SR2 - X Plan Modernisation - Cenex[Revised-_01-02 - Rubber Board

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RULES FOR PROVIDING FINANCIAL ASSISTANCE TO LATEX
CENTRIFUGING FACTORIES UNDER PROCESSING, QUALITY
UPGRADATION AND PRODUCT DIVERSIFICATION SCHEME 2002-07
1. Title
These rules shall be called the Rubber Board’s Rules for providing
financial assistance to Latex Centrifuging Factories under Processing,
Quality Up-gradation and Product Diversification Scheme, 2002-07.
2. Objective
The objective of the scheme is to provide financial assistance to Latex
Centrifuging Factories in the country to improve quality, attain economy in
cost of processing and modernize environmental protection systems.
3. Eligibility
All Centrifuge Latex Processors in the country, having centrifuging
factories with valid processor’s licence issued by the Board and in
existence as on 1.4.2002 are eligible for this financial assistance. The
processing factories in the estate sector which process small holder rubber
in addition to estate crop will also be eligible for financial assistance under
this scheme. The Latex Centrifuging Factories in the entire rubber growing
areas in India except those in the NorthEastern Region will be eligible for
financial assistance under this scheme.
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4. Activities
The following activities are eligible for financial assistance.
1. Modification/addition of tanks for desludging, bulking, including
stirrers, lining with ceramic tiles etc.
2. Procuring equipment for testing, quality control and implementation of
ISO 9000/14000 certification systems.
3. Improvements in packaging for field latex and latex concentrate.
4. Procurement of computer and its accessories including software.
5. Procurement of spare bowl and replacement of centrifuging machine for
improving efficiency and productivity.
6. Electronic weighing scales for packing of latex concentrate.
7. Modification/addition to pollution control system to include biomass
conversion and utilization to control air and water pollution.
8. Sheds for storage of field latex/latex concentrate in barrels and roofing
for storage tanks.
9. Acoustic enclosures for diesel generators under environmental
protection.
10. Implementation of recommendations of the energy audit such as power
factor improvement (on load and on no load), replacement of
transformer, use of high efficiency motors, replacement/
modification./overhauling of old diesel generating sets.
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5. Financial Assistance
The financial assistance under this scheme will be as follows.
1. RPS/Co-operative sector – 50% of the expenditure approved subject to a
ceiling amount for each activity as in Annexure – 4. The total financial
assistance to a processor in RPS/Co-operative sector will be further
limited to Rs. 40 lakhs
2. Private sector – 25% of the expenditure approved subject to a ceiling for
each activity as in Annexure – 4. The total financial assistance to a
processor in the private sector in the Tenth Five Year Plan Period
(2002-07) will be further limited to Rs.20 lakhs.
3. A 5% interest subsidy on loans availed from nationalised banks for
implementing the scheme. The contribution of the processor has to be
minimum 25% of the expenditure. The interest subsidy will not be
available beyond 10 th Five Year Plan Period (i.e. from 1.4.2007). The
total interest subsidy payable to a processor in the private sector during
the Tenth Five Year Plan Period (2002-07) will be limited to 50% of the
financial assistance eligible under 5.1 or 5.2 above as the case may be.
Those beneficiaries who opt for financial assistance as per clause 5.1 or
5.2 above will not be eligible for this interest subsidy.
4. The ceiling amount of financial assistance for each activity is given in
Annexure – 4.
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6. Terms and Conditions
1. This scheme will be implemented during the 10 th Five Year Plan Period
(i.e. 2002-07).
2. The management committee of the processing factory proposing to avail
the financial assistance under these rules shall authorize its Chief Executive
to make an application (as per Annexure – 1) and shall pass a resolution (as
per Annexure - 2) agreeing to abide by these rules and execute an
agreement in the form appended to these rules as Annexure – 3.
3. The processor applying for the financial assistance under the rules shall
make an application in the prescribed form (Annexure 1). The application
shall be supported by attested copies of the following documents:
(i) Processor’s Licence
(ii) Articles of Association of the Company/Society.
(iii) Audited Financial Results of the factory for the past three years
4. The applicant shall give a detailed proposal for the activities proposed
along with the expected results along with recommendations of consultants
engaged by the Processor. Board reserves the right to scrutinize the
requirement /priority of the proposals of the applicant, and the financial
