25. PROMOTION OF FOREIGN DIRECT INVESTMENT (FDI)
(a) Foreign Direct Investment (FDI) is one of the key indicators for determining the attractiveness of a destination. This is also an important way of transmitting skills, knowledge and technology to the State and an important driver of industrial performance.
In view of the above, it is proposed to enter into technological collaboration with overseas corporate bodies / multinational companies / NRIs for foreign investment and latest technologies in selected sectors, such as infrastructure, power, mineral development, food processing, biotechnology, non-conventional energy etc. on mutually advantageous basis. Overriding priority shall be given to such investors.
Efforts will be made to institutionalize it for needs assessment and road mapping of FDI’s and to provide special care in timely clearances.
(b) In order to promote FDI, the State Government has proposed to set up NRI cell both at National Capital and Ranchi which will work as interactive platform and facilitate NRI / PIO investors in setting up industries in the State. It will also help in the redressal of their grievances. It may also extend support to other enterprises of the State by facilitating their import-export with the help of NRIs / PIOs.
(c) The State Government proposes to organise investors meet in India and abroad in association with Overseas Indian Facilitation Centre (OIFC) and other organisations. Efforts will also be made to facilitate the visits of investors, entrepreneurs and Govt. officials for participation in major trade fairs / investors meet organised within or outside the Country under the auspices of Government of India and its organisations and international organisations.
26. INFORMATION TECHNOLOGY / BIOTECHNOLOGY
26.1 State Government will encourage mega investors in IT / ITES for setting up IT industries, IT parks, IT SEZ in private sector or under PPP mode.
26.2 The objective of IT policy is to (a) provide congenial and industry – friendly atmosphere for the establishment and growth of IT companies for providing IT – Services (hardware / software based) and IT – enabled services (call centering, medical transcription, BPO etc) (b) Generate employment opportunities for the educated youth of the State. (c) Exploit export potential of this sector for augmenting GSDP of the State. (d) Bringing IT to masses and accelerating its uses for socio-economic development.
(ii) It has potential to generate large scale employment by using less land mass. The employment generation on per 100 lakh investment is among the highest in industry besides it causes almost zero environmental pollution.
26.3 (a) IT industries will be accorded priority in allotment of land by IADA.
(b) In case of land allotment by IADA, mega IT units will be allowed deferred payment of land value i.e. payment of land value by such units will be allowed in five equal installments spread over five years.
26.3.6 Motor Vehicles Act will be amended to enable the IT Companies to make use of hired privately owned omnibuses etc to transport their employees between their residence and work place.
26.3.7 Alternate Source of Power Generation
IT-ITES units with 5 KVA power requirements can be set up anywhere in the State.
26.3.8 FAR Relaxation
50% more FAR over and above to permissible FAR of the place will be allowed by the concerned Authority / Urban Local Bodies for IT-ITES units in earmarked areas IT Parks / STPs in consonance with other provisions of the prevailing Building Bye-laws. Necessary amendment, if required, will be done by concerned Authority / Urban Local Bodies with requisite permission of the Department of Urban Development.
26.4 Biotechnology
There is an urgent need for Jharkhand to promote biotechnology which offers an excellent opportunity in augmenting value creation and employment generation not only in areas of states traditional activities but will also provide avenue for its application in medicine, agriculture and industry. The State’s advantage is its large forest coverage with medicinal plants, vast reservoir of scientific human resources and centres of academic excellence, dependence of its large population on agriculture etc.
Objectives of the policy include.
i. To encourage and facilitate the introduction of biotechnology at the grass root level to strengthen the economy of the State.
ii. To promote industrial biotechnology for the production of useful chemical compounds.
iii. To promote cultivation of Spirulina as a high value low cost nutrient for rural and tribal areas.
iv. General end use of different types of bio-energy.
v. To expand forest cover of the State through social and agro forestry.
vi. To promote agro industries.
vii. Production of high-yielding, draught and pest-resistant seeds for agriculture and horticulture crops suited to different agro-climatic zones.
viii. Enhancement of the productive potential of the aquatic eco-system.
26.4.1(a) The fiscal incentive and concessions offered under the Jharkhand Industrial Policy-2012 shall be extended to biotechnology industry also.
(b) Biotechnology units will also get priority in allotment of land by IADA.
(c) Biotechnology industry not covered under Mega Industry as defined under classification of Industries [Annexure 1 {11 (iii))] will be given the incentives covered under 32.2, 32.3, 32.4 and 32.6.
(d) Government will encourage the setting up of venture capital funds for biotech industries
26.5 Following Special Incentives will be allowed for the IT Industry.
(i) Exemption from No Objection Certificate (NOC clearance) of JSPCB.
(ii) Exemption from zoning regulations for purposes of location.
(iii) Self-certification for purposes of compliance of the following Acts:
(a) Factories Act
(b) Employment Exchange (Notification of vacancies) Act.
(c) Payment of Wages Act.
(d) Minimum Wages Act
(e) Contract Labour (Regulation and Abolition) Act
(f) Workmen Compensation Act.
(g) Shops and Establishments Act.
27. TOURISM
27.1 The Tourism and Travel Industry is well on its way to become one of the most powerful sector in coming decades. Since there is a huge potential of employment in tourism sector the State Govt. proposes to give special thrust to the sector by attracting higher investment in the areas with tourist potential. Efforts will be made to pool up resources both from government agencies and private sector for investment so that the ultimate objective of employment and revenue generation in the State is achieved. Priority is proposed to be given for the development of eco-tourism, religious tourism, heritage-tourism, resorts etc.
