Bellary Industries

Introduction

Tomorrow's Destination, today

The Department of Industries and Commerce acts as a catalyst for the overall development of the industrial sector through effective discharge of developmental and facilitation roles. With a view to promote investment and trade, the Department formulates and implements the Policies of the State, Identification of Sectoral Advantages of the State and Human resource development for sustainable and growth-oriented industrialization has been a crucial role of the Department. Facilitating the take off of infrastructure projects that boost the industrial growth has also been the Department’s forte. The Department helps enhance the competitiveness of domestic industry through modernization, technology upgradation and adoption of best practices. It also provides a forum for entrepreneurs and industrialists through their associations to represent their needs to the Government, which translates into Policies of the State.

The Department is able to reach out to the small businesses as well as Industrial Houses by a great degree of decentralization within the organizational structure. The Department functions through the Districts Industries Centers, various Boards Corporations and Special purpose vehicles. The implementation of Policies of the Government is done through various schemes and the implementation of these schemes is decentralized for faster delivery of services

The Department has established the Single Window Mechanism for faster, single point clearances to be given to projects seeking infrastructure facilities/incentives/concessions and help in establishing industries and businesses in Karnataka. Karnataka Udyog Mitra is the nodal agency under the Single window set up.
There are several Self-employment generation schemes formulated by the State and Central Governments from time to time and are being implemented.

General Information and Important Statistics

Industries play a vital role in the economic development of any District. In Bellary District, there has been a spectacular growth of industries. While, credit for spectacular growth of industries in Bellary goes to the initiative of the entrepreneurs, the main factors contributing to this rapid industrialization have been; existence of peaceful work environment, harmonious labour relations, availability of abundant mineral resources, like Iron ore, Manganese Ore, Red Oxide, Ferrous Oxide etc, and availability of technical skilled man power.


The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up small and village industries.

The District Industries Centre, Bellary has been pursing the basic objectives by assisting for optimum utilization in existing industries, faster promotion of new Small Scale Industries and Village Industries with a rural basis and by increasing the employment opportunities in industries sector. The small entrepreneur requires various types of assistance right from the selection of an item for manufacture, inputs like raw materials, power land and building etc., Under the Single Window Agency of district Industries Centre the entrepreneur can get all such assistance through one agency.


The District Industries Centre, Bellary is implementing some of the Govt. sponsored Schemes like PMEGP,KAIGARIKA VIKAS and CLUSTER DEVELOPMENT PROGRAMME

PMEGP:
Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro
Enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises  (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non Government Organization (NGOs)/reputed autonomous
institutions/Self Help Groups (SHGs)/ National Small Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development.

Levels of funding under PMEGP

Categories of  beneficiaries
under PMEGP

Beneficiary’s contribution
(of project cost)

Rate of Subsidy
(of project cost)

Area (location of project/unit)

 

Urban

Rural

General Category

10%

15%

25%

Special (including SC / ST /OBC/Minorities / Women, Exservicemen,
Physically handicapped, NER, Hill and Border areas etc.

 05%

25%

30&

Note:

(1) The maximum cost of the project/unit admissible under manufacturing sector is Rs.25lakh.

(2) The maximum cost of the project/unit admissible under business/service sector is Rs.10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term

(i) Any individual, above 18 years of age
(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.
(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
(iv) Assistance under the Scheme is available only for new projects sanctioned pacifically under the PMEGP.
(v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
(vi) Institutions registered under Societies Registration Act,1860;
(vii) Production Co-operative Societies, and
(viii) Charitable Trusts.
(ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy 3 under any other scheme of Government of India or State Government are not eligible.

Services Provided by the Department

The Department of Industries and Commerce is the Nodal Agency for development of Industries in general and SSI’s in particular in the State of Karnataka. The role of this Department is to plan and implement various schemes for the promotion of Industries. The various activities undertaken are enumerated as follows: -

    1. Providing entrepreneurial guidance through various District Industries Centres.
    2. Registration and promotion of Small Scale Industries
    3. Implementation of Centrally sponsored schemes like self-employment programme for the educated unemployed youth under Prime Minister’s Employment Generation Programme Scheme.
    4. Creating awareness of the various policies and programmes of the Central/State Government through seminars and dissemination meets for the promotion and development of SSI’s & employment generation.
    5. Conducting of entrepreneur’s development programmes.
    6. Sanction and disbursement of various subsidies and incentives such as State Investment Subsidy, Margin Money Assistance for sick units, Exemption from payment of Entry Tax. And waiver of conversion fee for converting Agricultural land to industrial use.
    7. Export Promotion activities.
    8. Providing Escort Services to the entrepreneurs.
    9. Implementattion of Dr Sarojini Mahishi report on employment.

