ABSTRACT

Micro, Small and Medium Enterprises – Announcement made by the

Hon’ble Minister (Fisheries, Finance and Personnel and Administrative
Reforms) during the Budget speech for 2017-18 - Formulation of New
Scheme for Developing Coir Clusters in Tamil Nadu - Development of 3 Coir
Product Clusters at Negamam, Boodalur and Erode at a total estimated cost
of Rs.22.00 crore - Draft operational Guidelines of the Scheme approved -
Orders issued.
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MICRO, SMALL AND MEDIUM ENTERPRISES (D1) DEPARTMENT

G.O.(Ms.) No. 75 Dated : 30.11.2017

ÂUtŸSt® M©L 2048
nAés«Ã tUl« fh®¤Âif, 14
Read:
1. Budget Speech of Hon’ble Minister for Fisheries, Finance and
Personnel and Administrative Reforms dated 16.03.2017.
2. From the Additional Chief Secretary / Industries Commissioner
and Director of Industries and Commerce, Letter Rc.
No.16157/ICH/2016, dated 24.05.2017.
--------
ORDER:

In the Budget Speech 2017-18 the Hon’ble Minister for Fisheries,

Finance and Personnel and Administrative Reforms made an
announcement on 16.03.2017 as follows:
“befk«, ójYh® k‰W« <nuhL M»a Ïl§fëš, kÂ¥ò¡ T£l¥g£l
bj‹id eh® _y« c‰g¤Â brŒa¥gL« bghU£fsh»a, f£Lkhd¥
bghU£fŸ, R‰W¢ NHY¡nf‰w ãytis bghU£fŸ (Geo-Textiles),
bj‹id eh® x£L¥ gyiffŸ, bj‹id eh® ÏiHk¡ f£ofŸ (Coir Pith
Blocks) cŸë£l bghU£fŸ jahç¤Âl, 22 nfho %ghŒ kÂ¥Õ£oš _‹W
bj‹id eh® fæW FGk§fŸ V‰gL¤j¥gL«.”
2. In accordance with the above announcement and with a view to
making the coir based Industries more productive and competitive and
facilitating their sustainable development, the Additional Chief Secretary /
Industries Commissioner and Director of Industries and Commerce has
submitted proposal to formulate a New Scheme named as “Scheme for
developing Coir Clusters in Tamil Nadu” along with draft operational
guidelines for the scheme in the reference second read above. He has also
submitted the project summary for each of the three coir clusters at
Negamam, Boodalur and Erode at a total estimated cost of Rs.22.00 crore in
the prescribed format as detailed below :

Sl.
Name of the coir cluster Total project cost
No.
1. Erode-Tiruppur Coir Cluster Rs. 10.50 crore
2. Negamam Coir cluster at Pollachi Rs. 8.00 crore

3. Boodalur Coir cluster at Thanjavur Rs. 3.50 crore

Total Rs. 22.00 crore

3. The Additional Chief Secretary/ Industries Commissioner and

Director of Industries and Commerce has requested the Government to
approve the draft Operational Guidelines for the New Scheme named as
“Scheme for developing Coir Clusters in Tamil Nadu” and to sanction a
sum of Rs.6.00 lakh to prepare the Detailed Project Reports (DPR) for the
proposed 3 coir clusters.
4. The Government after careful consideration of the proposal of
the Additional Chief Secretary/ Industries Commissioner and Director of
Industries and Commerce approve the draft operational guidelines for the
New Scheme named as “Scheme for developing Coir clusters in
Tamil Nadu” as appended to this order for implementation. The
Government also accord administrative sanction for the development of
Coir Product Clusters at Negamam (Coimbatore District), Boodalur
(Thanjavur District) and Erode at a total estimated cost of Rs.22.00 crore.
5. The Government further sanction a sum of Rs.6,00,000/-
(Rupees Six lakh only) for preparation of the DPRs for the above three
clusters.
6. The amount sanctioned in para 5 above shall be debited to the
following head of account :
“2851-00-Village and Small Industries - 102. Small Scale
Industries- State’s Expenditure - MV. Assistance to Private Industrial
Estate- 09. Grants-in-Aid-02. Grants for Creation of Capital Assets”.
(DPC 2851 00 102 MV 0927)
7. The Additional Chief Secretary/Industries Commissioner and
Director of Industries and Commerce is authorized to draw and disburse the
amount sanctioned in para 5 above and PFMS System need to be
implemented in this scheme. He is also instructed to follow the guidelines
scrupulously while implementation of the scheme and to send the Utilization
Certificate to the Government.
 8. This order issues with the concurrence of Finance Department vide
its U.O. No.60565/Ind/2017, dated.29.11.2017.

