suggested innovative schemes for sme industry
TRANSCRIPT
-
8/2/2019 Suggested innovative Schemes for SME Industry
1/40
By
A V Ramanathan
Trade Consultant
Coloph on: Schem es: Small & Medium Sector by A V Raman athan,
Trad e Consu ltan t, 2012. [email protected]
1 June, 2011
-
8/2/2019 Suggested innovative Schemes for SME Industry
2/40
2
Schem es, Small & Med ium Sector
PREFACE
Indias 39% of the manufacturing activity comes from the Micro,
Small and Medium sector, while 45% of its output is directed at
foreign markets. Its total contribution to the Gross domestic product
is little upward of 9.2%. Yet of the total Credit by the Banks, only a
small portion of around Rs 2, 50,000 Cr is sanctioned to run the
wheels of the SME sector, though this plays a significant, yet robust
role in the grow th of Indian economy. More than 2.6 Cr units
provide emp loyment to around 1 cr w hile indirect employment ismore than 4 times its value.
There are many segments which do not get the importance it
deserves. Probably, it may be, that the MSME which controls the
industry under the MSME Act, 2006, does not have any dominance
over the various sectors which fall under Agriculture, Textiles, IT,
Telecom, Large Industries, Chemicals, Commerce ministries. It is
beyond the pale of work of the MSME Ministry to understand therud imentary groun d zero problems of each sector, w ith the result
that solution goes abegging. The Cluster Development programme of
DC, MS&ME needs a total overhaul, as it does not suit most of the
sectors.
Is there a single Scheme for modernizing the medium scale industry
(which has an investment betw een Rs 5 Cr and Rs 10 Cr in machinery
and tools)? Has the Ministry bothered to look at the economies of
scale of most of the Medium Scale industries for their technology
upgradation?
-
8/2/2019 Suggested innovative Schemes for SME Industry
3/40
3
Unlike some of the h igh p rofile ministries, Ministry of MS&ME is low
profile. It does not move with the modern times. It needs to be
mod ernized, if Indian Med ium scale industries shou ld find its feet.
I have included Three Schemes in this book-let
1. Coir Mission
2. Coir Observatory
3. Scheme (TUF) exclusive for Medium Scale ind ustry
The Scheme ou tlay spanning across the 12th Five Year Plan period will consume
Rs 12,598 Cr which is inclusive of investment of Rs 1,650 Cr, Bank Credit of Rs
9930 Cr, with the Capital subsidy in the form of Line of credit extend ing up to Rs
1,650 Cr, interest subsidy of Rs 993 cr (10% Bank interest opting for fraption
interest ra te Guaran tee) and administrative expenses at Rs 25 Cr @ Rs 5 cr per
annum. The total number of beneficiaries that would be assisted will be 2,500
units, which would provide direct employment of 12,500 workers and indirect
employment to as many as 50,000 workers through offering work at selling and
delivery systems in the rou te and distribution channels.
The Scheme is divided into (Total outlay) of Rs 2 Cr, Rs 2.5 Cr, Rs 3 Cr, Rs
4 Cr or Rs 5 Cr. A total of 100 beneficiaries from each of the medium scale
industry will be selected for grant of the loan, if they fulfill the criteria laid out
for the Scheme. Any medium scale entrepreneur, who has investment in Plant
and machinery worth Rs 5 Cr, and has the un it in w orking condition for the last 3
years, will qualify.
Each beneficiary has to invest 20% of the capital outlay as his deposit. The
technology up grad ation und er the Scheme will have two specific features- one,
20% as one time capital subsidy, and 10% interest subsidy annually, up to a
period of 5 years or closure of the loan, whichever is earlier. The Banks, under an
agreement under frapton should charge only 10% on the outstanding loan
amount. Though fraption is interest rate guarantee option for investors to set up
a forward rate agreement during an agreed amount of time that triggers inresponse to a pre-set strike price, fraptions are used to protect investors from
dramatic declines in interest rates. In the present context, fraption term is used to
indicate a forward rate agreement during the agreed amount of time (5 years
from the date of sanction of the loan), and 10% is the pre-set strike price interest
since the Scheme is in the national interest of developing the mod ernization and
-
8/2/2019 Suggested innovative Schemes for SME Industry
4/40
4
technology up-gradation of the medium scale industry which is the heart of the
industrial spectrum.
The total number of beneficiaries envisaged for benefit under the Scheme
is 500 medium scale units who would create new investments up to Rs 2 Cr, Rs 3
Cr, Rs 2.5 Cr, Rs 4 cr and Rs 5 Cr per annum for 5 years. The period of re-payment of the loan amount, that is 60% of this outlay is 5 years. The Scheme
provid es a capital subsidy of 20%, and interest subsidy of 10% (the total interest
component of the loan) covering the entire loan period. The capital subsidy is
adjusted towards the loan amou nt at the end of the loan period.
The Line of Credit is a pool of available money that one can borrow.
WHEN ONE GETS a LINE OF Credit, the party gets the ability to draw u p to the
maximum amount. Line of Credit will have a draw period as well as a re-
paym ent period. The present Line of Credit created u nd er the present Scheme, is
that the Capital subsidy + loan amount can be drawn in one lump sum andutilized, and just like any other term loan, he can pay in Equated half yearly
instalmen ts or quarterly rests, as per Banks terms and cond itions. The line of
Credit proceeds will be adjusted against the loan in the final instalment of the
Bank loan, and shall not be credited to the account of beneficiary under any
circumstances to minimize its misue. But th e money tow ards the Capital subsidy
portion shall remain as Line of Credit, which guarantees 20% part of the loan
granted un der t he Scheme. The interest is released in a p eriodical basis while the
Line of credit covering the entire corpus is released only at the fag end of loan
closure and will be kept in a separate d esignated accoun t by the Bank.
If the Government is serious about implementing the Schemes
having special focus on modernization, it needs to promote sector-
segment sp ecific Schemes. These Schemes have a commercial content
and are not populist in nature. It is a pity that even after 6 years of
passage of the MS&ME Act 2006, the government does not promote
medium industries through a centric scheme to develop their
technological up-gradation and modernization.
Your comm ents are welcome.
A V R a m an a t ha n
1-6-2011
-
8/2/2019 Suggested innovative Schemes for SME Industry
5/40
5
Schem es: Small & Med ium Sector
Contents
No. Descript ion Page Number
1. Coir Mission 6-26
2. Coir Observatory 27-30
3. Medium Scale Indu stry
-modernization, technology
Up-gradation 31-41
Coloph on: Schem es: Small & Medium Sector by A V Raman athan,
Trad e Consu ltan t, 2012. [email protected]
1 June, 2011
-
8/2/2019 Suggested innovative Schemes for SME Industry
6/40
6
COIR MISSION
Abstract
An avid Coir knowledgeable expert did conduct an intricate study to
understand the dynamics of the Coir Industry. Many of the poorest people in
Southern India work in the Coir Ind ustry. Coir prod ucts are mainly agrarian in
character and its basic raw material is Coconu t fibre. Coconu t p lantations in
southern India are in a state of flux, and to recover the lost ground, the Central
Government in its 2009-10 budgets has proposed a unique Rs 4200 Cr scheme to
cut sterile coconu t and for und ergoing rejuvenation exercise , on a p ilot basis in
select d estinations.
Coir Industry underwent a series of catastrophes. One sector which was
badly hit by the tsunam i was this sector; not in the d estruction of the crops, but
the dem and shru nk due to plethora of reasons post tsunami. The dread ed
Chicken Gunya, which struck with its devastating fury, took a heavy toll of the
Coir worker in Kerala, the important outpost of production of export
merchandize.
Our experts study which explored the market dynamics that shaped the
Coir Industry, both domestically and internationally, concluded that only an
increased income through much-added augmented facilities, tools, increased
productivity through introduction of state-of-the art machines would tilt the
economies of scale, reduce cost of production, reduce pow er costs, resulting in
high quality of end-products reducing the vulnerabilities. If the Coir Industry
has to grow, and sustain production, it needs to acquire skills, quality controls,
-
8/2/2019 Suggested innovative Schemes for SME Industry
7/40
7
networks and technology based methods of prod uction. These series of
measures would enable the ind ustry to meet the market needs.
It is true that a large number of workm en in p arts of Kerala, Tamilnad u,
And hra an d Karnataka, Orissa, West Bengal, dep end on the Coir Indu stry to
earn a living. Furthermore, more than 80% of these workers are gender specific.
The women: men ratio is of the order of 80:20. Most of the Coir industries are
dotted in the ru ral areas. Coir, or coconut fibre, p lays an important role in
sustaining the livelihoods of a large number of people in the Southern, and
North-Western p rovinces of India. . Coir fibre extraction, spinning , and w eaving,
and the p rocessing of other coir p rodu cts are a sou rce of emp loyment for m any
people women in particular - who h ave few other options available to them.
The coir industry is also an important source of income for women in the fishing
comm un ities along the w estern and sou thern coasts. The ind ustry p lays a un ique
role in expanding the national economy as well as in consolidating Indiasposition within international markets for coir products. Furthermore, the
indu stry has an indirect imp act on the economy throu gh its influence on the
transportation, marketing, and financial businesses.
Recent research has shown that markets play an important role in
livelihood d evelopm ent and poverty reduction. Markets and the relationships
among stakeholders are therefore an important aspect of livelihood analysis, and
recognition of the failure of markets to serve the interests of the poor is crucial in
such an analysis. Given the significance of the Coir indu stry to the income of thepeop le in southern Ind ia, it is important to un derstand the market dyn amics that
shape the indu stry within local and global settings with a view toward bringing
sustainable d evelopm ent to the wh ole sector.