Activities of District Industries Centre

How to start an industry?
a) Tiny / SSI (Small Scale Industries)

  • Obtain PRC from the DIC.
  • Approach DLSWA for comprehensive package service.
  • Then follow the procedures applicable to medium industries procedures with respect to Different departments.

b) Medium / Large Industries

  • Contact Karnataka Udyog Mitra / District Industries Centres. Discuss on salient features of Karnataka, its unique advantages, project identification, suitable location, human resources, approvals required, procedures involved etc.,
  • Obtain Combined Application Form [CAF] from KUM / DIC.
  • File filled in CAF along with documents / fees indicated in the CAF.
  • In case of online filing, documents / fees may be sent to KUM / DIC through courier or by post.
  • KUM/DIC will scrutinize the CAF and forward the relevant portion to the respective departments / agencies.
  • In case of any discrepancies / short comings are observed, KUM / DIC will intimate the investors to comply with the same.
  • The investors will be invited for the meetings of DLSWA / SLSWA / HLC depending on the cases in order to have a one –to- one discussion.
  • Once the committee satisfied with the merits of the project substantial approval will be given in the meeting itself.
  • KUM / DIC will communicate the approval of the project, by form of a letter to the investors within one week of the meeting.
  • All these procedures will be completed within a maximum period of 40 days.
  • To make necessary arrangements for taking possession of land allotted by KIADB by making payment.
  • Execute lease agreement for the land.
  • Prepare the building plan and obtain the approval of KIADB for the same in case of non factories.
  • In case of factories, whether located in KIADB land or outside the building plan and layout of plant and machinery to be approved by the IFB.
  • Place order for plant and machineries.
  • Apply for term loan.
  • Get registration with Dept. of Commercial Tax, especially to avail entry tax exemptions for procurement of plant and machinery and other inputs during the construction period.
  • Apply for temporary power connection for construction and permanent power connection at a later stage.
  • Apply for water connection.
  • Obtain PAN from Income Tax department
  • Make payment of taxes as assessed by the local authority like Village Panchayat, Municipal Corporation and local bodies.
  • Apply for conversion of land into industrial purposes, if applicable.
  • In case of purchasing agricultural land for industrial purposes by the non-agriculturalist, apply for permission from the respective Deputy Commissioner.
  • Pay every year the lease rent to KIADB within the due date.
  • To take insurance policy and pay the premium for a value equivalent to cost the building.
  • Obtain absolute sale deed for the land after completion of lease period in case of KIADB land.
  • Obtain Factory Licence from IFB before commencement of trail production.
  • Renew the Factory License every year.
  • In case of non-factories, coming under Karnataka Shops and Commercial Establishments Act, renew the registration once in five years.
  • Obtain Consent for Operation from KSPCB before commencement of commercial production.
  • To submit environmental statement report for each financial year ending 31st March to KSPCB.
  • Submit application for renewal of Consent to operate every year along with the fees.
  • File quarterly and Bio-annual Returns to local Employment Exchange.
  • Register the establishment with ESIC.
  • To obtain PF code number from the Regional PF Commissioner.
  • Registration with Dept. of Commercial Tax with respect to Sales Tax, Professional Tax and CST.
  • File monthly returns to Commercial Tax department.
  • Obtain Registration with Department of Legal Metrology and obtain certificate for Registered User.

c) Mega Industries

    • In any project, suppose the investment is more than Rs. 100 crore such projects are called mega projects as per the GoI guidelines. However, in Karnataka state, project proposals with investment more than Rs. 50 crore each will be dealt in by the HLC. Entrepreneurs are required to contact the HLC.
    • Then the procedure prescribed for medium / large industries are applicable. procedures with respect to Different departmen

       Services offered by the Department


Sl.
No

List of services

Designated Officer

Time limit for disposal by the Design-ated Officer

Competent Officer

Time
limit for disposal by Compe-tent the
Officer

Appellate Authority

Time limit for disposal by the Appellate Authority

1

2

3

4

5

6

7

8

1.

