The document announces that the Department of Industries, Government of Bihar is inviting expressions of interest from industries associations, NGOs, companies, firms or individuals to create a legal entity (Special Purpose Vehicle or SPV) to set up tool rooms in public-private partnership mode in six districts of Bihar. The tool rooms will provide technological support to MSMEs through tool design and manufacturing facilities and training programs. Interested parties should submit applications with details of their financial status and activities to the Director of Technical Development within one month.

1. Department of Industries, Govt. of Bihar
''Expression of Interest''
Notice
Department of Industries, Government of Bihar invites
quot;Expression of Interestquot; from the Industries Association/
NGOs/Society/Company/Firm or an individual to create a legal entity i,e
Special Purpose Vehicle (SPV) for setting up of Tool Room in PPP
Mode in six districts viz Bhagalpur, Nalanda, Purnea, Muzaffarpur,
Chhapra and Saharsa or at any other place with the grant-in-aid from
the Govt. of India up to Rs. 9.00 crore to meet the following objectives:-
1. To provide Technological support to MSMEs by Creating facilities
for designing and manufacturing of quality Tools, and
2. To provide training facilities in the related areas to generate work
force of Skilled Workers, Supervisors, Engineers and designers.
Interested Industries Association /NGOs /Society / Company/
Firm or an individual may submit their application with complete Bid-
data in regard to their financial status, areas of activities etc. to the
Director, Technical Development, Department of Industries, New
Secretariat, Patna within a month from the publication of this
advertisement. For complete details please visit
www.smallindustryIndia.com or www.dcmsme.gov.in or
http://gov.bih.nic.in / http://industries.bih.nic.in / or contact the office of
Director, Technical Development, Bihar, Patna(Ph.2221462) / Director,
MSME, Development Institute, Patna (Ph. 2262186)
Director,
Technical Development,
Department of Industry,
Bihar, Patna.

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GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
JAWHAR SIRCAR 'A' WING, 7TH FLOOR, NIRMAN BHAWAN,
Additional Secretary & NEW DELHI - 110011
Development Commissioner Phones : 23061176, Fax : 23062315
No. 21/MTR/NMCP/2007/TR-II Dated : 12.7.2007
Industrial Development Commissioner,
Government of Bihar,
Vikas Bhavan,
New Secretariat,
Patna - 800015
Subject : Proposal to set up 15 new Mini Tool Rooms under PPP Mode in the
country.
Sir,
The National Manufacturing Competitiveness Council (NMCC) has finalized a 5
year National Manufacturing Competitiveness Programme (NMCP), which includes inter
alia a scheme to set up 15 new Mini Tool Rooms in various parts of the country, to be
implemented in Public Private Partnership (PPP) model.
2. Government of India have accordingly drawn a scheme, which is to be
implemented in cooperation with the State Governments, and through Special Purpose
Vehicles (SPVs) to be constituted in the form of Societies/Autonomous Institutions by
State Government jointly with industry association interested in the project. The scheme
is at various stages of consideration and is likely to be approved shortly. The salient
features of the scheme and the proposed funding pattern are given below :-
(a) The financial assistance from Government of India may be in form of grant in aid
equal to 90% of the cost of machinery (restricted to Rs. 9.00 crore), for bridging
the viability gap.
(b) The balance cost may have to be shared by the SPV created by the State
Government, as may be agreed upon by the parties concerned.
(c) The State Government desirous of setting up a Tool Room will identify a suitable
location for the project, and invite quot;Expression of Interestquot; from the Industries
Associations/NGOs with whom State Government would create a legal entity i. e.
SPV.
(d) A DPR will be got prepared, and the State Government will obtain approval of
their 'Competent Authority'.
(e) A formal proposal will thereafter be sent to Government of India for sanctioning
Central assistance.
(f) The project will be implemented on commercial basis by the SPV, under the
supervision of the State Government.

3. : 2 :
3. You are requested to go through the parameters of the scheme as stated in para-2
above and furnish comments/suggestions, if any. You may also like to identify a suitable
location for the Tool Room keeping in view the demand of toolings in that area. The
purpose of writing this letter to you is to ensure that the State Governments are in
readiness to implement the scheme, when it is approved by Government of India.
However please note that above guidelines may be changed/revised by competent
authority while approving the scheme.
4. A concept note on Mini Tool Room scheme along with suggested list of
machinery is enclosed for your reference.
Yours faithfully,
Sd/-
(JAWHAR SIRCAR)
AS&DC (MSME)
Encl : a/a
Copy for information to :
Director, SISI, Patna.