(BY ORDER OF THE GOVERNOR)

DHARMENDRA PRATAP YADAV

SECRETARY TO GOVERNMENT
To
The Principal Secretary / Industries Commissioner and
Director of Industries and Commerce,
Guindy, Chennai – 32.
The Managing Director,
TANSIDCO, Guindy, Chennai-32.
The Accountant General (A&E/Audit), Chennai-18.
The Pay and Accounts Officer, Chennai - 8.
Copy to:-
The Private Secretary to Secretary to Government,
Micro, Small and Medium Enterprises Department, Chennai-9.
The Planning Development and Special Initiatives Department, Chennai-9.
The Finance (Ind) Department, Chennai-9.
Micro, Small and Medium Enterprises (B/OP) Department, Chennai-9.
Stock file / Spare copy.

// FORWARDED BY ORDER //

SECTION OFFICER
 Annexure to G.O. (Ms.) No. 75, Micro, Small and Medium
Enterprises (D1) Department, dated 30.11.2017.

SCHEME FOR DEVELOPING COIR CLUSTERS IN TAMILNADU

1 Background
With a view to making the coir based industries more productive and
competitive and facilitating their sustainable development, the Government of
Tamilnadu has proposed to develop 3 coir clusters at Negamam, Boodalur and
Erode at a total estimated cost of Rs 22 crore. In this connection, Government
of Tamilnadu has decided to formulate a new scheme called as “Scheme for
developing Coir Clusters in Tamilnadu”.
The operational guidelines of the scheme is detailed below:
2 Objectives of the scheme
a. To support the sustainability and growth of coir based industries and
artisans by addressing common issues such as development of new
products, improvement of technology, skills, quality, market access, access
to capital, etc.
b. To build capacity of coir based industries for common supportive action
through formation of Special Purpose Vehicle.
c. To set up common facility centres (for testing facility, design centre,
training centre, R&D centre, raw material depot, sales depot, effluent
treatment, complementing production process and any other need based
facility).
3 Implementation Structure
a. Department of Industries and Commerce (DIC), Government of Tamilnadu
(GoTN) shall be the Nodal Agency (NA) of the scheme.
b. The scheme will be implemented through formation of a separate Special
Purpose Vehicle (SPV) which may be any one of the following entities:
(i) a Society registered under Societies(Registration) Act, 1860;
(ii) a Producer Company under section 581C of Companies Act, 1956;
(iii) a Section 8 Company under Companies Act, 2013 (18 of 2013);
(iv) a Trust;
There should be a minimum of 15 functioning units with a fair mix of small
and micro enterprises (MSEs) related to coir industries serving as members
of the Special Purpose Vehicle (SPV). There is no ceiling on the maximum
number of members. The SPV should have a character of inclusiveness
wherein provision for enrolling new members to enable prospective
entrepreneurs in the cluster to utilise the facility should be provided. The
share of the cluster beneficiaries should be as high as possible but not less
than 20 per cent of the total cost of CFC. All the participating units should
be independent in terms of their financial stakes and management. No
single unit will hold more than 10 per cent in the equity capital (or
equivalent capital contribution) of the SPV.
 c. NA would appoint a Project Management Agency (PMA) to assist in
evaluation of the proposals regarding viability, disbursement/utilization of
the funds released to the SPV and periodical monitoring of the project
implementation. The PMA also shall provide other need based advisory
services to the Government for effective implementation of the scheme.
d. GoTN would constitute the Project Scrutiny Committee (PSC) headed by
the Industries Commissioner and Director of Industries and Commerce and
Project Approval Committee (PAC) headed by the Secretary (MSME), in
order to provide approval for the proposals. Further, Commissioner of
Industries and Commerce will constitute the Project Monitoring Committee
to monitor the project implementation and operation of CFC. The
composition of the PSC, PAC and PMC is given in Annexure-I.
e. Role of various agencies is provided in the Para 9.
4 Project Interventions
The scheme would cover two types of interventions namely ‘soft interventions’
and ‘hard interventions’ as given hereunder:
a. Hard Interventions (setting up of CFCs):
Hard Interventions under the programme will consist of creation of tangible
“assets” as Common Facility Centers (CFCs) like Common
Production/Processing Centre (for balancing/correcting/improving
production line that cannot be undertaken by individual units), Design
Centres, Testing Facilities, Training Centre, R&D Centres, Effluent
Treatment Plant, Marketing Display/Selling Centre, Common Logistics
facilities, Common Raw Material Bank, Warehousing facility/Sales Depot,
ICT facilities, packaging and any other need based facility.