-
8/2/2019 Suggested innovative Schemes for SME Industry
8/40
8
HUSK
GREEN HUSK
NATURAL RETTI NG
W HI TE FI BRE
YARN
- MA T
DRY HUSK
SOAKING/ MECH EXTRACTION
BROWN FIBRE
MATS MATTINGS GEOTEXTILESMATTRESSES COMPOSITESCOMPOSITES
ROPES
COCOLOGS
FIBRE DRAINS
Various Coir Products made from Coconut Husk
REVIEW OF THE COIR IND USTRY
In India, the coir industry is characterized by a traditional, labour-
intensive, largely female, white-fibre industry in Kerala and the more
modernized, mechanized, export-oriented, brown-fibre industry in theTamilnad u and Karnataka. (Pliable wh ite fibres are harvested from the husks of
green coconu ts and stiffer brow n fibres are extracted from hu sks of mature n uts.)
An estimated 40 percent of fibre comes from traditional coir areas in India,
whereas much of the production and 85 percent of the fibre units are based in
Kerala. There has been large concentration of coir pith manufacturing units in
Tamilnad u, and Karnataka has soun d Rubberized mattresses making u nits. . The
current Indias annual prod uction of coconut is arou nd 14 billion nu ts; this places
India in the first position in so far as Coconu t prod uction is concerned .
OVERVIEW OF GLOBAL COIR IND USTRY MARKETS
Sri Lanka is the single largest supplier of brown coir fibre to the world
market, and together with India accounts for almost 90 percent of global coir
exports. An estimated 640,000 metric tons of coir fibre are prod uced each year
-
8/2/2019 Suggested innovative Schemes for SME Industry
9/40
9
around the world, according to the United Nations Food and Agriculture
Organization (UNFAO). Global demand for Coir prod ucts declined between the
1980s and 1990s, as synthetic fibres found widespread popularity as a substitute
for natural coir products. Since the late 1990s, however, that trend has reversed,
with coir prod ucts again find ing favour am ong consumers.
Greater d emand for w oven coir mats in Ind ia in recent years has fueled a
steady rise in the global Coir market. Tufted Mats are also posting steady
growth. Growth of the global market has also been driven by growing demand
for natural fibre products from consumers in developed countries as well as in
China and other emerging markets. In ad dition, there is growing global dem and
for natural Coir Geotextiles (erosion-control materials), good quality twine for
horticultural p rodu cts, and Coir p ith as a substitute for p eat. Yet synthetic fibres
continue to threaten the Coir industry globally, despite rising awareness of the
health and environmen tal benefits of nat ural fibres. Stagna ting interna tional Coir
pr ices have also eroded th e profitability of Coir prod uction
India p roduces four main categories of Coir fibre: bristle, mat, mixed, and
mattress. These fibres are either sold as raw material in the international market
or p rocessed into prod ucts such as brooms, brushes, rope, twine, matting, woven
and stitched geotextiles, rubberized Coir mattr esses, and uph olstery. Coir-related
exports accounted for 10 percent of Ind ian agricultural exports, over 0.12 percent
of all exports, and 0.0013 percent of GDP in Ind ia in 2008-9. Total export earnings
of the entire coconut and coir industry in 2008-9 were $136.17 million. Fibreexport earnings increased by 75.14 percent in 2008-9, while fibre pith exports
increased by 113 percent between 2002-7. The Ind ian Inland market has a
turnover of Coir prod ucts arou nd Rs 1300 Cr in 2008-9, a major chun k coming
from the Coir mattresses ind ustry which has been grow ing with an effective
growth rate of 21%+. The basis raw material required is the Coir Yarn, which is
supplemented by the Spinning industry. There are around 6.4 lakh workers in
the Coir ind ustry w hich are both Organized and Unorganized. The male: female
Coir worker ratio in Kerala, according to Kerala Coir Mission appointed by the
Government of Kerala headed by Mr Anathalavattam Anandan, MLA and CoirBoard member show that it is 27.30:: 72.30. There are 510 exporters who have
registered as Manufacturer/Merchant Exporter and obtained Registered-cum-
Membership Certificates from Coir Board , which is an Export prom ot ion Council
notified by Comm erce Ministry (Appendix- 2 of the HBP,Vol 1)
-
8/2/2019 Suggested innovative Schemes for SME Industry
10/40
10
Item
April 08- March
2009
April 07- March
2008
% growth
monthly
Q V Q V
Handloom Mats 35553.43 23537.53 40917.35 24299.85 -13.11 -3.14
Tufted m ats 33689.27 22598.15 33950.35 19910.98 -0.77 13.50Powerloom Mats 54.21 40.06 75.06 52.69 -27.77 -23.97
Handloom
Mattings
2368.45 1716.56 3013.71 1879.33 -21.41 -8.66
Powerloom
Mattings
87.52 85.09 115.82 88.30 -24.43 -3.64
Coir p ith 96996.32 8462.30 83613 6384.76 16.01 32.54
Coir Yarn 5335.09 1925.92 8407 2666.90 -36.54 -27.78
Coir geotextiles 3251.52 1591.05 3365 1444.66 -3.36 10.13
Coir Rugs &
Carpers
63.83 67.63 178 134.40 -64.17 -49.68
Rubberized Coir 1222.59 1174.77 1120 852.19 9.13 37.85
Coir Fibre 19443.54 2390.89 11102 1224.14 75.14 95.31
Coir Rope 370.28 164.60 372 139.99 -0.53 17.58
Curled Coir 1438.38 223.85 1280 152.06 12.37 47.21
Coir other sorts** 50.50 19.03 57 57.83 -11.43 -67.10
Total 199924.93 63997.43 187567 59288.08 6.59 7.94
Export Comparative Statistics of various Coir items (2007-8) and (2008-9)
Coir Indu strys Paradigm shift:
Coir Ind ustry u nd erwent a paradigm shift du ring the third millennium . In
order to understand this shift, we need to have better understanding of the
existing local and global market channels for Coir products at different levels of
production, including small-, medium-, and relatively large-scale producers and
cooperatives; further, we need to analyze the current policies pursued by the
governmen t and international agencies, includ ing the World Trade Organization,
and their effect on the Coir indu stry, and to identify strategies that can help
ensure that poor workers benefit as the Coir industry increases its capacity to
serve a global marketp lace.
Our expert came to the conclusion that there was a need to bring in the
smaller players who were at the lower orb, and through methodic steps, these
Coir workers needed financial support to first, acquire new machinery by
-
8/2/2019 Suggested innovative Schemes for SME Industry
11/40
11
throwing away the dilapidated, useless, worn-out ones which has served more
than 80 years of life, help them construct a roof over their workplace so that rain
or shine, they could carry on with their occupation undeterred, throughout the
year. With the present penu ry situation that they are placed in, they have no
way of augmenting their existing savings to bu y even an ord inary tool, much less
invest in buying machineries. A Scheme know n as Rejuvenat ion,
Moderni zat ion and Technology Up- grada t ion of the Coir Indus try with an
outlay ofRs.243 Cr was sanctioned by the Government of India which aims to
propel the preliminary layer of the Coir value chain namely, spinning and
tiny/household sector to get a foothold to make quality products using
mechanized machines
How ever, there is a need to d esign and manu facture spinning machines
which are compatible to spin good grade coir yarn. The indigenous machinery
manufacturers, are very few, and do not have the capacity to design a modern
Spinning m achine and the Indu stry had been suggesting to Coir Board, time and
again, to avail the expertise of Mr. John Wrigh t, wh o has designed such machines
which has given more than the desired result in the Jute Industry, to develop a
contemp orary Spinning Machine tailor-mad e for Coir indu stry.
Capital infusion is an inevitability at the lower fulcrum of the industry;
skill up grad ation, technological up grad ation, innovative tools are very
necessary for Coir Industrys orderly growth; entrepreneur development is a
must if the lower limbs of production on which the exporting manufacturingindu stry has to depend by way of out-sourcing their prod uction needs.
Coir Value Chain
Having considered the elements that constitute the Coir industry, its
worth turning our attention to a more holistic treatment of the Coir industrial
cycle. A value chain describes the full range of activities required to bring a
product or service from conception through the different phases of production,
involving a combination of physical transformation and the input of variousproducer services, to delivery to final consumers. In the Coir Value Chain
analysis, the distribution of income along the value chain was assessed and the
market situation and problems of the coir industry in Kerala/Tamilnadu were
evaluated.
-
8/2/2019 Suggested innovative Schemes for SME Industry
12/40
12
The main stakeholders in the Coir indu stry are coconu t growers, coconu t
traders, and fiber suppliers and buying agents, Exporters and Importers, and
auxiliary service providers. The institutional arran gements among these actors
are complicated. Joint prod uction is common in the ind ustry, with some Coconu t
growers owning Coir yarn-spinning facilities. These are mostly vertically
integrated arrangements in the Coir industry. Within each layer of the value
chain are several interconnected smaller value chains consisting of
intermediaries and subcontractors. Stakeholders with functions and operations
close to one another in the value chain interact more intensively with one
another.
Survey findings reveal the following problems from the lower end of the
value chain:
High depend ency on weather for coconu t yield;
A poor system of husk collection;
High energy costs;
Insufficient u se of dom estic talent for prod uct design and development;
Inadequate ind ustry collaboration for research and d evelopm ent;
Unstable high freight rates;
Poor p rodu ct classification and attention to standard s, resulting in low
price margins and exploitation by overseas buying agents;
Poor foreign m arketing of Coir prod ucts; and
Poor consumer satisfaction in some instances.
