Government of Orissa - Industrial Policy
     

 

GOVERNMENT OF ORISSA

INDUSTRIES DEPARTMENT

RESOLUTION

Bhubaneswar, the dated 03.12.2001.

Subject : INDUSTRIAL POLICY -2001

 

1. INTRODUCTION :

1.1 Transforming Orissa into a vibrant Industrial State remains an important goal in the beginning of the new millennium.

1.2 With its abundance of mineral resources, long coastline and inland waters, the bio-diversity of its forests and a rich cultural heritage, Orissa ought to become a privileged destination for industrial investment.

1.3 The economic reforms and the liberalization process initiated in 1991 provide an important opportunity to the State to leverage the natural resources to attract investment, both domestic and international.

1.4 The super cyclone in October 1999 caused widespread damage to all sectors of the State’s economy, including industry. Reconstruction of the shattered industrial economy poses a major challenge to the Government as well as the civic society.

1.5 The recent "White Paper on Orissa State Finances" (Brought out by Finance Department, Government of Orissa, on 29th March, 2001) highlights the difficult situation of the public budget and sets clear limits on the future availability of financial incentives to spur industrial growth.

1.6 At  the  same  time, the  combined  forces  of  economic  globalization  and   governance- decentralization, pose new challenges to the policy-makers and call for a profound redefinition of the way, Government can effectively support business.

1.7 Against this backdrop it has become necessary to win the trust of the industry by demonstrating the commitment of the Government to attract investors; Create a positive perception of the State as a desired destination for industrial investment; Take a fresh look at the existing policy to further build upon existing strengths, and eliminate weaknesses;

      Redefine the objectives and priorities; establish a mechanism to ensure effective and timely implementation of the policy.

1.8  This Industrial Policy Resolution is a result of such an exercise and contains the following parts: -

  • Part A Statement of Mission and Objectives

  • Part B Definitions and Interpretations

  • Part C Policy Instruments

PART- A

Statement of Mission and Objectives

 

2. THE MISSION OF THIS IPR IS TO :

Create a business climate conducive to accelerate investment in Industry & Infrastructure projects;

Raise income, employment and economic growth in the State;

Reduce regional disparities in economic development.

 

2.1 TO THIS END, THE GOVERNMENT WILL:

Encourage private initiative and restrict its intervention to such areas where it enjoys a distinct comparative advantage;

Invite private investment for the development and operation of quality infrastructure;

Promote the image of Orissa as an attractive destination for investment and tourism;

Assume a proactive role in selected sectors such as :-

Mineral-based industries.

Craft-based products;

Agro and marine-based industries, industries based on medicinal herbs and minor forest produce;

Tourism;

Electronics, Information Technology and Biotechnology.

Encourage the creation of SSI clusters in similar lines of business;

Proceed more decisively with the restructuring and consolidation of sick industrial units;

Leverage the potential in SEZs to build concentration of technologically advanced manufacturing industries.

 

PART - B

Definitions and Interpretations

3. DEFINITIONS :

For the purpose of this Industrial Policy Resolution, the various terms shall have the meanings assigned to them hereunder:

 

3.1  "BIFR" means the Board for Industrial and Financial Reconstruction.

3.2  "Earlier IPR" means the Industrial Policy Resolution 1992 and/or the Industrial Policy 1996, as the case may be.

3.3   "Effective Date" means the date of issue of this Policy on and from which the provisions of this IPR shall be operative.

3.4  "Entry Tax" means the Tax payable under Orissa Entry Tax Act, 1999.

3.5  "Existing Industrial Unit" means an industrial unit where fixed capital investment has commenced before the effective date.

3.6   "Fast track project" means projects having a project cost of Rs.100 crores and above

3.7   "Finished Goods" means goods exclusively manufactured by the industrial unit and includes by-products, scrap, defective products either sold as such or as seconds /scrap /waste etc. which also come out as a result of its normal manufacturing activity /process.

3.8  "Fixed Capital Investment" means investment in land, building, plant and machinery and other equipment of permanent nature.

3.9  "Infrastructure Project" means any project for the creation and modernization of Special Economic Zones; roads, bridges & culverts, railway lines, power plants, electric substations and transmission lines, water supply and storage facilities undertaken predominantly for use by industrial units, ports, airports, container terminals, bonded warehouses, satellite townships around industrial centres, film cities, film studios, transport and telecommunication facilities, common effluent treatment plants, tool rooms, R&D Institutes, Technology Laboratories / Centres, Quality testing labs / centres, exhibition and conference centres, industrial townships, industrial estates, entertainment parks, Golf courses and other tourism-related infrastructure and social infrastructure such as schools, technical & management institutes and hospitals, subject to eligibility criteria to be notified later.

