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Rajasthan

Introduction
  • As per the report published by DIPP the FDI inflows in Rajasthan for the year 2016-17(April’16 – December’16 )( In US$ Millions) is 157 and the percentage of total inflows is 0.5.
  • Rajasthan is the largest state in India contributing around 30% of the total value of minor minerals being produced in the country.
  • 8,380 sq km of Rajasthan falls in the National Capital Region (NCR).
  • It provides access to wider market as the state shares its border with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat.
  • Converting land for industrial use comes at a lower cost.
  • It has the second largest network of National Highways in the country with a total road length exceeding 7,310 km.
  • The state has well connected railway routes of approximate length 5,822.28 km to other major cities as well as ports such as Mumbai, Kandla and Mundra in Gujarat.
  • As per latest updates given by the Ministry of Micro, Small and Medium Enterprises, the Foreign Direct and NRI Investment will continue to be welcome in high technology areas and infrastructure. The special measures envisaged to facilitate Foreign Direct and NRI investments will include:-
    • 15 Transport policies, rules and procedures regulating investments.
    • Priority in allotment of residential houses in new schemes to NRIs by Rajasthan Housing Board, Jaipur Development Authority and Urban Improvement Trusts, in case they set up industrial projects in the State.
    • Priority for land allotment in industrial areas.
    • The Bureau of Industrial Promotion will appoint for every FDI/NRI project, a Nodal Officer to ensure speedy approvals and provide escort service.
Investment Promotion Agencies in Rajasthan

Rajasthan State Industrial Development and Investment Corporation (RIICO)

RIICO established for development of industrial areas in the state also acts as a financial institution providing assistance for large and medium scale industrial projects. RIICO has developed land banks and has so far established 321 Industrial Areas by acquiring about 59,000 acres of land.

Bureau of Investment Promotion (BIP)

The Bureau of Investment Promotion (BIP) is the nodal agency charged for investment promotion, development of investment policies and single window clearances. Services provided by BIP to investors and entrepreneurs include:

State Efforts to Facilitate Investments in Rajasthan

Special Economic Zone
Rajasthan special economic zone is a nontaxable territory in the state, which is exempted from all kinds of state taxes, duties, levies, and local taxes such as stamp duty, VAT on raw materials, electricity duty, entry tax, luxury and entertainment tax.
Rajasthan Special Economic Zone is being set up with an objective to initiate infrastructural development and a hassle-free environment best suited for export trade from the state with a primary focus in the fields of gems and jewelry, woolen carpets, handicrafts, and so on.
40% of the proposed Delhi-Mumbai freight corridor will pass through Rajasthan throwing up enormous possibilities for development of industrial belts such as special economic zones along the corridor.
Six SEZs with an expected investment of 165.15 billion have already been notified. These are:
Mahindra World City (Jaipur) Ltd., Jaipur
Somani Worsted Ltd., Khushkeda, Bhiwadi, Alwar
Genpact Infrastructure (Jaipur) Pvt. Ltd., Jaipur
Vatika Jaipur SEZ Developers Ltd., Jaipur
Mansarovar Industrial Development Corporation, Jodhpur
RNB Infrastructure Private Limited, Bikaner (270 crore)

National Manufacturing and Investment Zone
NIMZ will be set up in the Delhi Mumbai Industrial Corridor (DMIC) region to attract investments and provide quality infrastructure and support. It will be setup in Khushkhera-Bhiwadi-Neemrana (Rajasthan) 150 sq km and Jodhpur-Pali-Marwar Region in Rajasthan.

Miscellaneous
The Government of Rajasthan has 2 Special Jems & Jewellery Economic Zones in the Sitapur area of Jaipur.
Rajasthan Government has also launched a new IT scheme in 2015 and new IT parks at Jaipur, Kota, Jodhpur and Udaipur.
Rajasthan offers huge potential for agro-based industries. There are many Agro-food parks run by RIICO in districts like Kota, Sriganganagar, Alwar, etc. Concessions in these food parks are provided in areas like tax, electricity, stamp duty, etc.
RIICO is considering developing state-of-art Bio Tech Parks at Jaipur, Jodhpur and Bhiwadi (Alwar). The infrastructure in terms of developed plots, continuous power, high speed data connectivity facility, roads, common testing facility etc. are being developed in Bio Tech Parks.

Highlight of Industrial Policies in Rajasthan

Rajasthan Enterprise Single Window Enabling and Clearance Act, 2011

Rajasthan Enterprise Single Window Enabling and Clearance Act, 2011 enables single window clearance system which includes 86 forms of 11 departments including RIICO, Revenue, factories & boilers, tourism, commercial taxes, Medical & health, Agriculture, Technical education, Jaipur Development Authority (JDA), labor, energy (Jaipur, Vidhyut Vitran Nigam).