b. Soft Interventions:
Soft Interventions under the programme would consist of activities which
lead to creation of general awareness, counseling, motivation and trust
building, skill development, exposure visits, market development including
exports, participation in seminars, workshops, exhibitions and training
programmes on technology upgradation, etc.

5 Submission of proposal
a. SPV should submit the following documents to NA along with all necessary
enclosures:
 Project Summary Sheet (as per Annexure-II).
 Detailed Project Report (as per Annexure-III).
 Proof for Registration of SPV under relevant Act.
 Agreement for the purchase/ long term lease of land.
 Sanction letter from bank (if the bank loan is proposed )
 Shareholders agreement
b. SPV should note the following aspects while preparing DPR:
­ Building cost shall be estimated based on the PWD rates only.
­ Project Cost shall include the cost of purchase of computer and
 software for transparent accounting and submission of MIS to
NA.
­ Viability parameters such as BEP, IRR, etc., shall be at acceptable
levels.
6 Financial Assistance
a. The cost of project shall include hard interventions, soft interventions and
the cost of services of PMA.
b. The financial assistance provided for any cluster shall be subject to a
maximum of Rs.10.00 crores.
c. The funding pattern under the Scheme will be as under:

Loan
from
Project SPV
S. GoTN Banks/
Financial Limit Contri-
No Intervention grant Financial
bution
Institutions
to SPV

A Cluster
Interventions

A1 Hard 70% - Maximum 20% 10%*

Interventions Rs. 10.00
of
crores
project
per
cost
project
excluding
(A+B)
land cost

A2 Soft 100% Subject to Nil Nil

Interventions maximum of
Rs 25 lakh

B Cost of PMA 100% 5 % of A Nil Nil

(Total cost of
Cluster
Interventions)

C Cost of Subject to a
technical maximum of
manpower Rs 5 lakh
for 6
months#

* SPV is permitted to go to loan or make own contribution.

