusively for MSMESectors. Even during the early days of the development of the state, governmentrealized the importance of industrial growth and established 35 industrial estates withall infrastructure facilities especially for the growth of MSME sector in different partsof the State. Today it has increased to 92 industrial estates with Tamil Nadu SmallIndustries Development Corporation contribution of 57 Industrial Estates and it isproposed to establish another 8 Industrial Estates, so as to achieve the 100 markduring the current fiscal year. About 6.00 lakhs registered MSMEs are functioning inTamil Nadu.This project is for formation of an Industrial Estate at Vaniyambadi, VelloreDistrict with the Govt. of India's assistance under MSE- COP scheme. The VelloreDistrict is in the northern part of Tamilnadu. The proposed Industrial Estate is to belocated near Vaniyambadi, which is a well-known cluster for leather industries. Theproposed industrial estate is surrounded by various villages, availability of labourswill not be a limiting factor and thus provide ample opportunity for the local people tohave employment.

-22.0 DETAILS ABOUT THE IMPLEMENTING AGENCYTamilnaduSmall Industries DevelopmentCorporation Limited (TANSIDCO)was set up by the Government of Tamilnadu with the specific objective of playing acatalytic role for promotion and development of Small Scale Industries and to hastenthe industrial dispersal in the State of Tamilnadu.activitiesin 1971 with a comprehensiveTANSIDCO e development of entrepreneurship and the growth of Small Scale Industriesin Tamilnadu.The Corporate office of TANSIDCOis functioning at Garment Complex-II,Near Electronic Complex, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai-32.Thereare 19 Branch offices Depots are situated in Districts.TANSIDCO's promotional activities mainly comprise of: Development of Industrial Estates with factory sheds of various dimensionsand developed plots with infrastructure facilities to enable the entrepreneur tostart Micro and Small Enterprises. Tiny sheds and plots for artisans and selfemployed to cater to the needs of Micro and cottage industries. Raw material assistance scheme is to supply raw materials with the assuredquality at competitive prices to Micro and Small Enterprises through the widenet work of Depots located allover the state. Marketing assistance scheme is rendered to Micro and Small Enterprises tomarket their products to GovernmentparticipatesDepartments / Undertakings,SIDCOin tender on behalf of the Micro and Small Enterprises, getsorders and distributes such orders to Micro and Small Enterprises for supplyof their products.

-3SIDCOhas madea substantialprogressin all its schemesand isprogramming for the introduction of new schemes to bring new dimensions in therealms of Micro and Small enterprises. Though TANSIDCais offering services toMSMEs, commercially it has made itself viable by earning reasonable profits

-4-3.0About the Industrial Estate3.1LocationSIDCO has purchased 7.08 acres land at Amberpet village, VaniyambadiTaluk from the Official liquataor of erstwhile"The vaniyambadi Leather FinishingService Industrial Co-op Society Ltd at a cost of Rs.125.00 lakhs on payment of theentire cost SIDCO took procession of the land and the entire lands are free fromencumbrance.The land details are furnished below:S.No.Surve No."Extent in acres125/12.5323426/227/2C29TotalThe land utilization details are given below.2.341.980.237.081. Total extent7.080 acres2. OSR0.742 acres3. Road extent0.995 acres4. Public Purpose0.446 acres5. Commercial purpose0.335 acres6. Saleable Industrial Plot area4.562 acresThe proposed Industrial estate lies abutting State Highway No.130 whichconnects Vaniyambadi and its District Head Quarters at Vellore.

-5-3.2Scheme ProposalIt has been proposedto develop 36 industrialplots ranging from 0.08 acres to0.30 acre. The plots will be allotted to needy entrepreneursgrantingsale basis"6 months' time to remit the cost of plot and a period of 2 years from the dateof taking over possessionthe paymentof plot cost,them to avail financialby commencingallottedon "Outrightto them.of the plot is allowedNo objectionassistanceproduction,to implementcertificate,the project. Soon afterif required,is issuedto enablefrom Banks. As soon as the project is implementedsale deed is executedin favour of the allotee for the plot

-64.0Demand PotentialThe proposed industrial estate is 1 km away from Vaniyambadi town, which isthe well-known business city for Leather Commodities in Tamilnadu. The IndustrialEstate is proposed to house ancillary units for leather Products and also otherEngineering units.