Constraints of the Coir ind ustry
Coir Exporter Manu facturers face challenges relating to retaining w orkers,
high absenteeism from work, lack of technical capacity, and attracting young
people to the industry. As a result, they have to rely on a few trained older
workers. Retaining labor is complicated because demand for Coir varies by
season. Coir manu facturers are also constrained in ad apting to new technology.
Unavailability of initial capital requiremen ts for machinery and equipment, blocknew en trants into Coir business while it makes it difficult for existing
manu facturers to up grade.
The people who market Coir fiber and Coir productswh ether
individual producers, subcontractors, or exportersalso face challenges,
including limited access to markets, low prices and profit margins, lack of
-
8/2/2019 Suggested innovative Schemes for SME Industry
13/40
13
marketing know-how and training, , and inability to garner market intelligence
resulting in wide untapped m arkets.
[Coir Export in du strys perspectives and priorities]
PROPOSAL:
Coir is a natural fibre which is a conversion of Coconut fibre throughdehusking. The Coir fibre is converted into various value add ed prod ucts, both
hand made and machine made, and because of its natural qualities, it is
recyclable, reusable, eco and environment friendly. It is an Environment product.
India has emerged as the num ber one coconu t producing country with an annual
yield 15 billion coconut nuts. It is a versatile, ubiquitous product. It is aneconomic resource having immense potential for improving the quality of life of
rural and urban comm unities with environment regeneration qu alities like water
sequestering .
The world market for Coir and Coir products are unlimited. Coir Pith is
used as manure in Netherlands and has been registering high growth from
10,000 tonnes wor th Rs 10 Cr (2003-4) to 92,000 worth Rs 84 Cr (2008-9). The ban
on peat has been creating an increasing demand for Coir Pith. Plastics, Plywood
wh ich h as large scale uses w orld over, needs substitutes as these substances are
banned in many countries. Plywood is becoming dearer because of ban on
import of round wood , and felling of trees, and the cost factor. Coir Ply could
become an important part of the Particle/Micro density Fibre board industry. As
wood availability is becoming scare, Coir wood furniture holds promise of good
demand like Rub wood which has been gaining popularity and imagination of
the discerning public.
Keeping in view, the potential of the Coir, its present poor market linkage
and sub optimal level technology application for manufacture of value added
products in the industrial and cottage sector, the National Mission on CoirTechnology & Trade development need to be mooted by Coir Boardwith the
support and assistance of the Ministry of Micro, Small and Medium Enterprise,
Government of India to accord Coir development a strategic role in rural
economy, Poverty alleviation and improvem ent of Coir based han dicrafts &
industrial development. The Mission document needs to incorporate both the
indigenous as well as developed industry. Coir Mat sector include amongst
-
8/2/2019 Suggested innovative Schemes for SME Industry
14/40
14
others handloom mats, Coir with rubber plait mats, Coir jute mats, Coir sisal
mats, the blend s being used to supplement value add ition and forms a part of the
value chain only as an embellishm ent. It shou ld not be construed that this is not
Coir mat, just because sup plementary blends complement the value addition of
the hand-made mats. The Mission document must envisage the integration of
d ifferent Ministries/ Departm ents for the holistic developmen t of this sector. The
Report must further envision an integrated programme for development of the
Coir sector, its scientific management with the involvemen t of CCRI/CICT/other
Research organizations, local initiatives and entrepreneurship for presenting this
raw material for the Industries and assisting the Industry to access and apply
modern technology for producing globally competitive new generation Coir
products. The other features of the Mission should include Technology
Development and Technology intervention on process and products including
standard s and codes, Prod uct development includ ing training, Trade and Market
Development for Coir products, and Technology/Product development formaking new materials.
The estimated fund requirement need to be worked by Coir Board
through synthesis with the R& D outlay, Plan outlay for industrial growth,
intervention in p rodu ct developmen t, assisting p rivate exporters/manu facturers
to source R& D from reputed private Institutions which are recognized by the
Ministry of Science and Technology, funds for allocation toward s seed capital,
patenting, R&D, and meeting capital cost as well as working capital cost of
rejuvenating plants to manufacture new generation products. Presently, JuteIndustry has a Scheme wherein 20% subsidy is allowed for starting new
industries, Coconut Mission has a Scheme to fund new technology industry
going for p rodu ction utilizing the various Coconut p rodu cts up to Rs 50 lakhs as
subsidy within the total outlay of Rs 2 Cr and through previous arrangement
Banks give 60% as term loan. The SSI Techn ological Up gradtion Schem e has a
capital subsidy of15% on a Scheme which is restricted to a total outlay of Rs 1 Cr
only. Coir Industry is also included in it, but not a single Coir entrepreneur has
yet availed it, because the ceiling of Rs 1 Cr is grossly inadequate. We have to
state, unequivocally, that when theMSM E A ct 2006has pegged investment u pto
Rs 10 Cr as coming un der the am bit of the Act, the reason for putting a cap of Rs
1 Cr for Technology Up-gradation Fund is not un derstand able. Further, in India,
there is no d efinition for Ind ustries wh ich has an investment level upw ard of Rs
10 Cr. The Industrial policy has not defined the Large Industry, MSME has
defined only Small and Medium Indu stry. To set up an integrated Tufting Plant,
at least Rs 12-13 Cr is needed . If new indu stries have to be set up in the Coir
sector to m anu facture new generation Coir prod ucts, it is imp erative, that no cap
-
8/2/2019 Suggested innovative Schemes for SME Industry
15/40
15
on investment should be put and appropriate capital subsidy, @a minimum of
25-30% has to be given. The present promotional assistance for trad e and
market development (Export Market Assistance Scheme of the Coir Board), and
Export p romotion is grossly low and the upw ard ceiling of Rs 2 Cr is insu fficient.
We need to state that Schemes conceived around 5-10 years ago, has certain
percentage as sops. But ten years hence, the value has decreased du e to
inflation. Inflation need to be factored in. This would make Rs 2 Cr
contemp lated 10 years ago with factoring of inflation abou t Rs 5.5 Cr. The ceiling
cap needs to be raised to commensurate with the contemporary investment
range, market possibilities and p otential. Comm erce Ministry has pegged the
limit as Rs 15 Cr for giving benefit und er Mark et Access Initiative Scheme (Para
3.2 of the Foreign Trade Policy) and based on the requests of the export
organizations, has agreed to remove the cap at the FIEO Open H ouse meeting
held on 17-9-2009 at Chennai so that the funds will be available across the
spectrum of export houses whose turnover is much higher than the limitpresently prescribed. An exporter, when he participates in a Trade fair, have to
cough ou t Rs 5-6 lakhs, against which Coir Board u nd er the present EMDA
Scheme just doles out Rs 1.25 lakhs. Therefore, it is requested that an explicit
outlay be earmarked in the Coir Mission to accommodate the exporters to
participate under a Promotional Scheme with equal entitlement on par with the
Jute/other industries.
The economic and social benefits from all these activities will give a
tremendous boost to the economy, to the lower rug manufacturers in the small,
tiny an d household sector, providing d irect and indirect emp loyment all over the
Country, and fetching for the Country the much needed foreign exchange, and
providing direct fillip to ecology and clean environment as the natural fibre
industry will complement and supplement the countrys environment policy to
reduce environmental destruction and Earth warm ing.
Other touch-up areas:
Raw material need s to be of high qu ality- better exploitation of resources-conversion of coconu t fibre to coir fibre-coir yarn (to make qu ality end
products)
Storage facility
Modernize the Ind ustry through technology up -gradation
Design machinery to man ufacture Coir prod ucts through change of
design, app lication, precision, composition
-
8/2/2019 Suggested innovative Schemes for SME Industry
16/40
16
Produ ctivity imp rovement
Quality enhan cement
Design capacity
Produ ct imp rovement
Primitive ind ustry at the lower ebb to be gradu ated to a mod ern level
Indu stry need to be technology savvy
Level playing field with other indu stries like Ju te, Bamboo, Hand loom
industries,
In view of the fact that 50% of the total volume of coir emanate from
Pollachi, an Ind ian Container d epot be set up at Pollachi
The SSI Technology Upgradation Fund Scheme allows loans only upto Rs
1 Cr with an interest subsidy of 15%. It is suggested th at the limit shou ld
be raised and the percentage of assistance also be enhanced
Reduction in Transportation costs which add s to the cost of variablesend ing up in the sale pr ice to be un competitive; suggest a Scheme w hich
involves granting of cash scrips in the pass book form on prod uction of
Intermod al documen ts (10% of the value of the goods) redeemable at par
once in three m onths m ay be evolved.
Enlarge the m arket through Reach
Stabilizing p ower su pp ly through add itional transformers and islanding
of export prod uction centres etc.
Assistance for setting up common effluent tr eatment facilities at Allepp ey
Facilities sough t similar to Jute, Bamb oo, and Han dloom ind ustry:
Level playing field w ith other indu stries like Jute, Bamboo, Hand loom
industries, and making available resources through the Coir Mission
including capital subsidy, interest subsidy, modernization subsidy,.
Provide venture capital assistance so that new p rototypes can be invented
and patented. A line of Credit be opened by Export and Import Bank of
India, so that the Coir exporter s can use the facility at a subsidized cost. Inorder to enable the exporter to avail assistance under factoring, a separate
wind ow to sup port Agr i/Agro exports be created by EXIM Bank (un der its
Factoring program me).
