Support scheme now covers sandalwood units

Entrepreneurs who set up units for the manufacture of sandalwood-based products, will get subsidy from the Centre.

Assistance of up to Rs 10 crore is available under the newly-launched 'Spoorthi' scheme covering 80 per cent of the project, Mysore MP C H Vijayashankar said in Mysore.

'Spoorthi' is a scheme launched by the Centre to revive and support agro-based and rural industries. Under the scheme, the manufacture of sandalwood-based products has been included for Mysore.

Over the years, Mysore has built itself a brand image in sandalwood-related products like sandal soap, sandalwood craft items, and agarbathies. Critical scarcity of wood and oil has forced manufacturers of these items to make do with other types of wood. As a result, sandalwood and its articles have almost disappeared from the market.

Realising the situation, the MP has got the state to include it under the 'Spoorthi' scheme too so that sandalwood-based units may be revived.

Vijayashankar, who was inaugurating a two-day buyer-seller meet and exhibition to promote cluster and vendor development in Mysore, said, "Centre will assist anyone wanting to set up a sandalwood-based unit." He called upon entrepreneurs to take advantage of the subsidy and rejuvenate the dying industry.

"Mysore will welcome any new industrial enterprise, but it should be pollution-free and should not affect the basic character and heritage-value of the city," he said.

A N Burji, vice-president, Kassia, who was a chief guest of the programme, jointly organised by the Micro Small & Medium Enterprises Development Institute, Mysore Industries Association and District Industries Centre, said Kassia was building a 40,000 sq ft trade centre in Bangalore. It will house a school of management, marketing arena, display centre and other facilities. "This is a model for other trade bodies. It is the biggest in the country," he said.

Burji said, as the SIDBI subsidy scheme has been extended up to 2012, industrialists can continue to get a 15 per cent subsidy for loans taken for land, building or for marketing purposes. Earlier, they were eligible for subsidy only for machinery. The subsidy released upto March-end was Rs 35 crore taking the total so far to Rs 70 crore.