-75.0Development worksAll the infrastructure facilities like laying of Roads,· construction of culverts,drainage and street lights etc. will be provided to start a small and Micro Enterprisein the proposed Industrial Estate.5.1 Cost of Land filling and Levelling including Boundary Wall & Fencing.To survey the entire land by clearing the jungle and fixing the plot stones,Direction Board and Name Board. It is proposed to filling up the low lying areas andfencing the SIDCO OSR Plots and construction of Boundary wall on the West andNorthern side. Total cost of land filling, leveling, boundary wall and fencing works outto Rs.20.04 lakhs.5.2Laying of Roads and Construction of CulvertsIt is proposed to form 12 M road for a length of 350 M with carriage way of3.75 M BT width. It is proposed to construct 3 Nos. of RCC box culverts at Roadjunctions. The estimated cost will be Rs.19.90 lakhs for these works.5.3 Road Side Greenery & Social ForestryInternational community is very conscious of global warming and repeatedly ithas expressedits concernover cleaner environmentand green environment.Especially in industrial location a great emphasize is made to grow trees and plantsto keep the environment clean and neat and present a pleasant appearance. To fulfillthese requirement,it is proposed to plant avenue Trees with Tree guards at anestimated cost of RS.0.60 lakh.

-85.4 Water harvestingIt is proposed to provide Rain water harvesting system to improve the groundwater potential. The estimated cost will be RS.0.50 lakhs for these works.5.5DrainageIt is proposed to construct R.C.C precast slab drain on both sides of all theroad, and R.R. Masonery lined storm water drain in low lying and disposal points.The estimated cost will be RS.7.00 lakhs for these works.5.6Street Lights arrangmentsIt is proposed to provide 14 Nos of Street light poles with 70 W sodium vapourlamps on the all Service roads and this will cost RS.7.50 lakhs including laying ofstreet light cables, poles and obtaining E.B Service connection etc.5.7Contingencies & pre - operative expensesAs provided in the estimates.For contingencies& Pre - operative expenses an amount of RS.2.46 lakhshas been provided to take up the preliminary works & unforeseen items of works.

-96.0DETAILOF PROJECTCOST FOR INFRASTRUCTUREWORKS AT INDUSTRIALDEVELOPMENTESTATE, V ANIY lakhsSL.No:1.INFRASTRUCTURE1II.UPGRADATIONWORKSCo t of land filling / leveling including boundaryalland f ncingCo t of laying of roads and con truction of culvert20.0419.90IIIRoad id greenery0.60IYWater harve ting0.50vDrainage7.00Power (Sub-Station and di tribution net-work includingStreet light etc),Contingencie & Pre Operative expen e7.50Vl2.R. InLakhsItemGRAND TOTALThe estimation of Development work is enclosed.2.4658.00

JINDUSTRIAL ESTATE AT VANIYAMBADIVELLORE DISTRICTESTIMATE VALUE amt.(in lakhs)1COST OF LAND FILLING / LEVELLINGINCLUDING BOUNDARY WALL / FENCINGa) Surveying and Investigation charges.LS50,000.00b) Entrance features, name board andDirection Board.LS2,00,000.00c) Plot stone fixing.LS15,000.00d) Layout approval charges.LS2,25,000.00e) Provision for Fencing allround the OSRPlots220f) Provision for gate and gate pillarsLSg) Construction of compound wall at Northand west boundaries.245h) Filling Low lying area to an extent of 2.25acres at 0.30m ,04,300.00Sub Total266,000.0020.04i) COST OF LAYING ROADSa) Formation of 12 M Road for a BT widthof 3.75 M3505000RM17,50,000.0080000No.2,40,000.00ii) CULVERTSa)FOR 12 M ROADi)RCC Box culvert (8M length and vent0.75x1.00m)319,90,000.00Sub Total19.903ROAD SIDE GREENERY& SOCIAL FORESTRYa) Avenue trees and tree guards.LS60,000.00Sub Total460,000.00WATER HARVESTINGa) Provision for Rain water harvestingLS50,000.000.60

-,6-))-DRAINAGE(StormProviding50,000.00Sub TotalWater Drain)700RCC precast slab drain.1000RM7.00POWER ( SUB-STATION AND DISTRIBUTIONNETWORK INCLUDING STREET LIGHT ETC),GENERATION OF NON-CONVENTIONALENERGYa) Providing street light poles with 70 Wsodium vapour lamp and laying underground cables14b) EB Pillar box and EB ENSES6,02,000.001,48,000.007,50,000.00Sub Total87,00,000.007,00,000.00Sub Total70.507.50& PRE-OPERATIVEa) Provision for Petty supervision charges,contingencies, and unforeseen items.LS2,46,000.002,46,000.00Sub Total2.4658.00TOTAL DEVELOPMENT COST Rs.58.00TOTAL DEVELOPMENT COST Rs. 58.00 lakhs (Rupees Fifty Eight Lakhs.)Note: a) This scheme estimate does not include the cost for External water supply and sanitaryarrangements, since this Estate is located within the Vaniyambadi Municipal limits and also thetotal extent is only 7.08 acres.b)The rate adopted is schedule of rates for the year 2011-12.