Creating Inland Con tainer Dep ot at Pollachi :
-
8/2/2019 Suggested innovative Schemes for SME Industry
17/40
17
In view of the fact that 50% of the total volum e of Coir Pith em anate
from Pollachi, an Indian Cont ainer depot be set up at Pollachi. This may
be includ ed in the Coir Mission proposal. The project can be un dertaken
in the Public: pr ivate form at in wh ich the ind ustry will invest 20% and the
outlay to the extent of 80% may be accommodated in the Coir Mission
budget.
Reimbu rsement of Transportation costs (available to Jute/Han dloom
industries)
Today, for Jute and Handloom industry freight cost is reimbursed in
the form of fixed p ercentage on th e f.o.b. value un der MILL GATE PRICE
SCHEME. Und er the Scheme Jute Yarn, yarns made ou t of w ool, sea
grass, abaca, sisal etc are eligible for Freight subsidy. However,
prod uces from Coir Yarn are not eligible for any concession or indirectsup port either in the form of subsidy or reimbu rsement. Redu ction in
Transportation costs wh ich adds to the cost of variables ending up in the
sale price to be uncompetitive and to balance these costs, we suggest
introduction of a sub scheme in the Coir Mission to reimburse 12.5% as
incentive to the Exporters who produce documents to prove their
despatch par ticulars in a statement form on a month ly basis. There is also
movem ent of goods either in the intermed iary form or in the raw material
form from the p rodu ction centre, or sourcing centre and on p rodu ction of
Multimod al Certificate along w ith d ocum ents, monthly reimbursement of
10% as incentive may be granted . This will reduce the prod uction costs,
better margin for the raw material supplier, semi-goods manufacturer-
supplier eliminating the role of the middleman altogether.
Enlarge the m arket throu gh Reach
There are a number of markets which are emerging markets. But
the risks in trying to penetrate and show case the various Coir products
are risky. In order to overcome this, a study need to be cond ucted by
experts like Indian institute of Foreign Trade (or) some other body whohave foreign trade expertise, and ability to anlyse the market. In the
outlay for various heads under the Coir Mission , an amount be ear-
marked for conducting market surveys/market studies to promote Coir
products.
-
8/2/2019 Suggested innovative Schemes for SME Industry
18/40
18
Allepp ey-Shertallai, the b astion of Coir Indu stry
Statistics shows that around 85% of the value of Coir merchandise
meant for export originates from Alleppey-Shertallai belt. Considering
this aspect, the Commerce Ministry declared Alleppey as a Town of
Export Excellence. In the 2009-14 Foreign Trade Policy, various
sup portive and infrastructural measures w ith certain percentage of outlay
from the Assistance to States for Infrastructure Development for Exports
has been separately ear-marked for removing infrastructure bottlenecks.
The TEE has been notified in Appen dix-7 of the HBP, Vol I.
Inland Market Developmen t:One d istinct area wh ere Coir Mission needs to give special imp etus
is the development of inland Market. Like Jute, when a special act was
promulgamated compelled Fertilizer, Rice, wheat producers to pack their
produces in jute bags which peaked demand for Jute products. Likewise,
the Government of MSME mu st make and take special efforts to d evelop
the Indian market for Coir products through legislative efforts. Secondly,
all inter-governmental purchases like Coir Mattresses (for ITDC Hotels,
state government owned Hotels), purchase of Coir door mats (for all
Government quarters, Guest Houses-both central and state, individualautonomous bodies), door to door matting( for ceremonial purposes,
banquet halls, state and central secretariat offices, public sector
undertakings, etc), Coir pith ( for developing the ground water level,
tapping rain water, throu gh specific Schemes of Indian Scientific Research
institute) (agricultural farms, through Horticulture Mission and
Agriculture depar tmen t) , Coir Jewellery ( to be presented as mementoe to
the various guests who come from abroad ), etc. Defence and railways
have a huge vendor list. By developing Coir ply, coir mattresses, we can
cater to the Railways, Defence, and other governm ent d epartmen ts. Coir
Board should be able to convince these two Ministries to go in for
purchase of Coir products so that there would be regular purchase by
these mammoth departments and sale from the Coir manufacturers. Coir
Board should not register itself as a vendor. Coir Board should short-list
vendors based on their ability, financial capacity, capacity of production,
economies of scale. In order to assist small players, a group of small
players be grouped with the major player so that he would outsource his
-
8/2/2019 Suggested innovative Schemes for SME Industry
19/40
19
requ irement from this Group. The benefit of the order will cascad e
un iformally, so that every bod y w ould get business.
Both the Ministry and Coir Board concentrates development of
Inland market only through the Coir Bhavans, and half of them are
run ning un der heavy loss. The representatives posted at these outpu ts do
not have the marketing ability to beget Institutional orders. Some of them
are not able to explain the product size, % of blends if needed, costing,
difference between tu fted mat and hand mad e m at, etc If the Private sector
is involved in this exercise, it would be able to market the Coir products
better and more competently because it has the expertise, capacity, and
ability to quicken the process of begetting order than these existing Coir
Bhavans. These Bhavans are participa ting in carnivals and local trad e
fares with their limited wares, that too that presents a dirty look which
results in no visibility for good, modern, and pleasing to the eye Coirproducts. If a cost-benefit ana lysis of expend iture incurred by Coir Board
for participation in these trade fairs is done vis--vis business developed,
it would show a tilt towards incurring of heavy costs against very little
benefits. Inland market developm ent shou ld be the core activity of the
Coir Mission .
The Coir Mission should evolve a separate sub Scheme by
incorporating the markets and approaches to market development within
the Country, which h as a hu ge untapp ed m arket. Coir Board can liaisonwith the bu ilders of flats in Kerala, and offer them one m at for each flat at
a concessional rate, and encourage them to provide Coir Mattresses, so
that in Kerala there w ill be a heavy m ovement of vital Coir products.
Coir Board sees the Inland market development only through the
eyes of 30 odd Coir Bhavans wh ose turnover is app arently around Rs 12
Cr. Presently, Coir Board procures the goods through consignment system
by short listing buying from buyers only.
Marketing:
Raising awareness of the industrys eco-friendly nature among
consumers is a challenge. Yet such opportunities do exist. For example,
the Ministry of Tourism could h elp prom ote the coir ind ustry throu gh its
local outlets. Providing consum ers with information abou t Coir prod ucts
is essential, focusing on their safety and eco-friend liness.
-
8/2/2019 Suggested innovative Schemes for SME Industry
20/40
20
Groundwater is first and foremost a resource for potable water,
and should be sparingly used for irrigation, least of all power-
generation... Groundwater contributed significantly to the tripling of
gross irrigated area between 1970 and 1999, estimated at 33,100,000
hectares. This should not have happened. Not that India has deficient
rainfall. The average annual precipitation of 120 cm is adequate. We
seldom try to address is the anomalous distribution of rainfall. The
distribution pattern is reflected in the number of rainy days, not total
rainfall. Nevertheless, total rainfall has relevance to the groundwater
situation. Aquifers are expected to be naturally recharged but there lies
the rub. Recharge locations have not been treated with the priority they
deserve. This results in acceleration of Piezometric depression. We can
combat the catastrop hic reality, if we m ake a conscious commitment to the
dyn amic up keep of the life supp ort system. This can be done through theCoir pith which will absorb water and retain 40% of it. This enables
continuous creation of ground water and retention of the rain water. Rain
water harvesting can be successfully done through the 60% wasted
Coconut husk, which decays and creates environmental problem. Coir
Board should need to involve Indian Council of Agricultural Research in
this exercise so that their testimony would help higher movement of Coir
Pith to prevent ground water depletion.
Coir Jewellery can be promoted in a large way as, the Europeans
and Americans are crazy to buy cheap jewellery that too made from
natu ral prod ucts. The creation of a niche market for Coir jewellery wou ld
make a clear impact in the grow th of Coir exports.
Coconut shell based activated Carbon and activated carbon made
from rice hu sks, woods, have h uge d emand in pu rification of water, gold
purification, pharmaceuticals, etc. Coir Pith can be a raw material to
produce activated carbon through steam process and the by-product
steam can be converted into pow er generation to the extent of 4 MW and
used by the ind ustry as captive power unit.
Display-cum- meeting centre:
Since Coir Shippers Council is setting up a display-cum-meeting
centre[with funding from ACCDS an d SIDBI], at Shertallai, we suggest
-
8/2/2019 Suggested innovative Schemes for SME Industry
21/40
21
that w henever there is a delegation or export body or bod ies come to Coir
board , they may be suggested to come to th is Centre, so that the Exporters
can disseminate their products and h ave meetings with them. We request
Coir Board to have an inter se arrangemen t so that the visits can be mad e
customary.
Private initiative R& D for industrys growth. R&D, Product
Developm ent, Innovation, etc
Since there are two scientific institutions with separate outlay
within the Coir Board budget, we are not suggesting any new outlay or
plan of action in the Coir Mission . But as stated by us earlier, for the
growth of any industry, R&D, innovation, designing of new machines
which can give higher p rod uctivity at a lower electrical consum ption , newproduct development should be made part and parcel of its Technology
sub section in the Coir Mission . We suggest, that any experiment or
innovation or product development undertaken by the Research
institutions must be available on a commercial basis for use by the
Indu stry. The policy must be Lab to Factory so that w e can harness the
findings for commercial gain . We leave it to Coir Board to adopt an
app ropriate action in th is regard .