Sanction of Investment Promotion subsidy for Micro, Small and Medium Enterprises

Joint Director, District Industries Centre

30 working days

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

20 working days

Commissi-oner of Industries & Commerce, Head Office, Bangalore

15 working days

2.

Stamp duty exemption and Registration fees exemption Certificate
a. DLSWCC/
SLSWCC Approved Projects

 

 

 

Joint Director, District Industries Centre

 

 

 

10 working days

 

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

 

 

07 working days

 

 

Commissi-oner of Industries & Commerce, Head Office, Bangalore

 

 

07 working days

b. SHLCC Approved Projects

Joint Director, Industrial Development, Department of Industries and Commerce, Head Office, Bangalore

10 working days

Commissioner of Industries and Commerce, Head Office, Bangalore

07 working days

Principal secretary to Government, Commerce & Industries Department

07 working days

3.

Entry Tax Exemption Certificate

a. DLSWCC    /SLSWCC Approved Projects

 

Joint Director, District Industries Centre

 

10 working days

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

 

 

07 working days

Commissi-oner of Industries & Commerce, Head Office, Bangalore

 

 

07 working days

b. SHLCC Approved projects

 

Joint Director, Industrial Development, Department of Industries and Commerce, Head Office, Bangalore.

10 working days

Commissioner of Industries and Commerce, Head Office, Bangalore.

07 working days

Principal secretary to Government, Commerce & Industries Department

07 working days

4..

Agricultural Produce Marketing Tax Exemption Certificate
a., DLSWCC/ SLSWCC Approved Projects

 

Joint Director, District Industries Centre

 

10 working days

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

 

 

07 working days

Commissi-oner of Industries & Commerce, Head Office, Bangalore

 

 

07
working days

b. SHLCC Approved projects

 

Joint Director, Industrial Development, Department of Industries and Commerce, Head Office, Bangalore

10 working days

Commissioner of Industries and Commerce, Head Office, Bangalore

07 working days

Principal Secretary to Gove-rnment, Commerce & Industries Department

07
working days

5.

Electricity Exemption Certificate

Joint Director, District Industries Centre

05 working days

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

 

 

05 working days

Commissi-oner of Industries & Commerce, Head Office, Bangalore

 

 

07
working days

6.

Issue of IEM Part-I Acknowledge-ment for Micro, Small and Medium Enterprises

Joint Director, District Industries Centre

01 day

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

05 working days

 

Commissi-oner of Industries & Commerce, Head Office, Bangalore

07
working days

7.

Issue of IEM Part-II Acknowledge-ment for Micro, Small & Medium Enterprises

Joint Director, District Industries Centre

01 day

Additional Director
(MSME), Department of Industries & Commerce, Head Office, Bangalore.

05 working days

 

Commissi-oner of Industries & Commerce, Head Office, Bangalore

07
working days

 

Rehabilitation of Sick Units

There are so many reasons for a small industry to becomes sick. Mostly it was due to mismanagement or ineffective financial portfolio. If the unit could not be revived from its sickness, it can be declared a sick unit. For this purpose, state government has formed a District Sick Unit Declaration Committee to declare the unit as sick, after studying various aspects in the financial position of the unit.

The following parameters are adopted (by the District Level Committee) for evaluating the small scale industries and to declare them as sick.

1) Any of the borrowal accounts of the unit remains substandard for more than 6 months i.e., principal or interest, in respect of any of its borrowal accounts has remained overdue for a period exceeding one year. The requirement of overdue period exceeding one year will remain unchanged even if the present period for classification of an account as substandard, is reduced in due course or
b) There is erosion in the net worth due to accumulated cash losses to the extent of 50% of its net worth during the previous accounting year; and
2) The unit has been in commercial production for at-least 2 years.
The following benefits will be extended to sick industries for their revival / rehabilitation:
  • Margin money assistance of a maximum of Rs 2.50lacs per project for a project cost of rehabilitation not exceeding Rs 40.00 lacs, Promoters contribution being 10% of the project cost.
  • KPTCL will not charge fixed charges/demand charges during closure period.
  • Arrears of energy bills to KPTCL to be repaid in 6 half-yearly installments and interest charges for defaults would be reduced to ½% per month.
  • Tax arrears to the Commercial Tax Dept. to be repaid in 6 half-yearly installments with a nominal interest of ½% per month.
  • Both KPTCL and Commercial Tax Dept. not to calculate interest for the closure period.
  • Total number of industries in Bellary district as on 31.03.2012

Sl.
No.