# The cost of technical manpower for 6 months is need based to meet the
operational cost.
d. The financial assistance for the scheme shall also be subject to the
following conditions:
 The land shall be included in cost of project. However, land cost will
be not considered for the grant.
 Grant will be provided only to meet capital costs towards hard
interventions, soft interventions and the cost of services of PMA.
  No assistance will be provided for meeting recurring or operation and
Maintenance costs.
 GoTN shall not have any liability towards time and cost over runs.
 There is no provision for retrospective funding.
7 Release of Funds
a. Upon approval of the proposal by PAC, sanction order will be issued to SPV
by NA.
b. SPV shall maintain an exclusive project specific Trust & Retention Account
(TRA) with any Nationalized Bank and the Funds from the Government will
be released in that account.
c. Funds for hard interventions shall be released in three installments as
given hereunder:
 First Installment of 40% of the total GoTN share shall be released to
the SPV subject to fulfillment of following conditions :-
(i) Purchase/ lease (minimum 15 years) of land in the name of SPV
(ii) Submission of statement of Project specific TRA reflecting 40% of
SPV contribution deposited by the SPV in the TRA.
 Second installment representing 40% of the total GoTN grant shall
be released to the SPV subject to fulfillment of following conditions:-
(i) Utilization Certificate duly certified by the Statutory Auditors of the
SPV for the First installment received, 40% of SPV contribution
and Term Loan.
(ii) Award of all contracts for all items approved by PAC. Award of
contracts shall be as per the Tamil Nadu Transparency in Tenders
Act, 1998 and the Tamil Nadu Transparency in Tender Rules,
2000.
 Third Installment representing 20% of the total GoTN grant shall be
released to the SPV subject to fulfillment of following conditions:-
(i) Utilization Certificate duly certified by the Statutory Auditors of the
SPV for the Second installment received, 100% of SPV
contribution and Term Loan.
(ii) Proof of commencement of commercial operations
(iii) On obtaining all relevant statutory approvals.
d. Funds for soft interventions shall be released on need based. SPV need to
submit Utilization Certificate duly certified by the Statutory Auditors of the
SPV for the soft interventions undertaken.
e. Funds for PMA will be released along with the release of payment to SPV.
f. In the event of an SPV withdrawing from executing a project before
utilizing the Government assistance, then the SPV should immediately
return the Government assistance together with the interest accrued
thereon, if any. Payment of penal interest by the SPV shall be decided by
the PAC on case to case basis.
 g. User charges would be fixed for various facilities and services by SPV with
the approval of Project Monitoring Committee. There shall be full recovery
of Operational & Maintenance (O&M) costs through user charges besides a
reasonable margin.
8 Project Duration
The timeframe for the implementation of project will be 18 months from the
date of issue of sanction order from NA.
9 Role of Agencies
9.1 Role of Nodal Agency (NA):
The role and responsibility of NA includes the following:
a. Appointment of PMA.
b. Approval of the proposals based on the appraisal of PMA.
c. NA shall be responsible to ensure timely disbursement of funds to the
SPV on recommendation of PMA to ensure time bound completion of
projects.
d. NA shall extend all support required to PMA for implementation of the
scheme as may be required such as obtaining Government approvals,
Environment Clearances etc for setting up of coir clusters.
e. Overall monitoring and evaluation of the cluster projects being
implemented.
9.2 Role of Project Management Agency (PMA):
The role and responsibility of PMA includes the following:
a. Evaluation of the proposals (including appraisal of DPR) and claims (including
disbursements and utilization of funds), submitted by the SPV and forward the
same to PSC for appraisal and recommendation to PAC for final approval.
b. Assisting NA in periodical monitoring of the Project implementation and submit
periodical reports to NA with regard to the progress of the implementation
works.
c. Preparation of tender documents relating to construction of CFC and
procurement of machineries in accordance with The Tamil Nadu Transparency in
Tender Act 1998 & The Tamil Nadu Transparency in Tender Rules, 2000.
d. Assisting SPV in conducting training programs and exposure visits.
e. Assisting NA/ SPV in organizing and planning Business Development Strategies,
buyer-seller meet and focusing on branding, e-marketing, new media
marketing, innovation, research and development etc. for smooth running of
coir cluster.
f. Any other services that may be required for successful implementation and
operation of CFC.
g. Provide other need based advisory services to the NA in effective
implementation of the scheme.
9.3 Role of Special Purpose Vehicle(SPV)
The role and responsibility of SPV includes the following:

a. SPV would conceptualize, formulate, achieve financial closure, implement and

manage the infrastructure.
 b. SPV would identify suitable land for the project and purchase/ lease
(min.15years) the land in the name of SPV.
c. SPV would also facilitate securing bank finance required for the project.
d. SPV would appoint all contractors in a fair and transparent manner. In order to
ensure timely completion of the project, SPV will obtain appropriate
performance guarantee from contractors.
e. Implement various interventions as outlined in the approved DPR.
f. Periodical reporting should be done on monthly basis to Nodal Agency in the
prescribed formats.
g. SPV would be responsible for obtaining and maintaining statutory licenses and
permits required for the various facilities.
h. SPV would be responsible for maintaining the utilities and infrastructure created
for the cluster by collecting user charges.
i. In case of dissolution of SPV within 10 years from the date of sanction of
assistance by the Government under the Scheme, the assets created with such
assistance shall be vested with the Government. The Memorandum of
Association & Articles of Association of the SPV shall incorporate this condition.
10 Administrative expenses
Project administration charges will include administrative/concurrent monitoring,
and other miscellaneous expenses. The administrative expenses shall be 2% of the
total outlay of this scheme.

11 Monitoring & Evaluation

The NA assisted by PMA will devise a suitable monitoring framework. In addition to
the monthly progress reports indicating cluster-wise physical and financial
progress, the NA will also track the progress through video-conferencing and other
ICT tools.

12 Non operation/ Closure of CFC

It is envisaged that CFC should run for a minimum period of 10 years. If in the
event of closure/ non-operation, Government has the right to take over the asset
created and handover to other organizations/ companies/ association to ensure
proper utilization of the facility. The Memorandum of Association & Articles of
Association of the SPV shall incorporate this condition.