There is a need for the constitution of high level Recons truct ionand Development Agency (RADA) at the Government level as part of the
Coir Mission to coordinate the various activities and growth of coir
indu stry to ensure an optimal use of resources. To this end, RADA must
be involved in developing the ap prop riate national policies and strategies.
The agency which should co-ordinate this work should be Coir Board ,
which should have highest representation from Coconut Development
Board, Manufacturers, Exporters, etc.
Export and Imp ort Bank of India , Export Credit G uaran tee CorpnShould also be involved in this exercise, as they have a number of
Schemes to fund Design Development, setting up of R&D labs, marketing
development, and providing 95% insuran ce cover on the value of exports.
Coir Board and the Ministry should try to forge link with Food an d
Agricultural Organization (FAO ) on a continuous basis to initiate and
evolve fun ding possibilities un der the Common Fund for Commodities.
-
8/2/2019 Suggested innovative Schemes for SME Industry
22/40
22
We can initiate a special project for which United Nations Industrial
Development Organization (UNIDO) can fund for creation and building
of testing laboratories for the Coir sector and two microbiology and two
chemical testing laboratories for strengthening the Testing facilities and
these institutions need to be internationally accredited, which would lead
to the imm ediate acceptance of the Ind ian test reports on Coir produ cts by
internationa l buyers. These facilities are to be extended to Coir fiber, Pith,
and Geotextiles. Our prop osal wou ld envisage that the Coir Board
involve with mu ltinational agencies to provide fillip and sup port to
strength en its R&D requirements and testing facilities, so that there will
be international acceptan ce of the Testing Reports given by the specialized
labs set up for the explicit pu rpose, as they are internationally accredited.
United States Assistance in Development Programme (USAID) has a
nu mber of Schemes aimed to help and provide technical assistance at the
national level. Coir Board and the Ministry need to touch base withUNIDO/USAID to get suitable projects approved so that R& D labs can
be set up with international accredition. It is also suggested that Private
entrepreneurs should be supported to set up micro R& D labs by
providing an independent outlay in the Coir Mission . Asian
Development Bank assistance can be sought for this, as the Ministry of
MSME has involved AD B for fund ing KVIC projects.
A Design clinic can also be part and parcel of the Coir Mission which
can sell designs to exporters for a p rice; once sold, the d esign sold shouldbe frozen. This can help the small players/exporters. This also can be
conceived with aid and assistance from AD B.
Managing Qu ality
. The absence of an effective quality-control system is a key obstacle
facing Indian Coir industry. This is particularly true at fiber
manufacturing end, where old and labor-intensive fiber-extraction
technologies still predominate. The Coir industry must meet several
requirements before Indian products can penetrate the internationalmarket and high value-added chains. First, Coir Board must formulate
standard s and exporters shall adop t them widely so that all exports meet
the minimum criteria. Second, these Labs must improve their capacity to
implement the lab tests required by various agreements governing
international standards, so that exporters can comply with international
-
8/2/2019 Suggested innovative Schemes for SME Industry
23/40
23
requirements. Third, producers must be able to meet the buyers quality
requirements and p rodu ce in the quan tities deman ded by other coun tries.
Stabilizing pow er supp ly through ad ditional transformers and
islandin g of export p rodu ction centres etc.
One of the m ost imperative transaction problem lies with the
power situation and grid problems which result in shut down for long
hours resulting in our switching on to the generators, and the incidentals
on cost would definitely add to the cost of the product. As it is, we are
conducting business operations w ith very low margins as the m arkets are
price sensitive as well as quality sensitive. The only way by which this
problem can be overcome is by putting up a private pow er plant having a
capacity to meet the energy needs of the exporters in the Alleppey-Shertallai belt by the Coir Mission by making a Power purchase
Agreement(PPA) with Kerala Electricity Board and charging the
exporters at a standard rate, little higher than th eir cost price and little less
than th e prevailing price charged by the KEB, so that for maintenance and
other charges, the Coir Mission will get augmented money at the same
time, it will be a great relief to the exporters to get electricity at a price
which is little less than the available commercial rate. This will be a great
service rendered by the Coir Mission to the Coir manufacturing
commu nity. For this pu rpose, a register of consum ers can be mad e towh om the sup ply w ill be affected so tha t requirements and utilization can
be clearly mon itored so as to negate tran smission loss.
Assistance for setting up comm on efflu ent treatmen t facilities at
Alleppey
This is a requirement considering the fact that any growth in the
Coir industry would consequently require a facility where the effluents
are recycled and treated. Since there was no planning at the time of
setting u p of effluen t plants of individual un its, wh ich are few an d farbetween, it would not be presently possible for the effluent produced in
one plant be lifted through lorries and taken to the place where the
Common effluent treatment plant is located. A methodology need to be
formulated, a plan need to be made, where setting up of a Common
effluent treatmen t plan t would become enviable. We therefore, request
that an ou tlay be ear-marked in the Coir Mission budget.
-
8/2/2019 Suggested innovative Schemes for SME Industry
24/40
24
Training for the p ersonn el in the m odern machines/awarding
certificates/stipends :
Training of personnel, both at the grass root level, entering level,
middle management level, and giving them both practical and ground
training is a must, if any industrial sector wants to grow. There are tailor-
made scheme for training personnel at the ground level is already in
existence in the Coir Board present Schemes. We suggest that an enlarged
training programme, covering the various segments of the industry be
conceived, and conducted as a Refresher Course, Part-time Course,
Evening Course, so that the Industry w ill be highly benefited. We also
suggest that a crash course on Foreign Trade Formalities, Foreign Trad e
Policy and procedures , Correct Export Procedure, Taxation , and
Marketing etc be organized by inviting guest lecturers or experts, so thatthe Industry can take the benefit. These courses will be useful to the
concerned personnel in the Coir Board as well. A budget may be
earmarked in the Coir Mission towards this head.
Ind ustrial Techn ology Institute:
Coir Board should move the technical institutes, or universities to
provide training an d adv ice related to technical matters and technology to
the export oriented bu siness comm unity. Though there have been R&Ddone at the CCRI and CICT, by keeping the developed technology in
closed vests, the purpose for which technology has been done is unmet.
There is need to set up a special chair for Coir Research particularly in
Technology development in developing suitable machines tailor-made for
the Coir Industry, fibre-processing technologies and enhancing product
reach. There is a need for a Cell within Coir Mission which will collect
market related information, co-ordinate various activities and serve as an
interface between the public and private sectors. They must play a
significant role in coordinating trade activities and advocating for policy
formulation.
Envisaged Results:
a . We hope to touch Rs 1500 Cr by way of exports by the end of2014
wh en the present tenure of the 5-Y ear Foreign Trade Policy will expire;
-
8/2/2019 Suggested innovative Schemes for SME Industry
25/40
25
b. We believe, that the labour workforce in the Ind ustry would cross
1 million by the terminal year of the present FTP;
c. Presently, our Exports are d irected at 105 countries; we h ope the
direction of exports w ould enlarge to at least 140 countries by 2014;
c. If ambience is created, we expect an up ward investment of at least
Rs 500 Cr for imp roving technology and au tomation, installation of
the state-of-the- art machinery, and fresh investment;
d. Presently, around 510 exporters are on the live register ofCoir Board ,
and we hope there will be enlarged by an other 200 exporters;
e. With new products forming the range of products coming und er
exports, we are hopeful that the mat sector wou ld pred ominate, whilearound 25% of the rest of Coir exports would be from the new
generation Coir p roducts.
f. We expect during this period, our exports to East Asia in view of the
ASEAN FTP wou ld go up considerably. Coir exporters are conscious
of the fact that that they need to substantiates their position in the
grouping in order to secure its economic strategic interest in the East
Asian region. The ASEAN FTA would lead to effective management
of regional integration p rocesses, dismantling non tariff barriers sothat Indian Coir ind ustry can barge into the East Asian countries. But
Coir Industry should beware that some of these countries are Coconut
producing countries, and are concent rating developing Coconut based
products. But if they step into making Coir based products, Indian Coir
Industry need to be wary of such a development which would be a threat to
the Indian Coir segment.
g. If the Government takes effective steps to sup port the Coir Industry,
we the expor ters look to contribu te to an overall effort at consolidation
in order to expand into areas of economic and strategic importance.
N.B. Coir Indu stry is the industry of tomorrow. In a new
world wh ere environmental considerations would weigh high, it is
possible to anticipate high growth trajectory for natu ral and
environmental friend ly produ cts. It is expected to dawn soon. The setting
up of a Coir Mission , will open up new vistas and window s of
opp ortunities [un der the aegis of the Coir Board and M inistry of MSME
-
8/2/2019 Suggested innovative Schemes for SME Industry
26/40
26
with the supp ort of mu ltilateral organizations, Asian Developm ent Bank,
EXIM Bank, ECGC, Scientific institu tions, Export Fed erat ion,
Manu facturers, State Governm ents, etc] How ever, it will not be an end by
itselfto improve the standing and stature of the Coir Indu stry; it will only
a beginning of the saga.
*****************************
Chapter- II
Coir Observatory
1.0 Introd uction
Besides being a major export earner, the coir ind ustry in India is one w ith
a high social sensitivity. It contribu tes significantly to employment and balanced
regional developm ent. The schemes of the Coir Board arte varied. They address
broadly issues in three areas. (1) Export promotion; (b) Employment; (c) Labour
Welfare.
The development of the industry on the cluster mode has much
significance. But the cluster app roach, to be successful, needs to take care of
several economic and social d imensions simu ltaneously. This makes coir
clusters d ifferent from other ind ustr ial clusters in the country .