4. Government of India
Ministry of Micro, Small & Medium Enterprises
office of the Development Commissioner (MSME)
CONCEPT NOTE ON MINI TOOL ROOM
Introduction
Tool designing and quality tool manufacturing are considered essential for
development of industries and improving their competitiveness in the national and
international markets. Whereas the large scale industries generally have their own captive
tool rooms, the SMEs can not afford to have such captive tool rooms due to heavy capital
costs involved. Therefore, Govt. of India in the Ministry of MSME have been
implementing the Tool Room Scheme, under which a number of Tool Room & Training
centers have been established across the country to provide facilities for tool designing
and tool manufacturing and also for imparting training in the related areas with a view to
provide specialized skills required by the industry. These Tool Rooms are :-
i. Central Tool Room, Ludhiana
ii. Indo German Tool Room, Indore
iii. Indo German Tool Room, Ahmedabad
iv. Indo German Tool Room, Aurangabad
v. Central Tool Room & Training Centre, Kolkata
vi. Central Tool Room & Training Centre, Bhubaneswar
vii. Indo Danish Tool Room, Jamshedpur
viii. Central Institute of Tool Design, Hyderabad
ix. Central Institute of Hand Tools, Jalandhar
x. Tool Room & Training Centre, Guwahati
Mini Tool Rooms under PPP Mode
In order to meet the growing demand of quality tools and dies in the country,
particularly in the Micro, Small and Medium Enterprises (MSME) sector, Government of
India have proposed to launch a programme to render financial assistance to the State
Governments to set up Mini Tool Room under PPP Mode.
The estimated cost of a typical Mini Tool Room is around Rs. 15 crore (including
Rs. 10 crore towards cost of machinery and equipment). This cost may, however, vary
depending upon the activities proposed to be undertaken. Under the programme, the
quantum of Central financial assistance will be in the form of one time grant-in-aid equal
to 90% of the cost of machinery and equipment (restricted to Rs. 9.00 crore) in each case.
The balance cost of machinery and equipment, the cost of land and buildings and the
recurring costs would be met by the States and the SPVs as may be agreed upon by the
parties concerned.

5. : 2 :
Objectives
The objectives of the programme are :-
1. To manufacture jigs, fixtures, cutting tools, gauges, press tools, plastic moulds,
forging dies, pressure castings dies and other toolings for Micro, Small and
Medium Enterprises. Advanced tool making process using Computer Aided
Design (CAD) or Computer Aided Manufacturing (CAM) techniques are to be
adopted.
2. To provide training facility in tool manufacturing and tool design to generate
work force of skilled workers, supervisors, engineers and designers etc. Diploma
in Tool & Die Making- 4 years 10+2 Pass. Certificate Course in Machine
Operation- 2 years 10th Passed/Failed.
3. To work as Nucleus Centre for providing Consultancy, information service,
documentation etc. for solving the problems related to toolings of industries in the
region.
4. To act as common facility Centre for micro, small and medium enterprises and to
assist them in product and prototype development.
Methodology
A Special Purpose Vehicle (SPV) such as Registered Society/Autonomous
Institution will be constituted by the State Government to implement the project. Once
the project in complete, the SPV may enter into an MoU with the existing SIDO Tool
Rooms for technical and management support service.
The detailed scrutiny of the individual proposals received from the implementing
agencies will be done before obtaining the approval of EFC/SFC as the case may be, as
per guidelines incorporated in the Delegation of Financial Power Rules.
Procedure For Processing Proposals
(a) The State Government desirous of setting up a Tool Room will identify a suitable
location for the project, and invite quot;Expression of Interestquot; from the Industries
Associations/NGOs with whom State Government would create a legal entity i.e.
SPV.
(b) A DPR will be got prepared, and the State Government will obtain approval of
their 'Competent Authority'.
(c) A formal proposal will thereafter be sent to Government of India for sanctioning
central assistance.