27.2 Air- taxi services would be promoted to provide package tours especially keeping in mind the Buddhist circuit, Jain circuit and international tourist flow.
27.3 There are about 29 hotels, 33 tourist complexes and several Tourist Information Centres, Way Side Amenity, Ropeway etc. in the Govt. sector. Deptt. of Tourism will ensure Private Sector participation under PPP mode / Joint Venture for its operation, quality and capacity improvement.
27.4 Deptt. of Tourism will bring out a comprehensive policy for setting up hotels, motels, yatri niwas etc. in Public, Private, Joint Venture Mode.
27.5 Necessary assistance will be extended by Revenue Department for purchase of land from Raiyats under consent Award Scheme.
28. FILM INDUSTRY
Existence of large number of beautiful natural religious, heritage and industrial sites, dense forest, natural water falls and availability of cheap labour make Jharkhand attractive site for film suiting and its development. Film industry in the State can be a good source of direct and indirect employment. Films in Nagpuri and other languages are being produced locally in the State. Private investment can be promoted by providing special incentives for setting up of film studios, film city etc. The setting up of film city, studios will attract same incentives as made to different Industrial Parks. Detailed policy will be worked out by the Department of Public Relation & Information in consultation with Department of Tourism, Industry, representatives of film industries, Department of Commercial Taxes etc.
29. EXPORT PROMOTION
In order to boost export the State Govt. proposes to initiate the following measures :
(i) Programmes will be organized with the help of reputed consultants / IIFT to sensitize exporters about market intelligence, export documentation, finance and other critical areas of export
(ii) Efforts will be made to set up a State-of-Art external Information Centre in collaboration with local Chamber of Commerce and Industries Associations.
(iii) Setting up of an Air Cargo Complex is proposed. This would give the desired impetus to the export of products like flowers, fruits, vegetables etc.
(iv) Inland Container Deport (ICD) with the assistance of Govt. of India has been set up at Jamshedpur for large scale containerization of value added and manufactured exportable goods. Similar facility at other places is proposed to be set up in consultation with Railways and Department of Central Excise and Customs.
(v) Industries will be encouraged to participate in International Exhibitions and Trade Fairs. Visits of trade delegations will also be supported financially by dovetailing the schemes of Govt. of India.
(vi) Export oriented units will be declared as essential services / Public Utilities Services.
(vii) Export Awards will be provided to Export Oriented Units to recognize quality, R&D and performance.
(viii) Export oriented units will be preferred in land allotment by IADA.
30. INDUSTRIAL SICKNESS
30.1 Revival of willing and viable sick industries is among the priorities of the State Government. The State government has helped revival / rehabilitation of a number of Industries in the past. As many as 49 small scale units and 3 medium and large scale industries have been provided assistance by the State Government under revival / rehabilitation scheme.
30.2 The State Government intends to take the following measures for prevention of sickness and revival of willing and viable sick industries.
30.2.1 Periodic coordination meetings with the industrialists / entrepreneurs and financial institutions at the IADA level under the Chairmanship of Managing Director for industries under their command area and at the divisional level under the Chairmanship of the Divisional Commissioner for the rest of areas shall be reviewed to ensure early detection of sickness / problem, and preventive measures for the same shall be taken.
30.3 Industrial Sickness in Micro and Small Entreprises (MSE)
30.3.1 For the revival of willing and viable Micro and Small units, the State Government proposes to form a State Level Apex Body with Director of Industries as its head to consider such revival efforts.
30.3.2 The State Level Apex body for rehabilitation of sick industry would recommend required restructuring of management, funding etc for approval of Government under existing provisions.
30.3.3 The sick Micro and Small units would be identified by such Apex body w.e.f. such date as per the guidelines issued by RBI. Appropriate packages of relief and concessions for such units would be approved for their rehabilitation. The units declared sick by such body and opting for rehabilitation shall be eligible for relief and concessions by banks and financial institutions, as per the guidelines of the RBI within a specified time frame.
30.3.4 Such units shall be eligible for all incentives on fresh and new investment for revival, available to new units under this policy, provided the unit has not availed incentives as a sick unit under any earlier industrial policy.
30.3.5 Sick units shall be allowed full rebate on delayed payment surcharge during the period of sickness, if it is included in the dues of Electricity Board.
30.3.6 In case of disconnection of electricity, the sick unit shall be exempted from AMG charge and other contractual guarantee charges for the period of disconnection.
30.3.7 The balance amount of electricity dues of such sick unit after deduction of the aforesaid amount shall be paid by the unit in such instalments as may be determined by such Apex body on case to case basis without any delayed payment surcharge. However, if such unit fails to pay any instalment in time, for such delay in payment, it shall be liable to pay delayed payment surcharge for such duration at the rate fixed for such delayed payment surcharge.
30.3.8 The Apex body shall periodically monitor the progress of the revival package and it shall recommend to the Government for approval of such actions as it may deem fit against the defaulting party including the unit and / or other departments / insititution.
30.3.9 The State Level Apex Body would comprise of such persons / organizations as may be notified by the State Government from time to time and published in official gazette, in which Finance Department / Commercial Tax Department / Energy / Institutional Finance shall be necessarily represented.
30.4 Revival / Rehabilitation of Sick Medium and Large Industries
30.4.1 A committee with Secretary, Industries as its head will be constituted by the State Government to evolve suitable measures for revival of viable sick industrial units including State Public Sector Undertakings in large and medium sector.
