SR2 - X Plan Modernisation - Cenex[Revised-_01-02 - Rubber Board
SR2 - X Plan Modernisation - Cenex[Revised-_01-02 - Rubber Board
SR2 - X Plan Modernisation - Cenex[Revised-_01-02 - Rubber Board
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<strong>SR2</strong> – X <strong>Plan</strong> <strong>Modernisation</strong> – <strong>Cenex</strong> 27/06/03<br />
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RULES FOR PROVIDING FINANCIAL ASSISTANCE TO LATEX<br />
CENTRIFUGING FACTORIES UNDER PROCESSING, QUALITY<br />
UPGRADATION AND PRODUCT DIVERSIFICATION SCHEME 20<strong>02</strong>-07<br />
1. Title<br />
These rules shall be called the <strong>Rubber</strong> <strong>Board</strong>’s Rules for providing<br />
financial assistance to Latex Centrifuging Factories under Processing,<br />
Quality Up-gradation and Product Diversification Scheme, 20<strong>02</strong>-07.<br />
2. Objective<br />
The objective of the scheme is to provide financial assistance to Latex<br />
Centrifuging Factories in the country to improve quality, attain economy in<br />
cost of processing and modernize environmental protection systems.<br />
3. Eligibility<br />
All Centrifuge Latex Processors in the country, having centrifuging<br />
factories with valid processor’s licence issued by the <strong>Board</strong> and in<br />
existence as on 1.4.20<strong>02</strong> are eligible for this financial assistance. The<br />
processing factories in the estate sector which process small holder rubber<br />
in addition to estate crop will also be eligible for financial assistance under<br />
this scheme. The Latex Centrifuging Factories in the entire rubber growing<br />
areas in India except those in the NorthEastern Region will be eligible for<br />
financial assistance under this scheme.<br />
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4. Activities<br />
The following activities are eligible for financial assistance.<br />
1. Modification/addition of tanks for desludging, bulking, including<br />
stirrers, lining with ceramic tiles etc.<br />
2. Procuring equipment for testing, quality control and implementation of<br />
ISO 9000/14000 certification systems.<br />
3. Improvements in packaging for field latex and latex concentrate.<br />
4. Procurement of computer and its accessories including software.<br />
5. Procurement of spare bowl and replacement of centrifuging machine for<br />
improving efficiency and productivity.<br />
6. Electronic weighing scales for packing of latex concentrate.<br />
7. Modification/addition to pollution control system to include biomass<br />
conversion and utilization to control air and water pollution.<br />
8. Sheds for storage of field latex/latex concentrate in barrels and roofing<br />
for storage tanks.<br />
9. Acoustic enclosures for diesel generators under environmental<br />
protection.<br />
10. Implementation of recommendations of the energy audit such as power<br />
factor improvement (on load and on no load), replacement of<br />
transformer, use of high efficiency motors, replacement/<br />
modification./overhauling of old diesel generating sets.<br />
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5. Financial Assistance<br />
The financial assistance under this scheme will be as follows.<br />
1. RPS/Co-operative sector – 50% of the expenditure approved subject to a<br />
ceiling amount for each activity as in Annexure – 4. The total financial<br />
assistance to a processor in RPS/Co-operative sector will be further<br />
limited to Rs. 40 lakhs<br />
2. Private sector – 25% of the expenditure approved subject to a ceiling for<br />
each activity as in Annexure – 4. The total financial assistance to a<br />
processor in the private sector in the Tenth Five Year <strong>Plan</strong> Period<br />
(20<strong>02</strong>-07) will be further limited to Rs.20 lakhs.<br />
3. A 5% interest subsidy on loans availed from nationalised banks for<br />
implementing the scheme. The contribution of the processor has to be<br />
minimum 25% of the expenditure. The interest subsidy will not be<br />
available beyond 10 th Five Year <strong>Plan</strong> Period (i.e. from 1.4.2007). The<br />
total interest subsidy payable to a processor in the private sector during<br />
the Tenth Five Year <strong>Plan</strong> Period (20<strong>02</strong>-07) will be limited to 50% of the<br />
financial assistance eligible under 5.1 or 5.2 above as the case may be.<br />
Those beneficiaries who opt for financial assistance as per clause 5.1 or<br />
5.2 above will not be eligible for this interest subsidy.<br />
4. The ceiling amount of financial assistance for each activity is given in<br />
Annexure – 4.<br />
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6. Terms and Conditions<br />
1. This scheme will be implemented during the 10 th Five Year <strong>Plan</strong> Period<br />
(i.e. 20<strong>02</strong>-07).<br />
2. The management committee of the processing factory proposing to avail<br />
