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TECHNOLOGY AND
MACHINERIES
PROCESS
SELECTION Once the product is finalised, choices of
process technology emerge. In some complex products,
process know how has to be imported from foreign
collaboration. In such cases agreements for technology
transfer should be made with due care to safeguard one's
interest. A lot of appropriate technology is being
developed at CSIR and Defense Research Labs and some of
this technology can now be bought from: Such
indigenously developed process know how has intrinsic
benefits such as appropriateness and relative
inexpensiveness. While checking out on a process
technology, the following things need to be considered
with utmost care:
- Whether
process requires very high level of skilled workers or
Complex machines?
- Whether
process requires large quantities of water and/or
Power?
- The patents
requirements need to be looked into in the context of
whether any process or product patent need to be
honoured while utilising the selected process
technology.
- Any special
pollution or environmental regulations one is required
to honour while using the selected process technology.
-
Finally, the appropriateness to the indian environment and conditions.
MACHINERY AND EQUIPMENT
One of the major deficiencies in the small industry situation is the
prevalence of outdated production and management methods hindering the
efficient operation of small scale units. It was also found that the most
important reason for the reluctance of the small industrialists to install
modern machinery and equipment was the lack of investible funds. National
Small Industries Corporation (NSIC) 's main objective is to provide
machinery and equipment to small industrial units offering them long
repayment period with moderate rate of interest.
PROCEDURES
- The hire
purchase application is to be made on the prescribed
form.
- The
Director of Industries of the State under whose
jurisdiction the applicant falls, forwards the
application to the head office of the NSIC at Delhi
with his recommendation and comments.
- All
applications for indigenous or imported machines are
considered by acceptance committees comprising of the
representatives of the Chief Controller of Imports,
Development Commissioner, Small Scale Industries and
other concerned departments.
- Decision of
these committees are conveyed to the parties concerned
with copies to the regional offices of the NSIC and
the concerned Directorate of Industries.
- It is open
to an applicant whose case has been rejected to get
his application reviewed by a high powered committee
known as the Reviewing Committee.
- After
acceptance of an application, enquiries are floated to
suppliers mentioned by the applicants in their
applications.
- Firm
quotations, when received from the suppliers, are sent
to the parties asking them to deposit the requisite
earnest money with the concerned regional office of
the NSIC.
- On hearing
from the regional office about the earnest money
deposit, the Head Office of the NSIC places the supply
order on the suppliers.
- Copies of
the supply order are also endorsed to the applicant as
well as to the concerned regional office for
completion of necessary formalities.
- If the
machines are to be imported, the chief Controller of
Imports and Exports is simultaneously approached by
the Head Office for the necessary import licenses.
- Import
licenses, when received by the Head Office, are passed
on to regional office which, in turn, opens letters of
credit. | On receipt of a copy of the supply order,
the regional office asks the supplier to send his
proforma invoice and, on the basis of that invoice,
prepares an agreement bond to be signed by the hirer.
| At this stage, the hirer is also called upon to
complete formalities relating to deposit of the
balance earnest money, sales tax if applicable and any
other charges payable by him as per the suppliers
proforma invoice.
- Once all
these formalities are completed by the hirer,
instructions are sent to the suppliers to despatch the
consignment (duly insured for transit risk) to the
hirer and to send the R/R or C/R as the case may be,
to the regional office.
- The NSIC
after ensuring that all dues have been paid by the
hirer, releases the R/R or C/R to him for taking
delivery of the machines.
-
In case of imported machines, the procedure is slightly different in as
much as the shipping documents are sent to the clearing agents for
clearing the consignment from the Customs and despatching it to the hirer.
Value of machines that can be supplied
Rs. 7.5 lakhs, F.O.R. or landed cost as the case may be.
Earnest Money
5% or 10% of the value of machinery depending on whether the equipment is
imported or indigenous. In the case of furnaces and a few other items of
equipment, the rate of earnest money is different.
Interest
9 per cent per annum with a rebate of 2 per cent on prompt payment. This
interest is calculated on the value of machines outstanding after
deducting payment of earnest money.
Administrative Charge
2 per cent on the sales value of machines and its recovery by the NSIC is
spread over the total installment period.
Period of
Repayment
The value of the machines, after deducting
the earnest money received, called the Balance Value,
is payable along with interest and administrative
charge in 7 years.
- The first
installment is payable after one year and six months
from the delivery of machines.
- The second
and subsequent installment are payable half-yearly
thereafter.
Gestation Period
In case of certain type of machines
which become operative immediately on installation in
the service sector industries and job order
establishment, a gestation period of only 6 months shall
be allowed both to the New and Existing units. A rebate
of 2% per annum is allowed on the interest rates. in
case an installment is paid on or before the due date.
In case the payment of installment is not made within
one month of its separate due date, interest @2% per
annum over and above the normal rate is charged on the
defaulted amount from the date of default to the date of
actual payment. Remission in interests is allowed in
case one or more than one installment is paid in advance
of the due date(s).
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