Allotment of land from RIICO 30 days
Allotment of land from Revenue Deptt. 30 to 60 days
Conversion of land from Revenue Deptt. 30 days
Allotment of Land from Urban Development & Housing (UDH) (JDA/Urban Improvement Trust (UIT)) 60 days
NOC to Establish Technical Institute – 30days (from the receipt date of AICTE application
Conversion of land from UDH(JDA/UIT) – 60 to 90 days
Electricity Connection 30 to 60 days
Fertilizer- Permissions / Authorization/ Manufacturing Certificate 30 to 45 days
Medical Drug License 15 days
Project Approval for Tourism Department 45 Days
Factories and Boilers Department (License of factory) 45 days
Factories and Boilers Department (approval of plant layout) 30 days
Commercial Taxes Department (registration under VAT/CST) 24 hours
Single Window System is mandatory for all projects involving investment above US$149856.70. It provides a single point of contact for all permissions for starting a business, it also provides for the provision of making an appeal in case of default by the authorities.
State Pollution Control Board (PCB) is a nodal authority for environmental clearances in the state and acts as an enforcing authority .The government has computerized the whole process which resulted in implementation of Computerized Application Management Systems for environment related clearance under single window system.
Land-use certificate approval from the local development authority.
Construction permits from the local urban development authority.
Approval for building plans-RIICO.

Other Policies in Rajasthan
  • Rajasthan Investment Promotion Scheme, 2014 for promoting investment and generating employment opportunities.
  • Rajasthan Land Revenue (Industrial Area Land Allotment) Rules, 1959 for allotment, acquisition and development of land for industrial use carried out by RIICO and whole process takes around 90 days.
  • Conversion of a land from agricultural land to industrial land can be done through single window clearance mechanism with the help of RIICO and the Bureau of Investment Promotion (BIP) underRajasthan Land Revenue (Conversion of agricultural land for non-agricultural purposes in rural areas) Rules, 2007.
  • State has amended three labour legislations the Industrial Disputes Act, 1947, Contract Labour Act, 1970 and the Factories Act, 1947 to allow companies employing up to 300 staffers to lay off workers or close down without taking the government’s prior approval. There is single window mechanism for registration under factories act.
  • Rajasthan Agro-Processing and Agri-Marketing Promotion Policy – 2015 is a step in the direction of utmost priority to and attention for development of agro-food parks by Govt. of Rajasthan. They have given concessions w.r.t. Land and building tax, Stamp duty, Electricity duty, Entry tax, Mandi tax etc. The following types of incentives are available:
    • Patent & Design registration: Up to a maximum of US$29971.34 per beneficiary per year.
    • Quality certification: Up to US$29971.34 to each enterprise for each certification per year.
    • Sending agri-products for test marketing abroad: 40% of the actual cost subject to a maximum of US$749.28 per beneficiary for one sample of one commodity to one country.

Punjab

Introduction
  • As per the report published by DIPP the FDI inflows in Punjab, Chandigarh, Haryana, Himachal Pradesh for the year 2016-17(April’16 – December’16) (In US$ Millions) is 6and the percentage of total inflows is 0.4.
  • Punjab, located in north-west of India has a total area of 50,362 kms, which comprises of 48,265 kms of rural area and 2097 kms of urban area.
  • Punjab borders the West Punjab to the west, Jammu and Kashmir to the north, Himachal Pradesh to the northeast, Haryana to the south and southeast, Chandigarh to the southeast and Rajasthan to the southwest.
  • The state has a total population of 27.74 million with a literacy rate of 76.7%.
  • The five rivers Sutlej, Beas, Ravi, Chenab and Jhelum divide the state into three regions, namely, Majha, Doaba and Malwa.
  • Agriculture is the largest industry in Punjab and other major industries include the manufacturing of scientific instruments, electrical goods, financial services, machine tools, textiles, sewing machines, sports goods, starch, tourism, fertilizers, bicycles, garments and the processing of pine oil and sugar
  • It contributes nearly two thirds to the total production of food grains and a third of milk production in the country. It is the leading producer of wheat at a total production of 2 million tons per annum.
  • Punjab has a rail network of 2,126 Kms and road connectivity of 64,037 Kms with a road density at 133 Km per 100 Sq. Km. which is among the highest in the country and five upcoming and operational airports at Mohali, Ludhiana, Amritsar, Bathinda and Pathankot.
  • The state has an installed capacity of 11,664 MW with a power surplus of around 2,000 MW.
Investment Promotion Agencies in Punjab

Industries, Commerce & Investment Department

The Department of Industries and Commerce plays a pivotal role in rendering assistance to the entrepreneurs. The process of assistance begins with the very first stage of project identification to financial assistance up to the commissioning of Industrial units. The existing industry is also helped in the process of continuous up gradation of technology and modernization.

