HARYANA

Haryana has been front runner in attracting FDI projects. Since August 1991, 812 FDI / Foreign Technical Collaboration (FC) approvals have been accorded by the Govt. of India envisaging FDI of Rs.5170 crores. Projects with FDI of Rs.2625 crores approx. have already been set up in the State since liberalization and projects with FDI of Rs.348 crores are at advance stage of implementation. Haryana ranks 7^th largest on all India basis in terms of FDI/FC approvals.

The prominent foreign companies which have come to Haryana in the recent years are Honda Motors, Smithkline Beecham Consumer Healthcare, Johnson Mathey, Polaris Holdings, Napino Auto, Baxter India and Mitsubishi Electric India etc. In addition to above, Denso Haryana, Manesar, YKK India Ltd., Bawal, Krishna Maruti, Gurgaon, Jamna NHK, Gurgaon, Carrier Aircon, Gurgaon, Asahi India Safety Glass Ltd., Gurgaon, Duracell India Ltd., Gurgaon Alcatel Network Systems Ltd., Gurgaon have undertaken major expansion programme.

• Customised package of incentives and concessions

Customised package of incentives and concessions is provided to prestigious projects having an investment of Rs. 30 crores and above. A High Powered Committee has been constituted under the Chairmanship of High Powered Committee has been constituted under the Chairmanship of the Hon’ble Chief Minister to decide the package in individual cases.

• Electricity duty exemption

Electricity duty exemption is provided to all new industrial units except those in negative list of industries for a period of 5 years throughout the State.

• Reservation of Plots for NRIs, EOUs and Foreign Investment Projects

10%f of plots in the nearly developed Industrial Estates, Growth Centres and IIDCs have been reserved for NRIs and 10% have been reserved for EOUS with at least 33% export orders and units having a minimum foreign equity of 33%.

• Rebate on land cost

Rebate equivalent to 20% of the land cost is given if the industrial unit starts commercial production within 3 years of offer of possession of industrial plots.

• Time schedule for sanctions/approvals:

A time schedule will be fixed for various departments for giving necessary sanctions/approvals to reduce time frames for project completion.

State Government has being laying emphasis on attracting IT Industry in the State and Gurgaon has become hub of IT Industry in the country. Exports from the State were Rs.8000 crores during the year 2001-2002 out of which share of IT industry was Rs.3200 crores. State Government has formulated a separate Information Technology Policy, 2000 and following package of incentives has been announced for foreign as well as domestic IT Industries:-

• Preferential allotment of land for IT industry:

The State Government has been giving preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial areas developed by State agencies.

• Continuous-uninterrupted power supply for IT industry:

The State Government has been endeavouring to provide continuous and uninterrupted power supply for IT industries and shall exempt them from schedule power cuts. Encouragement to captive power generation in IT Parks/IT locations shall be given.

• Facilities on Generator Sets:

Captive power generation sets installed by the information Technology Industry are eligible for total exemption from payment of electricity duty without any time limit.

• Liberal change of existing industry to IT:

The State Government are permitting setting up of IT Software units in urban areas and change of existing industry to IT.

• Change of land use:

No charges for change of land use (CLU) are being levied for the IT industry/IT Parks for 3 years i.e., up to 31.03.2003. Permission for sale/leasing/subleasing in constructed buildings and open spaces shall be permitted for optimum utilization of infrastructure. Licences for setting up STPs are being given liberally and on easy payment terms.

• Floor Area Regulation (FAR):

Relaxation in FAR is permitted up to 100% in areas specifically notified by the State Government for IT Units and in all IT Parks.

• Clearances and Support:

Escort services and Single Desk Clearance for obtaining easy clearances and approval of various Government Departments is being facilitated for the IT Industries. On-line Clearance & Support Network (OCSN) will be established linking all the related Departments/Organizations. The Secretariat for IT shall coordinate approvals and facilitation.

• Registration and Stamp Duty:

Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale is being given for state/lease of built-up space to the IT Industry establishing facilities in private STPs/Government STPs/IT Parks as under:

(i) For facilities established and sold/leased before 1.6.2001, 90% Rebate

1. For facilities established and sold/leased before 1.6.2003, 75% rebate
2. For facilities established and sold/leased before 1.6.2003, 60% rebate
3. For facilities established and sold/leased before 1.6.2004, 45% rebate

The rebate is applicable on the combined levy of registration fee, stamp duty and transfer of property duty and no total exemption of stamp duty would be extended. This concession would be available only for the first transaction, when the first sale by the infrastructure company is made to an IT industry

• Applicable rate of Sales Tax:

IT Software and IT Services is considered as a priority sector by the State Level Financial Institutions for lending assistance.

• Exemption from Pollution Control:

IT Software industry is exempted from the purview of the Haryana Pollution Control Act, except in respect of power generation sets of more than 10 KVA Capacity.

• Awards of excellence:

The State will declare awards of excellence for outstanding performance in exports/domestic segment/employment generation.

• Strengthening telecom and communication infrastructure:

The State shall pursue with DOT for establishing reliable, adequate and efficient telecom and communication infrastructure including Internet Nodes in all districts of Haryana.