3.10 "Industrial Unit" means any industrial undertaking located inside the State and engaged in any manufacturing or servicing activity as detailed in the Schedule appended to this policy.

3.11 "Large, Medium and Small Scale Industry" means an industrial unit defined by the Government of India from time to time.

3.12 "Local SSI Unit" means SSI unit situated in the State of Orissa

3.13 "Modernization" and/or "technological upgradation" of an existing or new industrial unit means additional investment to the extent of 33% or more of the undepreciated book value of plant and machinery of an existing or new unit, made in acquisition of plant and machinery and technical know-how for such modernization or technology upgradation under modernization schemes of SIDBI, NCDC, NSIC, OSFC, IPICOL, Co-operative Banks, Commercial Banks and Statutory Financial Institutions.

3.14 "New Industrial Unit" means an industrial unit where fixed capital investment has commenced on or after the effective date and which goes into commercial production within 3 years for SSI, 5 years for medium and large industries, 6 years for mega industries with an investment of more than Rs. 500 crore from the date of starting first fixed capital investment:

       Provided further that an industrial unit which has started fixed capital investment before the effective date and not covered under the F.D Notification No. 7355-CTA-5/99-F dated17.2.2000 & No. 7352-CTA-5/99-F dated 17.2.2000 will have the option to be treated as a new industrial unit under IPR-2001.

       Provided also that such option shall be exercised in the prescribed form to the designated authority within 180 days from the effective date and once the option is exercised, it shall be final and irrevocable.

       Provided also that an industrial unit opting to be treated as a new industrial unit will be required to surrender and/or refund the incentives availed, if any, under any earlier IPR.

3.15 "IDCO" means the Orissa Industrial Infrastructure Development Corporation.

3.16 "IPICOL" means the Industrial Promotion and Investment Corporation of Orissa Limited.

3.17 "NCDC" means the National Co-operative Development Corporation.

3.18 "NSIC" means the National Small Industries Corporation.

3.19 "OERC" means the Orissa Electricity Regulatory Commission.

3.20 "OFDC" means the Orissa Film Development Corporation Ltd.

3.21 "OSEDC" means the Orissa State Electronics Development Corporation.

3.22 "OSFC" means the Orissa State Financial Corporation.

3.23 "OSIC" means the Orissa Small Industries Corporation.

3.24 "SIDBI" means the Small Industrial Development Bank of India.

3.25 "Priority Sectors" means -

       Industrial units in the following categories without any stipulation regarding minimum project cost:

(i) Electronics, telecommunication, information technology and IT enabled service;

(ii) Agro and marine-based industries;

(iii) Bio-technology related;

(iv) Craft related;

(v) Tourism related;

(vi) Mineral based industries including gem cutting and polishing;

(vii) Fly ash based industries utilizing a minimum of 25% by weight of fly ash as base raw material;

Note - Government may, by notification, add or delete from time to time the types of industrial activities which will come within the category of priority sectors.

3.26 "Raw Material" means materials required by the unit that will directly go into the composition of its finished products.

3.27 "Sales Tax" means ‘Sales Tax’ (State and Central) and purchase tax payable to Government of Orissa under the Orissa Sales Tax Act. 1947 and Central Sales Tax Act. 1956 and shall include sales tax imposed on contracts.

3.28 "Transferred  Unit" means  an  industrial  unit  whose  ownership  or  management  has  been transferred in pursuance of the provisions of the State Financial Corporations Act. 1951 or SIDBI Act, 1989 or transferred with the approval of OSFC or IPICOL or SIDBI.

3.29 "Year" for the purpose of incentives means a period of 365 consecutive days.

3.30 ‘IDCO land‘ means land allotted to and land acquired by IDCO.

 

PART- C

POLICY INSTRUMENTS

 4. GENERAL POLICY :

4.1   Deregulation and simplification of rules and procedures, rationalisation of labour laws, facilitation of industrial restructuring and accelerated development of physical and social infrastructure through public-private partnership will enable a conducive business climate for attracting investments and establishment of competitive industry

Medium/Large/Mega  industrial  projects :

4.2   Actively encourage investment in large industrial units, which, the Government acknowledges, have the potential to be the nuclei for further industrial and economic development. For these "fast track projects", clearances will be hastened eliminating the factors causing delay and facilitating timely implementation of such projects.