The main functions of the department are as follows:

  • All matters relating to Promotion, development and regulation of electronics in the State, The Punjab State Electronics Development and Production Corporation Limited and companies owned, managed or promoted by it in the Joint Sector and Telecommunications.
  • All matters relating to establishment of the Directorate of Industries and annual Administration Reports of the Department of Industries.
  • Overviewing the functioning of various credit and loan scheme for industries.
  • Development of Industries in the backward areas.
  • Providing loan subsidies and grant-in-aids under various legislations.

Punjab Bureau of Investment and Promotion

  • Punjab Bureau of Investment Promotion (Bureau) has been set up by the Government of Punjab as the single point of contact for regulatory clearances and fiscal incentives approvals to facilitate investors who are looking to set up a business in Punjab. As the nodal agency, Bureau has been entrusted the responsibility to ensure a smooth transition of the project from the proposal stage up to the implementation stage.The member departments include:
    • Department of Excise and Taxation
    • Department of Factories
    • Department of Forests and Wild Life Preservation
    • Department of Housing and Urban Development
    • Department of Industry and Commerce
    • Department of Labour
    • Department of Local Government
    • Punjab Pollution Control Board
    • Department of Power
    • Department of Revenue, Rehabilitation and Disaster Management

Punjab State Industrial Development Corporation Ltd (PSIDC).

  • It was established in the year 1966 to promote planned industrial development in the organized sector and to speed up industrialization. Today, PSIDC is engaged in the promotion of large and medium scale projects.
  • PSIDC since inception has attained phenomenal growth and some of its objectives are extending of term loan assistance under IDBI Refinance Scheme to projects promoted by private sector and also promotion of industrial and infrastructure projects in the Assisted and Joint Sector.
State Efforts to Facilitate Investments in Punjab

Eco City, New Chandigarh, Mullanpur

Spread over an area of 412 acres, Eco City Phase-I, is the upcoming Ultra modern Township at Mullanpur, New Chandigarh. Quite synonymous to its name, it is surrounded by lush green areas. Total area under development of the scheme is 400 acres and the total project cost of development is Rs. 151 crores, out of which Rs. 50 crores have already been spent on the construction of roads and providing PH, Electrical & Horticulture services etc. Process of acquiring around 450 acres of land for Eco City, Phase-II is under process.

Medicity, New Chandigarh, Mullanpur

Located in the vicinity of ECO City, land measuring about 100 acres stands acquired for developing the Medicity. Out of total area, 50 acres has already been allotted for the construction of Tata Cancer Hospital. In phase-II of the scheme land measuring 160 acres would be acquired.

Education City, New Chandigarh, Mullanpur

Education City spread over an area of 1700 acres is located at Mullanpur. Land will be made available for setting up schools, colleges and universities offering world class state of the art facilities. The project so completed would offer education facilities in courses like Engineering, Management, Bio tech, Tourism, Hospital, Multimedia, pharmaceuticals etc.

Aerocity, Mohali

Land measuring 800 acres (approx.) on both sides of the approach roads of the upcoming International Airport for the development of state of the art aerotropolis comprising institutional/commercial and residential use. Around 5000 residential plots are planned in Aerocity. The total project cost of the development on the right side of the airport road is Rs. 141.30 crores while for the left side total amount earmarked for the development works is Rs. 123.71 crores

IT City / Knowledge Park, Mohali

Land measuring around 1700 acres was acquired for development of IT City/ Knowledge Park close to Sector 66, 82 and 101 on Kharar-Mullanpur road. The facility being developed on land worth Rs. 3000.00 crore would offer Industrial, Institutional, Commercial and Residential property.

Food Parks/Electronic Cluster

280 acres of industrial land available for Food Parks in Kapurthala, Pathankot, Goindwal Sahib. SAS Nagar (Mohali) has been declared a Brownfield Electronic Cluster (EMC) for benefits under the M-SIPS Scheme by GoI.

Highlight of Industrial Policies in Punjab

Large manufacturing Sector Units

  • Exemption from VAT and CST up to 80% of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption from 10 to 13 years.
  • Exemption from payment of Electricity Duty on Power up to 100%, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units.
  • Exemption from payment of Stamp duty on purchase/lease of land up to 100%.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Up to 100% exemption from payment of Property Tax.