Programmes in the coir sector, including that of the Coir Board and of the
State governments, are often constrained by lack of an efficient monitoring and
evaluation system. Herein lies the role of information technology. The coir sub-
sector needs a habitation- mou nt d ata base which will help to imp lement several
of the public program mes m ore efficiently. It will help the clusters to perform
more efficiently. It will also help the Coir Board in more efficient monitoring of
its programm es. The whole idea can be conceptua lized and op erationalised in
terms of a "Coir Observatory"
2.0 Con cep tu al Fram ew ork
Enterprises come into being, grow over time, become sick, die or survive.
The reasons are market-related or technology related. Such natu ral phenomena
are often not appreciated in the right sense by the popular press and the
-
8/2/2019 Suggested innovative Schemes for SME Industry
27/40
27
platform. Indu strial sickness is often depicted as a failure of pu blic policy;
similarly, growth in the number of registration of industrial units, a positive
indicator.
The reality, how ever, stand s in between. The dynamics of industrial
change (alternatively called business dem ography) is much more complex than it
is often perceived to be. Captur ing such average behaviour in realistic terms,
and to offer policy suggestions, is the key function of an Observatory.
The birth of enterprises, their growth/retardation, and survival/decline,
have secondary implications on the economy and society. The course of such
distributional effects can be influenced/channelised/regulated, by public policy.
But the Coir Board and other implementing agencies need to be informed on
such developments within scientifically determined levels of control. It demand s
the help of a control mechanism aided by IT tools. The whole idea can beconceptualized in term s of a Coir Observatory.
3.0 Ob jective of th e Project
The objective of the p roject is to design and pilot a Coir Observatory for effective
implementation of programm es by the Coir Board.
4.0 Methodology
The method ology of the project involves two parts:
(a). Developing a computerized information system on 'coir habitations/
clusters of househ olds predominantly involved in coir activities:
This is capable of being accurately updated .
Wherein these coir habitations can be tracked and monitored over a
period of time
Wherein the basic social, economic and technological da ta related to these
coir habitations can be expan ded accord ing to specific need s.
Wherein the data related to each coir habitation can be retrieved and
classified for detailed analysis.
(b) To prepare a permanent framework for conduct of research stud ies on the
coir sector, the evaluation/monitoring of various (targeted)
-
8/2/2019 Suggested innovative Schemes for SME Industry
28/40
28
schemes/programmes, and bringing out Plan documents on the sector
periodically.
Part (a) involves the following activities which can be taken up under a
pilot project.
(1) The identification of pilot district (Alleppey), and pilot Block within a
district, on the basis of secondary d ata available from various sources relating to
the coir sector in Ind ia/Kerala.
(2). Upd ating the baseline Territorial Configuration (TC) already available for
the selected pilot Block, all the Grama Panchayats therein, all the Revenue
Villages within each Grama Panchayat, and all the Habitations within each
Revenue Village. This up dating process can be executed u sing specially
designed software, which will take into account all the changes in the TCbetween the baseline year 2003 and current year 2007/2008. The baseline TC is
already available und er a Governmen t of India Project.
(3). Conducting a detailed H abitation Survey, to systematically canvass
demographic, social, economic and technological data for each household in the
habitation.
(4). Cleaning the survey data and verification of its authenticity on a sample
basis, as well as selecting and ranking coir habitations for the effective targetingof sup por t services.
(5). Generating basic tables for further analysis and effective targeted
interventions/ policies.
(6). Using the upd ated data base as a baseline for further up da ting and
expanding the database from year to year (the development of a Dynamic
Information System.
(7). Further validating the upd ated d atabase through a Sample Validation
Survey.
(8). Incorporating add itional data according to needs.
Note 1: Steps (6), (7) and (8) can be repeated annually or as frequently as
required.
-
8/2/2019 Suggested innovative Schemes for SME Industry
29/40
29
Note2: The concept of Territorial Configuration and the changes therein are
crucial. It is extremely imp ortant to take accoun t of the TC at any point of time,
as this provides a unique identification code chain for each habitation over a
period of time.
5.0 Im plem en tin g Agen cies
The implementing agencies shall be the Coir Board and Finesse
Consultancy which has been involved in conducting a number of studies in the
Coir Indu stry.
(a). Role of Con su ltan cy
In the pilot phase, Finesse Consultancy shall be responsible for design ofthe Observatory . The design of the Observatory involves the following steps.
(a).Preparation of the Demograph ic Outline( param etric research)
(b).Development of software
(c). Trial Run of the software
(d). Field Survey
(b ). Role of Coir Board
The responsibilities of the Coir Board shall be as follows.
(a). Provid ing the necessary project fund s to be agrees upon under this project
proposal.
(b). Technical assistance, in the form of access ton all relevant data available
with the Board, as also facilitate access to such data available with other stake
holders.
(c). Giving du e publicity to the project through its own channels, both in the
non p roject and post project stages.
An Enterp rises Observatory is a mon itoring system for tracking the statistics and
dynamics of an enterpr ise eco-system.
6.0 Time Schedule
-
8/2/2019 Suggested innovative Schemes for SME Industry
30/40
30
The project is expected to be comp leted w ithin a year of its launch.
Stages of the project as follows:
(a). Preparation of the Demographic Ou tline (Param etric research)- 4 months
(b).Development of software - 2 months
(c). Trial Run of the software - 2 mon ths
(d). Field Survey - 6 Months
7.0 Budget
The bud get involves two comp onents: (a) fixed; and 2) recurring. The fixed
budget involves the cost of developing the Observatory software, cost of
initial survey, and that of infrastructure.
Recurring expenses involve the data up da ting costs.
The fixed costs would come to around Rs.1.5 Cr (including preparation of
software one time expense). The Recurring expenses wou ld involve field
survey, updating of data, evaluating the data collected and making an
analysis of the data to pin point, the emerging trends, filling in bottlenecks
etc. The recurring expenses need to be worked out is estimated.
-o-o-o-o-o-o-o-
Chapter- III
-
8/2/2019 Suggested innovative Schemes for SME Industry
31/40
31
Med ium Scale Ind ustry- Schem e for
modern ization, Technology Up -gradation
1. Plan imp lementation d uration: 12th Five Year Plan (2012-17)
2. Implement ing Ministry : Ministry of Micro, Small, Medium Enterp rises, GoI3. Beneficiaries: Medium scale enterp rises that have investment in excess of Rs 5
Cr and within Rs 10 Cr in plant and m achinery and registered un der the MSME,
2006, will be eligible for the Schem e
4. Purp ose of the Scheme: Modern ization of the existing industry an d/ or up -
gradation of technology of existing indu stry
5. Corpus of the Scheme: Rs 12,598 Cr
6. Ind ividu al ou tlay: Between Rs 2 Cr & Rs 5 cr
7. Capita l subsidy (Line of Cred it): Rs 1,650 cr
8. Investm ent : Rs 1,650 Cr
9. Interest subsidy: Rs 993 Cr10. No of ben eficiaries: 2,500 units
11. Emp loyment genera tion: 12500(direct employm ent) +50,000(indirect)
The Scheme:
The technology up-gradation of the existing industry is brought under anew Scheme which is meant for modernization and up-gradation of technology
in the existing Medium scale industries which has been defined in the MSME
Act, 2006. The Scheme will not apply to new industries, as they can directly optfor state-of-the-art machinery from inception itself. For the existing machinery,
both modernization and technology up-gradation is required because the
machines that are used for manufacture may be obsolete, requiring state-of-the-
art, to improve productivity of the machines as well as optimum productivity of
the worker. Hence, under definition of the Scheme beneficiaries, it shall be noted
that the Scheme is applicable to existing ind ustries to modernize and to up-grade
their technology.
Conceptualization:
The Scheme outlay spanning across the 12th Five Year Plan period will
consume Rs 12,598 Cr which is inclusive of investment of Rs 1,650 Cr, Bank
Credit of Rs 9930 Cr, with the Capital subsidy in the form of Line of credit
extending up to Rs 1,650 Cr, interest subsidy of Rs 993 cr (10% Bank interest
opting for fraption interest rate Guarantee) and adm inistrative expenses at Rs 25
Cr @ Rs 5 cr per annu m. The total number of beneficiaries that wou ld be assisted
-
8/2/2019 Suggested innovative Schemes for SME Industry
32/40
32
will be 2,500 units, which would provide direct employment of 12,500 workers
and indirect emp loyment to as man y as 50,000 workers through offering work at
selling and delivery systems in the rou te and d istribution channels.
The total outlay of the Scheme is moderated as Rs 12,598 Cr, divided into
(Total outlay) of Rs 2 Cr, Rs 2.5 Cr, Rs 3 Cr, Rs 4 Cr or Rs 5 Cr. A total of 100beneficiaries from each of the med ium scale industry will be selected for grant of
the loan, if they fulfill the criteria laid out for the Scheme. Any medium scale
entrepreneur, who has investment in Plant and machinery worth Rs 5 Cr, and
has the unit in working condition for the last 3 years, will be eligible for the
Scheme.
Each beneficiary has to invest 20% of the capital outlay as his
deposit. The technology up gradation under the Scheme will have
two specific features- one, 20% as one time capital subsidy, and 10%
interest subsidy annually, up to a period of 5 years or closure of the
loan, whichever is earlier. The Banks, under an agreement under
frapton should charge only 10% on the outstanding loan amount.