30.4.2 The Committee shall make an assessment of sick / closed State Public Sector Undertakings and for revival of technically and economically viable such undertakings, recommend adequate measure which may include manpower rationalization / disinvestment / financial restructuring etc.
30.4.3 For any financial incentive to medium and large units, beyond the provisions of the present industrial policy, there will be a State level Empowered Committee under the Chairmanship of Chief Secretary for taking financial decision on the recommendation of the Committee (mentioned in sl. 30.4.1). The Committee will also consist of representatives from Finance, Planning and Development, Energy and will be notified separately.
30.4.4 Sick Medium and Large Scale Units will be required to approach BIFR for being declared sick. Subsequently, concessions and facilities identified under the scheme of rehabilitation prepared by BIFR or by state Level Inter Institutional Committee of RBI (SLIIC) would be placed before the committee headed by Secretary, Industries for consideration and recommendation to Government through State Level Empowered Committee (SLEC) for approval.
30.4.5 Rehabilitation measures for sick / closed but potentially viable industrial units may inter-alia include financial support / relief and concessions or sacrifice from various Government Department / organization and or additional facilities including allocation of power from SEB / DVC and any other agency / statutory body / local authority.
30.4.6 Such closed and sick industrial units which have earlier already availed various facilities due to its sickness would not ordinarily again get facilities unless the State Government may decide to extend such facilities in public interest on case to case basis.
30.4.7 Sick units can avail exit policy of Industrial Area Development Authorities of the State after approval of competent authority.
30.4.8 Govt. of India is in the process of finalization of a scheme for rehabilitation of sick, micro, small and medium enterprises by setting up a Rehabilitation Fund. Accordingly, the State would suitably modify its scheme, taking advantage of the Revival and Rehabilitation Scheme of Govt. of India for sick units.
31. INDUSTRIAL FINANCE
31.1 The Government appreciates that inadequate industrial finance is the biggest bottleneck in the rapid growth of the State. The Government intends to take such measures, which would promote easy flow of finance to industrial units and entrepreneurs.
31.2 The State Government shall make efforts to ensure opening up of Regional / Controlling offices of Banks / Financial Institutions and posting of senior officials having sufficient delegation of powers to enable speedy credit decisions on the spot.
31.3 The lead banks in their respective districts would take up preparation of “Industrial Credit Plans” at the district level to accelerate the flow of credit to the industry sector with emphasis on SSI, Tiny and Cottage Industries for which separate targets would be fixed.
31.4 The State Government would make efforts to open specialized SSI bank branches in the State to cover all districts having concentration of SSI units, in a time bound manner.
31.5 The State Government shall also invite Private Sector Banks / Financial Institutions to provide financial services to various industrial units.
31.6 A State level Banker’s Committee (SLBC) has been constituted to provide adequate interfacing between State Government and State Level Institutions on one side and RBI, Banks and Term Lending Institutions on the other. This committee provides a useful forum for exchanges of information and discussion on the problems faced by the small and medium scale industrial units and small entrepreneurs. This committee also deals with the problems relating to co-ordination between banks and financial institutions as well as regarding the provision of adequate infrastructure facilities to industrial units, in addition to the general problems relating to grant of credit to such units.
31.7 To facilitate easy flow and recovery of micro credit, financial institutions such as NABARD, SIDBI, Co-operative Banks, Commercial Banks etc would be encouraged to extend credit to Self Help Groups (SHG).
31.8 The State Government would take necessary steps to facilitate empowering of the commercial banks and funding institutions to ensure speedy and expeditious recovery of the credit extended.
32. INCENTIVES AND CONCESSIONS
32.1 Comprehensive Project Investment Subsidy (CPIS) - Exclusively for industries other than Mega.
32.1.1 Industrial Units shall be entitled to get Comprehensive Project Investment Subsidy (CPIS) for investment made in :
(i) Plant and Machinery.
(ii) Pollution Control Equipment.
(iii) Environment friendly alternative power generation equipment.
(iv) Employee Welfare (EPF, ESI, Health Insurance Scheme)
32.1.2 The qualifying amount of investment for subsidy under CPIS will be calculated giving weightage of 50% to investment made in Plant and Machinery, 20% each to investment in pollution control equipment and environment friendly alternative power generation equipment and 10% to investment in employee welfare (EPF, ESI, Health Insurance).
32.1.3 Subsidy under CPIS will be admissible at the rate of 7%, 10% and 15% max of the calculated qualifying amount of investment for blocks under category A,B and C respectively (List of Blocks under Category A,B and C is mentioned in Annexure 1, Sl. 12).
32.1.4 Maximum admissible subsidy under CPIS for an industrial unit will be Rs 5 crore.
32.1.5 Industries availing subsidy under CPIS will not be eligible to avail benefits under sl. 32.2 (stamp duty and registration fee).
32.1.6 Subsidies to industries under sl. 32.2 (stamp duty and registration), VAT Incentives and CPIS, all added together, will not be more than total Fixed Capital Investment made by the company in the project. VAT incentives will include VAT computed under sl. 32.5 and VAT benefits claimed under any other heads as provided in this policy. However, incentives for patent / quality certification and special incentives for SC / ST / women/ PH will not form part of this.
32.1.7 SC/ST/Women/Handicapped Entrepreneurs will avail 5% additional benefit under CPIS. This benefit shall be applicable only to residents of Jharkhand. For the purpose of this clause, those persons will be eligible for benefit under SC/ST category who are issued caste / residential certificate to this effect by competent authority, not below the rank of SDO, in the State of Jharkhand. Similarly, those persons will be deemed to be of handicapped category who are certified by a competent Medical Board to have handicap of more than 40%.