13 Removal of Ambiguity
Notwithstanding anything contained above, GoTN may issue such instructions as
may be necessary to implement the above guidelines. If any difficulty or ambiguity
arises in giving effect to these provisions, GoTN may issue appropriate directions
which shall be binding on NA, PMA and SPV. In so far as interpretation of any of the
provisions of these guidelines, the decision of the Project Approval Committee
(PAC) shall be final.
 Annexure-I

Composition of PSC, PAC, and PMC

Project Scrutiny Committee (PSC)

(i) Industries Commissioner and Director of Industries and Commerce -

Chairman
(ii) Additional Director (DIC)
(iii) Joint Director(Coir)
(iv) General Manager, DIC of the concerned district.
(v) Regional Officer of Coir Board
(vi) Representative from Central Coir Research Institute/Central Institute
of Coir Technology
(vii) Representative from SIDCO

Project Approval Committee (PAC)

(i) Secretary (MSME) - Chairman

(ii) Industries Commissioner and Director of Industries and Commerce
(iii) Representative from Finance Department
(iv) Secretary, Coir Board
(v) 2 Special invitees (financial institutions, programme management service
provider, Representative of appraisal agency etc.)

Project Monitoring Committee (PMC)

(i) District Collector/ General Manager of DIC

(ii) Representative from Bank in which TRA account is held
(iii) Representative from Project Management Agency
(iv) President/Managing Director/Managing Trustee of Special Purpose Vehicle
 ANNEXURE - II

ROLE OF AGENCIES
1. Role of Nodal Agency (NA):
The role and responsibility of NA includes the following:
a. Appointment of PMA.
b. Approval of the proposals based on the appraisal of PMA.
c. NA shall be responsible to ensure timely disbursement of funds to
the SPV on recommendation of PMA to ensure time bound
completion of projects.
d. NA shall extend all support required to PMA for implementation of the
scheme as may be required such as obtaining Government
approvals, Environment Clearances etc for setting up of coir
clusters.
e. Overall monitoring and evaluation of the cluster projects being
implemented.
2. Role of Project Management Agency (PMA):
The role and responsibility of PMA includes the following:

a. Evaluation of the proposals (including appraisal of DPR) and claims

(including disbursements and utilization of funds), submitted by the
SPV and forward the same to PSC for appraisal and
recommendation to PAC for final approval.
b. Assisting NA in periodical monitoring of the Project implementation
and submit periodical reports to NA with regard to the progress of
the implementation works.
c. Preparation of tender documents relating to construction of CFC
and procurement of machineries in accordance with The Tamil Nadu
Transparency in Tender Act 1998 & The Tamil Nadu Transparency
in Tender Rules, 2000.
d. Assisting SPV in conducting training programs and exposure visits.
e. Assisting NA/ SPV in organizing and planning Business
Development Strategies, buyer-seller meet and focusing on
branding, e-marketing, new media marketing, innovation, research
and development etc. for smooth running of coir cluster.
f. Any other services that may be required for successful
implementation and operation of CFC.
g. Provide other need based advisory services to the NA in effective
implementation of the scheme.
3. Role of Special Purpose Vehicle(SPV)
The role and responsibility of SPV includes the following:

a. SPV would conceptualize, formulate, achieve financial closure,

implement and manage the infrastructure.
b. SPV would identify suitable land for the project and purchase/ lease
(min.15years) the land in the name of SPV.
c. SPV would also facilitate securing bank finance required for the
project.
d. SPV would appoint all contractors in a fair and transparent manner.
In order to ensure timely completion of the project, SPV will obtain
appropriate performance guarantee from contractors.
e. Implement various interventions as outlined in the approved DPR.
f. Periodical reporting should be done on monthly basis to Nodal
Agency in the prescribed formats.
g. SPV would be responsible for obtaining and maintaining statutory
licenses and permits required for the various facilities.
h. SPV would be responsible for maintaining the utilities and
infrastructure created for the cluster by collecting user charges.