assistance will be based on the decision of the Board on the above.
5. Approval for financial assistance under the scheme shall be considered only
if proper evidence with respect to the contribution of the share of finance by
the applicant (50% in RPS and co-operative sectors and 75% in private
sector) is made available.
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6. For availing the interest subsidy the processor shall take approval of the
Board on the various terms and conditions of the credit before signing the
loan agreement with the financial institutions. Payment of interest subsidy
will be considered for loans availed from nationalised banks. Besides,
payment of the interest shall be subject to the following conditions.
1) The interest paid during Xth Plan period only is eligible for financial
assistance.
2) The interest subsidy will be released directly to the beneficiary.
3) A certificate from the bank regarding the interest paid has to be
produced with the application.
4) Copy of the agreement with the bank, with amendments if any, should
be produced with the application.
5) The interest subsidy is applicable only for those loans availed for the
procurement of machinery/equipment/works/service under the
modernisation scheme.
6) The interest subsidy shall be paid subject to production of an
agreement by the applicant in the prescribed format
7. If any subsidy is received from Central Govt / Organizations or any State
Govt / Organizations for any of the items for which financial assistance is
accepted from Rubber Board under this scheme, such subsidy amount in
full will have to be remitted to Rubber Board.
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8. Preference will be given to those factories with BIS certification. Others
may be considered on merit basis.
9. Other things being equal, preference will have to be given for offers from
BIS for ISO 9000 / 14000 Certification systems.
10. The financial assistance will be released only after obtaining of the final
statutory approvals from all the concerned authorities.
11. On receipt of the approval by the Rubber Board, quotations shall be invited
by the applicant for the supply of materials, machinery, works or other
services. Such tender documents shall be prepared in consultation with the
Rubber Board. The offers have to confirm to the guidelines given in
Annexure – 5.
12. Rubber Board will advise on placing orders / award of work after scrutiny
of the offers.
13. The applicant shall permit any officer of the Board authorized by the
Chairman, Rubber Board to inspect the premises books of accounts,
registers etc. of the processor. The processor shall also submit to the Board
reports/details the manner and time as prescribed by the Board from time
to time.
14. The applicant should undertake to carry out the instructions issued by the
Rubber Board from time to time in all matters relating to technical aspects
of processing.
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15. The applicant shall hypothecate the equipment/ machinery purchased and
any building constructed / work done under this scheme to the Rubber
Board for a minimum period of 10 years.
16. Notwithstanding the fulfillment of any or all of the conditions under these
rules, the Chairman, Rubber Board has discretionary powers to grant or
refuse the claim or to limit the assistance to a particular amount.
17. The Chairman, Rubber Board will have the powers to alter / modify any of
the provisions of these rules for the smooth operation of the scheme.
18. The actual release of the amount shall only be made on compliance with all
the formalities/conditions as stated above and on production of the
following documents:
a. Machinery – Quotation, evaluation statement, invoice, cash receipt,
proof of delivery, installation etc.
b. Details of cost of building / works with estimates, measurement and
bills
c. Installation of the machinery / equipment indicating basic price,
installation charges, transportation, taxes etc.
d. Entry of items in Stock Register/ Asset Register
e. Performance certificate by the Authorized Engineer of the Rubber
Board.
f. Interest Subsidy – Certificate from Financial Institution showing the
details of interest paid during the relevant period.
g. Reports/recommendations of the consultants engaged by the
processor.
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7. No part of this document shall be reproduced in any form without the
written consent of the undersigned. However this does not preclude
the above person/processor from its free use for the implementation
of objectives/purposes envisaged in the Scheme for Processing,
Quality Upgradation and Product Diversification under the Tenth Five
Year Plan : 2002 – 07.
8. Receipt of Application
The last date for receipt of application and for submission of claims for
financial assistance for each year will be separately notified.
05/09/05 DIRECTOR (P&PD)
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Sd/-