the financial assistance under these rules shall authorize its Chief Executive<br />
to make an application (as per Annexure – 1) and shall pass a resolution (as<br />
per Annexure - 2) agreeing to abide by these rules and execute an<br />
agreement in the form appended to these rules as Annexure – 3.<br />
3. The processor applying for the financial assistance under the rules shall<br />
make an application in the prescribed form (Annexure 1). The application<br />
shall be supported by attested copies of the following documents:<br />
(i) Processor’s Licence<br />
(ii) Articles of Association of the Company/Society.<br />
(iii) Audited Financial Results of the factory for the past three years<br />
4. The applicant shall give a detailed proposal for the activities proposed<br />
along with the expected results along with recommendations of consultants<br />
engaged by the Processor. <strong>Board</strong> reserves the right to scrutinize the<br />
requirement /priority of the proposals of the applicant, and the financial<br />
assistance will be based on the decision of the <strong>Board</strong> on the above.<br />
5. Approval for financial assistance under the scheme shall be considered only<br />
if proper evidence with respect to the contribution of the share of finance by<br />
the applicant (50% in RPS and co-operative sectors and 75% in private<br />
sector) is made available.<br />
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6. For availing the interest subsidy the processor shall take approval of the<br />
<strong>Board</strong> on the various terms and conditions of the credit before signing the<br />
loan agreement with the financial institutions. Payment of interest subsidy<br />
will be considered for loans availed from nationalised banks. Besides,<br />
payment of the interest shall be subject to the following conditions.<br />
1) The interest paid during Xth <strong>Plan</strong> period only is eligible for financial<br />
assistance.<br />
2) The interest subsidy will be released directly to the beneficiary.<br />
3) A certificate from the bank regarding the interest paid has to be<br />
produced with the application.<br />
4) Copy of the agreement with the bank, with amendments if any, should<br />
be produced with the application.<br />
5) The interest subsidy is applicable only for those loans availed for the<br />
procurement of machinery/equipment/works/service under the<br />
modernisation scheme.<br />
6) The interest subsidy shall be paid subject to production of an<br />
agreement by the applicant in the prescribed format<br />
7. If any subsidy is received from Central Govt / Organizations or any State<br />
Govt / Organizations for any of the items for which financial assistance is<br />
accepted from <strong>Rubber</strong> <strong>Board</strong> under this scheme, such subsidy amount in<br />
full will have to be remitted to <strong>Rubber</strong> <strong>Board</strong>.<br />
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8. Preference will be given to those factories with BIS certification. Others<br />
may be considered on merit basis.<br />
9. Other things being equal, preference will have to be given for offers from<br />
BIS for ISO 9000 / 14000 Certification systems.<br />
10. The financial assistance will be released only after obtaining of the final<br />
statutory approvals from all the concerned authorities.<br />
11. On receipt of the approval by the <strong>Rubber</strong> <strong>Board</strong>, quotations shall be invited<br />
by the applicant for the supply of materials, machinery, works or other<br />
services. Such tender documents shall be prepared in consultation with the<br />
<strong>Rubber</strong> <strong>Board</strong>. The offers have to confirm to the guidelines given in<br />
Annexure – 5.<br />
12. <strong>Rubber</strong> <strong>Board</strong> will advise on placing orders / award of work after scrutiny<br />
of the offers.<br />
13. The applicant shall permit any officer of the <strong>Board</strong> authorized by the<br />
Chairman, <strong>Rubber</strong> <strong>Board</strong> to inspect the premises books of accounts,<br />
registers etc. of the processor. The processor shall also submit to the <strong>Board</strong><br />
reports/details the manner and time as prescribed by the <strong>Board</strong> from time<br />
to time.<br />
14. The applicant should undertake to carry out the instructions issued by the<br />
<strong>Rubber</strong> <strong>Board</strong> from time to time in all matters relating to technical aspects<br />
of processing.<br />
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15. The applicant shall hypothecate the equipment/ machinery purchased and<br />
any building constructed / work done under this scheme to the <strong>Rubber</strong><br />
<strong>Board</strong> for a minimum period of 10 years.<br />
16. Notwithstanding the fulfillment of any or all of the conditions under these<br />
rules, the Chairman, <strong>Rubber</strong> <strong>Board</strong> has discretionary powers to grant or<br />