Integrated Textile Units

  • Exemption from VAT and CST up to 90% of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption from 11 to 13 years.
  • Exemption from payment of Electricity Duty on Power up to 100%, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units.
  • Exemption from payment of Stamp duty on purchase/lease of land up to 100%.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Upto 100% exemption from payment of Property Tax.
  • 50% exemption from payment of Market Fee, Rural Development Fund and Infrastructure Development Cess on the purchase of cotton.

Electronics Hardware and IT industry

  • 80% exemption from VAT and CST of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption is 10 years.
  • Exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units for a period of 10 years.
  • 100% exemption of stamp duty for IT/ITES/Knowledge Units/Developers on all components within the said Park on the sale/ lease / lease-cum-sale of land or built up office space within the constructed IT Park.
  • No stamp duty will be levied in respect of land allotted by Department of Information Technology/any other Development Authority of the State to the units.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Exemption from payment of Property Tax for a period of 10 years.
  • The units notified by Department of Information Technology, Government of Punjab will not require any NOC/ Clearance from Punjab Pollution Control Board (PPCB) for release of electricity connection from Punjab State Power Corporation Limited (PSPCL).
  • Exemption from inspections under various Labour Laws.
  • Exemption from the Punjab Apartment and Property Act 1995.
  • Preferential Market access to Electronics hardware manufacturing units in the State for the products procured by all government departments in the State

Agro Industrial and Food Processing Sector

  • Exemption from VAT and CST of 80% to 90% of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption from 10 years.
  • Exemption from payment of Electricity Duty on Power up to 100%, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units for a period of 10 years.
  • Exemption from payment of Stamp duty on purchase/lease of land.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Up to 100% exemption from payment of Property Tax for a period of 10 to 12 years.
  • Subsidy on Domestic distant marketing and export of flowers, fruits & vegetables and import of planting material.
  • Financial assistance of 50% of the cost of patent registration with ceiling of Rs. 5 lacs, 50% of consultation charges for preparation of Project Report.
  • Exemption from Mandi fee and Rural Development fee on purchase of fruits and vegetables from farmers.

Tourism Sector

  • Exemption from VAT and CST from 40% to 75% of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption is 10 years.
  • Exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units up to 10 years.
  • Exemption from stamp duty from 50% to 100% up to 10 years.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Exemption from payment of Property Tax for a period of 10 years.
  • Water supply at domestic rates and no conversion charges for Heritage Hotels.
  • 5% extra VAT incentive for Green Hotels.

Health Sector

  • Exemption from VAT and CST from 45% to 75% of the Fixed Capital Investment as the maximum cumulative quantum of incentive.
  • The eligibility period of the exemption is 10 years.
  • Exemption from payment of Electricity Duty on Power, including Captive Power consumed by the same unit or exported to PSPCL shall be available to new units up to 10 years.
  • Exemption from stamp duty from 50% to 100% up to 10 years.
  • Refund of Stamp duty shall be allowed for all real estate which has been purchased/leased up to 3 years prior to the date of submission of application form, by the same entity.
  • Exemption from payment of Property Tax for a period of 10 years.
  • No CLU charges for hospitals and Medical Colleges.

Punjab Industrial Facilitation Act, 2005

  • Common Application Form (CAF) for obtaining approvals from different departments.
  • Online submission of form to prevent hassles.
  • Deemed approvals, if timeline provided is not met with for granting approvals. ( Annexure 1)
  • Single window clearance system established with 10 departments as members.
  • Designed to cut red tape and provide single stop clearance for all 30 requirements in 10 departments.
  • Standardized mechanism for grievance redressal.
  • Departmental action against officials for unjustified delay in processing of the application.
Focus Sectors in Punjab

Punjab has grown at a rate of 15% per annum in the past decades and is one of the fast growing economies in the region. The focused sectors of the state are:

  • Agro and food processing
  • Skill Development
  • Information technology and ITeS
  • Life Sciences
  • Healthcare
  • Tourism
  • Renewable Energy
  • Manufacturing
  • Aerospace and Defence

