Facilitation for promotion of Micro, Small & Medium Enterprises Ease of doing business Initiatives...

Facilitation for promotion of Micro, Small & Medium

Enterprises

Ease of doing business Initiatives in Odisha

Easing business involves

Policy FrameworksSl Notifications / Policies

1. Odisha Industries (Facilitation) Amendment Rules, 2015

2. Industrial Policy Resolution, 2015

3. Odisha Food Processing Policy, 2013

4. Micro, Small & Medium Enterprises Development Policy, 2009

5. Odisha Procurement Preference Policy For Micro & Small Enterprises, 2015

Initiatives for implementation Online Udyami Aadhar acknowledgement replacing the

earlier Entrepreneurs memorandum Strengthening of Odisha Industries (Facilitation) Rules

through amendment in 2015 Coverage of services under Odisha Right to Public

Service Act, 2012 Initiatives for online administration of selected

incentives under Industrial Policy Resolution, 2007 & MSME Development Policy, 2009

District Level Facilitation Cell, involving representatives from Industries, made operational in Regional / District Industries Centres to guide & mentor entrepreneurs.

54 activities notified as Green Category by Forest & Environment Department for fast track clearance.

Central Inspection Framework to rationalize inspection of industries

Labour reforms

Feature of District Level Facilitation Cell

Constituted vide Industries Department Notification No. 4086 dated 23.06.2015 under the Chairmanship of General Manager, RIC / DIC with representatives from line departments & Industries Associations.

Cell focuses on actualization of investment through one-stop facilitation process.

Major function of the Cell include guidance & mentoring of investors; assessment the project, land and utility requirements; assistance in filing Combined Application Form & following-up on approvals from respective line Departments beyond the powers delegated to the members .

Process Flow under OIFR, 2015Investor having no land

Investor having less than 25% of required land

CAF Schedule I for assessment of land & utility Through DLNA

DLFC

Decision in DSWCA

Investor having 25% or more of required land

CAF Schedule IA for Clearance through DLNA for

recommendationRecommendation for availability of land

42 Clearances included within maximum 60 days.

DLNA Concerned Authority

Decision of Concerned Authority communicated to proponent

Timeline for consent / approval (OIFR, 2015)

Sl. No.

Department

Disposal of Application Time Limit (Working

Days)Energy DISCOMs

1. Time taken from request for connection to release of connection where infrastructure is available

15

2. Time taken from request for connection to release of connection where infrastructure is not available

30

Environment & Forests

Odisha State Pollution Control Board3. Consent to establisha. ‘A’ Category after obtaining

environmental clearance 60

b. ‘B’ Category after obtaining environmental clearance

45

c. ‘C’ Category 304. Permission under Hazardous Waste

(Handling & Management) Rules30

5. Consent to Operatea. ‘A’ Category after obtaining

environmental clearance 60

b. ‘B’ Category after obtaining environmental clearance

45

c. ‘C’ Category 30

Timeline for consent & approval

Sl. No.

Department


Days)Labour & ESI

Directorate of Factories and Boilers6. Approval of Factory Plan for Non-

Hazardous factories30

7. Approval of Factory Plan for Hazardous factories

60

8. Approval of Factory Plan for Major Accident Hazard (MAH) factories

90

9. Registration and Licensing of Factories 6010. Renewal/Amendment/Transfer of

factory license30

11. Issue of duplicate license 3012. Inspection of Boilers & issue of

provisional orders to operate boilers15

13. Approval of repair order of Boilers 1514. Steam pipeline drawing approval 3015. Registration of Boilers 3016. Endorsement of Certificates of Boiler

Operation Engineers, Boiler Attendants and Welders issued by other States

15

17. Revalidation of Welders’ certificates 15


Sl. No.

Department


Days)Labour & ESI

Labour Commissioner18. Registration under Odisha Shop and

Commercial Establishment Act,195615

19. Renewal of Registration under Odisha Shop andCommercial Establishment Act,1956

15

20. Contract Labour(R & A)Act,1970i)Registration (one time)ii)Licenceiii)Renewal (annual)

15

21. Industrial Employment Standing Order Act, 1946

45

Housing & Urban Development

UDA/Municipalities22.. Building Plan Approval 6023. Issuance of Occupancy Certificate

(Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs

30

24. Trade License 1525. Water Connection 4526. Conversion of Land Use under master

plan60


Sl. No.

Department


Days)Finance Commercial Taxes

27. Registration under VAT Act 328. Registration under CST Act 329. Registration for Profession Tax 330.Industrie

sSanction of incentives under IPR 2015 30IDCODecision on Land Allotment within IDCO Estates outside BMC Area

31. Allotment Letter after receipt of recommendation letter from Single Window Authority

30

32. Execution of Lease Agreement subject to compliance of T & C of allotment

15

33. Issue of Possession Certificate 15Decision on Land Allotment within IDCO Estates within BMC Area

34. Allotment Letter after receipt of recommendation from HLCC

30

35. Execution of Lease Agreement subject to compliance of T & C

15

36. Issue of Possession Certificate 15


Sl. No.