32.1.8 Special incentive for extremist infested blocks
Non-mineral based (industries not using the mineral resources of the State) new industrial units located in the extremist infested blocks (5 kms beyond municipal boundary) with minimum investment of Rs 5 crore in plant and machinery and providing direct employment to minimum 100 persons shall be eligible for additional incentive of 5% under CPIS. Also, reimbursement of VAT will be made for one additional year.
32.1.9. The policy envisages direct employment of specified number of work force for some industries to avail certain facilities / incentives etc. of the government. Industries implementing State Government reservation policy in such direct employment will be eligible for 5% additional incentive under CPIS.
32.1.10 Only one time subsidy under CPIS category will be provided to the industries. The subsidy to be paid will be spread over a period of 5 years time @ 20% each year.
32.1.11 Industrial units entitled for benefits in the above category under Government of India Scheme will not be eligible to get benefits under the same category sl. {32.1.1 (i to iv)} under this policy.
32.2.1 Stamp duty and Registration fee
Manufacturing units with direct employment of 100 persons will enjoy 50% reimbursement of stamp duty and registration fee for land directly purchased from the raiyats / acquired through consent award (lessee of IADA / industrial parks will not be eligible for this benefits). This facility will be granted only for the first transaction for a particular plot of land.
32.2.2 100% reimbursement of stamp duty and registration fee for land will be allowed for industries offering 100 direct employment per acre of land bought.
32.2.3 Industries engaged in mineral extraction activities such as mining, crushing, transportation, washing etc without significant value addition will not be entitled for such benefits.
32.3 Quality Certification
(a) High priority is being accorded by the State government for improvement of quality of the industrial units and will be provided with assistance for obtaining quality certification from B.I.S. and other internationally recognized institutions @ 50% of the expenditure incurred up to maximum of Rs 2.00 lakh.
Units obtaining certification / accreditation under any of the following internationally recognized / accepted standards will be eligible for the benefit
· ISO-9000 Quality Management System
· ISO-14000 Environmental Management System
· ISO-18000 Occupational Health and Safety Standards.
· BIS certification
· Social Accountability Standards.
· Green Energy Certificate.
· Bureau of Energy Efficiency (BEE) Certificate.
· LEED Certification in New and renewable Energy.
· Internationally accredited eco-labels OKE-TEX 100 etc
· Any other internationally accredited certification that will enable better market positioning.
(b) An Enterprise can avail the facility for more than one certification during the policy period subject to maximum limit.
(c) Incentives for quality certification (ISO-9000, ISO-14000 etc.) are also being given by Government of India. State Government will promote and facilitate the Unit getting such benefits on priority basis.
32.4 Patent Registration
Industrial units will be encouraged for filing their successfully generated, registered and accepted patents based on their original work / research.
The State Govt. will provide financial assistance of 50% of the expenditure incurred, up to a maximum of Rs 2 lakh, per patent. Out of these a maximum of Rs 1 lakh may be given on expenditure incurred in filing of patent, attorney fees, patent tracking etc. and upto maximum of Rs 2 lakhs on final acceptance of the patent.
The State Govt. will provide financial assistance of 50% of the expenditure incurred, up to a maximum of Rs 2 lakh, per patent. Out of these a maximum of Rs 1 lakh may be given on expenditure incurred in filing of patent, attorney fees, patent tracking etc. and upto maximum of Rs 2 lakhs on final acceptance of the patent.
32.5 Subsidy / Incentive on VAT
This facility will be available to all industries including MSME, Handloom, Sericulture, Handicraft, Khadi and village industries products, as given below :
(a). MSME shall be eligible for reimbursement of 60% of Net VAT paid per annum, up to a maximum of 100 % of total fixed capital investment made, for different duration depending on the location of the units as mentioned below.
| Sl. No. | Location | Duration Years |
| 1. | A | 5 |
| 2. | B | 7 |
| 3. | C | 9 |
(b) Large and Mega Industries shall be eligible for reimbursement of 50% of the NET VAT paid per annum up to a maximum of 75% of total fixed capital investment for different duration depending on the location of the unit as shown in the above table.
(c) Handloom, Sericulture, Handicraft, Khadi and Village Industry products shall be eligible for reimbursement of 75% of the NET VAT paid per annum up to a maximum of 100% of the total fixed capital investment for different duration depending on the location of the unit as shown in the above table
(d) (i) Apparel, Textile, Food Processing, Automobiles, IT/ITES and Bio-Tech units shall be eligible for reimbursement of 75% of NET VAT paid per annum up to a maximum of 75% of the total fixed capital investment for different duration depending on the location of the unit as shown in the above table.
(ii) Large amount of Fly Ash and Blast Furnace Slag is likely to be generated by a number of existing, upcoming and proposed integrated steel plants with Captive Power Units and coal based Thermal Power Plants in the State. The generation of these wastes causes environmental pollution. These wastes are normally used in brick making, cement production, soil conditioning etc. With a view to make partial use of these materials it is proposed to extend the VAT incentive, as envisaged in 32.5 d (i) above, to such mega industrial units which use atleast 25% (by weight) Fly Ash or Blast Furnace Slag as raw material mix of the State for production provided their product conforms to BIS or equivalent International Standard.
(e) Industrial units which have qualified to be new unit by expansion / modernization / diversification will be entitled to get similar benefits in respect of VAT as mentioned above in their respective categories. However, they have to maintain separate record of production and investment details for such expansion / diversification / modernization. In case, maintaining a separate record is not possible by such units the benefit to such eligible units shall be available in the ratio of installed capacity.
