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Government
of India has launched “Apparel Park for Exports” scheme
for imparting focussed thrust for setting up of apprel Manufacturing
units of international standards at potential growth centres. The
Apparel Parks for Exports Scheme has come into operation w.e.f.
23.3.2002.
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GUIDELINES:
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1.
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DETAILS
OF THE SCHEME |
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| (i) |
The
State Govt. or an Undertaking sponsored by the State Government
(the designated agency) will provide land free of cost for
establishing the park of sufficient size. (The size of an
apparel park may be approximately 150-250 acres, but this
can be determined in each case on merits).
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| (ii) |
The
location of the apparel park will be such that it is conducive
to the establishment of state-of-the art manufacturing units
in terms of its access to ports, airports, rail heads etc.,
availability of raw-materials and the general level of infrastructural
facilities available.
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| (iii) |
The
designated agency will provide infrastructural facilities like
power, water, roads (including approach roads to the park),
sewerage and drainage, tele-communication & other facilities
for the park. Such facilities shall be of high standards to
ensure that the units established in the park are able to function
efficiently.
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| (iv) |
The
park will have garment manufacturing units with each unit having
atleast 200 sewing machines. The park would especially aim at
integrated units. It would provide employment to at least 20,000
persons when it becomes fully operational. The park could have
the ancillary units like the units manufacturing buttons etc.
The park would also aim at having specialised units like processing
or washing units to bring more value addition to the garments
manufactured. |
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| (v) |
The
State Government will also take the initiative in providing
flexibility in labour laws in these clusters.
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| (vi) |
The
Central Government will give as a grant 75% of the capital expenditure
incurred by the State Government on the infrastructural facilities
of the Apparel Park, while the remaining 25% will be borne by
the agency. This grant shall be limited to a maximum of Rs.10
crores. |
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| (vii) |
The
Central Government will also provide a sum upto Rs. 5 crores
for setting up of an effluent treatment plant,creche/s, any
multi purpose centre/hall for marketing /display etc. (This
is being proposed as these facilities are required to enable
the units to meet emerging labour/social/ environmental standards). |
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| (viii) |
The
Central Government will also undertake to provide skill upgradation
of the workers employed in the units under its existing schemes,
wherever possible.
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| (ix) |
The
Central Government will provide grant upto 50% of the cost of
any training facility created in the park upto a maximum of
Rs.2 crores. (This is being proposed as skill upgradation in
garment sector is a continuous process to maintain competitiveness).
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| (x) |
The
State Government may not charge any stamp fee on the sale/transfer
of land in this park. (This facility has been given by the Government
of Maharashtra for the units being set up in Millenium Park) |
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2.
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PROJECT
APROVAL COMMITEE: |
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(i)
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The
project proposals shall be considered by a Project Approval
Committee (PAC) headed by Secretary (Textiles), Advisor (Textiles)
Planning Commission, AS&FA, Ministry of Textiles, Textile
Commissioner, a representative from Department of Expenditure
with Joint Secretary, Ministry of Textiles as Member Secretary
to approve and sanction the proposals received from the agencies
for establishment of ‘parks’, to monitor their implementation
and to evaluate the progress and achievement under the scheme.
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(ii)
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The agencies
requesting for assistance under the scheme will prepare feasibility
studies and detailed project reports. Only those proposals,
which are approved, will be eligible for assistance under
the scheme. While approving the proposal, care will be taken
to see that the location of the park is conducive to meet
the objectives of the scheme
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(iii)
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While
considering the proposals, due weightage shall be given to
the potential of the park for attracting investments, employment
generation, upgradation in technology, additionality to exports
and creation of labour productive environment.
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3.
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PROJECT
FORMULATION: |
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Following
points (which are intended to be indicative and not exhaustive)
could be kept in mind while preparing of project proposals
for setting up of Apparel Parks. Since development of
Apparel Parks will have to take into account the peculiar
features pertaining to each park, emphasis on various
items listed hereunder may differ. However, it needs to
be ensured that the infrastructural facilities provided
in the Park are uniformly of high standard |
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(i)
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Project
Location |
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The
locational suitability of the site in regard proximity
to international airport/seaport, access to railheads
etc., existence of an industrial, commercial and social
infrastructure, linkage with hinterland for inputs, existence
of communication facilities, availability of water and
power should be guiding factor.