       SSI / Tiny Sector

4.3   All efforts will be made to encourage and ensure growth of small-scale industries sector, in particular, through cluster development approach.

4.4   Back-ended financial support for SSI units in priority Sector, by way of grant of interest subsidy.

4.5   Market support through preference in government procurement as detailed elsewhere in this IPR, to the SSI/Tiny sector with emphasis on competitiveness based on quality.

 

5. SINGLE WINDOW CLEARANCES :

5.1  Expeditious clearance of proposals is of prime importance to the promoters of industries. Therefore, "Single Window" concept will be implemented for:

  • Faster and one - point project clearance;

  • Single point dissemination of project related information to help the prospective entrepreneurs take expeditious investment decisions;

       The contact points - "SHILPA JYOTI" in IPICOL for Medium & Large Projects and "SILPA SATHI" in the Directorate of Industries and DICs for tiny and small units--- will be created for the above purpose. Escort services, if needed, will be provided by these contact points for interaction with various agencies and authorities.

5.2  Composite application forms along with statutory fees for all clearances connected with the proposal, will be received by "Shilpa Jyoti" or "Shilpa Sathi", which will facilitate required clearances from the concerned Departments or the authorities of the State Government and other agencies.

5.3   All clearances within the purview of the State Government, required for establishment of industrial units, will be accorded within specified time frames. The deficiencies in application and additional information, if any, required from the applicant (the industrial unit) should be pointed out by the concerned authority within a specified time-frame failing which the application would be deemed to be complete.

        In the absence of timely communication regarding the proposal from the respective Department or the Organisation, a mechanism of ‘deemed clearance’ will be put in place. Such clearance will be communicated to the applicant by the Single Window contact points.

5.4   In respect of clearances coming within the purview of the Central Government / Central Agencies, the State Government and the single window contact points would render all support and assistance by forwarding its recommendations to the respective Central Government Agencies, within specified time frames.

5.5  The Industries Department will bring out a comprehensive operational manual containing required forms, procedures and timeframes after promulgation of the IPR indicating the date when Single Window system takes effect. It will be possible to access this information online.

 

6. SINGLE WINDOW INFORMATION :

6.1 Ready availability of key information about prospective locations of industry is a sine qua non for taking investment decisions. Comprehensive brochures containing all the key information about geophysical conditions, availability of land, physical and social infrastructure etc. of different locations will be prepared and made available to prospective investors through the "Shilpa Jyoti" and "Shilpa Sathi". The effort would be to provide at one-source answers to all the queries that an entrepreneur or investor may have, about the location.

6.2 Apart from location-specific information for clusters of industrial units, industry or activity specific information with recommended locations will also be prepared and made available to the prospective investors.

6.3 A data bank containing information on possible projects, locations, resources etc. will be created by March 2002 for use of prospective investors.

6.4 Such information will be made available online.

 

7.   CLEARANCE FOR FAST TRACK PROJECTS :

7.1 An Industrial and Infrastructural Advisory Board under the Chairmanship of the Chief Minister and prominent industrialists and senior officers of the Government as members will advise the Government to ensure taking timely and effective steps for rapid and sustainable industrialization of the State. The Minister, Industries, would be the Vice-Chairman of the Board.

7.2 The Board shall meet at least twice a year to review, and give advice on various issues pertaining to industrialization.

7.3 Industrial and Infrastructural Advisory Committee (IIAC) under the Chairmanship of the Chief Secretary will process clearance to fast track projects as well as all other industrial projects needing inter departmental references. This committee will meet frequently for this purpose.

7.4 On approval of the Chief Minister, the decisions of IIAC will not require further clearance from any other Department / Agency under the State Government.

 

8.   INFRASTRUCTURE :

8.1 The State Government accords top priority to development of physical and social infrastructure through public-private partnership. In particular -

  • The State Government will pursue an active policy of encouraging establishment and maintenance of Industrial Parks and Industrial Estates by the private sector in the growth center already identified and in other areas.

  • The Government will seek and facilitate private investment in physical infrastructure such as power, telecom, roads, railway, ports, airports, logistics, water, R&D Centres, Quality and testing labs, Technology labs and other infrastructure projects.