(f) Any unit claiming these benefits will have to get registered with Commercial Taxes Department, Government of Jharkhand and shall have to file all their statutory returns.
(g) Department of Commercial Taxes shall give top priority to such units in matters of final assessment of annual tax return in a specific time frame.
(h) Commercial Taxes Department shall also notify the responsibility of assessing officers along with time frame to be maintained in assessment of tax.
(i) Payment against VAT reimbursement claim will be made on annual basis and claim for such payment has to be made after the plant has been operated for alteast one full financial year.
(j) The unit for which return assessment has not been duly completed by Commercial Taxes Department, will not be eligible for reimbursement of the VAT claimed for the next year.
(k) VAT reimbursement claim for the final year i.e. the last year of eligibility period can only be entertained after the complete assessment of all the previous years.
(l) After availing VAT reimbursement facility for eligibility period, industrial units are to maintain tax compliance at similar level in future for the same number of years they have claimed VAT e.g. a unit which has claimed VAT reimbursement for five years for location. The Unit will have to do the tax compliance for another five years after the expiry of reimbursement.
(m) For claiming VAT subsidy, the industrial unit will be issued a passbook from the Department of Industries in which the details of the output tax payable (including CST) and tax paid under Jharkhand VAT (including CST) would be entered and verified by the Commercial Taxes Department in the form prescribed in Annexure - III. Director, Industries will be authorised to pay the incentive on the basis of the verification for which rules will be made separately.
Note : Notwithstanding anything contained in this Industrial Policy, the State reserves its right, to take appropriate direction including amendment, deletion or substitution of any incentives as granted in this Policy after the implementation of the Goods and Services Tax System into the State.
32.6 Incentive for Industrial Parks, Private Industrial Area / Estate
32.6.1 50% of cost, upto maximum Rs 10 crore, incurred on development of common infrastructure of green field textile, apparel park, IT/ITES park, Bio-technology park, Gems and Jewellery park, Bio-tech and Herbs park, Chemical and Pharmaceutical parks, Food Park, Automobile Vendor Park etc {as mentioned in sl. 15.(i-viii)} and private industrial area / estate will be borne by the State Government. Such infrastructure will mainly include road network, drainage, drinking water and power transmission etc.
32.6.2 State Government will provide 50% reimbursement of registration fee of land of above mentioned industrial parks and private industrial area / estate.
32.7 Incentive for Cluster Development
Minimum grant of 10% of total approved project cost by the Government or SPVs own contribution, whichever is less, will be offered by the State Government to cluster schemes approved by Govt. of India for the State.
32.8 Incentive for textiles and apparels
(a) 100% reimbursement of stamp duty and transfer duty paid by the industry will be allowed for execution of lease, lease cum sale or sale deeds in respect of industrial land / plots allotted or purchased by industry and Execution of Lease Deeds in case of industrial sheds / plots taken on lease.
(b) Textile / apparel manufacturing units will be provided financial assistance for purchase of land close to the Apparel / Textile Park for construction of dormitories to house the workers at the rate of one acre for every 1000 workers employed. The assistance will be limited to 50% cost of land up to a maximum of Rs 50 lakh.
32.9 Incentive for agro-food processing cluster.
The State Government will give an assistance of 10% of the project cost provided the DPR of the project is approved by GOI-MSME.
32.10 Incentive for captive power plant
New or existing industrial units setting up captive power plant shall be exempted from the payment of 50% of electricity duty for a period of five years for self – consumption or captive use (i.e. in respect of power being used by the plant) from the date of its commissioning.
32.11 Incentive for IT / ITES
(a) Mega IT units will be exempted from electricity duty for five years.
(b) New IT – ITES as well as expansion units investing between Rs 5 crores and Rs 50 crores and employing more than 100 direct workers would be eligible for a comprehensive project investment subsidy (CPIS).
(c) Recruitment Incentive of Rs 2.5 lakh per 50 people (local people including those who have studied in the State) will be given to the IT – ITES unit. This will be one time benefit with maximum limit of Rs 25 lakh.
(d) 100% reimbursement of stamp duty, transfer duty and registration fee paid by IT-ITES industries on sale / lease deeds on the first transaction.
(e) 50% reimbursement of stamp duty, transfer duty and registration fee paid by IT – ITES industries on sale / lease deeds on the second transaction.
(f) Facilities at (d) and (e) will not be available for IADA land.
(g) Lease rentals (including premises on rent) up to 50% of actual cost incurred subject to a maximum of Rs 5 lakh per annum will be reimbursed up to a period of three years for the plug-and-play built up office space of minimum 2500 sq. ft. These units will not be allowed to take benefit under land / building component of CPIS. However, other component of CPIS like incentive for plant, machinery etc. can be availed by them.
(h) Government will encourage Captive Power Generation in IT-ITES locations. 40% of the capital expenditure incurred in soundless captive power generating sets will be reimbursed. This will be one time incentive under CPIS (by clubbing the pollution control equipment incentive & environment friendly programme).
32.12 Incentive for Tourism (No other incentives mentioned in the policy elsewhere will be applicable except the following).
32.12.1 (a) There will be total exemption of luxury tax, electricity charge at domestic rate, on the Bed and Breakfast (Home stay) facilities on dwelling units and no separate permission from urban local bodies for land use will be required. It will be applicable for maximum 5 years.