Haryana being a pioneering Green Revolution State, Haryana has progressed rapidly and the welfare of its people has increased many folds. In the process it has been one of the largest contributors of the food to the country. This strength lies in its agrarian economy. The continued uplift of its citizens and obligations to the country both present and future can only be met through a change in paradigm from the Green to the Ever-Green Revolution, which in turn can only be sustained with the help of biotechnology.

Therefore, to boost the Biotechnology industry in the State, special incentives are provided to foreign as well as domestic biotech industries and are detailed below:-

• Preferential allotment of land:

The State Government is giving preferential treatment for allotment of land to the Biotech industry on an ongoing basis in all industrial areas developed by State agencies.

• Continuous – uninterrupted power supply:

The State Government is endeavouring to provide continuous and uninterrupted power supply for Biotech industry to exempt them from scheduled power cuts. Encouragement shall be given to captive power generation in Biotech Parks/Biotech locations.

• Captive Generation:

Captive generation sets installed by biotech industry are eligible for exemption of Electricity Duty for five years.

• Venture Capital:

Govt. is encouraging setting up of venture capital funds with private participation to provide active monetary support to biotech industry.

• Registration charges and Stamp Duty:

Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale is being given for sale/lease of built up space to the Biotech industry.

- From the date of notification to 31.12.2003, 90%
- First January 2004 and up to 30^th June 2005, 75%
- First July 2005 and up to 31^st December 2006, 60%
- First January 2007 and up to 30^th June 2008, 45%

The rebate is applicable on the combined levy of registration fee, stamp duty and transfer of property duty and no total exemption of stamp duty would be extended. This concession would be available only for the first transaction, when the first sale by the infrastructure company is made to Biotech industry.

Labour Laws are being amended so that the Biotech industrial units shall be able to operate in night shift also.

Single Desk Clearance for obtaining easy clearances and approval of various Government Departments shall be facilitated for Biotech industries. On-line clearances and Support Network will be established linking all the related Departments/Organizations. The Industrial Assistance Group shall coordinate approvals and facilitation.

Besides, State Government has constituted the Foreign Investment Promotion Board, Haryana under the Chairmanship of Chief Minister, Haryana. The Board apart from playing aggressive promotional role will also give technical support to appraise foreign investment proposals. It will be empowered to take decisions regarding allotment of land, sanction of term loan etc. and will act as a Single Window Agency for FDI proposals.

ADVANTAGE HARYANA

• Producer of largest number of passenger cars, motorcycles, tractors, bicycles, sanitary wares, GI pipes, gas stoves, scientific instruments etc. in the country.
• Rich industrial base with 1145 large & medium 75, 000 SSI units. 650 project with foreign technical/financial collaborations.
• Haryana bordering the National Capital from three sides offers an excellent location to set up any industry. It has a rich industrial base, equipped with incomparable infrastructure. One-third of Haryana falls under the National Capital Region.
• Haryana is in close contact with the cosmopolitan world, being close to Delhi International and domestic airports, diplomatic and commercial complexes are just a stone’s throw away. Indira Gandhi International Airport is just ten minutes drive from Gurgaon, an emerging metropolis.
• The State has impressive infrastructure facilities in relation to road and rail network, well developed industrial estates, good banking facilities, reliable communication network, modern technical institutes and developed commercial markets.
• Haryana has an excellent law and order situation with peace loving and hardworking people. The industrial relations are extremely harmonious with cordial employer-employee relations.

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For more details, please visit the website http://haryana.nic.in .

HIMACHAL PRADESH

The units set up by Non Resident Indians in the state except breweries, distilleries; non-fruit/vegetable wineries & bottling (both for country liquor & Indian made foreign liquor) have been listed in priority sector by the State Government.

PACKAGE OF CONCESSION, INCENTIVES & FACILITIES TO PRIORITY SECTOR AND LOCATED IN INDUSTRIALLY BACKWARD AREAS (EXCEPT FRUIT, VEGETABLE & MAIZE BASED UNITS CONSUMING LOCAL PRODDUCE)

Incentives for Industries

The state Government offers a package of incentives for setting up of industrial units, which is comparable to other states. Besides, the special incentive package announced by the Govt. of India for the North East Region is available to the industrial units. Brief Particulars of the incentives are as follows:

A. State Package of Industries:

• Capital Investment Subsidy @ 30% on Fixed Capital Investment, subject to a ceiling of Rs.30 lakhs per unit. Additional subsidy @ 5% to thrust sector/EOUs.
• Reimbursement of State Sales Tax, for 5 years, subject to a specified ceiling.
• Price Preference @ 10% on purchases by the Government.
• 4% Interest Subsidy on term loans, for 5 years, subject to a ceiling of Rs.30,000 per year per unit.
• Standard Certification Charges Reimbursement up to Rs.50,000 per unit.
• Special incentives to IT industry in the form of 50% concession in the floor space rentals and reimbursement of standard certification charges up to Rs.2 lakhs.