Department Disposal of Application Time Limit (Working Days)

37.MSME Approval of EM-1* 138. Approval of EM-2* 239. Sanction of Interest Subsidy, Capital Investment Subsidy and

VAT Reimbursement30

Home Directorate of Fire40. No Objection Certificate 3041.Revenue &

Disaster Department

Conversion of land use in all other areas (except ULBs) 60

42.Health & Family Welfare

License under Drug and Cosmetics Act 30

* Entrepreneur Memorandum has been discontinued by Ministry of MSME, Government of India from 18.09.2015

POLICY PROVISIONS

ODISHA FOOD PROCESSING POLICY, 2013

Eligible items Agro and Marine processing includes grading, grinding,

cutting/ cubing/dicing, sorting, packing (dehydrated packing, vacuum packing, nitrogen sachet packing, tetra packing, canning, bottling), waxing, drying (spray drying, dehydration), irradiation any value add activity to the agricultural, horticulture, and forest produce. Agro processing also covers projects in hi-tech and bio-technology based agriculture.

Food Processing includes processing of ready-to-eat or ready-to-cook food and manufacturing of additives, preservatives, colors and fragrant manufactures for food products.

Agro Infrastructure providers include warehouse, cold storage, transportation food items including reefer vans/ containers and processing machinery producers

Quality assurance providers include food testing laboratory and certification agencies

Research and Human Resource Development includes Research & Development, Product Development, and Crop Development Institutes, and Human Resource Development (courses in Food Processing, Agro Management)

OFPP, 2013

Illustrative list of eligible items:Sl Items /Activities

1. Fruit and Vegetable Processing, including grading / packing;

2. Food grain milling / processing, using modern technology and equipment;

3. Dairy products (including milk processing and milk based products);

4. Processing of Poultry, eggs, meat and meat products;

5. Fish Processing including shrimps;

6. Bread, oilseed meals (edible), breakfast foods (such as cornflakes, oats and muesli), biscuits, confectionery (including cocoa processing and chocolate), oil expellers and refining, malt extracts, protein isolates, high protein foods, weaning food, extruded / other ready to eat food products and all other processed foods (excluding non-packed food items served in Hotels and Restaurants of all categories);

7. Fruit based ready to serve beverages;

8. Produce of animal husbandry

9. Spices and condiments

10.Tissue culture laboratories, green houses, green house nurseries & seed production standards, mushroom laboratories;

OFPP, 2013

Illustrative list of eligible items (Continued)

Sl. Items /Activities

11. Floriculture;12. Cold Storage Enterprises;13. Refrigerated transport vehicles / containers (excluding second

hand refurbished vehicles / container);14. Enterprises manufacturing food- grade packaging materials for

food processing industry;15. Enterprises engaged in packaging, canning and bottling of

processed foods;16 Enterprises manufacturing additives, preservatives, colours

and fragrant for the processed food industry;17 Bio-technology and bio-informatics industries;18. Commodity grading and packaging industry;19. Processing of plantation crops including tea and coffee, forest

produce such as herbal, medicinal and aromatic plants, coconut based products and Arecanut / Arecanut based products;

20. Sugar industry (excluding molassess / alcohol)21 Cattle/ Poultry/ Prawn Feed/ Fish Feed*

(*Ref: Notification no. 4365/MSME / Dt. 11.06.2015)

OFPP, 2013

List of ineligible itemsSl Items /Activities

1 Rice huller and seller

2 Flour mill of less than 50 TPD capacity

3 Masala making without cold process grinding

4 Bread/ Confectionery except mechanization

5 Preparation of sweet meat and salted snacks except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015)

6 Production of ice block

7 De-mineralized water and distilled water manufacturing units

8 Processing of betel nuts

9 Tea blending units

10

Units connected with raw-tobacco and gul related products Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it).

11

Mixture, Bhujia and Chanachur preparation units except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015)

12

Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it).

OFPP, 2013

Administration of Incentives

Sl

Incentive Quantum Eligibility Criteria

Time Frame

1. Rebate on Land

25% of price announced by Govt. (IDCO) in normal areas; Units set up in KBK and potential food clusters shall be eligible for additional 25% of IPR rates in addition to above. Land shall be provided from ‘Land Banks’ as detailed below:

• If commenced FCI prior to 15.3.13, it must commence production during 15.3.13 to 14.3.15

• If commenced FCI after 15.3.15, it must commence production within two years from date of 1st FCI.

Within 6 months from date of commencement of production for new units and within 6 months from date of Expansion or, Diversification

Project Cost (Rs. in Cr.)