(b) Five Star Hotels at Ranchi, Jamshedpur & Dhanbad and Three & Four Star Hotels at other places of the State will get 50% reimbursement of Luxury Tax for a maximum period of five years.
(Multiplexes have already been granted 100% exemption of Entertainment Tax by Deptt. of Urban Development, GOJ)
32.12.2 New Ropeways and Amusement parks set up in the State will be reimbursed entertainment tax for a period of 5 years from the date of becoming fully operational.
33. EXPANSION / MODERNISATION / DIVERSIFICATION
Units undergoing Expansion / Modernisation / Diversification and fulfilling the criteria mentioned at sl. 6 and sl. 7 at Annexure-I, will be treated at par with new Industrial units and will be eligible for incentives accordingly even if the unit might have availed of benefits for earlier expansion / modernisation / diversification under any earlier policy as an unit. For expansion / modernisation / diversification of MSME units, if the gap period between DOPs of earlier project and the one under implementation is two years then only the benefit can be availed under this policy. Similarly, for large and mega projects the gap between DOPs of earlier project and the one under implementation is to be three years for availing the benefits. DPR indicating details of time schedule and completion for expansion / modernization / diversification has to be submitted to industries department for approval. If approval is not communicated within 30 days it will be treated as deemed approval.
Projects under MSME category will be approved by a Committee headed by Director, Industries and those under Large and Mega category will be approved by the Secretary, Industries.
34. GENERAL PROVISIONS
34.1 Public Utility Services
The following categories of industries/ establishments shall be declared as “Public Utility Services” for the purpose of application of provisions under Chapter-V of the I.D. Act 1947.
(i) Information Technology & IT Enabled Services.
(ii) Bio Technology
(iii) Agro-based processing
(iv) Electronics & telecommunications
(v) Export Oriented Units and units in parks.
(vi) Infrastructure projects including industrial parks and SEZs
34.2 Exemption from some of the provisions of Factories Act
Industrial units and establishments in the following categories shall be exempted from the provisions of Chapter VI of Factories Act 1948 (working hours of Adults).
(i) Information Technology & IT Enabled Services.
(ii) Bio Technology
(iii) Electronics & telecommunications
(iv) Export Oriented Units.
(v) Industries set up in Special Economic Zones.
34.3 The Industrial Estates, Industrial Areas, Industrial Parks, Growth Centres etc. shall be excluded from the tax regime of the Municipal and other local authorities for management by local industries associations, provided that the latter undertake to maintain the infrastructure of the industrial estates either directly or through other agencies by taking consent of Urban Development Department or by amendment of the relevant Act, if required. Urban Development Department shall frame the guidelines and prescribe the fee for providing such services.
34.4 Tourism, Information Technology (IT) and Biotechnology related units including laboratories may be allowed in Urban areas in conformity with Master Plan inforce and following other relevant clearances. Floor Area Ratio (FAR) for above mentioned unit may also be considered to the extent with conditions as defined in sl. no. 26.3.8.
34.5 Labour Reform
A time bound action plan shall be formulated for expeditious implementation of following labour reforms.
(a) According highest priority to amalgamation of different records, registers and returns required to be maintained under the various labour laws, flexible women working hours, and introducing systems of “self-certification” for labour related compliance of routine nature.
(b) A system of joint inspection by various regulatory agencies such as Jharkhand State Pollution Control Board (JSPCB), Labour Inspector, Chief Inspector of Factories & Boilers, Regional Provident Fund Commissioner, and Regional Director, Employees State Insurance Corporation shall be devised and implemented in a time bound manner.
(c) The implementation of these provisions shall be reviewed from time to time and complaint, if any, of investors / companies will be received by the Single Window Cell of the Industries Department.
34.6 Chartered Engineers / Inspectors
The State Government is contemplating to authorise chartered engineers possessing requisite qualifications to perform the duty of Inspector of Boilers with regard to registration, inspection and renewal.
34.7 Applicability of Incentives (special mention)
(a) Incentives under CPIS are not available for mega industries.
(b) The industries which made investment earlier and have qualified as mega industries, based on norms fixed under annexure 1 {11(iii)}, and have not availed subsidy / benefits and DOP declaration under the previous policy JIP 2001 inspite of DoP before 01.04.2011, will be entitled to benefits under this policy.
(c) The provisions under 20.7 will be applicable to eligible industrial units, even if Government of India provides similar benefits. It will be an addition to incentive of Government of India.
(d) Incentives where time frame has not been mentioned will be available for a maximum period of five years.
34.8 Special Mega Units.
Industrial units with investments of three times the investment norm fixed under annexure 1 {11(iii)} for mega classification, will be considered for special incentives, package etc., on case to case basis, as decided by the State Cabinet.
35. DATE OF PRODUCTION (DoP)
35.1 All industrial units must obtain the Certification of Date of Production (DoP) from competent authority for availing benefits under this policy. The EM part II or IEM will not be sufficient to substitute DOP certificate.
35.2 An industrial unit has to invest minimum of 85% of proposed capital investment and achieve minimum of 50% of rated production capacity, as envisaged in project proposal / DPR to become eligible for filing of application of DoP to Industries Department.
35.3 (a) The industrial unit becoming eligible can submit DoP application within one month of the commencement of production as envisaged in DPR.
(b) The application form for DOP can also be submitted on-line.
(c) The applications for DOP, submitted on-line, will be acknowledged by Director Industries (DI) / IADA / GM, DIC , as may be the case.
35.4 (a) MSME units will get a maximum of six month's relaxation of time for submission of DOP application. However, the application has to be submitted with expressed reason duly supported by documentary proof.