-12-7.0Amentities - Communication and Transportation facilities available nearthe proposed industrial estate:7.1Communications7.27.31)Nearest Post officeVaniyambadi.2)Nearest Telephone ExchangeVaniyambadi(1 KM)Transportation1)Nearest Bus TerminusVaniyambadi.(1 KM)2)Nearest Railway stationVaniyambadi(1 KM )3)Nearest AirportBangalore(150 KM)4)Nearest Sea portChennai(205 KM)Common AmenitiesAn extent of 0.446 acres has been earmarked for public purpose. The aboveland has been utilized for the following amenities:1)Police station2)Small canteen3)First Aid Centre4)Communications facilities like telephones/faX/Xerox etc.,

-138.1Details of plots proposedTaking into consideration of the demand for starting industries, Developedplots ranging from 0.08 acre to 0.30 acres and 1 No. of 1 acre plot have beenproposed.SI.No.Type of plotSize of plot(area in acres)Nos.1.MicroBelow 15 cents2Small15 cents to 20 cents63Medium1 acre above14Commercial purpose45Public purpose3Total2236

-14 -9.0Implementation ProgrammeSIDCO has commenced the surveying works of entire 7.08 acres of land. Thedetailedestimatessupervisionwill be prepared and the works will be executed under theof SIDCO Engineers of constructionwing. The Developmentworkcovering the entire area is expected to be completed by December 2012.9.1SCHEDULEThe Schedule for the establishment of the Proposed Industrial inary works like survey,Contour map, Layout, Waterdivining,SoilInvestigationworks etc.December, 2011December, 20112Preparationofdetailedestimates, design, specificationand other required documentsfor worksCalling tenders and issuingwork orders for dyforhandino overCompletion of worksJanuary, 2012January, 2012March,2012April, 2012345May, 2012-November, 2012March,2013

- 15-10.0Layout plans and DrawingThe layout plan showing the proposed industrial estate is enclosed.


- 17 lakhs1)Total land cost2)Total Development costTotal Cost11.1125.0058.00183.00Means of financingRs. in lakhs1)SIDCO own funds Equity2)Grant from MSE - COP(60% on Development cost of Rs.58 lakhs)Total11.2148.2034.80183.00Mode of mobilising funds:SIDCO has already purchased the land from its own funds and the costrequired for creation of infrastructure would also be met with funds available in fixeddeposits in Banks. The grant received from Government of India under MSE-CDPscheme will also be utilized for implementing the above project.The above expenditure would be realized from the sale of plots / to be madeto the Small and Micro enterprises.

- 18-12.0Pricing of plots.The developmentcost is added to the land cost to arrive for selling price.The land cost for the year 2012-2013 has been fixed as Rs. 51.82 lakhs peracre including 15% of administrative charges on the cost of plots. Details of workingsare given in the Annexure V. Land cost for subsequent years have been arrived at bygiving a 10% increase over the previous year land cost.12.1a) Land cost for theyear 2012-2013Rs. 51.82 lakhsb) Land cost for the year 2013-14(10% increase over the previousyear cost)c) ) Land cost for the year 2014-15(10% increase on simple interestbasis)Rs. 57.001akhsRs. 62.18 lakhsMethod of allotmentAs and when Plots are ready, SIDCO will advertise the availability of Plots innews papers and through other media calling for applications for allotment.Theapplications will be scrutinized and the allotment orders will be issued. The Plots willbe allotted as per the policy formulated.

- 19-12.2Sales realisationAccording to the demand assessed the sales of Plots has been estimated asbelow:SI.No.12.3Year% of Plots to be soldFinancial( lakhs2012-201325%1.14 acres51.3722013-201465%2.97 acres147.2132014-201510%0.42 acres24.87Expenses estimateda) Sales promotional expenses are estimated at 1% of the total sale value.b) A provision of 15% on the sale value is made to meet the administrativeexpenses.12.4Employment to be generatedAbout 29 Industries units are likely to come up in the proposed IndustrialEstate and the Industries coming up in the Industrial Estate will provide directemployment for about 350 persons and indirect employment to 200 persons.