Max. land to be available

1 to 50 Ac. 5.00Above 50 to

100Ac. 10.00

Above 100 Ac.30.00

2. Capital Investment Subsidy for new, Expan-sion & Moderni-sation cases and Top-up cases

For General category - 25% of project cost (excluding cost of land); Ceiling: Rs.2.00 Cr.

-do-

For Women, SC & ST and units in KBK districts - 33% of project cost (excluding cost of land); Ceiling: Rs.3.00 Cr.

OFPP, 2013

Administration of Incentives contd.

Sl Incentive

Quantum Eligibility Criteria

Time Frame

3. Electricity Duty exemption

For new enterprises

For a maximum 10 years from Date of Production.

-do- -do-

For existing enterprises

For a maximum 10 years from date of commencement of policy.

4. Interest Subsidy for new and Top-up cases

5% p.a on working capital loan availed from public sector banks / OSFC for 1st five years from D.O.P; Ceiling- Rs. 5.00 lakhs p.a

- do - Within 6 months from the end of each financial year

5. Quality Certification for new and Top-up cases.

Reimbursement upto 50% of cost of certification like HACCP, GMP, ISO 9000, Agmark, FPO, GLP, TQM.; Ceiling – Rs.2.00 Lakhs

- do - Within 6 months from date of obtaining certification or, 6 months from date of notification whichever is later.

OFPP, 2013

Administration of Incentives contd.Sl

Incentive


Time Frame

6. Entry Tax Exemption

On new and 2nd hand Plant & Machinery & Balancing equipment.

100% -do- Within one month of entry of P & M and balancing Equipment

On raw materials, incidental goods & packaging materials

100% for a period of 5 years from Date of Production.

Within one month of entry of raw materials, incidental goods and packaging materials

7. Mega Food Park, Sea Food Park

Capital Subsidy @ 20% of project cost to SPV

Maximum – Rs. 15.00 crores or, equity participation by GoO

As per scoring pattern. CIS will be front ended to be released in 4 phases as per progress.

After preparation of DPR and before making any physical progress on the ground. In case of MFP already approved by MoFPI, GoI, the applicant shall apply along with a copy of In-Principle approval letter of GoI

Cost of preparation of DPR

Rs. 5.00 lakhs for Mega Food Park. If project report is prepared for carbon credit – 50% of consultancy charges with a cap of Rs. 20.00 lakhs

In-Principle approval of MoFPI, GoI is required.

OFPP, 2013

Administration of Incentives contd.

Sl Incentive


Time Frame

7. Mega Food Park, Sea Food Park

VAT reimbursement - 100% for 10 years

Max -200% of Fixed Capital Investment

New and Existing enterprise shall be eligible

Within 6 months from the end of each financial year

For Industrial units set up in Mega Food Parks & Sea Food park

CIS:25% with ceiling of Rs.2.00 cr. for General entrepreneurs in non-KBK area; and @33% with a ceiling of Rs. 3.00 cr. for SC, ST, Women & for KBK districts. Exemption of Entry Tax on P&M and balancing itemsExemption of Entry Tax on raw materials for 5 years from DOP

As per other units set up outside Mega Food Park

As per other units set up outside Mega Food Park

OFPP, 2013

MSME DEVELOPMENT POLICY, 2009

Effective Date- 17.02.2009.

Eligibility- Units made 1st. Fixed Capital Investment after the Effective Date & commence Production within 2 years of 1st. F C I

MSME Development Policy 2009 shall be read in conjunction with IPR-2007.

Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2007 shall not be eligible for fiscal incentives under this policy

MSMED POLICY-2009 Contd.

MSMED POLICY-2009 Contd.Fiscal

IncentivesIncentives Eligibility Rate / period Time line for filing Application

Capital Investment Subsidy

New MSMEs 10% of FCI up to Rs. 8 lakh

Within Six months of Commencement of Production

new MSMEs of SC / ST/ Women, Technical Degree / Diploma holder entrepreneurs

12% of FCI up to 10 lakhs

VAT Reimbursement as in IPR-2007

MSEs set up by Women entrepreneurs

Additional period of 2 years

within six months from the end of each financial year

INDUSTRIAL POLICY RESOLUTION, 2007

Effective Date- 02. 03.2007.

Eligibility- Units made 1st. Fixed Capital Investment (FCI) after the Effective Date & before 24.08.2015 and commence Production within 2 years for MSME and 3 years for Large Industries of 1st. F C I

Units as enshrined in Annexure-II, Schedule- Point (3) of IPR, 2007 shall not be eligible for fiscal incentives under this policy

IPR-2007 Contd.

“Priority Sectors” means – New Industrial units where fixed capital investment commences on or after the effective date and fall within the following categories.

Information technology and IT enabled serviceTourism relatedBio-technologyPetroleum, Chemicals & Petro-chemicalsPharmaceuticalsHandicraft, Handloom, Coir and Leather productsGem stone cutting and polishingSea food ProcessingFly ash & Blast furnace slag based industries

utilizing a minimum of 25% by weight as base raw material

Industry other than mineral extraction industry which exports more than 50% of total turnover duly certified by EPM

Units not qualifying for " Thrust Sector" status for not meeting minimum capital investment criteria.