refuse the claim or to limit the assistance to a particular amount.<br />
17. The Chairman, <strong>Rubber</strong> <strong>Board</strong> will have the powers to alter / modify any of<br />
the provisions of these rules for the smooth operation of the scheme.<br />
18. The actual release of the amount shall only be made on compliance with all<br />
the formalities/conditions as stated above and on production of the<br />
following documents:<br />
a. Machinery – Quotation, evaluation statement, invoice, cash receipt,<br />
proof of delivery, installation etc.<br />
b. Details of cost of building / works with estimates, measurement and<br />
bills<br />
c. Installation of the machinery / equipment indicating basic price,<br />
installation charges, transportation, taxes etc.<br />
d. Entry of items in Stock Register/ Asset Register<br />
e. Performance certificate by the Authorized Engineer of the <strong>Rubber</strong><br />
<strong>Board</strong>.<br />
f. Interest Subsidy – Certificate from Financial Institution showing the<br />
details of interest paid during the relevant period.<br />
g. Reports/recommendations of the consultants engaged by the<br />
processor.<br />
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7. No part of this document shall be reproduced in any form without the<br />
written consent of the undersigned. However this does not preclude<br />
the above person/processor from its free use for the implementation<br />
of objectives/purposes envisaged in the Scheme for Processing,<br />
Quality Upgradation and Product Diversification under the Tenth Five<br />
Year <strong>Plan</strong> : 20<strong>02</strong> – 07.<br />
8. Receipt of Application<br />
The last date for receipt of application and for submission of claims for<br />
financial assistance for each year will be separately notified.<br />
05/09/05 DIRECTOR (P&PD)<br />
Page : 8<br />
Sd/-
<strong>SR2</strong> – X <strong>Plan</strong> <strong>Modernisation</strong> – <strong>Cenex</strong> 27/06/03<br />
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Annexure - 1<br />
APPLICATION FOR FINANCIAL ASSISTANCE TO TSR AND<br />
RUBBERWOOD FACTORIES<br />
1. Name & address of the Processor :<br />
2. Processor’s Licence No. :<br />
3. Sector : RPS / Co-op / Private<br />
4. Address of the Factory :<br />
5. Date of commissioning :<br />
6. Name of Product :<br />
7. Installed Capacity :<br />
8. Average Production :<br />
9. Details of machinery /<br />
Equipment/ Works proposed<br />
under modernization, showing<br />
cost of each and total.<br />
(Attach additional sheet, if<br />
required)<br />
10. Name of the Chief Executive<br />
Officer<br />
11. Signature with date and seal of<br />
the applicant<br />
Page : 9<br />
:<br />
:<br />
:
<strong>SR2</strong> – X <strong>Plan</strong> <strong>Modernisation</strong> – <strong>Cenex</strong> 27/06/03<br />
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FORM OF RESOLUTION<br />
(Please retype the form with applicable terms only)<br />
Page : 10<br />
Annexure -2<br />
True copy of the Resolution to be passed by the <strong>Board</strong> of Directors<br />
of……………………………………………………………………………………………<br />
……………………… in connection with their application for financial assistance under<br />
<strong>Rubber</strong> <strong>Board</strong>’s Scheme for modernization of Technically Specified <strong>Rubber</strong> (TSR) and<br />
<strong>Rubber</strong>wood Processing Factories in India for their Latex Centrifuging / Block <strong>Rubber</strong> /<br />
<strong>Rubber</strong>wood Processing Factory located at ………………with Processor’s License<br />
No…………………….<br />
<strong>Board</strong> Resolution No……………………………..dt…………………………….<br />
Resolved to apply to <strong>Rubber</strong> <strong>Board</strong> for grant of financial assistance of<br />
Rs……………... (Rupees…………………………………………………………) under<br />
<strong>Rubber</strong> <strong>Board</strong>’s Rules for Financial Assistance to TSR and <strong>Rubber</strong>wood Processing<br />
Factories for the modernization of its Latex Centrifuging / Block <strong>Rubber</strong> / <strong>Rubber</strong>wood<br />
Processing Factory located at………………………………………………………………<br />
<strong>Board</strong> Resolution No.………………………………..dt…………………………<br />
Resolved further to authorize the Chief Executive Shri…………………<br />
(Name and designation) of the Society / Company / Concern to apply for financial<br />
assistance from <strong>Rubber</strong> <strong>Board</strong> and to execute necessary agreements prescribed by the<br />
<strong>Rubber</strong> <strong>Board</strong>, on behalf of the Society / Company / Partnership / Proprietorship Concern<br />
<strong>Board</strong> Resolution No.………………………………..dt…………………………<br />
Resolved to abide by the terms and conditions specified by the <strong>Rubber</strong> <strong>Board</strong> in<br />
the Rules for providing financial assistance to TSR factories, as amended from time to<br />
time.