(b) A penalty deduction of 3% per month with maximum 10%, from the amount of incentives will be imposed for delayed submission of application beyond 6 months. This deduction will be made at first transaction out of CPIS incentives for non mega and Net VAT for mega unit.
(b) In case of delay in submission of application beyond next six months, penalty deduction of 5% per month, with maximum 25%, will be imposed on the amount payable at first transaction, out of admissible amount of CPIS incentives for non mega, and net VAT for mega units.
35.5 (a) Application forms complete in all respect only will be considered for issue of DoP certificate.
(b) Mere submission of EM Part II or IEM will not be sufficient for the purpose of disbursement of subsidy under this policy.
(c) It may be mentioned that incomplete application without required details or application with errors will be treated as application not submitted and stand automatically rejected. The concerned authority may intimate the same to the applicant.
(d) Once the application of DoP is rejected the concerned industrial unit will be compelled to submit the completed application form afresh.
(e) Application for DoP will not be treated as incomplete in case of non-issue of requisite certificates by statutory authorities. In such cases the applicant has to attach a copy of the application submitted to such statutory authority with date etc. along with DoP application.
35.6 (a) Normally the application for issuing DoP certificate will be disposed of within a month from the date of receipt of application.
(b) If for any reason, however, the disposal is delayed, the reason of delay will be explained and such delay will not exceed more than three months.
35.7 (a) All such industries covered under existing MoUs, where substantial progress has been achieved during the previous policy period (15.11.2000 - 31.03.2011) but DoP has not been fixed, will be entitled to avail benefits / concession under this new policy under relevant category.
(b) Industrial units will be entitled for reimbursement / payment of subsidy / incentives under different categories only from the next financial year of DoP.
(c) Industrial units, with investment above Rs 500 crore, which have commenced production / operation before 01.04.2011 and have not applied for the issue of Date of Production (DoP) certificate by the Industries Department may approach the Department for issue of such certificate to avail the benefits only under Jharkhand Industrial Policy- 2012.
36. MEMORANDUM OF UNDERSTANDING (MoU)
36.1 (a) MoU may be agreed / signed between Government of Jharkhand and Investors for new investment.
(b) MoU may be agreed only for Mega Industries.
(c) Initially, MoU indicating the intention of the investor in brief about the proposed industry and the possible facilitation to be extended by the State Government which will remain valid only for a maximum period of 12 months.
(d) Subsequently, second stage of MoU will be signed which will include complete details of the project including DPR with the site selected, resources required for the unit, possible sources of funds, raw materials, consumables, utilities, manpower requirement, infrastructural details, time-frame for implementation etc.
(e) MoU signed initially will automatically expire after one year if the second stage of MoU is not signed with the State Government.
36.2 (a) Existing MoUs which have been partly or fully executed and for which benefits have been availed under Jharkhand Industrial Policy 2001 will stand completed.
(b) Previously reached MoUs, where 50% of the proposed investment has not been made, will be required to be reached afresh after expiry of the existing due date of MoU or 31.03.2012, whichever is earlier. Such MoUs reached afresh will be treated as second stage of MoU, as mentioned in 36.1 (d).
(c) All cases of previously reached old MoUs, with inadequate investment or without investment, will be re-evaluated by High Powered Committee before these are permitted for second stage MoU as mentioned in 36.1 (d).
37. FACILITATION
37.1 Facilitation by DIC / IADAs for awareness creation and grievance redressal.
(a) DIC and Industrial Area Development Authority will be organizing interaction meeting between officials of Industry Department and investors / industries bodies / industries association for facilitating the filing of various types of forms claiming incentives / benefits under the policy.
(b) Electronic communication with industrial units including Micro and small units through e-mail will be promoted.
(c) Information kiosks will be set up in major district centres for easy access of information for entrepreneurs and investors.
(d) Investors guide / information booklets will be made available for information of investors. All relevant information will also be made available to the investors in website / on-line. Director of Industries will ensure compliance.
(e) Investor’s meets and road shows will be organized at State / National / International level by the State Government in collaboration with Industrial Houses / Industries Associations etc.
(f) Clearances with other Departments will also be facilitated by DIC / IADAs.
37.2 Policy Period
The State Government may at any time amend any provision of this policy. Normally the policy will remain operational for 5 years (01.04.2011 to 31.03.2016)
37.3 Doubts Resolution
(a) Doubts relating to interpretation of any term and / or dispute relating to the operation of any provision under this industrial policy shall have to be referred to the Industries Department, Government of Jharkhand for clarification / resolution and the decision of Government in this regard shall be final and binding on all concerned.
(b) In case of any doubt the "English Version" of the policy will be considered an authentic version.
37.4 Procedure for operationalisation of the provision of the policy.
Implementation of various provisions covering the incentives, concessions etc will be subject to the issue of detailed guidelines / statutory notifications, wherever necessary in respect of each item by the concerned Administrative Department.
37.5 Role of JIIDCO
Jharkhand Industrial Infrastructure Development Corporation (JIIDCO) will be the Nodal agency for all infrastructural construction work of Industries Department including Industrial Area Development Authorities (AIADA, BIADA, RIADA, SPIADA), public sector undertakings like Jharcraft and other institutions like Government Mini Tool and Training Centre at Ranchi and Dumka. Besides, JIIDCO will also provide technical input, as and when required by Industries Department including vetting of the project proposal, preparation of DPR, issues pertaining to Single Window Operationalisation etc.
37.6 Role of JINFRA
Jharkhand Infrastructure Development Corporation (JINFRA) will be nodal agency for all projects of Jharkhand to be pursued under PPP.