State Govt./the designated agency should ensure that location
of Apparel Park is primarily guided by the factor that
the place is a leading manufacturing, trading or export
centre of the State.Details should be available of the
proposed site, especially its area and suitability for
industrial development. Normally, the land should be under
the possession of the State Government / designated agency
with clear title thereupon.
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(ii)
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Implementing
Agency |
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It
is expected that implementing agency would have been decided
upon before the project proposal is submitted. The status
of the implementing agency and its experience in executing
similar schemes may be indicated.
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(iii)
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Project
Description |
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This
should indicate both physical and commercial plan:
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(a)
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The
investments, production, employment, additionality in
exports and import substitution likely to be generated
by the units to be set up in the park.
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(b)
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An
appropriate environment management plan to ensure that
there is no adverse impact on the environment as a result
of setting up of industries in the Apparel Park. |
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(c)
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Type
of infrastructural facilities that are available and/are
proposed to be provided.
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(d)
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Business
Development Plan in a phased manner may also be indicated. |
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(iv)
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Project
Phasing |
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The
project report should indicate a realistic time frame
within which the different activities would be completed.
It may be advisable to execute the project in phases as
the demand for plots and other facilities may come up
over a period of time. |
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(v)
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Financing
Plan |
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(a)
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Project
cost |
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The
fund requirements should be indicated itemwise on all
the components of the project which should touch upon
basic assumptions made for unit prices, physical and price
contigencies, escalation and annual costs. |
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(b)
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Project
Financing |
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The
report should clearly indicate the financing arrangement
especially NRI/foreign investment, bank loans and also
the provisions proposed to be made under the State Plan
for this purpose. Approval of the State Government for
provision of necessary funds in the plan/budget should
be indicated.
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(vi)
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Economic
Viability |
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It
is expected that the parks would be financially self-sufficient
in the long run and this point will be given due importance
by the PAC.
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(vii)
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Socio-economic
feasibility report along with environmental assessment
should be completed before commencement of the project.
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(viii)
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The
report shall also include the economic feasibility of
the effluent treatment plant, which shall be owned, managed,
maintained and run by the implementing/designated agency
with the involvement of stakeholders.
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4.
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PRE-ALLOTMENT
PROCEDURES |
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(i)
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Scrutiny
and assessment formats should be designed and linked up to
MIS system by State Govt. through any appropriate agency.
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(ii)
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Before
commencing the projects or allotment of site, care should
be taken to ensure the crucial infrastructure like power,
water and telecommunication are in place.
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(iii)
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Business
development plan and promotion of Apparel Park should be drawn
up simultaneously to avoid under utilization of project.
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(iv)
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Provision
should be made for additional infrastructure facility like cargo
complex, ICD, custom clearance houses, courier and banking services
dealing with foreign exchange. |
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5.
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MONITORING
OF PROGRESS AND RELEASE OF FUNDS: |
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Since
the release of funds by the Central Government will be based
on actual financial and physical progress achieved by the park,
it is essential to institute a mechanism for monitoring the
progress of implementation. Instituting a system for monitoring
on the lines indicated below could be considered:-
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(i)
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The monitoring
of implementation of the Apparel Parks shall be done by Committee
at the State Level, which would oversee, review and report
on the progress of the Apparel Park to the Central Government,
based on which the actual release of funds would be made.
This committee will also have representatives from the Centre.
The suggested composition of the State Level Committee (SLC)
is given in Attachment-I.
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(ii)
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The SLC
shall meet once every quarter to review the progress and report
the same as at Attachment-II, III & IV to the Central
Government. The quarterly report shall be sent to the Ministry
of Textiles by the 7th day of the month following the end
of the relevant quarter, and
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(iii)
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The
Central Assistance for each Apparel Park will be released in
installments during the Plan period after assessing the progress
of Apparel Park at each stage on the basis of reports furnished
by the State Government; |
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(iv)
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All
Central assistance will be claimed through the Member Secretary,
SLC who will furnish itemwise expenditure already incurred,
before claiming Central assistance in the program at Attachment-III.
The State Government should also indicate the other sources
of funds including the provisions made in the State Plan. A
utilisation certificate as in Attachment-V should also be furnished
along with the statement of expenditure. |
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6.