In case of dissolution of SPV within 10 years from the date of sanction

of assistance by the Government under the Scheme, the assets created with
such assistance shall be vested with the Government. The Memorandum of
Association & Articles of Association of the SPV shall incorporate this
condition.
 Annexure-III

Project Summary Sheet

1. Name of Cluster
2. Location State:
District:
Block:
Villages:
3. Current Product
Portfolio
4. Name of SPV
5. Legal Status
6. Project Objective
7. Key Gaps Identified
8. Proposed
Interventions
9. Hard Interventions
Infrastructure Constructed Machinery/
Cost
Facility Area Equipments

Soft Interventions
Intervention Proposed No of Cost
Activities Beneficiaries
a) Skill Training
b) Capacity
Building
c) Market
Promotion
d) Any other
10. Project Cost
11. Means of Finance
12. Phasing of the
Project
13. Project
Implementation
Framework /
Proposed SPV
Structure
14. Key Impacts
 Annexure-IV

Coverage of DPR

The indicative list of key sections/ chapters in the DPR is as below:

Chapter Title Contents of the chapter

1 Cluster Profile This Chapter will provide the key facts including the
regional setting of the Cluster, the significance and
evolution of the Cluster. It will also provide the key
demographic, socioeconomic as well as human
development indicators for the district/ Cluster.
Also, this chapter will detail the key economic
activities in the region, along with the current
physical, social and production infrastructure
available.
Indicative List of Sections:
(1)Background
(2)Regional Setting of the Cluster
(3)Location
(4)Evolution of the Cluster
(5)Demography and Growth trends
(6)Socio-economic Aspects
(7)Human Development Aspects
(8)Key Economic Activities in the Region
(9)Infrastructure – social, physical, financial and
production- related
2 Cluster Value This Chapter will provide the key production related
Chain Mapping facts about the Cluster. It will provide details on the
product profile and the production process for the
Cluster. Also, a value chain analysis will be
conducted for the key product categories. A
mapping of the Cluster will be done wherein the
major backward and forward linkages will be
highlighted, along with identification of the major
stakeholders along the value chain..

Indicative List of Sections:

(1)Product Profile
(2)Production Process
(3)Value Chain Analysis
(4)Cluster Map – highlighting backward and forward
linkages
(5)Principal Stakeholders
3 Market This Chapter will provide the key trends in the
Assessment and market and the demand potential for the industry/
Demand product(s) of the Cluster in the domestic as well
Analysis global markets. Marketability of products is most
critical for sustainability of the Cluster activities and
thus it will be important to understand the trend in
market demand and the potential for the products.
Information on the current market trends and
Chapter Title Contents of the chapter
demand patterns will be collected from various
secondary data sources as well as feedback from
the buyers/ industry players so as to forecast future
trends and identify focus product categories as well
as key market segments. The analysis will help to
determine the potential size of the market which will
be important for maximizing the potential and
minimizing the risk for the project. This assessment
will enable appropriate positioning of the products
of the Cluster and synchronization of the Cluster
products with the market requirements.
4 SWOT and Need This Chapter will provide a SWOT analysis and a
Gap Analysis needs gap assessment for the Cluster and its
products. As part of the diagnostic study a gap
analysis will be done to identify key gaps and
challenges faced by the Cluster and its stakeholders
that impede the attainment of optimized production
and quality potential. This will highlight the key
areas that need improvement in order to move from
the current state to the desired level of scale,
productivity and efficiency.
5 Project Concept This Chapter will provide a conceptual framework
and Strategy for the project implementation. This section will list
Framework the project objective that is envisaged for the
successful implementation of the project. The
overall approach for the project will be based on the
findings of the need gap analysis as well as the
market demand analysis. The project will have to be
structured in such a manner that it addresses the
key gaps in the Cluster for attainment of the project
objectives. The overall guiding principle should be to
make the Cluster and its products more productive
and competitive by way of enhancing the
marketability of the products, addressing the
current production and supply bottlenecks,
improving the skill levels of the artisans,
introduction of improved techniques/ tools and
strengthening Cluster linkages.
Indicative List of Sections:
(1)Project Rationale
(2)Project Objective
(3)Focus Products/Services
(4)Conceptual Framework / Project Strategy
6 Project This Chapter will provide the key interventions that
Interventions will be undertaken as part of the project
implementation. In accordance with the needs of
the Cluster as well as the market requirements, the
key areas of intervention will have to be identified
Chapter Title Contents of the chapter
under the project. The interventions will be
classified under two broad heads – hard
(infrastructure related) and soft interventions.