The Government will adopt a policy of constructive partnership with private sector for establishment of social infrastructure viz., good schools and colleges, institutions for technical and professional training, hospitals, housing, hotels and restaurants, sports complexes and recreation centres.

 

STRATEGY :

8.2 The State Government will introduce a "Land Bank " scheme. Tracts of Government land will be identified by IDCO in consultation with Collectors in potential locations throughout the State and earmarked for industries. These tracts will be exclusively reserved for location of industries. Concerned Revenue Authorities will make Land from the ‘Land Bank’ available to IDCO and entrepreneurs to establish industrial and infrastructure project.

8.3 The State Government will encourage formulation of an Infrastructure Policy and establish a legal framework for private participation in infrastructure projects.

8.4 Special Economic Zones, in accordance with new policy initiatives of the Central Government already in place, would be developed leveraging such locational advantages of Orissa having long coastline and proximity to South East Asia. Private investments will be encouraged for development of these Zones with world class infrastructure with full support from the Government in order to attract large investments, particularly FDI, in manufacturing and service sectors for export production. Special dispensations for easing regulatory burden will be provided for these zones.

 

9.   TECHNOLOGY UPGRADATION :

The State Government accords priority on up-gradation of technology by industrial units. Encouragement will be given to get accreditation with International Quality, Testing Agencies so as to make them internationally competitive. Government of India/SIDBI/FIs schemes on Technology Upgradation will be actively pursued and promoted. The Technology Cell (TBIIP) set up in OSFC with the help of UNIDO will be strengthened. Venture Capital fund of SIDBI/OSFC/IPICOL will be available for promotion of I.T. units.

 

10.   HUMAN RESOURCE DEVELOPMENT :

10.1 The State Government would formulate a Policy for Technical Education in the private sector to facilitate the establishment of new technical institutions of good quality and standard in the private sector. New Engineering Colleges and Medical Colleges will be permitted in the private sector in selected locations.

10.2 A Technical University will be established in the State at the earliest. Steps would be taken to ensure close co-operation and co-ordination between industries and technical/training institutions so that a trainee gets education in conformity with the needs of the industries. Entrepreneur training programes will be taken up. The policy also promotes training institute of International repute to be set up by large industry houses in areas like IT, BT etc. Employment oriented training scheme will be introduced in ITIs and Engineering Schools / Polytechnics.

 

11.   INVESTMENT PROMOTION :

11.1 The government will welcome investments in domestic and Foreign Direct Investment (FDI) in all areas of industry and infrastructure. For this purpose, it will work closely with the Government of India and the Industry and business associations.

11.2 In order to facilitate timely implementation of FDI Projects and address the concerns of the foreign investors, a Foreign Investors Forum (FIF) would be created under the chairmanship of the Chief Minister. The FIF will work in close association with Foreign Investment Implementation Authority (FIIA) of the Government of India and the issues of F.I.F. will be placed in the I.I.A.B. as separate agenda.

11.3 A dedicated and duly equipped secretariat with experts from all promotional agencies will provide coordination and other services and information to Industrial Infrastructure Advisory Board and Foreign Investors Forum.

11.4 The  Secretariat  will,  in  association  with  industry  and  business,  also  undertake  specific investment promotion events in India and abroad under the guidance of IIAC. Special Secretary/ Additional Secretary of Industries Department shall co-ordinate with other Departments of Government and provide initial escort services for selected industrial units.

11.5 The Orissa Investment Centre will be set up in New Delhi under the Resident Commissioner to provide information, initial escort services and first stage facilitation to all industrialists, NRIs and investors from outside the State. They will provide the required information to the investors interested in investing in the State and also pursue with various Ministries of Government of India for clearance(s).

 

12.   PRIORITY SECTORS :

12.1 In addition to financial concessions provided in this policy, efforts will be made to prepare competitive profiles of priority industries in the State, so as to identify opportunities and constraints in detail. These will be addressed in sector-specific policies, if needed.

12.2 Some sectors already have separate policies, which will be updated taking into account new information and realities.

 

13.    FINANCIAL AND OTHER SUPPORT MEASURES :

ELIGIBILITY :

13.1 New and existing industrial units shall be eligible for incentives provided in this policy, subject to the general conditions and specific conditions stipulated.

13.2 Industrial units, hotels, cinema halls etc. covered under earlier Industrial Policy Resolutions shall continue to enjoy the incentives admissible under the said policy except to the extent abridged or modified or enlarged in this policy.

