What is TMC scheme?
Installing prescribed ginning and allied machines, building appropriate civil infrastructure and following recommended management steps will constitute modernization.

What help does TMC offer?
Financial assistance of 25% of the cost of modernization is available from the Government of India subject to certain ceilings as shown below:

Which are the factories that are eligible to join the TMC scheme?
The four following categories of factories can seek benefit from TMC:
- A composite G & P unit intending upgradation of machinery or civil infrastructure or both
- A ginning unit wanting to install a bale press to make it a composite unit or a pressing unit interested in setting up ginning facility
- A factory interested in capacity expansion by adding more ginning machines
- A factory proposing to set up an altogether new unit.

What are the machines to be installed?
There are two schemes – one for large G & P factories  and the other for small units.  Large units should have at least 24 Normal  size DR gins (or 3 Saw gins) while small units should have  a minimum of 12 Normal DRs (or 2 Saw gins).  Besides  ginning machines, the factory should install  pre-cleaner, lint cleaner, automatic conveyors for kapas, lint and seeds, baling press, moisturizers, weigh bridge and fire hydrants.

What are the civil infrastructural items?
Cemented storage spaces for kapas, lint, seeds and bales, CC road, compound wall and water storage tanks for the hydrant system are compulsory civil items.  Minimum sizes/dimensions for these items are specified by TMC.  Some optional civil items can also be included in the project.

What are the management steps recommended?
Maintaining cleanliness, employing trained gin fitters, providing uniform/caps, instructing labourers on do’s and dont’s  to avert contamination, variety-wise/grade-wise ginning and pressing etc. are steps required to ensure that cotton processed in the factory is clean and of uniform quality.

What is the cost of setting up a new factory?
New Large G & P factory (24 DR gins)  :  Rs.160 to Rs.200 lakh
New Small Factory (12 DR gins)           :  Rs.100 to Rs.140 lakh
The above figures are only indicative.

What is the cost of modernization of an existing unit?
It depends on the already existing infrastructure vis-à-vis minimum requirements prescribed in TMC norms.

Can a factory already modernized in recent months seek TMC benefit?
No.  The modernization is required to be carried out only after the project is approved by TMC.

Is there any application fee?
No.  Entry into TMC scheme is free.

From whom should machinery be purchased?
Machines should be  purchased only from suppliers  in the TMC-approved list.  This rule applies to all items for which TMC has prepared such lists.

What are the  documents to be submitted for the release of subsidy?
Engineer’s/Architect’s certificates in prescribed format, CA’s certificate, copies of Bills/Invoices, receipts of payments made to suppliers, cotton test report from CIRCOT etc as per TMC advice.

How much land is required for the factory?
5 acres for a large G & P factory & 2 acres for a small unit are recommended.

Can a factory avail of benefit under TUFS & TMC together?
No.  Both TUFS and TMC are Central Govt. schemes.  A factory taking advantage of TMC is not permitted to seek benefit from TUFS or any other Central Govt. scheme.

Can a TMC-modernized factory seek State Government subsidies?
Yes.  Factories under TMC scheme can very well receive State Government subsidies.

If so desired by the ginner, will subsidy be paid in instalments?
No.  The subsidy is payable only in a single instalment; that too after the entire project work is completed as per TMC norms.

It is learnt that TMC has been extended upto 31.03.10.  Can any more projects now be sanctioned for financial grant for development of market yards under TMC (MM-III)? 
TMC has already approved targeted 250 projects. TMC has been extended upto 31.03.2010 to complete already approved projects.  As per the directions of Govt. of India, no new proposals can be entertained during this extended period even if any slot is created due to cancellation of any already approved project in any State.

What is the possibility of getting extension in completion period of already-approved projects for development of market yards?
TMC has been extended for one year i.e. upto March 2010.  In the past extensions in completion periods have been considered by Implementation Committee of TMC (MM-III & IV) on case-to-case basis, looking at the genuineness of reasons for delay but now, at the fag end of TMC, there is limited scope for extending the completion periods of already-approved projects. However, it is the prerogative of Implementation Committee to take a decision in this regard. 

What is the possibility of TMC scheme getting extended so that their incomplete project approved for development of market yards may also be completed?
Govt. of India may take a decision at the appropriate time, if needed.

What about the projects approved under TMC (MM-III) which are not completed by 31.03.2010 due to reasons beyond their control?
Govt. of India may take such a decision at the appropriate time, if needed.