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Annexure - 1
APPLICATION FOR FINANCIAL ASSISTANCE TO TSR AND
RUBBERWOOD FACTORIES
1. Name & address of the Processor :
2. Processor’s Licence No. :
3. Sector : RPS / Co-op / Private
4. Address of the Factory :
5. Date of commissioning :
6. Name of Product :
7. Installed Capacity :
8. Average Production :
9. Details of machinery /
Equipment/ Works proposed
under modernization, showing
cost of each and total.
(Attach additional sheet, if
required)
10. Name of the Chief Executive
Officer
11. Signature with date and seal of
the applicant
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:
:
:

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FORM OF RESOLUTION
(Please retype the form with applicable terms only)
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Annexure -2
True copy of the Resolution to be passed by the Board of Directors
of……………………………………………………………………………………………
……………………… in connection with their application for financial assistance under
Rubber Board’s Scheme for modernization of Technically Specified Rubber (TSR) and
Rubberwood Processing Factories in India for their Latex Centrifuging / Block Rubber /
Rubberwood Processing Factory located at ………………with Processor’s License
No…………………….
Board Resolution No……………………………..dt…………………………….
Resolved to apply to Rubber Board for grant of financial assistance of
Rs……………... (Rupees…………………………………………………………) under
Rubber Board’s Rules for Financial Assistance to TSR and Rubberwood Processing
Factories for the modernization of its Latex Centrifuging / Block Rubber / Rubberwood
Processing Factory located at………………………………………………………………
Board Resolution No.………………………………..dt…………………………
Resolved further to authorize the Chief Executive Shri…………………
(Name and designation) of the Society / Company / Concern to apply for financial
assistance from Rubber Board and to execute necessary agreements prescribed by the
Rubber Board, on behalf of the Society / Company / Partnership / Proprietorship Concern
Board Resolution No.………………………………..dt…………………………
Resolved to abide by the terms and conditions specified by the Rubber Board in
the Rules for providing financial assistance to TSR factories, as amended from time to
time.

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(On Rs.50/- stamp paper)
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Annexure - 3
THIS AGREEMENT made on the ……..……………………. day of
……………………………Two Thousand Two and executed between
M/s ……………………………….. a company / co-operative society/
partnership / proprietorship concern registered under……………..…….with
registered office at……………(hereinafter referred to as the ‘Processor’
which expression where the context admits shall also mean and include it’s
successors and assigns) represented by its Managing Director/Director /
Managing Partner/ Sole Proprietor Shri………………………………………
………………………………aged ………………… son of
Shri…………….…………………………………………………… residing
at……………………….on the one part and the Rubber Board, a statutory
body corporate constituted under the Rubber Act, 1947 (Central Act XXIV
of 1947) and having its head office at Kottayam in Kottayam District, Kerala
State (hereinafter called the ‘Board’ which expression where the context
admits shall also mean and include its successors and assigns) on the other
part.
WHEREAS the Processor requested the Board for financial assistance
of Rs. ………….. (Rupees ………………….. only) under the rules of the
Scheme for modernization of Technically Specified Rubber (TSR) and
Rubberwood Processing Factories in India (hereinafter referred to as
‘Rules’).
AND WHEREAS the Board has agreed to sanction a sum of
Rs….….. (Rupees ………………………….. only) as financial assistance
under the rules, subject to the terms and conditions herein contained.
NOW THEREFORE it is agreed between the parties as follows:
1) That the Processor hereby undertakes to carry out all instructions
issued from time to time by the Board and abide by the terms and
conditions of the rules.