       Existing industrial units, which take up modernization will be eligible for specific incentives as mentioned. However, defaulters of Banks, SIDBI, OSFC, IPICOL and Government / Government controlled agencies will be eligible for such incentives only after they clear the dues.

GENERAL PROVISIONS :

13.3 Implementation of various provisions covering the incentives, concessions, etc. will be subject to the issue of detailed guidelines/ statutory notifications, wherever necessary, in respect of each item by the concerned administrative Department.

13.4 An industrial unit, which considers itself eligible for any incentives shall apply in accordance with the operational guidelines and instructions set out in the Manual to be brought out and the same shall be considered and disposed of on merit.

13.5 Time frame for filing applications for different incentives -

       A unit shall forfeit its entitlement to the grant of incentives if it does not file its claim complete in all respects, within 6 (six) months of its starting commercial production. The power to condone the delay not exceeding six months in submission of the above claim, shall vest with the Director of Industries, Orissa, while Secretary, Industries shall be competent to condone the delay exceeding six months and maximum upto one year in that context.

13.6 Determination of date of commercial production -

       The date of commercial production for availing of incentives on sale tax or for, any other incentive, shall be the date determined by the "Shilpa Sathi" for Small Scale Industrial Units and the "Shilpa Jyoti" for the medium and large industrial units, basing on the totality of documentary evidence and recommendation of promotional or financial agencies, if any.

13.7 Transferred Units

       A transferred unit after going into commercial production shall be eligible to avail of all or any of the incentives for the period for which the unit was eligible before transfer but could not avail of the same due to suspension of production or closure on account of sickness or for any other reason.

       Any industrial unit seized under Section 29 of the State Financial Corporation Act, 1951 and thereafter sold to a new entrepreneur shall be treated as a new industrial unit for the purpose of sales tax concessions only. Arrears of sales tax, entry tax, MV tax, EPF, ESI and excise duty payable by previous owners shall not be realizable from the transferees of the transferred units under Section 29 of SFC Act. These, being public dues, shall be realizable from the previous owners under the Orissa Public Demand Recovery Act, 1962 or any other relevant Act.

13.8 Industrial Units set up without financial assistance from Financial Institutions and/or Banks will be required to be assessed by the appropriate nodal agency like IPICOL, OSFC, DIC and OSEDC etc. in order to be eligible for any of these incentives.

 

14. INTEREST SUBSIDY :

14.1 New small scale industrial units in priority sectors will be entitled to interest subsidy @ 5 % per annum for a period of five years from the date of commercial production on term loans availed from recognised Financial Institutions/Banks.

14.2 Small Scale Industrial units (existing or new) which undertake modernisation will be eligible for interest subsidy @ 5% per annum for a period of five years from the date of completion of modernization on the term loans availed from the recognised Financial Institutions/Banks. This will be applicable to units where un-depreciated book value of the investment on plant & machinery before modernization is within the small-scale limit as prescribed.

14.3 The interest subsidy will be limited to Rs.20.00 lakhs in case of Small Scale Units and Rs.10.00 lakhs in case of tiny units.

        Provided that the amount of interest subsidy payable under the above two clauses will stand reduced to the extent, there is any interest subsidy payable under any other scheme of either the State Government or the Central Government or any financial institution such as SIDBI, NABARD etc. Further the effective interest rate after the administration of interest subsidy will be minimum 10% i.e. if the normal lending rate is 16% the effective lending rate after interest subsidy will be 11% and if the normal lending rate is 12% after interest subsidy the effective lending rate will be minimum 10% and in this case the interest subsidy will be limited to 2%.

       Provided further that the concerned promoter(s) would not have defaulted to OSFC / IPICOL / SIDBI / Banks / Recognised Financial Institutions / other Government agencies in connection with the unit for which the incentive is sought or for any other unit / activity with which concerned promoter is directly or indirectly associated.

14.4 The  industrial  units  established  in  the  following  Districts –  Kalahandi,  Nuapada,  Bolangir, Sonepur, Koraput, Malkangiri, Rayagada, Nawarangpur, Gajapati and Deogarh will get additional interest subsidy @ 5% of the term loan or Rs. 5.00 lakh whichever is less as an incentive for backward area development.

 

15.   SALES TAX :

15.1 In pursuance of the decision taken by all States and Union Territories regarding reforms in sales tax, Government have decided that no fresh sales tax incentives will be extended to industrial units in the State.