PRIORITY SECTORIPR-2007 Contd.

THRUST SECTOR & PIONEER UNITS

“Thrust Sector” means new industrial units in the following categories which commence fixed capital investment on or after the effective date and full fill the criteria stipulated as under.Sector Minimum Capital

Investment Employment Generation

( Direct)Agro- Processing Rs. 25 crores 100Automobiles Rs. 300crores 500Auto- Components Rs. 50 crores 200Textile Rs. 50 crores 500Apparel Rs. 10 crores 500Ancillary & Down Stream

Rs. 10 crores 100

“Pioneer Units” mean the first five industrial units of each thrust area, which commence fixed capital investment and go in to commercial production during the operative period of this IPR.

IPR-2007 Contd.

• Non- mineral based new industrial units of Kalahandi Nuapada, Bolangir, Subarnpur, Koraput, Malkangir, Rayagada, Nawrangpur, Gajapati, Kandhamall & Mayurbhanj -

with minimum investment in P&M/c for Rs.

5crore &

providing direct employment to minimum 100

persons

shall be treated as deemed thrust sector unit and eligible for all incentives prescribed for the thrust sector.

• Such deemed thrust sector status may also be granted to other industrial units by High Level Clearance Authority through Notifications of Industries Department.

SPECIAL INCENTIVES FOR KBK REGION:

IPR-2007 Contd.

FISCAL INCENTIVES

• Govt. land under Land Bank & other Govt. land may be allotted at concessional rate to Industrial Units including Infrastructure Projects

• Land at special concessional rate to Thrust Sector Units by HLCA

• Concessional Industrial Rate of Land

LAND

IPR-2007 Contd.

Zone-A Urban areas coming under the jurisdiction of Bhubaneswar Municipal Corporation, Cuttack Municipal Corporation, Rourkela Municipality, Berhampur Municipality, Sambalpur Municipality and Paradeep NAC.

Rates to be fixed by Revenue/ G. A. Dept in consultation with Ind.

Dept

Zone - B Revenue Sub- Divisions of Angul, Athagarh, Balasore, Berhampur, Bhubaneswar, Champua, Cuttack, Dhenkanal, Jagatsinghpur, Jajpur , Jharsuguda, Keonjhar, Khurda, Panposh, Puri, Sambalpur, Talcher,

Municipal / NAC Area-Zone -B -@ Rs 5 lakh / Ac, Zone- C-@ Rs 3 lakh / Ac, Zone- D @ Rs. 1.5 lakh/

AcOther than Municipal / NAC Area-Zone -B -@ Rs 2 lakh / Ac, Zone- C -@ Rs 1 lakh / Ac, Zone- D @ Rs. 0.5 lakh /

Ac

Zone - C Revenue Sub- Divisions of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Chhatrapur, Jeypur, Koraput, Raygada, Sundergarh.

Zone - D

Revenue Sub- Divisions - Anandpur, Athamallik, Balliguda, Bamanghati, Bhanjanagar, Bhawanipatana, Birmaharajpur, Bonai, Boudh, Deogarh, Dharmagarh, Gunupur, Hindol, Kamakhyanagar, Kaptipada, Kandhamala, Kendrapada, Kuchinda, Malkangir, Nayagarh, Nuapada, Nilagir, Nabarangapur, Padampur, Pallahara, Panchpir, Paralakhemundi, Patnagarha, Rairakhol, Subarnapur, Titilagarh.

Ground Rent - @ 1% of the land value

LAND

Exemption of premium on conversion of agricultural land for industrial purpose

IDCO SHED – May be available in 04 annual installments for Micro & Small Enterprises.

1 Micro & Small 100% up to 5 Ac.

No Time limit. But shall have to commence or already commenced production within the period of 2 years for MSMEs and 3 years for Large Industries from the date of 1st. Fixed Capital Investment.

2 Medium 75% up to 25 Ac.

3 Large 50% up to 500 Ac.

4 Priority 50%5 Thrust Sectors 100%

IPR-2007 Contd.

STAMP DUTY No stamp Duty for land allotted by Govt. to IDCO or Govt. / IDCO to Private Industrial Estate Developers Transfer of land / shed to

New & Existing taking up E/M/D

Exemption of applicable Stamp DutyMicro & Small @ 75%Medium @ 50%Large @ 25%Priority @ 50%Thrust Sector @ 100%

Stamp duty exempted -

Units transferred to new management

Conversion of Prop / Partnership to Company for rehabilitation

Loan agreement, Credit deed, Mortgages and Hypothecation deed executed by industrial unit in favour of Banks or F I

Reconstitution & amalgamation of companies is sanctioned by the Court under section 394 of the Companies ACT

IPR-2007 Contd.

