Department of Industries, Government of...

Department of Industries, Government of Jharkhand

Jharkhand – Strategically Located!

Introduction

Presentation title

Jharkhand – Snapshot

Demographic

Land Area 79,716 sq.km

Population 3.3 crores

Literacy Rate 66.41%

Population Density

414 person/sq.km

Urban Population 24.05%

Capital City Ranchi

Infrastructure, Industry & Resources

Forest Cover 29%

Total Road Length

~ 33,500 kms

Mineral Reserves

~ 40% of India’s reserve

Minerals available

Coal, Iron Ore, Bauxite, Granite, limestone etc

Major Industries Steel, Power, Silk, Food Processing, Cement, Aluminum, Auto

Industrial Profile

Nearness to

Natural

Resources

Investor

friendly

policies

Skilled

Manpower

Ease of doing

business

Availability of Land Banks

Key Enablers

Industrial Profile

Net State Domestic Product

Rs. 150333 Cr in 2013-14 Current Prices (2004-05 Series)

Per Capita Net State Domestic Product

Rs. 46131 over 2013-14 in Current Prices (2004-05 Series)

Forest Cover 29%

Total Road Length

~ 33,500 kms

Mineral Reserves ~ 40% of India’s reserve

Minerals available

Coal, Iron Ore, Bauxite, Granite, limestone etc

Major Industries Steel, Power, Silk, Food Processing, Cement, Aluminum, Auto

At a glance

Locational Advantage

Excellent Transport Connectivity

Adequate Power Supply

Industrial Area Development Authorities at Ranchi, Adiytapur, Bokaro, Santhal Pargana

Adequate availability of surface and ground water with immense biodiversity supported

by a moderate climate

Industrious and peaceful workforce Lesser number of man days lost in the last

two decades on account of strikes

Developed Industrial Areas across states in Ranchi, Ramgarh, Patratu, Jamshedpur,

Bokaro, Deoghar, Dumka

Highlights

Ease of Doing Business : World Bank Report

Presentation title

Online approval of Factory building plan

Computerised allocation of Inspectors under Labour laws

Computerised Risk based allocation of units for inspection by Labour Dept.

Standard Checklist and procedure for Inspections under Labour laws

Online application for felling of trees and issue of transit permit

Fully functional online, e-Nibandhan application for e-registration

Pioneering Efforts of Jharkhand

Complying with labour regulations

Carrying out inspections

Jharkhand No. 1

Leading Industrial Players in Jharkhand

► Single Window Clearance System ► Interactive system to identify approvals required ► Easy access to all information on procedure,

timelines, formats. etc. ► Comprehensive checklist of all NOCs, licenses,

registrations, etc., available online ► Combined Application Form (CAF) ► SMS / E-mail status notification on progression of

application ► Easy availability of user manuals and FAQs of

various departments

Single Window Clearance

► Defined punitive actions on non-compliance

► Combined application for incentives

► Only two documents required for Electricity connection

► Standardized Contract templates available

► Unified ID for all State Taxes

► Defined inspection procedure under Taxes, Labour laws, etc. available online

► Joint Site Inspection for Construction permits

Responsive and Simplified Operations

► Professional Tax registration in 1 working day

► Inspection reports in 72 hours: JPCB, Forest, Urban, Commercial Tax, and Labour Dept.

► Water allocation approval in 30 days

► Electricity connection provided in 15 days

Reduced Timelines

► No Pollution clearance required for 58 sectors

► Auto Renewal of CTO on self-certification

► Computerized risk assessment for Inspection for Pollution compliance

► CTO clearance provided for five years validity

Ease in Environment Compliance

Ease of Doing Business: Initiatives by Jharkhand

JPCB: Jharkhand Pollution Control Board; CTO: Consent to Operate

► Registration of Societies and Firms

► Fire Department NOC renewal

► Land Registration

► Disbursal of incentives

► Electricity connection

► CTO & CTE at Pollution Control Board

Register & Apply Online

► Self-Certification Scheme for Boilers, permission for 3rd party inspection

► Single joint inspection for 14 labour laws

► Single annual return for 14 labour laws

► Inspections once in 5 years

► Five years validity of Factories License

► Annual return under Factories Act

► Standard Operating Procedure & Inspection Checklist for Labour laws

► Downloadable and verifiable licences & certificates

Simplified Regulations

► Online inspector allocation for field verification, tree felling and issue of transit permit by Forest Dept.

