Bellary District

• The individual should be with in the age of 18 to 35 and relaxation of 10 years will be given to SC/ST, Ex-Serviceman, Women and Physically handicapped.
• The family income should not exceed Rs.40,000/-
• The individual should have a minimum qualification of 8th standard
• The individual should be a continuous resident for a period of three years in the district from where he/she would like avail the benefit and should not be a defaulter in repayment of loan borrowed already from any of the financial institutions including co-operative banks.

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.
• Future taxes payable by the industry to be deferred, without interest, for a period of 3 years.

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 Rozgar Yojana 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 entrepreneurs 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 scrutinise 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 departments

CLEARANCES TO BE OBTAINED FROM OTHER DEPARTMENTS/ AGENCIES :

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

BENEFICIARY ORIENTED SCHEMES

1) PRIME MINSTER’S ROZGAR YOJANA

This Central Sector Scheme, launched on 2nd October 1993 envisaged providing sustainable self employment opportunity to one million persons by assisting setting up of nearly 7 lakhs tiny and micro enterprises during the then remaining period of 8th Five Year Plan, Initially, the scheme was implemented only in urban areas of the country. Since 1994-95, it is in operation in both urban as well as rural areas of the country. The scheme continued in the 9th Five year Plan with overall target of 11.00 lakh beneficiaries. This scheme is continuing in 10th Five Plan also with an overall target of 11.00 lakh beneficiaries and an annual target of 2.20 lakh beneficiaries.

Educated unemployed youth between the age group of 18-35 years (upper age limit relaxed upto 45 years for women, SC/ST, Ex-servicemen and physically handicapped) who have passed 8th standard examination and whose family income is less than Rs. 40,000-00 per annum are eligible to get loans for all economically viable activities. Projects upto Rs. 1.00 lakh for Business Sector and Rs. 2 lakh for other activities are covered under this scheme. Eligible persons can join together in a partnership to get assistance for projects upto Rs. 10 lakhs, subsidy being limited to 15% of project cost subject to a ceiling of Rs. 7,500-00 per entrepreneur. The margin money contribution from the beneficiary varies from 5% to 16.25% of the project cost so as to make subsidy and margin money equal to 20% of project cost. Loans for projects under industry sector are given without collateral security and for projects under services and business sector loans upto Rs. 1.00 lakh are given without collateral security. The Scheme provides for preference to be given to weaker sections. Though there is no reservation for women but as per the existing guidelines, preference is given to women candidates. Each entrepreneur who loan is sanctioned is provided training under the scheme. The scheme is implemented through DICs, State Directorate of Industries and the Banks.