New Delhi

Introduction
  • Delhi is the national capital. It shares its borders with the States of Uttar Pradesh & Haryana; illness Delhi has a total land availability of 1, click 483 sq. kms.
  • New entrepreneurs can set up units in Delhi in approved areas by direct purchase of free-hold industrial plots; or purchase of lease-hold plots with the approval of the lessor which would entail 50% unearned increase or by renting premises.
  • Further, new entrepreneurs can purchase the allotted plot from original allottees subject to fulfillment of some conditions and for taking of premises on rent. The entrepreneurs can take such premises in any confirming Industrial Area for permissible manufacturing activities in that particular industrial area.
  • Delhi is one of the top five states in the area of obtaining infrastructure related utilities.
  • Delhi’s Gross State Domestic Product (GSDP) recorded a Compounded Annual Growth Rate (CAGR) of 7.4% to 4,560 billion in 2015-16 as against Rs 3,433 billion in 2011-12.
  • Given below is a table on FDI inflows in Delhi
State covered 2016-17 (April’16 – December’16) In US$ Millions) %age to total Inflows (in $US)
DELHI, PART OF UP AND HARYANA 4,841 21
Business Facilitation Council (BFC) in New Delhi
  • Business Facilitation Council (BFC) comprising members from industrial associations, Industries Department, DSIIDC, DDA, MCD etc, facilitate entrepreneurs in obtaining clearances from various departments/ agencies for setting up of industrial enterprises in the NCT of Delhi.
  • This has been done to solve the problem of multiplicity of organizations to a great extent. Further, the council also acts as a hand holding agency to guide existing units into becoming technologically more advanced, less polluting and moving to knowledge-based or high-technology activity.
  • BFC is headed by Secretary & Commissioner (Industries) and Joint Commissioner of Industries as its Managing Secretary.
  • BFC is in process of developing a Common Application Form (CAF), which fulfills the requirements of all Departments dealing with statutory and non-statutory clearances. In doing so, all the forms for obtaining No Objections/Approvals/Licenses etc. will be made available through the BFC.
  • Senior functionaries of departments concerned such as the Municipal Corporation of Delhi, Delhi Pollution Control Committee, Labour Department and Drug Controller are its nodal officers (listed in Annexure).They are further responsible to ensure that the applications are disposed of without undue delay.
  • The aim of the same is to establish a single point contact with entrepreneurs to get various statutory and non-statutory clearances in a time bound and efficient manner for setting up of industrial enterprises.
  • Associations of industries have been involved as members of the BFC and are part of the decision making process relating to policy matters.
  • Interactions and exchange of ideas in the council have resulted in many changes in the Delhi Master Plan, MPD-2021, with respect to industrial areas and norms.
  • Delhi has its industrial area divided into four zones, i.e., North Zone, South Zone, West Zone and the East Zone, which is further divided into 34 industrial areas either managed by the Delhi Development Authority (DDA) or the Delhi State Industrial and Investment Development Corporation (DSIIDC).
  • Industries Allowed to be set up in Delhi: Setting up of Industries is governed by Master Plan of Delhi 2021. The norms prescribed in the Industrial Areas are as follows:
    Use Groups Permitted Max No. of workers Max. Industrial Power Load
    Plotted development As per need All industries except those prohibited and of Non Polluting and nonhazardous nature As per need As per need
    Flatted Industries All industries except those prohibited and of Non-polluting and nonhazardous nature, excluding industries producing noise/water/vibrations/odour pollution 20 As per need
  • Further, Industries are allowed to be set up in residential areas for house hold industries with maximum 5 workers and maximum power requirement of 5 kw. Maximum 50% area of the dwelling unit can be used for industrial purpose. However, these industries should not cause pollution.
Highlights of Industrial Promotion Policy in New Delhi
  • Promotion of IT and IT enabled services, Educational services, Business and Financial Services, Media, R&D, Design, and Biotechnology which have been classified as ‘Knowledge Based Industry’.
  • Promotion of Traditional Industries like Khadi, Handloom, and Handicrafts by provision of marketing support.
  • Promotion of non-polluting and clean industries.
  • Promotion of high technology and skilled industries, to keep in-migration of unskilled labour to a minimum.
  • Development of world class infrastructure within planned industrial estates and regularized industrial clusters.
  • Set up ‘Centre of Excellence’ to promote innovation and entrepreneurship in high technology and knowledge based sectors.
  • Promotion of cluster development, where units from similar sector congregate together.
  • Facilitation of business through procedural simplifications and e-governance measures.
  • Promotion of transparent and business friendly environment.
  • Delhi has in place various policies for its priority sectors in the industries which are as follows:
Policy for Traditional Industries in New Delhi

Handlooms

  • Assistance is being provided to the Handloom Sector for promotion, development and modernization through approved plan schemes of the Department and also centrally sponsored Plan Schemes.Financial assistance is also being provided through following schemes:
    • Thrift Fund-cum- Saving Security Scheme & Group Insurance Scheme
    • Bunker BimaYojna, Health Insurance Scheme for Handloom Weavers, etc.