► Online system for allocation of inspectors for Tax inspections based on computerized risk assessment

► Provision for Simplified online registers for easy compliance of labour laws

Online Inspector Allocation & Maintaining Registers

Ease of Doing Business : Initiatives by Jharkhand

► Registration for Contract Labour

► Registration for Building and Other Construction workers (RECS) Act

► Factory License

► Factory Building Plan approval

► License & renewal for Boilers

► Shops & Est. Act

CTE: Consent to Establish

Land Bank

Presentation title

AIADA BIADA

RIADA SPIADA

Voluntary compliance

Single Annual Return

14 Laws covered

Self-declaration/ affidavit on Compliance

One Inspection in 5 years

Only one Joint inspection

Self Certification Scheme: Labour Dept.

Food and Feed sector

Automobile & Auto

Components

Electronics Manufacturing

Energy sector Minerals and

Metallurgy sector metal

Textiles sector

Focus Areas

Ready to Invest projects

Presentation title

Amritsar-Delhi Industrial Corridor

Eastern dedicated

freight corridor

2500 acres green smart

city

Intersection of Ranchi-Patna

highway

Intersection of Delhi-Kolkata

GT Road

Location Advantage

Integrated Manufacturing Cluster, Barhi

Electronic Manufacturing Cluster

Port Connectivity

Haldia : Approx. 250 KM

Paradip : Approx.: 380 KM

Rail Connectivity

Jamshedpur Station : 8 KM

Adityapur Station : 5 KM

Rapid connectivity to Jamshedpur & Adityapur

Upcoming eastern &western ring road corridor of 60 km

Ready Market for Auto Electronic Components

One of the largest commercial automobile manufacturing

unit in India (Tata Motors at Jamshedpur)

600+ auto ancillary industries with 25,000 + employees

One of the largest Auto Cluster of the country

Airport Connectivity

Jamshedpur : 3 KM

Ranchi : 130 KM

Road Connectivity

State Highway No.: 5

National Highway No. : 33

Leading technical/

management

institutes

XLRI-Jamshedpur

IIM-Ranchi

BIT-Ranchi

Indian School of

Mines –Dhanbad

Presentation title

Proposed by Department of Electronics and Information Technology (DeitY), GoI to provide a world class infrastructure for Electronic System Design and Manufacturing (ESDM) firms

DeitY provides financial support / grant for infrastructure development of EMCs to offer developed industrial plots at competitive rates

Salient features of EMC Scheme

Broad Parameters of EMC project

AIADA /SPV offers Industrial plots/built space with world class infrastructure to industrial units engaged in ESDM

Industrial Plots 50.5 acres land earmarked for industrial units having 52 plots of 2

acres, 1 acre & 0.5 acre

Flatted Factories Built up area of around 2 lakh sq ft available for flatted factory


GoI Incentives under M-SIPS for

ESDM units

Reimbursement of 25% of Capital expenditure

Reimbursement of CVD/Excise for capital equipment in non Special Economic Zone (SEZ) units

Reimbursement of central taxes and duties for 10 years in select high tech units like FAB's and ATMP's

Preferential Market Access (PMA)

Preference to domestically manufactured electronic products in government procurement

Extent of government procurement from domestic manufacturing will not be less than 30% of the total procurement

Export Incentives Focus product scheme- 2% duty credit scrip

Special products scheme - 5% duty credit scrip

Electronics Development Fund (EDF) being created by GoI as part of Digital India to support R&D and innovation in the ESDM sector.