7 Hard This Chapter will provide the hard interventions to

Interventions be implemented under the project. For each hard
intervention, the below details are to be provided:
- Proposed Intervention,
- Land Details,
- Proposed Capacities,
- Proposed Equipment/ Machines etc,
- Master Plan/ Detailed Engineering
Drawings
- Project Cost,
- Operation and Maintenance Model,
- Business Plan,
- Implementation Schedule
- Any other information pertaining to
the project

8 Soft This chapter will provide the soft interventions that

Interventions will be undertaken as part of the project. This will
include details on the proposed activity, plan of
implementation, coverage of the activity, mode of
delivery/ implementation, schedule of activities,
cost of activities and timelines for implementation.
A detailed plan for implementation of the activity
along with the way of implementation of the
activities in the Cluster will be provided here.
For instance, in case of a skill training program,
following information will have to be provided –
proposed training programs, course outline,
duration, batch size, trainers, training delivery
method, details of infrastructure required,
availability of infrastructure, method for trainee
identification, cost of training programs etc.
In addition, any tie-ups or professional linkages for
the effective implementation of the programs will
have to be indicated here.
9 Project Cost and This Chapter will provide the project cost. The total
Means of project cost based on the interventions mentioned
Finance in the previous sections will be computed including
the Cost of PMA. The proposed means of funding for
the project shall include the following:
 GoTN Grant
 Contribution from the SPV in two forms:
o Own Contribution
o Debt / Loan from Financial Institution
The project will be implemented over a period of 18
months and the quarter-wise phasing of the project
cost will be provided.
(1)Estimated Project Cost
Project Intervention Cost
A Cluster Interventions
A1 Hard Interventions
i)
ii)
A2 Soft Interventions
i)
ii)
B Cost of PMA
TOTAL (A+B)

(2)Means of Finance

(3)Project Phasing
10 Project Timeline This Chapter will provide the project implementation
schedule with details of the activities to be
undertaken and the expected time-frame for each
activity. The schedule will typically provide quarter-
wise scheduling of the specific activities. The
progress of the project will be monitored against
this implementation schedule provided by the SPV
to ensure timely completion of the project activities.

Illustrative Project Implementation Schedule

Project Activity Q1 Q2 Q3 Q4 Q5 Q6
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
11 Detailed This section will present tentative business plan to
Business Plan establish the commercial viability band
sustainability of the project. It shall present the
project revenue potential over a 5 year period,
starting from commencement of business
operations. It will also detail the costs including
input, manpower, capital costs, etc and will present
the profitability of the project including the break-
even period and IRR.
Indicative List of Sections
(1) Project Phasing
(2) Production Capacity
(3) Product Mix
(4) Manpower Cost
(5) Utility and Other Overheads
(6) Depreciation
(7) Working Capital
(8) Financial Projections : Profitability Estimates

Profit and Loss Y1 Y2 Y3 Y4 Y5

Revenues
Source 1
Source 2
Total Revenues
Expenses
Labour Cost
Manpower
Raw Material
Costs
Marketing Costs
Power Cost
Packaging Cost
Utility Costs
Maintenance
Admin
Total Expenses
WC Borrowings
PBT
Tax
PAT

(9) Break-even Analysis

(10) IRR Calculation
12 Proposed This Chapter will provide the proposed
Implementation implementation framework that will be adopted for
Framework the implementation of the project. The SPV will
provide details on their role and whether they
themselves will reconstitute the institution as per
the guidelines to be the SPV (along with proof of
eligibility) or whether they will register a separate
SPV for the implementation of this specific project.
The structure and composition of the SPV should be
indicated here. Also, the SPV should provide details
of the other strategic partners and institutions that
will be associated with the project to strengthen
their operations. A road map on the proposed
methodology and implementation plan for the
project should also be provided

Indicative List of Sections:

(1)Role of the SPV
(2)Details of Strategic Partners and other project
stakeholders
(3)Structure of the SPV
(4)Composition of the SPV with details of roles and
responsibilities of each partner / shareholder
13 Expected This Chapter will provide the key impacts that are
Impact expected to be achieved as a result of this project.
The key development parameters for the Cluster
and the stakeholders (artisans, entrepreneurs, etc)
will be mapped at the beginning of the project. This
section will outline the expected improvement in
these key development parameters that are
expected at the end of the project period. These
parameters will include – cluster turnover,
employment, artisans incomes, profit/ margin for
local entrepreneurs/ exporters, quality levels,
productivity levels, market access etc.

DHARMENDRA PRATAP YADAV

SECRETARY TO GOVERNMENT

// TRUE COPY //

SECTION OFFICER