Handicrafts

  • With a view to protect the traditional heritage of handicrafts, training to artisans in different crafts is being imparted through Apprenticeship Training Schemes run by the Department under the guidance of Master Crafts persons in different crafts disciplines viz. Hand Embroidery, Metal Engraving, Clay Modeling, Marble Sculpture, Beeds Work, Mithila Painting, Madhubani Painting, Terracotta Pottery etc.

Policy for Leather Industries

  • The Department of Industries has constructed Flatted Factories for Leather Goods in Wazirpur Industrial Area, Delhi.
  • The complex has 127 modules ranging from 200 to 800 sq. The area is allotted to Leather Artisans / Units on rental basis. A Common Facility Centre and a Training Centre for Leather Workers are also functioning in this complex.
Policy for Industrial Pollution Control in New Delhi
  • 15 Common Effluent Treatment Plants (CETP) are to be established by the CETP societies so as to cover 28 approved industrial areas. It would be the responsibility of the societies to construct, operate and maintain these plants and control the quality of effluents discharged by the industries within the prescribed parameters.
  • For this purpose, the Govt. of Delhi has released Rs. 22.5 crores and Central Govt. has released another Rs. 22.5 crores being 50% of the capital cost of all these 15 CEPT’s.
  • The remaining 50% of the capital cost i.e. Rs. 45 crore and subsequent annual operational and maintenance charges are to be borne by these societies. In case these societies so desire they can obtain a loan up to 30% of capital cost from the IDBI or any other financial institution.
Focus Sectors in New Delhi
  • Main focus is to promote nonpolluting, less labour oriented and Hi-tech industries.
  • Therefore there is focus on promotion of IT and IT enabled services, Educational services, Business and Financial Services, Media, R&D, Design, and Biotechnology which have been classified as ‘Knowledge Based Industry’.
  • State also wants to promote traditional industries like Khadi, Handloom, and Handicrafts by provision of marketing support.
  • The vision is to make Delhi a hub of clean, high-technology & skilled economic activities by 2021 essentially to change industrial profile from low skilled to high tech and high-skilled by adopting the following strategy:
    • Infrastructure Development through better Operation & Management of industrial assets.
    • Facilitating business by simplification & enabling measures.
    • Support skill development & other promotional measures like Knowledge-based Industries in industrial area among others.
    • Decongesting industrial areas through redevelopment schemes.
    • Promoting cluster development of high-technology and skilled industries in new industrial areas through public private partnerships.
    • Discourage polluting industries through higher infrastructure development fee.

Karnataka

Introduction
  • As per the report published by DIPP the FDI inflows in Karnataka for the year 2016-17(April’16 – December’16) (In US$ Millions) is 1,697 and the percentage of total inflows is 7.
  • Karnataka is the seventh largest Indian state by area covering 191,976 square kilometres (74,122 sq mi), or 5.83% of the total geographical area of India.
  • With 61,130,704 inhabitants at the 2011 census, it is the eighth largest state by population, comprising 30 districts.
  • Karnataka is bordered by the Arabian Sea and the Laccadive Sea to the west, Goa to the north west, Maharashtra to the north, Telangana to the North east, Andhra Pradesh to the east, Tamil Nadu to the south east, and Kerala to the south west.
  • Karnataka has Airports at Bengaluru, Mangalore, Belgaum, Hubli, Hampi, Bellary and Mysore. Railway network has total length of approximately 3,089 kilometres. There are 11 ports, including the New Mangalore Port, a major port and ten other minor ports.
  • Karnataka has an installed power generation capacity of about 14,159 MW of which about 6,158 MW is from thermal power generation, 3,600 MW from hydel power, 3,571 MW from renewable energy sources and 500 MW from other sources (nuclear and diesel).
Investment Promotion Agencies in Karnataka

Department of Industries and Commerce

  • The Department of Industries and Commerce acts as a catalyst for development of the industries. The department formulate and implements policies with a view to promote investment and trade.
  • Some of the crucial infrastructure projects facilitated by the Department include
    • Agro Export zones
    • Bengaluru International Airport, etc.
    • Electronic city
    • Export Promotion Industrial Parks
    • Food and Agro-technology parks
    • Growth Centers across the State
    • International Technology Park Ltd.
    • Special Economic Zones

Karnataka Industrial Area Development Board (KIADB)

KIADB developed 145 Industrial Areas spread over 33,513 acres across the State and has allotted lands to over 16,960 units. KIADB has also acquired 44,704 acres of land in favour of 437 units under SUC scheme.