Govt. of Jharkhand Incentives to ESDM units

Comprehensive Project Investment Subsidy

(CPIS)

7% of total Capital investment with ceiling of Rs.5 crore.

5% additional incentive for providing employment to local persons.

5% additional benefit to SC/ST/Women/ Handicapped Entrepreneurs

Reimbursement of 75% of Net VAT paid per

annum Up to max 75% of total fixed capital investment for 5 years

Financial Assistance for patent

Max of 50% of expenditure with ceiling of Rs 2 lakh per patent

Lease rentals (including premises on

rent)

Reimbursement of up to 50% of actual cost incurred with a ceiling of Rs 5 lakh per annum unto 3 years for the plug-and-play built up office space of minimum 2500 sq. ft.

Quality Certification @ 50% of the expenditure incurred up to max Rs 2 lakh.

Electricity duty exemption

Mega projects (capex of Rs 100 Cr & above): 50% for 5 years

Draft

Plastic Park

Rail Connectivity:

Shankarpur Station Less then 1 KM

Road Connectivity

National Highway 333 Away from 8 KM

National Highway

114A Away from 17 KM

Policy Initiatives

Presentation title

Presentation title

Policy Initiatives to support Investments

Jharkhand Industries Facilitation and Single Window Clearance Ordinance 2015

Jharkhand Food Processing Policy, 2015 Jharkhand Tourism Policy 2015 Jharkhand Solar State Solar Power Policy 2015 Jharkhand Feed Processing Policy, 2015 Jharkhand Industrial Park Policy, 2015 Jharkhand Export Policy, 2015 Jharkhand Procurement Policy 2013

Jharkhand Industries Facilitation and Single Window Clearance Ordinance 2015

Presentation title

Presentation title

Objective

Apex Committee under CM’s Chairmanship to provide overall policy guidance and direction under this Act for its effective functioning

High Powered Committee under Chairmanship of Chief Secretary to review the functioning of the Agency

MD, JIIDCO to examine, consider and process the proposals received

Officers from concerned department to be placed in Single Window

District Executive Committee to regularly monitor, supervise and review the functioning of the District Level Nodal Agency for the effective implementation of the Act

Single Window Clearance Ordinance 2015 Jharkhand Industries Facilitation and Single Window Clearance Ordinance 2015

Provide accelerated- time bound approvals

Promote industrial development and new investments

Simplify the regulatory framework- reducing procedures

Rationalizing documentation

Improve ease of doing business and provide an investor friendly environment

Functioning

Jharkhand Food Processing Policy, 2015

Presentation title

Presentation title

Objective

Applicable for New Unit, Modernisation, Up graduation, Expansion & Diversification

35.00 % of the Cost of Plant & Machinery and Technical Civil Works, subject to a maximum of Rs. 500.00 lakhs in general areas

45.00 % of the Cost of Plant & Machinery and Technical Civil Works, subject to a maximum of Rs. 500.00 lakhs in Integrated Tribal Development Project (ITDP) areas

Jharkhand Food Processing Policy, 2015

Creating favourable atmosphere for setting-up of food processing units in the state through creation of infrastructure facilities, encouragement of capital investment and technology up-gradation, development of marketing network, development promotion, grants and concessions.

Assistance for Food Processing Units Assistance for Primary Processing Centres/

Collection Centres in Rural Areas

Maximum of amount of grant-in-aid admissible under the scheme is Rs. 2.50 crore

Grant-in-aid for PPC / CC will be provided @ 50% of the bank appraised project cost for the general areas and 75% in Integrated Tribal Development Area respectively

Cost of land, preoperative expenses, margin money for working capital and contingency, nontechnical civil works and plants & machinery not directly related to the PPC / CC will not be eligible for calculating eligible project cost

Grant-in-aid @ 35% of the bank appraised project cost including Interest during Construction (IDC), subject to a maximum of Rs. 7 crores per project

