G.O. (Ms) No.14, Separate Industrial Estate for Truck Body Building Units near Namakkal

What the order does

G.O. (Ms) No.14 of the Micro, Small and Medium Enterprises (C) Department, dated 27 March 2013, approves a separate industrial estate near Namakkal for truck body building units. The project is intended to decongest the city and bring the units out of Namakkal town.

The District Collector had proposed shifting the units to Velagoundampatty Village, about 15 kilometres from the town. The proposed site covers 21.13.5 hectares and had been purchased in the name of the Namakkal Truck Body Building Industrial Estate.

Project works and funding

The approved project cost is Rs. 1367.75 lakhs. The planned infrastructure includes:

• Improvements to roads, estimated at Rs. 391.00 lakhs.
• Widening the approach road with a culvert, estimated at Rs. 11.00 lakhs.
• Water supply arrangements, estimated at Rs. 77.00 lakhs.
• A Tamil Nadu Electricity Board substation with an industrial feeder, estimated at Rs. 868.75 lakhs.
• Street lights, estimated at Rs. 20.00 lakhs.

At least Rs. 100 lakhs must be contributed by the promoters or association to the Special Purpose Vehicle. The balance of Rs. 1267.75 lakhs is to be sanctioned from the State Infrastructure and Amenities Fund and released to the Tamil Nadu Small Industries Development Corporation Limited by the Commissioner of Town and Country Planning.

Management and implementation

The truck body building units association must form and register a Special Purpose Vehicle to manage the estate. After registration, the Special Purpose Vehicle must enter into a joint venture agreement with the Tamil Nadu Small Industries Development Corporation Limited.

Key requirements include:

• The Tamil Nadu Small Industries Development Corporation Limited is the implementing agency.
• It must hold at least 10 per cent equity in the joint venture and have appropriate representation on the Special Purpose Vehicle board.
• The Special Purpose Vehicle must pay administrative charges equal to 5 per cent of the total project cost.
• The estate layout must be approved by the Director of Town and Country Planning.
• After the works are completed, the Tamil Nadu Small Industries Development Corporation Limited will transfer the assets to the Special Purpose Vehicle for maintenance.

Plot allotment and relevance to buyers

A committee chaired by the District Collector is responsible for identifying and selecting applicants and allotting estate plots. Allotment conditions must support the objective of moving truck body building units out of the city. Anyone considering an estate plot should therefore check the approved layout, the allotment decision and the applicable conditions.