-20-13.0Financial viabilityThe Financial statements have been furnished in the Annexure I & II. TheIncome and expenditure statement provided for three operating years as given inAnnexure1.- III is based on the following assumptions.Various activities involved in the project implementation like land cost and plotdevelopment cost are phased out in the manner as shown in Annexure - II.2.Similarly sale of plots are phased out as shown in Annexure - V3.Selling price consist of (Annexure - VI)(a) Developed plot cost per acre for the first year which constitutes the basiccost.(b) Administrative charges at 15% on the sale of developed plots(C) The subsequent year cost fixation would be done by giving 10% notionalincrease on the basic cost.4.A provision of 15% on sale value is made to meet the administrative expenses5.Cash flow statementThe projected cash flow for the three year period starting from 2012-13 isgiven in Annexure - IV.13.1Grant from Government(previously liD scheme)of India under MSE-CDP schemeAn amount of RS.34.80 lakhs would be received as grant from Government ofIndia under Infrastructure Development of MSE-CDP scheme.13.2 The financial statementsshow that the project is financiallyviable

- 21 14.0ConclusionThe proposed Vaniyambadi, Industrial Estate, due to advantage of its location,easy accessibility, available of water and labour force will be one of the viable andattractive estates. As the site is located in a backward and rural area, the proposedIndustrial Estate will provide employment to Rural people.

Project Cost for Vaniambadi,IndustrialEstate, Vellore DistrictAnnexure-ITotal Project CostPhasing Out of Physical and Financial Components1Land Area proposed to be developed(in acres)7.0802Total Land Cost(in lakhs)125.003Total Saleable area(in acres)4.562( lakhs)SI.NoEstimated CostDescription1Cost of Land2Development 058.0058.000.0058.00Annexure-II Phasing Out of Physical and Financial Components( lakhs)SI.NoDescriptionFinancial Year2011-121Cost of Land2Development 058.0058.000.000.0000.0034.800.00183.003Short term fund allocation4Grant from IID Scheme20.0014.805Internal 1.76Total 2012-13 2013-140.00

Annexure-IIIIncomeand ExpenditureStatement( lakhs)SI.NoFinancial YearDescription2011-12 2012-13Income1Sale of Plots2Administrative Charges3Grant from Govt.of 8.60291.76EXl2enditure1Cost of land2Cost of DevelopmentTotalSurplus/ Deficit Internal125.00125.00rate of 36.77%58.000.0028.60183.00108.76

Annexure-IV( lkahs)Cash Flow StatementSI.NoFinancial YearInflow ."Description2012-13 2013-141SIDCO's Own Funds2Grant from3Sale of 0000.0058.000.000.0058.00TotalOut flow1capital Expenditure2Payment of land cost to Govt.Total0.00(25.16)72.67Surplus / Deficit(25.16)97.83161.09Closing Balance(25.16 )72.67233.76Opening Balance Annexure V( lkahs)Sales EstimationDeveloped& Financial YearDescriptionSI.NoPlot Sales2012-13 2013-142014-151Sale of Plots in %25%65%10%2Area in acres1.142.970.463Developed Plot Cost per Acre51.8257.0062.184Administrative Charges7.7022.083.735Plot cost51.37147.2124.876Value of Developed Plot allotted59.07169.2928.607Margin Money Receivable12.8436.806.228Balance Plot Cost Receivable46.23154.879Receipts for the year83.03161.0912.84

Annexure VILand Cost fIxation statementfor IndustrialEstate, Vaniambadi,Vellore District125000001Land Cost paid for 7.08 Acres2ADD: Interest @ 15% from 03.06.2010 to 31.03.2013 (1032 days)53013703Development Cost proposed58000004Interest during development period for 6 months5Less: MSE-CDP Grant34800006Total Scheme Cost205563707Saleable extent in acres8Developed Plot cost per

GUINDY, CHENNAI 600032 Phone 22500073,22250185,22500289 Fax: 22500792. FORMATION OFNEW SIDCO INDUSTRIAL ESTATE AT VANIYAMBADI, IN VELLORE DISTRICT INDEX S1.No. Chapter Pages 1 Introduction 1 2 Details about the Implementing Agency 2-3 3 About the Industrial E tate 4-5 4 Demand Potential 6 5 Development Works 7-8 6 E timation ofDevelopment Works 9-11 7 Amenitie 12 8 Detail ofPlots proposed .

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