Interest-subsidy @ 6% for a period of 5 years from the date of completion of the project, subject to a maximum of Rs. 2 crores per project

Higher Grant-in-aid and Interest Subsidy in Integrated Tribal Development Areas

Cold Chain, Value Addition

and Preservation

Infrastructure

Jharkhand Food Processing Policy, 2015 Assistance Provided

Grant-in-aid @ 35% of the bank appraised project cost including Interest during Construction (IDC), subject to a maximum of Rs. 12 crores per project

Interest-subsidy @ 6% for a period of 5 years from the date of completion of the project, subject to a maximum of Rs. 2 crores per project

Higher Grant-in-aid and Interest Subsidy in Integrated Tribal Development Areas

Mega Project in Food Processing

(Rs. 30.00 Cr excluding working capital)

Setting-up or Modernisation of Meat

and Fish Shop

General Areas: 50% of the cost of Machinery/ Equipment and Technical Civil Works, etc., subject to a maximum of Rs. 5.00 Lakhs

Integrated Tribal Development Areas: 75% of the cost of Machinery/ Equipment and Technical Civil Works (TCW) and other eligible items mentioned in Para 5.4 above subject to a maximum of Rs. 5.00 Lakhs

Jharkhand Tourism Policy, 2015

Presentation title

Promote rich cultural heritage

Promote private sector participation

Government to develop infrastructure

Integrated development of places

Government will act as a facilitator

Standardisation of services

Develop Tourism land bank

Better Rail, Road, Air Connectivity

Adequate Power, water

Establish Private Zones

Jharkhand Tourism Policy 2015

Thrust Areas Religious Tourism Eco Tourism Cultural Tourism Rural Tourism Adventure Tourism Mining Tourism Incentives Capital Subsidy Tax relief Safe environment

Objective Making Jharkhand as one of the most preferred destination for tourists,

both inside and outside of the country and to ensure accelerated

development of tourism related infrastructure, increasing employment

opportunities, augmenting the resources of the State as also showcasing

the rich cultural heritage and traditions of the State

Jharkhand State Solar Power Policy, 2015

Presentation title

Projects shall be eligible for the incentives for a period of ten years from the date of commissioning

Private equity participation in Solar power projects

Freedom to sell to other buyers

Policy supports development of ecosystem for solar energy

Jharkhand Renewal Energy Dev. Corporation to facilitate

Jharkhand State Solar Power Policy 2015

Objective To encourage participation of Private Sector to set up Solar Power based projects in the State

Increase solar power generation to 2650 MW by the year 2020

To build a favourable atmosphere for setting up Solar Power projects

Ensure energy security of the State by stable and non-polluting means

Promote local manufacturing facilities to generate employment

Incentives available Exemption from payment of

electricity duty

Deemed industry status

Inter-state open access clearance

VAT exemption

Exemption from distribution of losses

Exemption of stamp duty on purchase of private land, etc.

Jharkhand Feed Processing Policy, 2015

Presentation title

Assistance for Processing Units (New Unit, Modernisation, Up graduation, Expansion & Diversification)

35.00 % of the Cost of Plant & Machinery and Technical Civil Works, subject to a maximum of Rs. 500.00 lakhs in general areas

45.00 % of the Cost of Plant & Machinery and Technical Civil Works, subject to a maximum of Rs. 500.00 lakhs in Integrated Tribal Development Project (ITDP) areas

Grant-in-aid assistance

Objective Creating favourable atmosphere for setting-up of Animal feed processing units in the state through creation of infrastructure facilities, encouragement of capital investment and technology up-gradation, development of marketing network, development promotion, grants and concessions

Jharkhand Feed Processing Policy, 2015

Jharkhand Industrial Park Policy, 2015

Presentation title

Presentation title

Any Private Institutions, Industry House or any large project will be eligible for setting up private industrial park including sector specific industrial park.