15.2 The State Government is committed to reforms in Sales Tax administration with the objective of switching over to the harmonized Value Added Tax (VAT) system effective from 1st of April 2002. VAT system will provide for a full set-off of ‘tax paid on inputs for manufacturing’ to ensure greater competitiveness of the local industries.

15.3 The industrial units enjoying or eligible for the benefits under IPR’89 and pre-89 IPRs will not get sales tax incentives after 31.7.99 as per F.D., S.R.O No.622/99 dated 30.7.99, S.R.O. No.623/99 dated 30.7.99, S.R.O No.624/99 dated 30.7.99 and S.R.O No. 625/99 dated 30.7.99. However, industrial units enjoying benefits under I.P.R’92 and I.P.R’96 as on 1.1.2000 will continue to get sales tax incentives for the period they are entitled under the respective policies.

15.4 Industrial units which are in pipeline as on the Ist January, 2000 shall entitle to the incentives under said notification with same terms and conditions as applicable to them, if they fulfil the following criteria as on the Ist January, 2000, namely -

        Industrial unit which is registered under Orissa Sales Tax Act, 1947.

        Industrial  unit  which  has  been  allotted  land  for  the  factory  or  the  industrial unit which has acquired land or space for its operation.

        Industrial Unit which has applied for finance from regular Financial Institution.

        Industrial unit which will start commercial production before the Ist January, 2002.

15.5 Industrial units will be eligible for concessional rate of Central Sales Tax for Inter State sale to registered dealers as per Finance Department notifications issued from time to time.

15.6 Exemption of sales tax on finished products of khadi, village, cottage and handicraft industrial units. Finished products of all existing and new khadi, village, cottage and handicrafts industrial units will be exempted from sales tax when sold at sales outlets of authorised Cooperatives/Government agencies and agencies recognised by Khadi and Village Industries Commission/Board, Coir Board, Handicraft Corporation and DIC.

15.7 100% export oriented units will be allowed refund of OST on inputs and raw materials used for manufacture of good for export subject to proper proof of exports.

15.8 Industries Department on the recommendation of Financial Institutions/Banks will declare sick units to be eligible for concessional rate of CST on merit of the case subject to concurrence of Finance Department.

 

16.   PATENT REGISTRATION :

       Industrial units will be encouraged for filing patent of their research and State will provide assistance to entrepreneurs for Patent and Intellectual Property Right (IPR) provisions @ 50% of the expenditure up to maximum of Rs.5.00 lakh.

 

17.   QUALITY CERTIFICATION :

       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 up to maximum of Rs. 2.00 lakh.

 

18.   LAND :

18.1 Government land earmarked for industry under the "Land Bank" scheme and other Government land wherever available will be allotted for industrial projects.

18.2 IDCO  will  be  the  competent  authority  in  the  matter  of  allotment  of  land  for  industrial and infrastructure projects including those needed for creating social infrastructure in designated Industrial Estates, Industrial areas, Industrial Parks, Growth Centres and also in respect of land transferred to it under the Land Bank Scheme. For the above purpose IDCO will fix up the premium cost of land for different locations based on prevailing area rates and cost of acquisition including expenditure in relief and rehabilitation requirements, if any, for private land. Ground rent will be 1% of the premium cost of land. Development cost will be charged by IDCO separately based on the scope and extent of development undertaken.

Allotment of land by IDCO/State Government would be considered after verifying the antecedents of partners/proprietors of the new industrial units in respect of their past default, if any, in the matter of payment of premium on the land allotted on the earlier occasion.

18.3 Rate of Government land, other than IDCO land for industrial or infrastructure projects, will be as fixed by Revenue Department / Collectors or the General Administration Deptt. as the case may be.

18.4 New units and existing industrial units taking up modernization will be granted exemption under the provisions of clause (c) of section 73 of Orissa Land Reforms Act, 1960 from payment of premium, leviable under provisions of clause (c) of section 8(A) of the OLR Act, 1960, on production of eligibility certificate from the Director of Industries for large and medium industries and G.M., DIC, for small and tiny industries.

18.5 Tourism, Information Technology (IT) and Biotechnology related units as well as Technology Laboratories may be allowed in the urban areas irrespective of the earmarked use in the current master plan in operation. Similarly, Floor Area Ratio may also be relaxed.

