ESTABLISHMENT AND MANAGEMENT OF INDUSTRIAL ESTATES
The programme of establishment of industrial estates, which has been carried out by the State Government involved in construction of industrial sheds of various dimensions and providing them with essential amenities such as roads, water supply, sewerage line and electricity. The maintenance and upkeep of the sheds also became a part of the responsibility of the Corporation. Besides constructing and letting out the industrial sheds, developed plots were also offered to the entrepreneurs to put up their own factory sheds. The progress of the industrial estates for the last five-decades increased enormously and the Company as on date has established network of 177 developed Industrial Estates throughout the State in almost all the districts and taluka of Karnataka and constructed 6180 Industrial Sheds, flats, godowns and shops apart from formation of 8258 Industrial Plots.
The Company has also constructed industrial sheds under Dutch Assistance Programme, small town programme and also under Special Component Programme with the assistance of Dutch and Govt. of India.
The company also established exclusive and prominent ancillary industrial estates in the vicinities of large and medium scale industry to cater to their services to public sectors like BEL, ITI, HAL, NGEF, BHEL, BEML, VISL and Mysore Lamps.
The Company has also established an exclusive Industrial Estate under ‘Dr. B.R.Ambedkar Birth Centenary Programme’ at Jigani Bengaluru District where 100 sheds have been constructed and 86 plots have been formed with all infrastructures exclusively for SC & ST entrepreneurs.
The company under VISHWA SHEDS SCHEME constructed 809 sheds all over the state for the use of tiny units.
The Company with a view to earn revenue through Industrial Estates also encourages setting up of Petrol Pumps and Industrial Complexes. Accordingly plots have been allotted Govt. petroleum companies on rental lease at Shimoga, Hospet, HUbli, Belgaum, etc. for Techno-setting up of Petrol Pumps.
KSSIDC aquires land from KIADB and also from government for establishment of industrial estates.
COMMERCIAL ACTIVITIES
Karnataka State Small Industries Development Corporation Limited(KSSIDC) is a Karnataka State Govt. undertaking established under the Companies Act 1956, on 29-04-1960. It has completed more than 50 years and has celebrated its Golden Jubilee function on 23-12-2014.The Corporation is developing Industrial Estates in various parts of the State with all basic infrastructure facilities to enable establishment of small scale industrial units by the entrepreneurs thereby giving impetus for job creation. KSSIDC constructs various types of Sheds in these Industrial Estates and also forms various sizes of Plots with all the basic amenities, so that entrepreneurs may construct sheds of their choice and size. These sheds and plots are allotted to the needy SSI entrepreneurs in a transparent manner.
Apart from allotting sheds and plots to the needy entrepreneurs in various industrial estates KSSIDC is also engaged in procuring and distributing various industrial raw material right from construction materials for sheds like TMT bars & Cement to industrial raw materials required for their production purposes. Presently, raw materials are available freely in the open market. However, it may be difficult for SSI units to get 100% quality materials from the open market since their requirement will normally be small. Similarly, getting correct quantity /quality also is doubtful. The open market rates depend on the availability of the materials in the market. The SSI units may have to pay higher rates whenever materials are not readily available in the market.
In order to overcome these problems faced by the SSI units KSSIDC has entered into Commercial Activity of procuring major industrial raw materials and distributing them among the SSI units situated throughout the State. KSSIDC is procuring Iron & Steel, Coal, Paraffin Wax & Cement from the Main Producers such as M/s Steel Authority of India Limited (SAIL), M/s Rashtriya Ispat Nigam Limited (RINL), M/s Essar Steels India Limited, M/s JSW Steels Limited, M/s Western Coal Fields Limited, M/s Indian Oil Corporation Limited (IOCL) and M/s Bagalkot Cement & Industries Limited respectively. KSSIDC has been carrying out commercial activities since its inception.
Details of Raw Material purchase
The Ministry of Steel, Govt. of India, allocates various Iron & Steel Raw Materials to State Small Industries Development Corporations every year. KSSIDC Ltd., gets allocations of Iron & Steel Raw Materials on main producers i.e., M/s.Steel Authority of India Ltd., (SAIL) & M/s.Rastriya Ispat Nigam Ltd., (RINL). The following Raw Materials are being allocated every year.
(1) M.S. Angles (2) M.S.Channels (3) Joists / Beams (4) M.S.Plates (5) H.R.Sheets (6) C.R.Sheets (7) G.P.Sheets (8) G.C.Sheets (9) M.S.Rounds (10) T.M.T. etc.,
The Ministry of Steel, Govt. of India has allocated 8698 Mts. of Iron & Steel Raw Materials to KSSIDC for the year 2014-15.