6. : 3 :
(d) The project will be implemented on commercial basis by the SPV, under the
supervision of the State Government.
Release of Grant-In-Aid
1. Central Assistance will be released to States in installments, on receipt of specific
requests from the State Governments after the infrastructure facilities have been
created, and the proposals to procure the machinery have been finalized, and after
the State Governments have made necessary budget provisions to meet their share
of expenditure.
2. The State Governments or SPV would furnish utilization certificates to
Government of India in accordance with the provisions of General Financial
Rules, 2005.
3. After a Mini Tool Room becomes finally operational, the State Government of
SPV would send a completion report to Government of India for information.
Thereafter, the Annual Report of the Mini Tool Room will also be sent to
Government of India for a period of 5 years, to assess the performance of the
programme. The State Governments of SPV shall keep a provision for including a
nominee of Central Government on the Governing Boards of the Mini Tool
Rooms.

7. ANNEXURE-I
MINI TOOLROOM
Suggested list of machinery
Sl.No. Description of machine/Equipment Size/Specification Quantity
(Nos.)
1. Shaping
Shaping Machine 300 mm stroke 2
2. Turning
Conventional Lathe 250X800 mm 5
CNC Lathe 250X400 mm 3
3. Milling
Conventional Milling 600X450X450 mm 6
CNC Milling 600X450X450 mm 2
Electrode Making 1
Pantograph 1
4. Grinding
Cylindrical Grinding 100X350-130X630 3
Surface Grinding 600X300-800X450 mm 3
Tool and Cutter Grinding 130X630 mm 2
Testing and Inspection lot
equipment
(Profile Projector, Height
Micrometer, Slip Boxes, Comparator
etc.)
5. Advance Machines
CNC Wirecut 400X250X250 mm 1
Spark Erosion 550X300X300 mm 2
Jig Boring 450X250X300 mm 1
Jig Grinding 450X250X300 mm 1
3D Coordinate Measuring 600X450X600 mm 1
6. CNC Training
Programming Stations PIV Server/Clients/ 8
Trainer Lathe Software 70X300 mm 2
Table Top/Software
Trainer Milling Table Top/Software 2

8. 7. CAD/CAM
CAD Programmes Artisan/Solidworks 7
CAM Programmes Artisan/Maser CAM 6
8. Allied Equipment
Heat Treatment Lot
Direct/Case/Tempering
Drilling 15mm, 25mm and 40 mm 3
Redial Drilling 63mm 1
Pedestal/Bench Grinder 150mm, 200 mm 3
Arc Welding Set 1
Gas Welding/Cutting 1
Power Hacksaw 1
9. Fitting
(Work Benches, Lockers etc.) 28
10. Tryout Machines
Power Press 100 MT 1
Injection Moulding 130 MT 1
Machine
11. Accessories
Cutting Tools, Carbide, HSS, Grinding 2 sets
Consumable Wheels
Machine Accessories Sleeves, Collects/Holders 2 sets
Measuring Instruments Calipers, Micrometers 2 sets
Hand Tools Spanners, Files etc. 2 sets
12. Service Equipment
DG Set 250 KVA 1
Air Conditioning Equpt. Lot
Material Handling Pallet Truck, Scissor Table Lot
Air Compressors/Piping Elect. DBs, UPs etc. Lot
Misc. Equipment Lot
Total Cost
Notes : 1. Office equipment/furniture shall not form part of plant and machinery.
2. The above machinery and its configuration is subject to change depending
upon activities to be taken up and the needs of the area and other local
parameters.

9. Name of the NMCP Component Setting up of New Mini Tool Rooms
under PPP mode.
Short Name MTR
Total Provision for that Activity/Scheme Project Cost Rs.210.00 crore
GoI Contribution Rs.135.00 crore
BE Provision for this year (approximate Rs. 20.00 Crore
pro-rata)
Present Position/when is it likely to be * CCEA approved on 11.04.2008
announced * TA preparing guidelines,legal documents
etc.
* June 2008
Objective of the Scheme To create facilities for
* Design & manufacture of tools, dies,
moulds, components etc.
* Skill development/ upgradation
Who can apply * (Centre PPP Model) Private Promoter,
i.e. an individual, firm, company,
association, NGO or society
* (State PPP Model) SPVs set up by
States in partnership with private
partners.
* (Centre-State Model) State Govt. or
State Agencies, other than NGOs
Approval procedure Each proposal by EFC/SFC
Other relevant points (a) Preference
i. Centre PPP Model
ii. State PPP Model
iii. Centre-State Model
(only when above two fail)
(b) Financial Assistance
Centre PPP - Viability Gap funding
restricted to 40% of the total project cost or
Rs.9.00 crore which ever is less.
State PPP - 90% of the cost of machinery
restricted to Rs.9.00 crore.
Centre State - 90% of the cost of
machinery restricted to Rs.9.00 crore.