Though fraption is interest rate gu arantee option for investors to set
up a forward rate agreement during an agreed amount of time that
triggers in response to a pre-set strike price, fraptions are used to
protect investors from dramatic declines in interest rates. In the
present context, fraption term is used to indicate a forward rate
agreement d uring the agreed amount of time (5 years from the dateof sanction of the loan), and 10% is the pre-set strike price interest
since the Scheme is in the national interest of developing the
modernization and technology up-gradation of the medium scale
indu stry which is the heart of the indu strial spectrum .
The total number of beneficiaries envisaged for benefit under
the Scheme is 500 medium scale units who would create new
investments up to Rs 2 Cr, Rs 3 Cr, Rs 2.5 Cr, Rs 4 cr and Rs 5 Cr per
annum for 5 years. The period of re-payment of the loan amou nt, thatis 60% of this outlay is 5 years. The Schem e provides a capital subsidy
of 20%, and interest subsidy of 10% (the total interest component of
the loan) covering the entire loan period. The capital subsidy is
adjusted towards the loan amou nt at the end of the loan period. The
size of th e Scheme is Rs 12,598 Cr.
-
8/2/2019 Suggested innovative Schemes for SME Industry
33/40
33
The Line of Credit is a pool of available money that one can
borrow. WHEN ON E GETS a LINE OF Credit, the party gets the
ability to draw up to the maximum amount. Line of Credit will have
a draw period as well as a re-payment period. The present Line of
Credit created under the present Scheme, is that the Capital subsidy+ loan amou nt can be draw n in one lum p sum and utilized, and just
like any other term loan, he can pay in Equated half yearly
instalments or quarterly rests, as per Banks terms and conditions.
The line of Credit proceeds will be adjusted against the loan in the
final instalment of the Bank loan, and shall not be credited to the
account of beneficiary under any circumstances to minimize its
misue. But the mon ey toward s the Capital subsidy portion shall
remain as Line of Credit, which guarantees 20% part of the loan
granted under the Scheme. The interest is released in a periodicalbasis while the Line of credit covering the entire corpus is released
only at the fag end of loan closure and will be kept in a separate
designated accoun t by the Bank.
Table 1
Tab le sh o w in g t h e d e t a i l s o f Lo an am o u n t w i th Ban k lo an , i n ves tm en t , su b s id y , i n t e re s t e t c
Sl No. Amount of
Loan
Bank
Loan
Investment
@ 20% of the
unit cost
One-time
capital
subsidy
@20% of
the unit
cost)
Interest
subsidy
@ 10% of
the unit
cost
No of
Beneficiaries
Total
1. Rs 2 Cr Rs 1.20
cr
Rs 0.40 Cr Rs 0.40
Cr
Rs 0.12
Cr
100 Rs200.00
Cr
2. Rs 2.5 Cr Rs 1.50
Cr
Rs 0.50 cr Rs0.50 Cr Rs 0.15
Cr
100 Rs 250.00
Cr
3. Rs 3.0Cr Rs 1.80
Cr
Rs 0.60 Cr Rs 0.60
Cr
Rs 0.18 cr 100 300.00 Cr
4. Rs 4.00
Cr
Rs 2.40
Cr
Rs 0.80 Cr Rs 0.80
Cr
Rs 0.24
Cr
100 Rs 400 Cr
5. Rs 5.00
Cr
Rs 3.00
Cr
Rs 1.00 Cr` Rs 1.00
Cr
Rs 0.30
Cr
1000 Rs 500 Cr
Rs 16.5
Cr
Rs 9.90
Cr
Rs 3.3 Cr Rs 3.3 Cr Rs0.33 Cr 500 Rs 1,650
Cr
Table 1(b)
Total amoun t outlay in each term loan amoun t segment
-
8/2/2019 Suggested innovative Schemes for SME Industry
34/40
34
Total Loan
amount
(1)
Investment
(2)
Bank Loan
(3)
Capital
subsidy
(4)
Interest
Subsidy
(5)
Total:
(6)
(2+3+4+5)
Rs 2.00 Cr Rs 0.40 Cr Rs 1.20 Cr Rs 0.40 Cr Rs 0.12 Cr Rs.120 Cr
Rs 2.50 Cr Rs 0.50 Cr Rs 1.50 Cr Rs 0.50 Cr Rs 0.15 Cr Rs 2.65 Cr
Rs 3.00 Cr Rs 0.60 Cr Rs 1.80 Cr Rs 0.60 Cr Rs 0.18 Cr Rs3.18 CrRs 4.00 Cr Rs 0.80 Cr Rs 2.40 Cr Rs 0.80 Cr Rs 0.24 Cr Rs4.24 Cr
Rs 5.00 Cr Rs 1.00 Cr Rs 3.00 Cr Rs 1.00 Cr Rs 0.33 Cr Rs5.33 Cr
Rs16.5 Cr Rs 3.30 Cr Rs 9.90 Cr Rs 3.30 Cr Rs1.02 Cr Rs17.52 CrRs1650 Cr Rs 330.00 Cr Rs 990.00 Cr Rs 330.00 Cr Rs 102.00 Cr Rs 1752. Cr
Tab le 1
To t a l lo a n a m o u n t , in v e s t m e n t , B a n k lo a n , s u b s i d y, e t c Ye a r wi s e(Rs in Cr )
Ye a r Ba n k Loa n In t e r e s t
2012-13 990.00 99.002013-14 1710.00 171.002014-15 2052.00 205.202015-16 2424.00 242.402016-17 2754.00 275.40
Tota l : 9 ,9 30 .0 0 9 9 3 .0 0
Every year, the amount of Bank loan will shrink to the extent of 20%, andby the end of 5 years, what is reflected as cumulative interest is the amount that isapportioned by the Government as interest subsidy that would be transferred to
the Bank by the implementing agency.
Table- II
S u m m a r y o f t h e S ch e m e i n i t s to t a lit y(Rs in Crores)
Year Bank Loan Interest Capital subsidy (Lineof Credit)
Administrative &allied charges*
2012-13 Rs 990.00 99.00 330.00 5.002013-14 Rs 1710.00 171.00 330.00 5.002014-15 Rs 2052.00 205.20 330.00 5.00
2015-16 Rs 2424.00 242.40 330.00 5.002016-17 Rs 2754.00 275.40 330.00 5.00
Tota l : Rs 9,930.00 993.00 1,650.00 25.00(*)Implementation, Publicity, Evaluation, Awareness, Printing, Consultancycharges
Table- 3 (a)
R s 2 C r Te c h n o l o g y Up -g r a d a t i o n p r o j e c t ( Me d iu m s c a le i n d u s t r y)
-
8/2/2019 Suggested innovative Schemes for SME Industry
35/40
35
Year Loan amt(Rs in Cr)
Investment Capitalsubsidy
Interest subsidy Loanamt+interest
2012-13
120.00 40.00 40.00 12.00 132.00
2013-14
120+96(216) - - 12+9.60(21.6) 237.60
2014-15 120+96+72(288) 12+9.60+7.20(28.80)
316.80
2015-16
120+96+72+48(336)
12+9.60+7.20+4.80(33.60) 369.60
2016-17
120+96+72+48+24(360) 12+9.6+7.2+4.8+2.4(36.00)
396.00
Total: 1320 40.00 40.00 132.00 1452.00
Table- 3(b)
R s 2 .5 Cr T UP f o r Me d i u m S ca l e I n d u s t r y
Year Loan amt(Rs in Cr)
Investment Capital subsidy Interestsubsidy
Loanamt+interest
2012-13 150.oo 50.00 50.00 15.00 165.002013-14 150+120(270) - - 27.00 297-00
2014-15 150+120+90(360) 36.00 396.002015-16 150+120-
90+60(420)42.00 462.00
2016-17 150+120+90+60+30(450)
45.00 495.00
Total: 1650 50.00 50.00 165.00 1815.00
Ta b le - 3
R s 3 .0 Cr TUP fo r Me d i u m s c a le i n d u s t r y
Year Loan amt(Rs in Cr)
Investment Capitalsubsidy
Interestsubsidy
Loanamt+interest
2012-13 180 60.00 60.00 18.00 198.002013-14 180+180-36)=324 32.40 356.40
2014-15 180+144+108(360) 36.00 396.002015-16 180+144+108+72
=43243.20 475.20
2016-17 180+144+108+72+36
= 468
46.80 514.80
Total: 1764.00 60.00 60.00 176.40 1940.40
Table 3 (d)
R s 4 .0 Cr T UP fo r Me d i u m S ca l e In d u s t r y
-
8/2/2019 Suggested innovative Schemes for SME Industry
36/40
36
Year Loan amt(Rs in Cr)
Investment Capitalsubsidy
Interestsubsidy
Loanamt+interest
2012-13 240 80.00 80.00 24.00 264.002013-14 240+192(432) 43.20 475.20
2014-15 240+192+144(480) 48.00 528.00
2015-16 240+192+144+96(576) 57.60 633.602016-17 240+192+144+96+48=624.00
62.40 686.40
Total: 2352.00 80.00 80.00 235.20 2587.20
Table 3 (e )
R s 5 .0 Cr T UP fo r M e d i u m S ca l e I n d u s t r y
Year Loan amt(Rs in Cr)
Investment Capitalsubsidy
Interestsubsidy
Loanamt+interest
2012-13 300.00 100.00 100.00 30.00 330.002013-14 300+240(540) 54.00 594.00
2014-15 300+240+180(600) 60.00 660.002015-16 300+240+180+120(660) 66.00 726.002016-17 300+240+180+120+60
=720.0072.00 792.00
Total: 2820.00 100.00 100.00 282.00 3102.00
Tab le 4 ( a )
Al l th e Segm en ts du r ing 20 12-13
(Rs in Cro r es )Benef ic ia r ies
(1)
I n v e s t m e n t
(i i)
B a n k
Loan(iii)
Capi ta l
su b s id y(iv)
I n t e r e s t
s u b s i d y(v)
B a n k
L o a n +I n t e r e s t(vi)
100(Rs 2 Cr) 40.00 120.00 40.00 12.00 132.00100(Rs2.5Cr) 50.00 150.00 50.00 15.00 165.00100(Rs 3 cr) 60.00 180.00 60.00 18.00 198.00100(Rs 4 Cr) 80.00 240.00 80.00 24.00 264.00100(Rs 5 cr) 100.00 300.00 100.00 30.00 330.00
To ta l: 3 30 .0 0 9 9 0 .0 0 3 30 .0 0 9 9 .0 0 10 8 9 .0 0
Beneficiaries: 500; New Total investment Rs 1749 Cr
Tab l e 4 (b )
Al l th e Segm en ts du r ing 20 13-14
-
8/2/2019 Suggested innovative Schemes for SME Industry
37/40
37
( R s i n C r o r e s )Benef ic ia r ies
(1)
I n v e s t m e n t
(i i)
B a n k Loan(iii)
Capi ta ls u b s i d y(iv)
I n t e r e s tsu b s id y(v)
B a n k L o a n +I n t e r e s t(vi)
100(Rs 2 Cr) 40.00 216.00 40.00 21.60 237.60100(Rs2.5Cr) 50.00 270.00 50.00 27.00 297.00100(Rs 3 cr) 60.00 324.00 60.00 32.40 356.40100(Rs 4 Cr) 80.00 360.00 80.00 36.00 396.00100(Rs 5 cr) 100.00 540.00 100.00 54.00 594.00
Total: 3 3 0 . 0 0 1710.00 3 3 0 . 0 0 171.00 1881.00Beneficiaries: 500;
Bank loan would be inclusive of fresh loans for new beneficiaries, and loan
outstanding against previous beneficiaries who would have paid 20% of the loanamount by way of recovery. Rs 200 Cr was given as loan in the first year. At theend of the first year, Bank loan component (20%) of Rs 40 lakhs would have beenreturned towards Quarterly/Half Yearly instalments. Hence Balance of Bank loanin their records will be Rs 120 Cr (2015-16) + (120-24) = 120+96 + interest of Rs21.60= Rs 237.60 Cr.