18.6 The Industrial Estates, Industrial Areas, Industrial Parks, Growth Centres etc. shall be excluded from the tax regime of the Municipal and other local authorities for management by the local industries’ associations, provided that the latter undertake to maintain the infrastructure of the industrial estates either directly or through other agencies by taking consent of H & U.D. Department to amend the concerned Act.

 

POWER :

18.7 New industrial units with contract demand up to 100 KVA will be exempted from the payment of electricity duty for a period of 5 years from the date of availing power supply for commercial production.

18.8 A power plant generating power from non-conventional sources set up after the effective date shall be deemed to be a new industrial unit and will be entitled to all the incentives under this policy. These plants will not be liable to pay electricity duty.

18.9 Industries of seasonal nature like Sugar, Salt Industries etc. will be provided the facility of temporary surrender of a part of their connected/sanctioned load. This facility will be made available on the recommendation of the committee constituted for this purpose.

18.10 If any industrial unit sets up captive power plant, it will be allowed 3rd party sale if it has surplus power available, the unit will be free to sell its surplus power to GRIDCO or to any other industry requiring the same directly as per the guidelines prescribed by OERC.

18.11 Information Technology, Bio-technology and Tourism related activities (existing or new) which are treated as industrial activity will be entitled to have power at industrial and not commercial rate of tariff subject to OERC approval.

 

19.   WATER :

19.1 In case of withdrawal of water by a new industrial unit from any Government water source as defined in clause-6 (a) of Section-4 of the Orissa Irrigation (Amendment) Act, 1993(Orissa Act 3 of 1994), water charge will be payable in the manner as indicated below:

       (i) At 50% of the rates prescribed for the purpose under the provisions of the Irrigation Act for a period of five years.

       (ii) Thereafter, at full prescribed rates.

19.2 In respect of water to be drawn by a new industrial unit from any existing Government controlled irrigation source, water charges at the prescribed rate will be payable from the date of commercial production as indicated below.

       (i) At 75% of the rate prescribed for the purpose for drawal of water from such Government controlled irrigation source for a period of three years.

       (ii) Thereafter at full prescribed rates:

       Provided that where an industrial unit makes financial contribution for creation/completion of the irrigation source, no water charge will be payable at the rates stipulated in sub-para (i) & (ii) till full adjustment of the amount contributed by the industrial unit in question for creation/completion of the irrigation sources.

 

20.  STAMP DUTY :

20.1 No stamp duty will be required to be paid in respect of land allotted by the Government to IDCO. But stamp duty @ 5% will be required to be paid in respect of transfer of land/shed by Government and IDCO to industrial units. This will also be applicable in respect of private land acquired by IDCO, which is subsequently allotted to industrial units.

20.2 In respect of land acquired by the Government and subsequently transferred or allotted to industrial units, stamp duty @ 5% will be required to be paid.

20.3 Stamp duty will be exempted for units required to be transferred to a new owner/management under the provisions of the State Financial Corporation Act, 1951 or on the recommendation of the State Level Inter Institutional Committee (SLIIC) or the State Level Nodal Committee, as the case may be.

20.4 Stamp duty will be exempted for units under proprietary /partnership firms to be converted to companies for rehabilitation on the recommendation of SLIIC or otherwise on the recommendation of IPICOL/OSFC/Director of Industries.

 

21    REHABILITATION AND RESTRUCTURING OF INDUSTRY :

The Government will proactively promote restructuring of enterprises whether in the public/joint sector or in the private sector in order to promote a business climate of competitive industry. The Government will take expeditious measures including new institutional mechanism to privatize all public sector enterprises, which are not performing any core function and which can be better managed by the private sector.

The Government would explore accessing the relevant national and international agencies for resources and technical assistance for public sector restructuring.

The existing institutional mechanism of State Level Inter Institutional Committee (SLIIC) and District Level Committees (DLC) will be asked to take expeditious decisions for rehabilitation of viable industries in the current competitive context. In the absence of viability, the institutions should proceed to restructure the enterprises with a view to putting the assets to productive use.

In case of large and medium industries, which are referred to the BIFR, Industrial Infrastructure Advisory Committee (IIAC) shall finalise and recommend the package of concessions. The Chief Minister will approve the decision of IIAC which shall be final and binding on all concerned Government Departments and Institutions.

The State Government would pursue with the Reserve Bank of India to extend the tenure of the Settlement Advisory Committees and follow up with various Banks for constituting Settlement Advisory Committees for settlement of dues of non-performing assets in the small scale sector.