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APPROVAL
OF UNITS IN APPAREL PARK FOR EXPORTS : |
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The Scheme,
though a centrally sponsored scheme, is implemented and run
by the State Governments and hence different approaches are
being followed by different States for implementing the scheme
and for attracting investment in Apparel Parks. For this reason,
it is difficult to prescribe a standard procedure for monitoring
the socio-economic benefits flowing from the units approved
for setting up projects in the Apparel Park for Exports. However,
to ensure export orientation of the units set up in the Park,
the following broad guidelines are suggested for consideration
of the State Government.
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(i)
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The project
is thoroughly scrutinized at the formulation stage itself
to ensure the possibilities and investments, employment and
export potential of the proposed site/location.
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(ii)
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The
State Level Committee (SLC) set up to monitor the implementation
of Apparel Park for Exports may also like to address this issue
and give necessary directions to the implementing authorities
for designing Monitoring formats which can be collected on half
yearly basis from the Apparel Parks. |
| QUARTERLY
REPORT INDICATING ITEMS OF EXPENDITURE AND PROGRESS ACHIEVED: |
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State
& Name of Place______________
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1.
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Name of
the APPAREL PARK FOR EXPORTS
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2.
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Name of
the Implementing Agency
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Item/Unit
of expenditure as
given in the Project Report |
Approved
Cost |
Actual
expenditure invurred upto the end of the last quarter |
Anticipated
expenditure in the current quarter(period to be shown) |
Cummulative
expenditure |
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| (i) |
Development
of site ( Itemwise) |
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| (ii) |
Industrial infrastructure |
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(a) |
Power |
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(b) |
Water
Supply |
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(c) |
Effluent
Treatment |
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(d) |
Telecommunication |
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(e) |
Training
Centre |
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(f) |
Others |
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| (iii) |
Social
Infrastructure(item-wise) |
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| (iv) |
Others
(Itemwise) |
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Total : |
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Signature:
_________ |
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Designation
: Member Secretary |
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State
level Committee Dated:
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| DETAILED
QUARTERLY PROGRESS REPORT ON PROGRESS OF IMPLEMENTATION OF APPAREL
PARK FOR EXPORTS: |
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1.
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Details
of Infrastructure/Utilities provided so far in the Apparel
Parks:
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(a) |
Water
Supply |
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(b) |
Electricity
Supply |
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(c) |
Telecom
facilities |
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(d) |
Storm
water storage |
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(e) |
Facilities
for treating industrial effluents |
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(f) |
Dry
waste disposal systems |
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(g) |
Standard
Design Factories |
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(h) |
Roads |
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(i) |
Boundary
wall |
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(j) |
Common
facilities |
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(k) |
Other
special features |
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(l) |
Training
facilities |
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(m) |
Effluent
treatment plant |
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2.
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Details
of infrastructure under development |
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Item
of work
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Approved
cost
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Actual
expenditure
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%
age of work completed
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Expected
Date of Completion
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3.
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Organisation
and management: |
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(a) |
What
is the structure of the Apparel Parks administrative authority; |
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(b) |
Details
of Single window clearance in regard to various approvals required
from States such as power, water, pollution control, building
plan etc. being provided for setting up of industrial units
in Apparel Parks |
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(c) |
In
what ways is the private sector involved in development/management
of Apparel Parks: |
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4.
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Utilisation
position of finance: |
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Year
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Central
Grant
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State
Allocation
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Contribution
By Implementing Agency
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5.
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Please
also enclose the following:- |
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(a) |
Quarterly
report (Attachment - II) for the period ending last quarter
indicating itemwise details of expenditure |
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(b) |
Utilisation
certificate |
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| 6. |
Total
approved project cost |
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| 7. |
Revised
project cost, if any: |
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| 8. |
Estimated
date and completion of the project |
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| 9. |
(a) |
Number
of industrial units who have applied for setting up unit in
the Park |
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(b) |
Number
of units approved with product-wise break up of item of manufacture. |
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(a) |
No.
of units who have been allotted plot/shed in the Park |
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(b) |
Number
of units in operation |
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(c) |
Number
of units under implementation. |
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| 11. |
What
are the incentives approved/proposed for industries in Apparel
Parks |
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Rent
concession |
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Tax
concession |
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Subsidised
inputs (Power) |
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Credit
facilities |
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Training/Placement
facilities for labour/human resource development |
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