·      Introduction

·      Objective

·      Strategy

·      Land

·      Mines

·      Water

·      Infrastructure

·      Human Resources Development

·      Skill Development

·      Entrepreneurship Development

·      Incubation Centre

·      Industrial Area Development Authority

·      Development of New Private Industrial Area

·      Industrial Corridor

·      Industrial Parks

·      Special Economic Zone

·      Cluster Development

·      Micro Small and Medium Enterprises (MSME)

·      Value Addition

·      Promotion of Sericulture, Handloom & Handicraft

·      Textile and Apparel

·      Promotion of Agro Food Processing based Industries

·      Automobile and Auto Components

·      Energy

·      Promotion of FDI

·      Information Technology / Bio Technology

·      Tourism

·      Film Industry

·      Export Promotion

·      Industrial Sickness

·      Industrial Finance

·      Incentives & Concession

·      Expansion / Modernisation / Diversification

·      General Provisions

·      Date of Production

·      Memorandum of Understanding (MoU)

·      Facilitation

·      Monitoring & Review

·      Power of the State Government

·      Annexure – I

·      Annexure – II

·      Abbreviation

JHARKHAND INDUSTRIAL POLICY 2012

 

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.

 

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.

 

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