TAXES

VAT exemption on finished product of Khadi, Village, Cottage & Handicraft industrial units and traditional Coir products sold at authorised sales outlet.

Shall apply within six months from the date of commencement of production

Entry Tax ExemptionA) Plant & M/c

New Micro & Small, Thrust Sector- case to case basis

Shall apply within 2 years for MSMEs & 3 years for Large Ind. From the 1st. date of F C I

B) Raw materials

New Micro & Small for 5 years limiting to 100% FCI & Thrust Sector units for similar incentives on a case to case basis

Shall apply within six months from the date of commencement of production

IPR-2007 Contd.

TAXES VAT ReimbursementNew MSMEs 50% of VAT paid for 5

years limited to 100% FCIShall apply within six months from the end of each financial year

New Industrial Units in Priority Sector

75% of VAT paid for 5 years limited to 100% of FCI

New Industrial Units in Thrust Sector

75% of VAT paid for 10 years limited to 200% of FCI

Existing Units taking up E / M / D

On increased production capacity for the period applicable

Entertainment Tax

100% reimbursement of ET for 5 years to New Multiplex Cinema Halls

Shall apply within six months from the end of each financial year

IPR-2007 Contd.

INTEREST SUBSIDY New Industrial Units @ 5 % for 5 years

limited to:

- Rs.10 lakh - Micro Enterprises

- Rs.20lakh - Small Enterprises

- Rs.100 lakh - Thrust Sector Units

New Industrial Units under PMEGP/ PMRY / REGP @ 3% for 5 years limited to Rs.25000 /- only


Loans sanctioned on or after 22.12.2011.

IPR-2007 Contd.

POWER New industrial units other than Thrust

Sector - 100 % ED exempted for 5 years up to 110 K V A

New industrial units in Thrust Sector - 100 % ED exempted for 5 years up to 5 M W

New Captive Power Plant - 50 % ED exempted for 5 years on for self consumption

Shall apply within six months from the date of commencement of production / Commissioning

IPR-2007 Contd.

PATENT REGISTRATION• New Industrial Units - 50% of registration cost up to Rs. 5 lakh

• Shall apply within six months of obtaining Patent Registration

QUALITY CERTIFICATION• New Industrial Units - 50% of Quality

Certification charge up to Rs. 2 lakh• Shall apply within six months of obtaining

Quality Certification

ASSISTANCE FOR TECHNICAL KNOW- HOWSector Indigenous

Technology

Imported Technology

Time line

New Micro , Small & Thrust Sector

Up to Rs.1 lakh

Up to Rs.5 lakh

Shall apply within six months of commencement of production

IPR-2007 Contd.

ODISHA PROCUREMENT PREFERENCE POLICY FOR

MICRO & SMALL ENTERPRISES, 2015

EFFECTIVE DATE- 10.06.2015

Eligibility- Micro & Small Enterprises of the State except MSEs not declared ineligible under the extant policies and under new policies announced by the State

Mandatory Procurement from Micro and Small Enterprises - minimum twenty per cent (20%) of the value of the requirement

Special provision for Procurement form Micro and Small Enterprises owned by Scheduled Castes or Scheduled Tribes, Physically Challenged, Women and Technical (Degree / Diploma holding) - 4 percent out of 20 percent)

Sanction of Departure - The Administrative Departments may sanction departure from the scheme in particular cases, where such departure is in the interest of the State.

ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015

INDUSTRIAL POLICY RESOLUTION, 2015

Effective Date- 24. 08.2015.

Eligibility- Units made 1st. Fixed Capital Investment after the Effective Date (24.08.2015) and commence Production within 3 years for MSME and 5 years for Large Industries of 1st. F C I

Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2015 shall not be eligible for fiscal incentives under this policy

IPR-20015 contd..

1) “Pioneer Units” mean the first five industrial units of each Priority Sector which commence fixed capital investment and go in to production during the operative period of this IPR.

2) “Priority Sector” means –Industrial units which fall within the following categories:a.Agro and Food Processingb.Ancillary and Downstreamc.Automobiles and Auto-componentsd.Manufacturing in Aviation and Maintenance Repair

&Overhaul (MRO) facilitiese.Bio-technologyf. Fly ash & Blast furnace slag based industries utilizing

a minimum of 25% by weight as base raw materialg.Gem stone cutting and polishingh.Handicraft, Handloom, Coir and Leather productsi. Information technology, IT enabled service and ESDM

unitsj. Petroleum, Chemicals & Petro-chemicals

Cont-

IPR-20015 contd..IPR-20015 contd..