Table- 4
All th e Segm en ts du r ing 20 14-15
( R s in Cr o r e s )Benef ic ia r ies In ves tm en t Ba nk
LoanCapi ta lsu b s id y
I n t e r e s tsu b s id y
B a n k L o a n +I n t e r e s t
100(Rs 2 Cr) 40.00 288.00 40.00 28.80 316.80100(Rs2.5Cr) 50.00 324.00 50.00 32.40 356.40100(Rs 3 cr) 60.00 360.00 60.00 36.00 396.00100(Rs 4 Cr) 80.00 480.00 80.00 48.00 528.00100(Rs 5 cr) 100.00 600.00 100.00 60.00 660.00
Total: 3 3 0 . 0 0 2052.00 3 3 0 . 0 0 205.20 2257.20Beneficiaries: 500;
Tab l e 4 (d )
Al l th e Segm en ts du r ing 20 15-16
-
8/2/2019 Suggested innovative Schemes for SME Industry
38/40
38
( R s i n C r o r e s )Benef ic ia r ies In ves tm en t Ba nk
LoanCapi ta lsu b s id y
I n t e r e s tsu b s id y
B a n k L o a n +I n t e r e s t
100(Rs 2 Cr) 40.00 336.00 40.00 33.60 369.60
100(Rs2.5Cr) 50.00 420.00 50.00 42.00 462.00100(Rs 3 cr) 60.00 432.00 60.00 43.20 475.20100(Rs 4 Cr) 80.00 576.00 80.00 57.60 633.60100(Rs 5 cr) 100.00 660.00 100.00 66.00 726.00
Total: 3 3 0 . 0 0 2424.00 3 3 0 . 0 0 242.40 2666.40Beneficiaries: 500;
Table 4 (e)All th e Segm ent s du r ing 20 16-17
( R s i n C r o r e s )Benef ic ia r ies In ves tm en t Ba n k
LoanCapi ta lsu b s id y
I n t e r e s tsu b s id y
B a n k L o a n +
I n t e r e s t100(Rs 2 Cr) 40.00 360.00 40.00 36.00 396.00100(Rs2.5Cr) 50.00 450.00 50.00 45.00 495.00100(Rs 3 cr) 60.00 600.00 60.00 60.00 660.00100(Rs 4 Cr) 80.00 624.00 80.00 62.40 686.40100(Rs 5 cr) 100.00 720.00 100.00 72.00 792.00
Total: 3 3 0 . 0 0 2754.00 3 3 0 . 0 0 275.40 3029.40Beneficiaries: 500; New Total investment Rs 1650 Cr
Table- 5
SUMMARY
Outlay(Rs in Cr)
Total BankLoan(Rs in Cr)
Interest onBank LoanInterestsubsidy(Rs in Cr)
No of units(numericalno)
Line of Credit(Capitalsubsidy)(Rs in Cr)
Implementation,publicity,evaluation,awareness,publicity,consultancy, or anyother activity
12,598Cr
990.00 99.00 500.00 Rs 330.00 Cr Rs 5.00 Cr
1710.00 171.00 500.00 Rs 330.00 Cr Rs 5.00 Cr2052.00 205.20 500.00 Rs 330.00 Cr Rs 5.00 Cr2424.00 242.40 500.00 Rs 330.00 Cr Rs 5.00 Cr2754.00 275.40 500.00 Rs 330.00 Cr Rs 5.00 Cr9930.00 993.00 2 5 0 0 . 0 0 Rs 1,650.00 Cr Rs. 25.00 Cr
Total Outlay: Rs 12,598 Cr
-
8/2/2019 Suggested innovative Schemes for SME Industry
39/40
39
Investment: Rs 1,650 CrBank Loan: Rs 9,930.00 CrCapital Subsidy: 1,650.00 Cr (Line of Credit adjusted towards loan after the loanis liquidated in full. No reimbursement, but adjustment against Loan only)Interest subsidy: Rs 993.00 Cr
Extra Expenses: Rs 25.00 CrPeriod of the TUF Loan: 5 years from the sanction of the LoanRepayment: Not earlier than 3 years and not later than 5 yearsCollateral security and/or third party guarantee as per Banks terms.
The machineries that are eligible for technology up- gradation for variousindustries will be shown in the Schedule and only those machines will be eligiblefor Government support.
Total Cost to the Government: Rs 1650 Cr (staggered at Rs 330 Cr per annum)and interest subsidy of various denominations equaling Rs 993 Cr. The interest
be released to the Bank quarterly.
Base l I I Ra t ing: MSME Scheme may be modified to include the beneficiariesunder the Technology Up-gradation Scheme for TUF.
The Scheme may be brought under the C r e d i t G u a r a n t e e T r u s t F u n dS c h e m e under the MSME by upgrading the total amount to Rs 5 cr withsufficient instalments, annuity. It may be noted that the MSME Ministry and theCGTFS officials interpret the rules in the same manner and in synergy. Myexperience has been, when Rs 243 Cr REMOTE Scheme was conceptualized byme, and brought under the Credit Guarantee trust Fund Scheme, the DC officegave different interpretation from the one provided by the Scheme officials basedin Bombay, so much so, the Scheme implementation was delayed by over 8months. This is not meant as Criticism, but suggested for course correction,please.
Who are the beneficiaries?: Any industry falling in line with the definitionof Medium scale industry would be eligible to take advantage of the Scheme. Asthe Scheme is representative in character, 10% outlay of North Eastern region,the mandatory reservation for SC/ST etc has not been made. This is a skeletonScheme submitted for perusal.
Under the present Scheme of things, it is suggested, that handicrafts,handloom and any other sector which requires involvement of hand madeproduces, once the technology up-gradation is applied, it would becomehandloom(power loom), handicrafts(machine made crafts) destroying the basicstructure of the Product. Furthermore, there are Schemes for the Textiles andjute sector for technology up- gradation under the Textiles Ministry, anotherScheme for Handicrafts, and Handlooms by the same Textiles Ministry. It is
-
8/2/2019 Suggested innovative Schemes for SME Industry
40/40
suggested that these sectors be omitted by the TUF to be implemented by MSMEfor Medium Scale Industries.
This Scheme may cover light engineering, heavy engineering, leather,chemicals, auto spare parts and components industry, plane spare parts(since the
number of private airlines have increased, it is quiet possible to invite foreigninvestors), food processing, electrical, chemical, hospitality, logistical,infrastructure, textiles, tourist etc.
No new industry need to be given admission to the Scheme, because, anew unit can straight away go for the state-of-the-art machineries as it is a newunit commencing from the scratch. Except the plane spare parts, I mentionedearlier, other new companies may be covered in the next phase of the Scheme.
Conc lus ion :
This is only a synopsis. If the Ministry is interested, a draft proposalmeeting the Govt of India norms can be prepared and eventually submitted toExpenditure Finance Committee of dept of Expenditure, Ministry of Finance.
The Scheme may be implemented by DC, MSME or SIDBI or any otheragency which the Ministry may choose. But the opportunity to increase theoutput and productivity and economies of scale of the Medium Scale industry islong overdue.
-o-o-o-o-o-o-
Copyright: @ With A V Ramanathan (avramani2002@hotmail com)