37.7 Promotion of Clean and Green Technologies
Enterprises will be encouraged to adopt cleaner production techniques and go for green technologies and processes to protect the environment and ecology.
37.8 State Award to Enterprises
Performance of industries are evaluated every year and on the basis of objective evaluation criteria, suitable awards are given by the State Government for outstanding achievement in environment management, labour welfare, R&D, Safety Profit maximization, innovative production, turn around of sick industries, corporate social responsibility, entrepreneurship and quality. Sixty two awards, during last 6 years have been awarded. Scheme of enterprises adopting such best practices will continue to be recognized with State awards every year.
37.9 (a) Single Window Clearance Mechanism will be enacted for according required clearances / approvals of projects submitted by entrepreneurs within specified period. Composite Application Forms (CAF) along with statutory fees for all clearances connected with the investor’s proposals will be received by the Single Window Clearance cell which will facilitate required clearances from the concerned departments or the authorities of the State Government and other agencies.
(b) Till the time Single Window Clearance Mechanism is enacted, existing Single Window Cell in Industries Department will be strengthened with dedicated team of personnel / departmental officers & experts to provide better single point contact services for investors. The cell will also come out with newsletters, departmental publicity materials and other relevant documents for entrepreneurs.
37.9 A web-based application portal with monitoring and feedback capability will be created to operationalise the framework – administrative guidelines to assist entrepreneurs and facilitate speedy and time bound processing of their applications.
37.10 On line monitoring system is proposed to be introduced for developing better interface between the investor, the Industries Deptt. and other related Departments of GoJ.
37.11 Environmental Clearance
(a) To ensure smooth environmental clearance the State Level Environment Impact Assessment Authority (SEIAA), and State Level Expert Appraisal Committee (SEAC) as provided in the gazette notification dated 14.09.2006 part II, Sect. 3 (ii) of Ministry of Environment and Forest, Government of India, New Delhi have been empowered.
(b) The consent to operate under the Water and Air Act given by Jharkhand State Pollution Control Board to industries of the State will remain valid for a maximum period of five years.
(c) State Govt. would extend necessary support to Jharkhand State Pollution Control Board (JSPCB) for expediting the disposal of applications of investors / entrepreneurs for environmental clearance. The following measures are envisaged to be undertaken for the purpose.
Industrial Zoning : Zoning on the basis of environmental aspects, land availability etc will be carried out to enable the entrepreneurs to select appropriate site for their project so that NOC is issued faster.
Third Party Audit : Necessary support will be extended to JSPCB for organizing third party audit for better compliance of environmental laws.
Skill Upgradation : Skill upgradation programme of technical personnel of JSPCB and related organizations is envisaged to be organized in Environmental Engineering / Management.
37.12 Concept of Niveshak Samadhan Adalat
(a) With a view to providing a timely and effective dispute / grievance resolution mechanism for units / enterprises, the State Government shall constitute a NIVESHAK SAMADHAN ADALAT which shall meet every month atleast once (more frequently depending on the business in hand) and hear the grievances / complaints of investors and make its recommendation to the appropriate authority / authorities for consideration and redressal of the grievances.
(b) The NIVESHAK SAMADHAN ADALAT will be chaired by Member Board of Revenue. Two other members of ADALAT will be eminent experts of Finance, Management and Industry and law.
(c) Secretarial assistance will be provided by Single Window Cell.
(d) This forum will act as revisional authority against the order of Secretary, Department of Industry related to implementation of provisions of this policy.
(e) A separate notification in detail will be issued to this effect.
37.13 Efforts will be made to bring all regulatory Departments on the same platform by constituting a committee under the Chairmanship of Chief Secretary. The committee consisting of representatives from all related Departments will work out the detailed modality of joint inspection, frequency of inspection etc so that clearances / approvals are given to the entrepreneurs within specified time.
38. MONITORING AND REVIEW
(a) A committee under the Chairmanship of Chief Minister will be constituted to review the implementation of the policy. This will meet atleast twice in a year.
(b) All concerned departments and organizations would issue necessary follow up notifications within a month to give effect to the provisions of this Policy. The implementation of this policy will be duly monitored by Government at the level of Chief Secretary atleast once in a quarter, so that the State Government may carry out a mid - term review of this Policy.
38.1. The incentives / subsidies / reliefs outlined in this policy shall be available to industrial units which commence commercial production from 01.04.2011 till the validity of this policy.
38.2. For sanction and disbursement of the subsidy / incentives, contained in this policy, for MSME a Committee would be constituted under the Chairmanship of Director, Industries with the Director, Handloom, Sericulture and Handicraft, a representative each of the Commercial Taxes Department, Jharkhand State Electricity Board (wherever necessary) as well as the concerned Managing Director of the Industrial Area Development Authority or GM, DIC as its Members. For sanction and distribution of incentives to industrial units other than MSME, the High Powered Committee under Chief Secretary will function.
A detailed Resolution in this regard will be issued subsequently.
38.3. Definitions
The definitions given in the Annexure to this policy shall be treated as part of this policy.
39. POWER OF THE STATE GOVERNMENT
39.1 Notwithstanding anything contained in the foregoing paragraphs of the industrial policy, the State Government by issuance of notification in the official gazette may amend or withdraw any of the provisions and / or the schemes mentioned herein above.
39.2 If any difficulty arises in giving effect to provisions of the industrial policy, the same shall be referred to the State Government through Chief Secretary and thereon the decision taken shall be final.