“Priority Sector” (Cont- )k. Pharmaceuticalsl. Plastics and Polymersm. Sea food Processingn. Shipbuilding and construction of other floating vessels/ Ship repairo. Textile including Technical Textile & Apparelp. Tourism and Hospitality (All the units/activities specified in Para

6.11 of Odisha Tourism Policy -2013 are eligible units)q. Any industry other than mineral extraction and mineral based

industries, which exports more than 50% of its total turnover, duly certified by the Director, Export Promotion and Marketing

r. Migrated industrial units treated as new industrial units under Priority sector

s. Rehabilitated sick industrial unit treated at par with new industrial unit under Priority sector

t. Industrial unit seized under the State Financial Corporation Act 1951/ Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and thereafter sold to a new entrepreneur on a sale of asset basis and treated as new industrial unit for the purpose of this IPR

u. Non-mineral based new industrial units located in industrially Backward districts with minimum investment of five crore rupees in plant & machinery

Government may modify the above list from time to time.


Category Districts

A All other districts other than Category B

B Industrially Backward Districts- Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj.

Classification of Districts:- For the purpose of administering the incentives, the classification of districts is as follows:

Industrial Development in Industrially Backward Districts Aim to provide enabling industrial infrastructure such as road connectivity, power supply, water supply, telecommunication and mobile connectivity etc. and common facilities for storage, preservation and agri-marketingIdentify potential sectors for each district and provide incubation support to units in these sectors.Non-mineral based new industrial units located in Industrially Backward districts with minimum investment of Rupees Five crore in plant & machinery shall be treated as Priority sector unit and be eligible for all incentives prescribed for the Priority sector.

IPR-20015 contd..

Zones Location Concessional Industrial Land Rate. (Rs. Lakhs / Acre)

Zone-A Urban areas under the jurisdiction of Bhubaneswar Municipal Corporation area.

Rs. 125 Lakhs/ Acre

Zone-B Urban areas under the jurisdiction of Development Authorities of Cuttack, Rourkela, Berhampur, Sambalpur, Paradeep, Puri, Angul and Jharsuguda

Cuttack–Rourkela- Rs.60 Lakhs / Acre, Berhampur, Sambalpur, Paradeep, Puri, Angul, Jharsuguda– Rs. 30 Lakhs / Acre

Zone-C Revenue Sub-Divisions of Bhubaneswar (except BMC area), Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur.

Municipal/NAC area – Rs. 15 Lakhs / Acre, Other than Municipal / NAC Area: Rs. 6 Lakhs / Acre.

Zone-D Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur, Keonjhar, Talcher

Municipal / NAC area Rs.10 Lakhs / AcreOther than Municipal / NAC Area –Rs. 4 Lakhs / Acre

Zone-E Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Jeypur, Koraput, Rayagada, Sundargarh

Municipal / NAC area-Rs. 6 Lakhs / Acre, Other than Municipal / NAC Area- Rs. 2 Lakhs / Acre

Zone-F Revenue Sub-Divisions – Anandpur, Athamalik, Baliguda, Bamanghati, Bhanjanagar, Bhawanipatna, Birmaharajpur, Bonai, Boudh, Deogarh, Dharmagarh, Gunupur, Hindol, Kamakshyanagar, Kaptipada, Kandhamala, Kendrapada, Kuchinda, Malkangiri, Nabrangpur, Nayagarh, Nilagiri, Nuapada, Padampur, Pallahara, Panchpir, Paralakhemundi, Patnagarh, Rairakhol, Sonepur, Titilgarh

Municipal / NAC area – Rs. 3 Lakhs / Acre Other than Municipal / NAC Area –Rs. 1 Lakh / acre

Ground Rent will be paid @ 1% of the land value10% of the land for large projects limiting to 300 Acre shall be earmarked for ancillary & downstream industrial park

Land at concessional rate IPR-20015 contd..IPR-20015 contd..

Exemption of premium on conversion of Ag. Land for Industrial UseNew Indl units and existing indl units taking up E / M / D, new Indl units and existing indl units in Priority Sector taking up E/ M / D

Micro & Small Sector

100 % up to 5 Acres

Shall apply within the period of implementation ie 3 years for MSMEs & 5 years for Large Industries

Medium Sector 75 % up to 25 Acres

Large Sector 50 % up to 500 Acres

Priority Sector 100% up to 100 Acres & 50% for balance area

INTEREST SUBSIDYa)

New MSME and non MSME Priority sector units @ 5% per annum on term loan for five years / Seven years for Industrially Backward districts from the date of commencement of production for a total maximum limit of-

Micro Enterprises

Rs. 10 Lakhs

Shall apply within six months from end of each financial year

Small Enterprises

Rs. 20 Lakhs

Medium Enterprises

Rs. 40 Lakhs

Non-MSME Priority Sector Units

Rs. 1 Crore

b)

Guarantee fee charged under CGTMSE will be reimbursed to Micro & Small Enterprises


STAMP DUTY EXEMPTIONa) No stamp duty for land allotted by the Govt to IDCO or Govt / IDCO to Private Indl Estate