In case one or more projects approved under TMC (MM-III) are cancelled in any State, will that State get another project approved in lieu of the cancelled projects?
TMC has been extended upto 31.03.2010 to complete the already- approved projects and for release of their Govt. of India share.  No new projects (even against the cancellation of already approved projects) may be approved during the extended period, as per present directions of Govt. of India. 

It has been learnt that TMC scheme of Government has been extended up to 31st March 2010.  Can we now submit our fresh application to avail of benefits under TMC scheme for modernization of existing units/ setting up of new G & P units?
TMC has been extended up to 31st March 2010, for the completion of already approved projects.  No new projects may be approved, thus no new applications are being entertained, now.

In case TMC is not any longer approving new projects, what other financial assistance can we get from agencies of Govt. of India and how and whom we should contact for getting such assistance?
Ginning factories can avail of 5% interest subsidy under Technology Upgradation Fund Scheme (TUFS) about which information can be obtained from any branch of SIDBI or nationalized banks.  Information can also be had from the Textile Commissionerate (which is monitoring the TUF Scheme) at the following address:

It is learnt that TMC scheme is coming to an end. What is the possibility of getting TMC scheme extended so that those who are unable to complete their projects already approved under TMC (MM-IV) due to some genuine reasons may also get chance to avail benefit of Govt. of India for modernization of their existing units/ setting up of new G & P factories?
As of now, TMC scheme is to close by 31st March 2010.  Projects under the scheme are expected to be completed within their approved completion periods so that final inspection, submission of claims, scrutiny of bills, etc. may be completed and payment of subsidy made before 31.03.2010.
Any further extension of the scheme beyond 31.03.2010 to enable payment of subsidy to factories which fail to complete their already approved projects in time is the prerogative of the Government of India.

Can the manufacturers/ suppliers of machinery/ equipments to be used in the modernization of G & P units in the already approved projects under TMC (MM-III & IV) be registered now?
No more approvals are being made of vendors/ manufacturers to be included in TMC’s approved list of machinery suppliers, since the scheme is coming to an end very soon.

TMC is understood to have stopped giving grades to modernized G & P units.  Is there any other scheme for Assessment and Grading of G & P units?
The grading scheme for G & P factories is now being implemented by the Textiles Committee, an organization under Ministry of Textiles, Government of India.  Factories wanting to be assessed for grades may contact at the following address:

Is there any proposal for giving financial assistance to modernized ginneries seeking for ISO-9000 certification?
There is no provision under TMC scheme to give financial assistance to G & P factories going for ISO-9000 certification.

Is there any scheme for giving financial assistance for further upgradation modernized G & P units?
As of now there is no provision under TMC for any subsidy to be given for further upgradating ginneries already-modernized, under TMC or otherwise. 

Is there any plan with TMC scheme to give subsidy for Seed Crushing units?
There is no provision under TMC at present for financial assistance to set up seed crushing units. 

On the basis that TMC benefit has largely been utilized by ginners of Maharashtra and Gujarat, recently TMC restricted approval to projects involving installation of automatic bale press in these two States.  Can Govt. of India re-consider the earlier decision and allow ginners of these two States also to avail of the benefit of TMC scheme even if they install conventional bale press in the same way as the ginners of other States are eligible?
For recently-approved projects from Maharashtra and Gujarat, installation of automatic bale press has been a precondition.  If the factories do not comply with this requirement, they have not been considered for any subsidy under TMC scheme. It is entirely up to the Govt. of India to retain or revise the above precondition.  Any such decision is the prerogative of Govt. of India.

Can we get a list of G & P units modernized under TMC along with their grades/ rating?
List of G & P factories modernized/ newly set up under TMC scheme is available in CCI website www.cotcorp.gov.in.  The units which have been graded by TMC have been indicated in the list along with their grades attained.

How can Agriculture Produce Market Committees (APMCs) know about the status of their bill file for release of Govt. of India grant?
Information is provided to the Agriculture Produce Market Committees (APMCs) for release of Govt. of India grant, on a case-to-case basis, as and when it is solicited by them from TMC section of CCI.  APMCs are free to get this information from GM (TMC) on any working day.  

How will a factory know about the status of their bill file?
Information is provided to the ginner, on a case-to-case basis, as and when solicited.   Ginners are free to make telephone calls to GM (TMC) on any working day.