Karnataka Udyog Mitra (KUM)

  • Karnataka Udyog Mitra (KUM) is an initiative from the State to promote and facilitate investments, and assist investors. It is the secretariat for grant of approvals and sanction of infrastructure facilities for approved projects:
  • KUM has been appointed the nodal agency at State level and has District Industries Centers at the District level to undertake investment promotional activities.
  • It is a ‘single point of contact’ for all investors who are looking at setting up businesses in Karnataka. Its role is to facilitate investments and execute initiatives to enable a smooth transition, from receiving an investment proposal to the eventual implementation of the project.
State Efforts to Facilitate Investments in Karnataka

Single Window Clearance

  • Single Window Clearance committee was constituted to be the single point clearance under Karnataka Industries (Facilitation) Act, 2002 for facilitating new investments and to consider and clear projects.
    State High Level Clearance Committee INR 100 crore and above
    State Level Single Window Clearance Committee Between INR 15 crores -INR 100 crores
    District Level Single Window Clearance Committee Less than INR 15 crore
  • Combined Application Form (CAF) has been introduced in order to reduce the number and duplication of application forms required to be filed at entry level.
  • Self-Certification has been introduced by the entrepreneurs, which shall be accepted by the departments and authorities for purpose of issuing clearance and granting benefits to the entrepreneurs.
  • eBiz Karnataka portal provides facilities for applying clearances and approvals from various department and there is facility of tracking of applications online.
Annexure 1
Karnataka Industrial Areas Development Board – Land allotment letter, Confirmation letter, Possession certificate, Execution of Lease Deed and Plan approval.
Karnataka Small Scale Industries Development Corporation – Plot/Shed allotment letter, Possession certificate, Execution of Lease Deed and Plan approval
Karnataka State Pollution Control Board – Consent for establishment under Water (Prevention and Control of Pollution) Act, 1974 and Consent for establishment under Air (Prevention and Control of Pollution) Act, 1981, in respect of orange and green category industries (Form-OG).
– Consent for establishment under Water (Prevention and Control of Pollution) Act, 1974, in respect of red category industry.
– Consent for establishment under Air (Prevention and Control of Pollution) Act, 1981, in respect of red category industry.
Industries and Commerce Department – Industrial Entrepreneurs Memorandum-part-I
– Stamp duty exemption certificate and concessional registration charges certificate for registration of land, plot and shed documents and also for registering loan documents.
– Entry tax exemption on purchase of capital goods during implementation of the project.
Town Planning Department and Local Planning Authorities. – Change of Land use.
– Layout Plan approval.
– Building Plan approval.
Factories, Boilers, Industrial Safety & Health Department – Approval to construct factory building and layout of Plant and Machinery under Rule 3(2) of Karnataka Factories Rules 1969.
Municipal Administration Department – License for establishment of enterprise
– License for building construction and plan approval
BESCOM/GESCOM/HESCOM/CESCOM/MESCOM – Supply of Energy under Electricity Act – 2003
Karnataka State Fire and Emergency Services Department – Application for Fire NOC / Clearance Certificate
Water Resources Department – Allocation of Water
Highlights of Industrial Development Policies in Karnataka

Aerospace Policy

  • Anchor Unit Subsidy of Rs. 500 lakhs to be offered to the first ten Aerospace OEM enterprises with a minimum investment of Rs 50 crore and direct employment of 100 persons established during the policy period.
  • Exemption from Stamp Duty and Concessional Registration Charges.
  • 100 % Exemption from Electricity duty.
  • Interest free loan on VAT to be extended to all Aerospace enterprises.
  • Reimbursement to the extent of 75% Central Sales Tax (CST) paid by all Aerospace Enterprises over a period of 5 years.
  • 100% Entry Tax Exemption shall be available to all Aerospace Enterprises.
  • Allotment of undeveloped lands at concessional rates.

Biotech Policy

  • Financial assistance to biotechnology industrial units for patent tracking and patent registration of up to 50% of the cost of registration.
  • Financial support of up to 50% on the expenditure incurred on certification procedures.
  • Dedicated power lines that are exempt from power cuts.
  • Setting up of Venture Capital funds for biotech industries with private participation.
  • Special incentive and concession package for the companies having zero discharge certificate for pollution control.

Electronics-Hardware Policy

  • Investment promotion subsidy based on size and zone located in.
  • Exemption from Stamp Duty in respect of loan agreements, credit deeds, mortgage, hypothecation deeds and lease deeds.
  • Concessional registration charges at the rate of Rs 1 per Rs 1000.
  • Waiver of conversion fee for converting the land from agriculture use to industrial use.
  • 100% exemption on Entry Tax on Plant & Machinery and Capital Goods.
  • One time capital subsidy of up to 50% of the cost of Effluent Treatment Plant.
  • Interest free loan on VAT for all new large and mega manufacturing Enterprises.
  • Anchor unit subsidy of Rs. 100 lakhs for the first two manufacturing enterprises.
  • Interest Subsidy at 5% on term loans.
  • 100% exemption from Electricity Duty.