Developersb) Transfer of land / shed by Govt,

IDCO & Private Indl Estate Developers to new indl units and existing indl units acquiring fresh land for E / M / D

Micro & Small Sector

@ 75 % of Stamp duty

Shall apply at the time of execution of required deed

Medium Sector @ 50 % of Stamp duty

Large Sector @ 25 % of Stamp duty

Priority Sector @ 100% of Stamp duty

(c) Transferred to a new owner / management under the provisions of the SFC Act, 1951 or under SARFAESI Act 2002 or on the recommendation of the SLIIC.

d) Units under proprietary /partnership firms to be converted to companies for rehabilitation on the recommendation of the SLIIC.

e) Where reconstruction and amalgamation of Companies is sanctioned by the Court under Section 394 of the Companies Act ( Subject to conditions enunciated in IPR)

(f) Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Indl Units in favour of Banks or Financial Institutions shall be allowed 100% exemption from stamp duty.

ENERGY(a) Exemption

of electricity duty for 5 years

New MSMEs Contract demand up to 500 KVA

Shall apply within 1 year from the date of ProductionNew units in Priority

SectorContract demand up to 5 MVA

New & existing industrial units setting up Captive Power Plant with non-conventional sources & bio-fuel as Green Energy Subsidy.

Shall apply within 1 year from the date of Commissioning

(b) Seasonal Units such as food processing, sugar, salt and cotton ginning & pressing unit shall be allowed for temporary surrender of a part of their contract demand as per norms of OERC.

(c) One-time reimbursement of cost of Energy Audits

Micro Enterprises Rs. 1 Lakh Shall apply within 1 year from the date implementation of Audit

Small Enterprises Rs. 2 Lakhs Medium Enterprises Rs. 3 Lakhs


VAT Reimbursementi) New MSMEs 75% of VAT

paid

Five (5) years

Limited to 100% of cost of Plant & M/c

Shall apply within six months from the end of each Financial Year

ii) New Industrial units in Priority Sector

100% of VAT paid

Seven (7) years


iii) Existing MSME taking up E / M / D

75% of VAT paid on increased production

Five (5) years

Limited to 100% of additional cost of plant & M/c for E/M/D

iv) Existing industrial units in Priority sector taking up E / M / D

100% of VAT paid on increased production

Seven (7) years

Limited to 200% of additional cost of Plant &M/c acquired for taking up E/M/ D

v) New Pioneer Units under each Priority Sector

100% of VAT paid

Nine (9) years


vi) Anchor Tenant in each industrial park

100% of VAT paid

Nine (9) years


Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced


Reimbursement of Entry Taxa) Plant &

Machinery

New MSMEs and Priority Sector

100% of Entry Tax paid on acquisition of plant & M/c

Shall apply within 1 year from the date of Production

Existing industrial units in MSMEs & Priority Sector units taking up E/M/D

100% of Entry Tax paid on additional acquisition of plant & M/c.

b) Raw Materials

New MSMEs and Priority Sector units

100% of Entry Tax paid for five years limiting to 100% of cost of Plant & M/c


Existing industrial units in MSMEs & Priority Sector units taking up E/ M/ D

100% of Entry Tax paid on additional raw materials for a period of five years limiting to 100% of cost of additional Plant and machinery.

New Pioneer Units under each Priority Sector

100% of Entry Tax paid for seven (7) years limiting to 100% of cost of plant & M/c

The above provision will be suitably replaced/ modified after GST is introduced.

ENTERTAINMENT TAX (ET)i New Multiplex Cinema Hall of at least

3 screens with minimum capital investment of Rs.3.00 crores

100% of ET paid

For 5 years Shall apply within 1 year from the date of Productionii Existing cinema hall is upgraded to a

multiplex and modernised with minimum investment of Rs. 1 crore

100% ET paid

For 5 years

The above provision will be suitably replaced/ modified after GST is introduced


IPR-20015 contd..EMPLOYMENT COST SUBSIDY i) New and existing units

undertaking E/M/D in Micro and Small sector- employing skilled and semi-skilled workers of domicile of Odisha as regular employees

Male workers 75% of expenditure on contribution for ESI and EPF

5 years

Shall apply within Six months from the end of each Financial Year

Female workers 100% of expenditure on contribution for ESI and EPF

5 years

ii) New and existing units undertaking E/M/D in Medium sector- employing skilled and semi-skilled workers of domicile of Odisha as regular employees.

Male workers 50% of expenditure on contribution for ESI and EPF

3 years

Female workers 100% of expenditure on contribution for ESI and EPF

3 years

iii) New and existing Industrial units undertaking E/M/D in MSME and Priority Sector

Skilled and semi-skilled workers of domicile of Odisha –displaced for the establishment of the said Indl unit as regular employees

100% of expenditure on contribution for ESI and EPF

3 years

iv) New and existing Industrial units undertaking E/M/D in MSME and Priority Sector employing skilled and semi-skilled persons with Disabilities of domicile of Odisha as regular employees.