<strong>SR2</strong> – X <strong>Plan</strong> <strong>Modernisation</strong> – <strong>Cenex</strong> 27/06/03<br />
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(On Rs.50/- stamp paper)<br />
Page : 11<br />
Annexure - 3<br />
THIS AGREEMENT made on the ……..……………………. day of<br />
……………………………Two Thousand Two and executed between<br />
M/s ……………………………….. a company / co-operative society/<br />
partnership / proprietorship concern registered under……………..…….with<br />
registered office at……………(hereinafter referred to as the ‘Processor’<br />
which expression where the context admits shall also mean and include it’s<br />
successors and assigns) represented by its Managing Director/Director /<br />
Managing Partner/ Sole Proprietor Shri………………………………………<br />
………………………………aged ………………… son of<br />
Shri…………….…………………………………………………… residing<br />
at……………………….on the one part and the <strong>Rubber</strong> <strong>Board</strong>, a statutory<br />
body corporate constituted under the <strong>Rubber</strong> Act, 1947 (Central Act XXIV<br />
of 1947) and having its head office at Kottayam in Kottayam District, Kerala<br />
State (hereinafter called the ‘<strong>Board</strong>’ which expression where the context<br />
admits shall also mean and include its successors and assigns) on the other<br />
part.<br />
WHEREAS the Processor requested the <strong>Board</strong> for financial assistance<br />
of Rs. ………….. (Rupees ………………….. only) under the rules of the<br />
Scheme for modernization of Technically Specified <strong>Rubber</strong> (TSR) and<br />
<strong>Rubber</strong>wood Processing Factories in India (hereinafter referred to as<br />
‘Rules’).<br />
AND WHEREAS the <strong>Board</strong> has agreed to sanction a sum of<br />
Rs….….. (Rupees ………………………….. only) as financial assistance<br />
under the rules, subject to the terms and conditions herein contained.<br />
NOW THEREFORE it is agreed between the parties as follows:<br />
1) That the Processor hereby undertakes to carry out all instructions<br />
issued from time to time by the <strong>Board</strong> and abide by the terms and<br />
conditions of the rules.
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2) That the processor has to purchase the machinery / equipment as per<br />
the schedule attached herewith for which prior approval was obtained<br />
from the <strong>Board</strong> and produced the bills / vouchers of the machinery<br />
before the <strong>Board</strong> for financial assistance under the scheme.<br />
3) That the Processor hereby agrees to permit the <strong>Board</strong> or its authorized<br />
representatives for periodic inspection of the equipment / machinery<br />
for which financial assistance is granted by the <strong>Board</strong>, to ensure its<br />
proper utilization.<br />
4) That the processor hereby agrees to submit periodic reports to the<br />
<strong>Board</strong> as prescribed by the <strong>Board</strong> on the quantitative and qualitative<br />
benefits accrued as a result of the implementation of the scheme.<br />
5) That any identification mark / sticker affixed by the <strong>Board</strong> to the<br />
machinery / equipment will be maintained properly by the Processor<br />
for the purpose of the inspection by the <strong>Board</strong>.<br />
6) That the machinery / equipment for which financial assistance is<br />
granted by the <strong>Board</strong>, shall be hypothecated to the <strong>Board</strong> for ten years<br />
and remain installed in the premises of the processing factory and<br />
shall be kept free from any other hypothecation, pledge, of lien or any<br />
encumbrance whatsoever that may affect the right and interest of the<br />
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<strong>Board</strong> over the machinery and equipment, except with the prior<br />
approval of the <strong>Board</strong>.<br />
7) That the Processor will maintain the machinery / equipment in good<br />
working condition.<br />
8) That the Processor will not relocate, lease, transfer or dispose off the<br />
machinery / equipment without the prior approval of the <strong>Board</strong>.<br />
9) If the Processor violates any of the terms and conditions herein<br />
contained or any provision of the rules or any of the instructions,<br />
from the <strong>Board</strong> or in case of any misappropriation of financial<br />
assistance granted by the <strong>Board</strong> or if any excess billing or<br />
manipulation in the bill / voucher is detected, the <strong>Board</strong> shall have the<br />
right to demand and enforce repayment forthwith of the entire amount<br />
of financial assistance granted by the <strong>Board</strong> along with penal interest<br />