Information and Communication Policy

  • Setting up of Research Hub to encourage entrepreneurs and startup companies.
  • Setting up of IT Investment Region.
  • Investment promotion subsidy based on size and zone located in.
  • Exemption from Stamp Duty in respect of loan agreements, credit deeds, mortgage, hypothecation deeds and lease deeds.
  • Concessional registration charges at the rate of Rs 1 per Rs 1000.
  • Waiver of conversion fee for converting the land from agriculture use to industrial use.
  • 100% exemption on Entry Tax on Plant & Machinery and Capital Goods.
  • One time capital subsidy up to 50% of the cost of Effluent Treatment Plant.
  • Interest free loan on VAT for all new large and mega manufacturing Enterprises.
  • Unlimited back up power and permission for captive power generation.
  • Refund of Certification Charges.

Semiconductor Policy

  • Investment promotion subsidy based on size and zone located in.
  • Exemption from Stamp Duty in respect of loan agreements, credit deeds, mortgage, hypothecation deeds and lease deeds.
  • Concessional registration charges at the rate of Rs 1 per Rs 1000.
  • Waiver of conversion fee for converting the land from agriculture use to industrial use.
  • 100% exemption on Entry Tax on Plant & Machinery and Capital Goods.
  • One time capital subsidy of up to 50% of the cost of Effluent Treatment Plant.
  • Interest free loan on VAT for all new large and mega manufacturing Enterprises.
  • Anchor unit subsidy of Rs. 100 lakhs for the first two manufacturing enterprises.
  • Interest Subsidy at 5% on term loans.
  • 100% exemption from Electricity Duty.
  • Refund of cost incurred for preparation of Project Report.

Solar Policy

  • Tax concessions in respect of entry tax, stamp duty and registration charges.
  • Pro rata reduction in Contract Demand on a permanent basis to be allowed to Industrial Consumers opting to buy power from Solar Power Project.
  • Various concessions allowed viz central excise duty & custom duty to project developer.
  • Project execution without waiting for formal approval on filing application for conversion of agriculture land for setting up of Solar Power Projects.
  • Exemption from obtaining clearances from Pollution Control Board.

Special Economic Zone Policy

  • All purchases from domestic tariff area shall be exempted from State and Local body taxes or levy of any other cess.
  • Following Exemption are available
    • Stamp Duty and Registration fees for registration of land or loan /credits documents.
    • Electricity Duty or Tax on sale of self-generated power.
    • 1% Labour Welfare Cess on construction cost.
    • Any other states tax, levies, cess or duties.
  • One time capital subsidy up to 50% of the cost of Effluent Treatment Plant.
Focus sectors in Karnataka
  • The State has been a preferred destination for investment attracting 4th largest FDI in the country. Karnataka is the manufacturing hub for some of the largest public sector industries in India, including Hindustan Aeronautics Limited, National Aerospace Laboratories, Bharat Heavy Electricals Limited, Indian Telephone Industries, Bharat Earth Movers Limited and HMT. There are about 1054 large & medium manufacturing industries in various sectors which include Machine Tool, Steel, Cement, Automotive and Aerospace industries.
  • There are 2500 IT companies including 700 MNCs, 600 Textile units and a large Agro based industries.
  • The State is home to major automotive industries such as Toyota Kirloskar, Volvo, Honda Motors, TVS, Tata-Marco polo, L&T Komatsu, Mahindra Reva, Scannia, Bosch, Siemens, JK Tyres etc.
  • It is biotech Capital of India and is home to nearly 60% India’s biotech units. It has planned dedicated Biotechnology parks and centers. Key players include Biocon, Glaxo Smith Kline Pharmaceuticals Ltd., Jubilant Life Sciences Ltd. and Astra Zeneca India.
  • Many of India’s premier science and technology research centers, such as Indian Space Research Organization, Central Power Research Institute, Bharat Electronics Limited and the Central Food Technological Research Institute are also headquartered in Karnataka. Mangalore Refinery and Petrochemicals Limited is an oil refinery located in Mangalore.
  • Focus sectors of the state with very high growth potential include:
    • Aerospace
    • Agro & Food processing
    • Bio-Technology and Electronics
    • Defence and Heavy Engineering
    • Energy including Renewable Energy
    • Information Technology
    • Infrastructure
    • Machine Tools
    • Manufacturing including Automobile
    • Smart Cities and Urban Infrastructure
    • Textiles& Garments
    • Tourism