The Annual allocation is divided in to 4 quarters and KSSIDC register the quarterly allocation with the main producers (M/s.SAIL &M/s.RINL). These allocated items will be procured from the main producers based on the demand from SSI units and stored in Channasadra stockyard for distribution among various raw material depots of KSSIDC Ltd.,
Apart from the above KSSIDC Ltd., purchase M.S. Plates, H.R.& C.R.Sheets, Wirerod coils, T.M.T.etc., from M/s.JSW Steels, Thorangal, Bellary. KSSIDC Ltd., has also entered into a Dealership Agreement with M/s.Essar Steel Ltd., for purchase of M.S.Plates, H.R. C.R. & G.P.Sheets and T.M.T. Bars for distribution among the needy SSI units in the state.
The Sale of Iron & Steel Raw Materials
KSSIDC Ltd., arrange to store Iron & Steel Raw Materials procured from M/s.Steel Authority of India Ltd., & M/s.Rastriya Ispat Nigam Ltd., at Channasandra stockyard and sold to the SSI units and also distributed among various raw material depots situated in the following Districts in the State.
| Sl No. | Name of the District | Name of the Depots |
|---|---|---|
| 1 | Vijayapura | Vijayapura |
| 2 | Bagalkote | Bagalkote |
| 3 | Belagavi | Belagavi |
| 4 | Uttra Kannda | Sirsi |
| 5 | Dharwad | Hubballi |
| 6 | Bellary | Hospet |
| 7 | Davangere | Davangere |
| 8 | Shivamogga | Shivamogga |
| 9 | Hassan | Hassan |
| 10 | Chikkamagaluru | Chikkamagaluru |
| 11 | Dakshina Kannada | Mangaluru |
| 12 | Tumkuru | Tumkuru |
| 13 | Bengaluru |
|
| 14 | Mysuru | Mysuru |
The above depots are controlled by the concerned Branch Managers, Divisional & Zonal Heads.
Methods of Raw Materials Sales
| 1. | Cash Sales | Customers i.e., Industrial Units can purchase raw materials by paying through Demand draft at the depots. |
| 2. | Credit Sales | Customers can avail 30days Interest Free Credit (IFC) by giving Bank Guarantee / Letter of Credit in favour of KSSIDC Ltd., if customers do not pay within stipulated period of 30days they will have to pay interest @ 12% for first 60days from the date of invoice & thereafter 14% interest on the outstanding amount. |
| 3. | Sales to Govt. Dept. | KSSIDC Ltd., also supplies raw materials to various State and Central Government Departments / Boards & Corporations. |
Customers obtain financial assistance to run their units from Banks & Financial Institutions. The customers are facing problems in financing their raw materials requirements. In order to help them, KSSIDC Ltd., has introduced Interest Free Credit facility (IFC) scheme so that they can avail 30days Interest Free Credit by providing Bank Guarantee / Letter of Credit. If they are not able to pay with in 30days Interest @ 12% will be levied for the first 60 days from the date of invoice.
If the customers are not able to pay within 60 days then the credit facility will be extended upto 120 days by levying 14% interest from 61st day. The above credit scheme introduced by KSSIDC Ltd., is very popular among the customers in the State.
Apart from the above, KSSIDC Ltd., has entered into an MOU with M/s.Karnataka State Financial Corporation Ltd., (KSFC) under which KSFC will extend financial guarantee to the needy SSI unit for purchase of raw materials upto a value of Rs.1crore (Rupees One crore only) in a year from KSSIDC Ltd. Under this scheme KSSIDC will release industrial raw materials to the needy SSI units & collect money from KSFC.
The allocated materials can also be sold to the Government Departments / Boards & Corporations. Accordingly, KSSIDC Ltd., is distributing Iron & Steel raw materials to the Govt. Departments/ Boards & Corporations in the State.
Coal Transactions
Many of the Small / Medium Industrial units especially Brick / Limestone manufacturing units require coal for their manufacturing activities. The Ministry of Coal, Govt.of India introduced a New Coal Distribution Policy (NCDP) from 2008-09. According to this policy coal consuming SSI & Medium Scale units who’s requirement of coal is less than 4200 tonnes per annum and who have not entered into coal supply agreement with any of the coal companies can purchase coal from State Nodal Agencies nominated by the respective State Governments.
The Coal India Ltd.,(CIL) will allocate coal to the State Nodal Agencies nominated by the State Govt. every year. The Karnataka State Government has nominated KSSIDC Ltd., as State Nodal Agency for Karnataka. M/s.Coal India Ltd., has allocated 40000 tonnes of coal to KSSIDC Ltd., on M/s.Western Coal Fields Ltd., (WCL) Nagpur, Maharastra for the year 2014-15.
KSSIDC Ltd., being a State Nodal Agency for distributing coal under NCDP in Karnataka is allocating coal to the needy SSI / Medium units in a transparent manner. The Joint Directors of District Industries Centres, Govt. of Karnataka will monitor the usage of coal by the units and submit report to the Govt. once in a quarter.