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2) That the processor has to purchase the machinery / equipment as per
the schedule attached herewith for which prior approval was obtained
from the Board and produced the bills / vouchers of the machinery
before the Board for financial assistance under the scheme.
3) That the Processor hereby agrees to permit the Board or its authorized
representatives for periodic inspection of the equipment / machinery
for which financial assistance is granted by the Board, to ensure its
proper utilization.
4) That the processor hereby agrees to submit periodic reports to the
Board as prescribed by the Board on the quantitative and qualitative
benefits accrued as a result of the implementation of the scheme.
5) That any identification mark / sticker affixed by the Board to the
machinery / equipment will be maintained properly by the Processor
for the purpose of the inspection by the Board.
6) That the machinery / equipment for which financial assistance is
granted by the Board, shall be hypothecated to the Board for ten years
and remain installed in the premises of the processing factory and
shall be kept free from any other hypothecation, pledge, of lien or any
encumbrance whatsoever that may affect the right and interest of the
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Board over the machinery and equipment, except with the prior
approval of the Board.
7) That the Processor will maintain the machinery / equipment in good
working condition.
8) That the Processor will not relocate, lease, transfer or dispose off the
machinery / equipment without the prior approval of the Board.
9) If the Processor violates any of the terms and conditions herein
contained or any provision of the rules or any of the instructions,
from the Board or in case of any misappropriation of financial
assistance granted by the Board or if any excess billing or
manipulation in the bill / voucher is detected, the Board shall have the
right to demand and enforce repayment forthwith of the entire amount
of financial assistance granted by the Board along with penal interest
as decided by the Board.
10) For matters not specifically provided herein, the Processor hereby
agrees to abide by all the terms and conditions contained in the rules,
as may be amended from time to time as if these rules are set out
herein and form part of the agreement.
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Signed, Sealed and Delivered for and on behalf of …………………….
By (Authorized Signatory)
In the presence of Witnesses
1) …………………………………..
2) …………………………………..
Signed and Sealed for and on behalf of the Rubber Board by the Chairman.
In the presence of Witnesses
1) ………………………….
2) ………………………….
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CEILING AMOUNT FOR FINANCIAL ASSISTANCE FOR
CENEX PROCESSORS 2002-2007
Item COMPONENTS
1
2
3
4
Modification/addition of tanks to improve quality
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Annexure – 4
FINANCIAL ASSISTANCE
Rs.Lakhs
RPS
Private Sector
Co-op.Sector
a. Latex reception tanks 2.5 1.25
b. De -sludging tanks 3.0 1.50
c. Cenex bulking tanks 2.5 1.25
d. Modification of tanks/drains 0.5 0.25
e. Other tanks, drains 1.5 0.75
f. Minor civil works 1.5 0.75
g. Latex storage sheds/roofing for tanks 6.0 3.0
CEILING AMOUNT FOR ITEM 1 16.0 8.0
Environmental Protection
a. Modification/addition of Pollution Control Systems,
Acoustic enclosures for diesel generators
12.0 6.0
CEILING AMOUNT FOR ITEM 2 12.0 6.0
Replacement of machinery for quality
improvement and to reduce cost of production
a. Replacement of bowl 5.0 2.5
b. Replacement of machine 20.0 10.0
CEILING AMOUNT FOR ITEM 3 24.0 12.0
Packaging
a. Improvement of packaging systems 2.5 1.25

5
6
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b. Electronic scales 1.0 0.5
CEILING AMOUNT FOR ITEM 4 3.0 1.50
Quality Control
a. Additional testing equipment 5 2.5
b. ISO 90000/14000 certification system 1.0 0.5
c. Computer and accessories including software 0.8 0.4
CEILING AMOUNT FOR ITEM 5 5 2.5
Energy conservation measures
Implementation of recommendations of the energy audit such
as power factor improvement (on load and on noload),
replacement of transformer, use of high efficiency motors,
replacement/modification./overhauling of old diesel generating
sets.
Note :
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5.0 2.5
CEILING AMOUNT FOR ITEM 6 5.0 2.5
1. The financial assistance will be 50% / 25% of the expenditure approved by the Board for the
Machinery/Equipment/Works/Service as the case may or the ceiling amount as specified above
whichever is less.
2. The financial assistance to private sector will be further limited to Rs. 20 lakhs.
3. The financial assistance to RPS/Co-operative sector will be further limited to Rs. 40 lakhs.

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GENERAL GUIDELINES
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Annexure – 5.
1. The processor should obtain all statutory clearances for
modification/installation of additional machinery/ equipment from
authorities like, Local Bodies. Factories and Boilers, KSEB,
Electrical Inspectorate etc.
2. Approval from Pollution Control Board should be obtained for
modification/alteration of the effluent treatment system..
3. The machinery/equipment should carry ISI mark as far as possible.
4. The machinery/equipment should have adequate safety features to
ensure the safety of men, materials, machinery and the surroundings.
5. The enquiry for procurement of machinery/equipment should
contain specifications including material specifications.
6. The machinery/equipment should perform satisfactorily with
respect to output and its quality and should suited for continuous
duty and the working environment. They must also conformed to
the standards prescribed by all statutory authorities like Pollution
Control Board, Electrical Inspectorate, Directorate of Factories and
Boilers etc
7. Only proven and brand-new machinery/equipment with adequate
after sales service will be considered for financial assistance under
the scheme.
8. The supplier should guarantee satisfactory performance at least for
12 months from the date of commencing or 18 months from the date
of supply whichever is earlier.