Type of industry

Number of units

Investment in Rs. lakhs

Employment Provided

1

Small Scale Industries

16620

51756.34

81781

2

Medium & Large Industries

109

201561.00

62735

3

Mega Industries

13

31273.00

26497

 

Bellary District SSI Registration as on end of 31/3/2012

Sl. No.

Products

Units

Investment in Rs. lakhs

Empt

1

Food Bevarages

1973

12078.23

11405

2

Textiles

2920

8198.76

15758

3

Wood

1730

1672.74

7329

4

Printing & Stationery

276

899.93

1156

5

Leather & Leather Product

653

393.11

3127

6

Rubber & Plastic

117

893.43

3025

7

Glass & Glass Chemicals

312

769.75

1635

8

Chemicals

299

4120.29

2610

9

Metal Products

282

1628.88

1519

10

General Engineering works

1350

4511.7

8301

11

Electricals & Electronics

407

1338.68

1974

12

Transportations

161

256.41

1124

13

Repairs & Servicing

2881

2614.4

7818

14

Ferros & Non Ferros

73

415.74

759

15

Other services

439

5608.32

2565

16

Mescelleneous

1738

1946.2

6658

17

Job Works

1009

4409.77

5018

 

Total

16620

51756.34

81781

 

 Existing Mega Projects in Bellary District

 

CLEARANCES TO BE OBTAINED FROM OTHER DEPARTMENTS/ AGENCIES :


Local body license:

Before selecting a site for the construction of factory building an approval from the local body is necessary. The site so selected should be in the industrial area demarcated by the local body. The local body should be approached for the following approvals.

Location Approval
Building Plan Approval
Running License (to be renewed every year)


Import of Machinery

At present machine cane be imported under open general license. Most of the capital goods can be imported under OGL except some items mentioned in the restricted list of the Import- Export Policy.

Factories License.

This license is needed for the industry which runs with power and employing 10 persons and above / with out power and employing 20 persons and above, from the inspector of factories.

Boiler Installation.

Approval from Chief Inspector of boilers should be obtained for the usage of boilers in the industry. The license should be renewed every year. Repairs/ services should be done by the experts in the field with the permission of the Department.

Drug and Cosmetic license.

Manufacture and sale of all medicines including Siddha, Homeopathy, Ayurvedic and Unani needs a license from the state Drug Controller. Also all cosmetic items need such a license on par with the drug license.

Meat processing license.

Manufacture of processed, precooked and dried meat for the human consumption needs this license.


Fruit preservation license.

Manufacturing / processing of jam, jelly, fruit juice, dry fruits, pickles and vegetables required this license. This can be obtained from deputy Director (Food and Vegetable preservation), Ministry of Agriculture, Sasthri Bhavan, Chennai.

Cold Storage License.

Cold Storage where food products are stored with specific machinery requires this license.

Food adulteration Act.

This license is to be obtained from the local body authorities for the manufacture stock sales and distribution specified food products. This should be renewed every year.

Fire Service

Fire Service clearance is to be obtained for the industries which involves hazardous process, from the station fire officer with in the Municipal limit and from the Divisional Fire Officer in other areas.

Explosives / Arms

Manufacture of matches and explosives need a license from the Deputy Chief Controlling Officer(Explosives), Sasthri Bhavan Chennai.

Storage of Sulphur and Potassium Chemicals:

A license has to be obtained from the District Revenue Officer for stocking the above chemicals.

Press Declaration

A declaration is to made to the District Revenue Officer in the proper format, before commencing the printing operation of a press

In order to provide clean, efficient, proactive and transparent service to the entrepreneurs following time limits have been fixed for issue of various certificates

Whom to contact for what

Sl. No
Activities
Officers to Approah
Phone No.
1 Implementation of State Industrial Policy

Joint Director, DIC, Bellary Deputy Director, DIC, Bellary

242643, 242370(Fax), 242858
2 SSI Registration Permanent / Provisional Assistant Director, DIC, Bellary 242858