Persons with Disabilities

100% of expenditure on contribution for ESI and EPF

5 years

v) For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2 years.

IPR-20015 contd..

PATENT REGISTRATIONNew Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification

@ 100% of the registration cost up to maximum of Rs.10 Lakhs.

Shall apply within 1 year from the date obtaining Patent Registration

QUALITY CERTIFICATIONNew and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification

For quality certification & its renewal for next consecutive two years i.e. for a period of 3 years @ 100% of the quality certification charges up to a total maximum limit of Rs.3 Lakhs.

Shall apply within 1 year from the date obtaining Quality certification / its renewal

ASSISTANCE FOR TECHNICAL KNOW-HOW New Industrial units in Micro, Small & Medium Enterprises and Priority sector

Indigenous technology

100% of cost of technical know- how up to Rs.1 Lakh

Shall apply within 1 year from the date of starting ProductionImported

technology.

100% of cost of technical know- how up to Rs.5 Lakhs


ENTREPRENEURSHIP DEVELOPMENT SUBSIDYTo budding entrepreneurs to undergo Management Development Training in reputed national level institutions.

75% of course fee limited to Rs.50,000 per course

Shall apply within 30 days of completion of Management Development

ENVIRONMENTAL PROTECTION INFRASTRUCTURE SUBSIDYMSME adopting Zero Effluent or Waste Water Discharge (ZLD)

Rs.20 Lakhs or 20% of capital cost of setting - up Effluent Treatment Plant (ETP) whichever is less.

Shall apply within 1 year of operationalization of Pollution Control Equipment

CAPITAL GRANT TO SUPPORT QUALITY INFRASTRUCTURE To industrial parks / cluster parks

promoted by private sector or industry association or user units in a cluster format.

Quality infrastructure in the form of a capital Grant of 50% of the infrastructure cost with a ceiling of Rs.10 crore per park or cluster.

In the case of up-gradation of the existing parks / clusters for a similar support provided the park / estate / cluster is user- managed.

Quality infrastructure in the form of a capital grant of 50% of total cost with a ceiling of Rs.5 crore provided the park / estate / cluster is user- managed.

ANCHOR TENANT SUBSIDY Lead investment by a reputed investor to promote and facilitate further investment in the designated industrial Park / Estate (first tenant industry)

25% subsidy on cost of land Shall apply within Six months of approval under Single Window

VAT Reimbursement for additional 2 years subject to the overall limit

MARKETING SYNDICATION OSIC / NSIC will act as Syndicate Leader for marketing of the products and services of Micro &

Small Enterprises & collect service charges not exceeding 1% of sale value

OSIC/ NSIC shall act as a consortium leader for Micro & Small Enterprises and organize raw material supply at reasonable rate.

MARKETING ASSISTANCE TO INDUSTRIES ASSOCIATIONSMarketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion in International Trade fairs abroad

@ 50% of total rent subject to a maximum of Rs.10 Lakhs

Shall apply at least 1 month before participating in the Trade Fair


FILM INDUSTRYa)All feature films produced

fully or partly in Odisha Exempted from Entertainment Tax.

b)Producers of films who utilize the facilities of Kalinga Studio Limited, Film & Television Institute of Odisha and Kalinga Prasad Colour Processing Laboratory

Incentives in shape of subsidy subject to the ceiling limit and terms and conditions as may be laid down by OFDC.

c) Soft loan assistance at a nominal rate of interest subject to maximum ceiling limit and on conditions as may be decided by OFDC to producers of films in the State.

d)Multiplexes/ Cinema Halls shall be eligible to get allotment of government/ IDCO land at concessional industrial rate.

IPR-20015 contd..

EMPLOYMENT RATING BASED INCENTIVES ( PRIORITY SECTOR) Special

Incentives New Industrial Units & E M /D. PSUs shall not be eligible for these incentives.

a) Power Reimbursement in Power Tariff per unit for a period of 5 years


b)Training Subsidy

The training subsidy shall be reimbursed only once for each trainee either for training of newly recruited trainee or for skill up-gradation.


Land for Workers Hostels D. Subsidy

for plant and machinery

To units in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel, Pharmaceuticals and Plastics sectors as follows:

Classification Max Capital SubsidyA1/ B1 10% of investment in Plant & M/c with a max. of

Rs. 10.0 CrShall apply within 1 year of Production

A2/ B2 10% of investment in Plant & M/c with a max. of Rs. 20.0 Cr

Classification 10% of investment in Plant & M/c with a max. of Rs. 50.0 Cr

Pioneer Units in each Priority Sector shall be eligible for extension of period of incentives for an additional two years over and above the period specified, provided the unit has been in continuous production during the normal period of incentive

IPR-20015 contd..

THANKS

Facilitation for promotion of Micro, Small & Medium Enterprises Ease of doing business Initiatives...

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