Promoter private institution of the private industrial park to hold at least 20% equity

50% of the project cost, up to maximum of Rs 10 crores, incurred on development of infrastructure in non-sector specific private industrial parks

50% of cost, up to maximum of Rs 7 crores, incurred on development of infrastructure in the sector specific private industrial park

Intention to avail incentives under any other schemes of the state government to be specified while applying for approval

Industrial units set up in the private industrial park shall be entitled to the benefits under Jharkhand Industrial Policy and any Central and state Government schemes

Support for setting up Industrial Parks in Public, Private, PPP, JV mode

Jharkhand Industrial Park Policy, 2015

Sector Specific Parks

Apparel Fibre and Textile Park

IT Park / Software Technology Park

Gems & Jewellery Park

Bio-tech &Herbs Park

Chemical and Pharmaceutical Park

Food Park

Automobile Vendor-Ancillary Industries Park

Other specific sectors e.g. Ceramic Park, Knowledge Park, Plastic Park, Film City

Jharkhand Export Policy, 2015

Presentation title

Presentation title

Objective Aims to facilitate the rapid and sustained growth of exports from Jharkhand and to increase its share in all India exports to 2% by 2019.

Providing an effective, proactive and supportive institutional mechanism

Evolving and implementing export promotional strategies

Building supportive infrastructural facilities like high speed internet access, high speed consignment movement by rail or road without hurdles.

Marketing development assistance, R&D on global market research and testing laboratories support, crating world trade centre facility at Ranchi.

The promotion groups will be as follows:

Sericulture, Handloom, Textile and Handicraft Promotion.

Engineering, Chemical and Allied Products Promotion.

Agriculture, Forest Product, Food Processing and Value addition activity promotion.

Mineral Product and Metallurgical Product Promotion.

Electronics and Software Products Promotion.

Refractory Product, Granite and Precious Stone Product Promotion.

Product Promotion

Group


Presentation title

Fiscal Incentives

Exemption from Electricity Duty -100% Export Oriented Units (EOUs), IT and Bio-technology units industries in Special Economic Zone (SEZs) and Electronics Hardware Technology Parks will be exempted from payment of Electricity Duty for a period of 10 years.

Allotment of Land for Exporting Units - One of the key reasons for low investment in exporting sector has been the availability of land or high cost of the same which deter a small manufacturer to start manufacturing. With a view to meet the high export target, Government of Jharkhand will give priority in allotment of plot/ land to export oriented units (those committing to exports over 50% of their production) in the industrial Area.

Transport Subsidy for Shipment to Ports - Being a land locked state, Jharkhand does not have any port. It has to send export shipments via rail/ road to Kolkata port, which increases the cost of transportation. To encourage exports from the state, Transport Subsidy would be provided on the basis of costs incurred by exporters for shipment to export transporting the goods to the ports. The amount of subsidy will not exceed Rs Ten Lakh during the financial year for an exporter. An outlay of Rs 2 Crores per year will be provided under this head on First-Come-First-Serve Basis to MSME sector.

Export Development Assistance (EDA) - Presently Market Development Assistance (MDA) is provided by Govt. of India to exporters for market surveys, product development and participation in international trade fairs. MDA is not available to MSME exporters. Govt. of Jharkhand will extend the Export Development Assistance to MSMEs for participation in approved International Trade Fairs at National, International, State Level, Buyer-Seller meet and for exploring new markets for exporters organized by ITPO/EPCs/Commodity Boards etc.


Jharkhand Procurement Policy 2013

Presentation title

Presentation title

Objective Promoting and developing Micro and Small Enterprises

(MSEs) of the State on preferential basis

Gives preference in purchases of its products and services to units located in the state

No compromise on quality, competitiveness and cost effectiveness.

Sound, fair and transparent practices to encourage competitiveness, amongst local MSEs and industrial units

Facilitating purchases from state’s MSEs by Government Departments and institutions including aided agencies

Procurement of minimum of 20% of total annual purchases of products produced and minimum of 15% of services required by state government Departments/ Agencies to be procured from MSEs

Functioning

Jharkhand Procurement Policy 2013

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