A common facility centre (CFC) to serve the furniture cluster of Micro Small and Medium Enterprises units is planned for the district at a cost of Rs. 15 crore.
At a meeting of furniture manufacturers held here on Friday, a Cluster Development Consultative Committee was constituted to promote the CFC and S. Yasodhanan, Branch Manager of SIDCO, was nominated as the chairman.
Special purpose vehicle
A special purpose vehicle or the private limited company to be formed is authorised to prepare a diagnostic study report.
Speakers said that the Ministry of MSME of Government of India is operating a scheme –Micro Small Enterprises Cluster Development Programme–to support micro and small units. Twenty units that are involved in manufacturing similar products at a particular location will be categorised as cluster units.
Beneficiaries have to invest for the land and building that ranges from 10 per cent to 20 per cent of the project cost, while the government would sanction 80 per cent of the project value as grant-in-aid to purchase the plant and machinery while two per cent of the project cost is allowed to meet preliminary and pre-operative expenses.
Incentives
K. Govindarajan, General Manager of District Industries Centre detailed about the various incentives and subsidies available with the State government. R. Senthilkumar, Deputy Director of National Small Industries Corporation Limited, and A. Shiva Kumar, Assistant Director of MSME-Development Institute explained about the Central government schemes.
A. Panner Selvam, Chief Manager, Bank of India, briefed about the financial assistance to the MSME sector. K. Mariappan, vice-president of Tamil Nadu Small and Tiny Industries Association, explained about various steps to be taken to setup a CFC to serve the wooden furniture cluster units.
T. Mahendran, chairman of Tamil Nadu Furniture Manufactures Association, spoke.