as decided by the <strong>Board</strong>.<br />
10) For matters not specifically provided herein, the Processor hereby<br />
agrees to abide by all the terms and conditions contained in the rules,<br />
as may be amended from time to time as if these rules are set out<br />
herein and form part of the agreement.<br />
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Signed, Sealed and Delivered for and on behalf of …………………….<br />
By (Authorized Signatory)<br />
In the presence of Witnesses<br />
1) …………………………………..<br />
2) …………………………………..<br />
Signed and Sealed for and on behalf of the <strong>Rubber</strong> <strong>Board</strong> by the Chairman.<br />
In the presence of Witnesses<br />
1) ………………………….<br />
2) ………………………….<br />
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CEILING AMOUNT FOR FINANCIAL ASSISTANCE FOR<br />
CENEX PROCESSORS 20<strong>02</strong>-2007<br />
Item COMPONENTS<br />
1<br />
2<br />
3<br />
4<br />
Modification/addition of tanks to improve quality<br />
Page : 15<br />
Annexure – 4<br />
FINANCIAL ASSISTANCE<br />
Rs.Lakhs<br />
RPS<br />
Private Sector<br />
Co-op.Sector<br />
a. Latex reception tanks 2.5 1.25<br />
b. De -sludging tanks 3.0 1.50<br />
c. <strong>Cenex</strong> bulking tanks 2.5 1.25<br />
d. Modification of tanks/drains 0.5 0.25<br />
e. Other tanks, drains 1.5 0.75<br />
f. Minor civil works 1.5 0.75<br />
g. Latex storage sheds/roofing for tanks 6.0 3.0<br />
CEILING AMOUNT FOR ITEM 1 16.0 8.0<br />
Environmental Protection<br />
a. Modification/addition of Pollution Control Systems,<br />
Acoustic enclosures for diesel generators<br />
12.0 6.0<br />
CEILING AMOUNT FOR ITEM 2 12.0 6.0<br />
Replacement of machinery for quality<br />
improvement and to reduce cost of production<br />
a. Replacement of bowl 5.0 2.5<br />
b. Replacement of machine 20.0 10.0<br />
CEILING AMOUNT FOR ITEM 3 24.0 12.0<br />
Packaging<br />
a. Improvement of packaging systems 2.5 1.25
5<br />
6<br />
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b. Electronic scales 1.0 0.5<br />
CEILING AMOUNT FOR ITEM 4 3.0 1.50<br />
Quality Control<br />
a. Additional testing equipment 5 2.5<br />
b. ISO 90000/14000 certification system 1.0 0.5<br />
c. Computer and accessories including software 0.8 0.4<br />
CEILING AMOUNT FOR ITEM 5 5 2.5<br />
Energy conservation measures<br />
Implementation of recommendations of the energy audit such<br />
as power factor improvement (on load and on noload),<br />
replacement of transformer, use of high efficiency motors,<br />
replacement/modification./overhauling of old diesel generating<br />
sets.<br />
Note :<br />
Page : 16<br />
5.0 2.5<br />
CEILING AMOUNT FOR ITEM 6 5.0 2.5<br />
1. The financial assistance will be 50% / 25% of the expenditure approved by the <strong>Board</strong> for the<br />
Machinery/Equipment/Works/Service as the case may or the ceiling amount as specified above<br />
whichever is less.<br />
2. The financial assistance to private sector will be further limited to Rs. 20 lakhs.<br />
3. The financial assistance to RPS/Co-operative sector will be further limited to Rs. 40 lakhs.
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GENERAL GUIDELINES<br />
Page : 17<br />
Annexure – 5.<br />
1. The processor should obtain all statutory clearances for<br />
modification/installation of additional machinery/ equipment from<br />
authorities like, Local Bodies. Factories and Boilers, KSEB,<br />
Electrical Inspectorate etc.<br />
2. Approval from Pollution Control <strong>Board</strong> should be obtained for<br />
modification/alteration of the effluent treatment system..<br />
3. The machinery/equipment should carry ISI mark as far as possible.<br />
4. The machinery/equipment should have adequate safety features to<br />
ensure the safety of men, materials, machinery and the surroundings.<br />
5. The enquiry for procurement of machinery/equipment should<br />
contain specifications including material specifications.<br />
6. The machinery/equipment should perform satisfactorily with<br />
respect to output and its quality and should suited for continuous<br />
duty and the working environment. They must also conformed to<br />
the standards prescribed by all statutory authorities like Pollution<br />
Control <strong>Board</strong>, Electrical Inspectorate, Directorate of Factories and<br />
Boilers etc<br />
7. Only proven and brand-new machinery/equipment with adequate<br />
after sales service will be considered for financial assistance under<br />
the scheme.<br />
8. The supplier should guarantee satisfactory performance at least for<br />
12 months from the date of commencing or 18 months from the date<br />
of supply whichever is earlier.