Paraffin wax
KSSIDC is procuring good quality Industrial Paraffin Wax (Type-II) from M/s.Indian Oil Corporation Ltd., (IOCL) as per the distributorship agreement entered between KSSIDC & IOCL. The wax is distributed among the SSI units manufacturing Candles etc., throughout the State. The candle manufacturing units may contact the raw materials depots of KSSIDC Ltd., for their wax requirements.
Cement
During 2014-15 M/s.Bagalkot Cement & Industries Ltd.,(BC&IL) have entered in to agreement with KSSIDC and have appointed KSSIDC as distributors for their cements in all the 30 Districts of the State. KSSIDC supplies cement at the rates fixed by M/s.BC&IL. The customers who require cement may approach the nearby raw material depots of KSSIDC Ltd.
Karnataka State Small Industries Development Corporation (KSSIDC) Ltd., has established 17 raw materials sales depots throughout the State & the details are as under:-
Sl No |
Raw Material Sales Depot Name & Address |
Name of Depot In charge( as on 01-08-2015) |
Telephone/Mobile/ |
|---|---|---|---|
1 |
Channasandra Stockyard, Ramamurthynagar, Bengaluru |
M.H.Suresh |
080-2565089/25656733 |
2 |
Industrial Estate Peenya-1st Stage, Bengaluru 560 058 |
S.N.Lingegowda |
080-28395304 |
3 |
Industrial Estate Veerasandra, Bengaluru 560 100 |
Venkatanarayanaswamy |
080-25832545 |
4 |
Industrial Estate Tumakuru |
Sharthkumar Pai |
0816-22802063 |
5 |
Industrial Estate Davangere |
N.K.Ramakrishna |
08192-262466 |
6 |
Industrial Estate Hubbali |
M.L.Bhajantri |
0836-23333888 |
7 |
Industrial Estate Banavasi Road, Sirsi |
J.R.Harihar |
08384-225213 |
8 |
Industrial Estate DamRoad, Hospet |
Hiremath |
08394-232263 |
9 |
Industrial Estate Udyambag,Belagavi |
B.H.Kunnur |
0831-2441171/2440853 |
10 |
Industrial Estate, ShikarKhana, vijayapur |
Kumbar |
08352-2531720 |
11 |
Industrial Estate KaladgiRoad, Bagalkote |
Ismail Kotbal |
08354-233010 |
12 |
Industrial Estate Yadavgiri, Mysore |
N.C.Narayanaswamy |
0821-2514694 |
13 |
Industrial Estate Yeyyadi,Mangaluru |
Senior Assistant |
0824-2211997 |
14 |
Industrial Estate Sagar road,Shivamogga |
A.S.Ravikumar |
08182-250607 Mbl:8884415782 |
15 |
Industrial Estate Jyothinagar, Chikkamagaluru |
Jairam P |
08262-220504 |
16 |
Industrial Estate, Arisikere road, Hassan |
H.M.Mahesh |
08172-240636 |
The Company as a nodal agency for Co-Ordination with Indian Standard Institution set up a laboratory at Peenya Industrial Estate for ensuring the quality of the products manufactured in the State. This laboratory provides modern testing facilities for types of products manufactured in Engineering, Chemical, Electrical, Electronics and other similar areas. This project with an investment of Rs. 100 Lakhs. Is financed by the State Govt., KSSIDC, KSFC, KSIIDC, NGEF, MML and IDBI. Further, the cost of standardisation and licensing fee will also be kept to minimum since the laboratory will work on no profit basis. Likewise National Institute of Design have come forward to associate with KSSIDC in setting up a branch of the National Institute of Design at Industrial Estate, Rajajinagar and is extending its services for the benefit of the small scale industry in improving the product design and allied matter. Necessary infrastructure facility has been provided by KSSIDC to this center.
Company has also provided the accommodation to National Productivity Council to maintenance and service center at Peenya and a shed at indutrial estate Rajajinagar to National Institute of Design (NID)for the benefit of the Small Scale Industries.
The Company is extending necessary assistance for organising Entrepreneurial Development Programmes in various parts of the State in association with TECKSOK and other commercial banks with a view to identify the talents and to improve the quality of Entrepreneurial skill amongst the educated youth.
The Corporation’s principal objective is the promotion and development of Small Industries in the State. Construction and utilisation of infrastructure, especially in backward areas, procurement and marketing of Raw Materials, technical support and assistance-are means to reach the goals. A concern for results, emphasis on quality and timely work and willingness to understand the problems of entrepreneurs-are the staff creed, and KSSIDC constantly strive for this end. An Industrially prosperous Karnataka is our vision.