B. Incentives Offered by Central Government:

• 100% reimbursement of Excise Duty for 10 years from the date of commercial production.
• Central Transport Subsidy @ 90% of transport costs of raw materials/finished goods calculated between Siliguri & factory site and @ 50% of transport costs of finished goods movement within the Region.
• Income Tax Benefit @ 100% profits from industrial undertakings located in Growth Centres/ IIDCs, to be excluded from the Total Income.
• Capital Investment Subsidy @ 15% of investment in plant & machinery, subject to a ceiling of Rs.30 lakhs.
• Interest Subsidy of 3% on working capital loans.
• Comprehensive Insurance Scheme for insurance coverage for 10 years from the date of commercial production.

C. Other benefits/strengths

• 75% subsidy on Air Freight from Agartala to Guwahati/Kolkata, on transport of fruits/fruit products for export.
• Tripura Industrial Development Agency (TIDA), as Single Window for facilitation of necessary clearances and other assistance to entrepreneurs.
• Prompt and regular clearance of incentives and subsidy claims – both State and Central; State up-to-date in payment/reimbursement of incentives and subsidies
• State Level Committees for identification and facilitation of Food Processing, Natural Gas, Information Technology and Export-oriented Projects.
• Transparent, efficient and responsive administration. 

For more details, please visit the website http://tripura.nic.in

WEST BENGAL INCENTIVE SCHEME, 2000
(as amended up to 12th December 2001)

Commerce & Industries Department and Cottage & Small Scale Industries Department

West Bengal Incentive Scheme 1999 Scheme had an attractive provision of Sales Tax related by way of "remission" or "deferment". But in pursuance of the National Policy, the State Govt. had to discontinue the Sales Tax related Incentives from 1st January 2000. However, as there is a strong need for fiscal support for the promotion of industry in the State, the State Govt. decided to introduce the West Bengal incentive Scheme, 2000, with different and new features, quite attractive for industries in large, medium, small scale and tourism sectors.

For the purpose of the incentives, districts have been grouped as 'A' (Calcutta Municipal Corporation), 'B' (Howrah, Hooghly, North 24-Parganas, South 24-Parganas, Burdwan, Nadia & Midnapore districts) and 'C' (Murshidabad, Birbhum, Purulia, Bankura, Malda, Cooch Behar, North Dinajpur, South Dinajpur, Jalpaiguri and Darjeeling districts).

SPECIAL FEATURES OF WBIS 2000 SCHEME

• CAPITAL INVESTMENT SUBSIDY FOR ALL CATEGOREES OF UNITS : Industrial units to get State Capital Investment Subsidy on the investment made in the fixed capital depending on the location:

Group B - @ 15% to the limit of Rs.150 lakhs
Group C - @ 25% to the limit of Rs.250 lakhs

• INTEREST SUBSIDY: @50% of interest liability to the limit of Rs.100 lakhs/year for:

Group B: 5 years
Group C: 7 years

• EMPLOYMENT GENERATION SUBSIDY : Subsidy on contribution made towards ESI and EPF for

Large and medium Scale Units - @ 50%
Small Scale Units - @ 75%

• REMISSION OF STAMP DUTY AND REGISTRATION FEE: Remission @ 50% of Stamp Duty and Registration Fee for purchase/ acquisition of land and buildings.

• INCENTIVE FOR LEATHER UNITS ON RELOCATION TO KOLKATA

LEATHER COMPLEX: Emphasis is given on modernisation of Leather Units on their relocation to C.L.C. Such units in large & medium and small-scale sector will be eligible to incentive @ 15% and 25% respectively subject to limit of Rs.150 lakhs.

• ADDITIONAL INCENTIVES FOR IT, ELECTRONICS, AGRO & FOOD PROCESSING AND HPL DOWNSTREAM PROJECTS : Special benefits for industries in such thrust areas will be

a) Additional Interest Subsidy @ IO% for 2 years.

0. b) Full Exemption from Stamp Duty and Registration Fees.

Such units in Group A shall be eligible to all incentives admissible to a unit in Group B area.

• Additional incentives for units in the area of Biotechnology, Jute diversification, Agricultural implements, Tourism and hosiery w.e.f. 1. 7. 2001.

In addition to the existing benefits, any eligible industrial unit in these specific fields (in the large, medium and small scale sector) with direct employment generation of 200 or more will be entitled to get additional incentives in terms of 10% of the Additional Interest Subsidy per annum for the eligible period and also be entitled to get exemption from Stamp Duty and Registration Fee. With effect from 1.1.2002 incentives have also been extended to service related activities in Food Processing Sectors and development of Post Harvest Infrastructure.

• Industrial complexes and centres set up with infrastructural facilities will also be entitled to remission of 50% of Stamp Duty and registration Fee for the first sale in relation to such complexes and centres.

• The minimum investment qualifying for Special Package of benefits (as Mega Projects) has been reduced to Rs. 25 crores from Rs. 250 crores.

• Waiver of Electricity Duty on electric consumption for production/operation for 5 years.

Apart from the above, benefits, incentives shall also be provided for conversion for use of piped gas and for quality up gradation in SSI sector. 

For more details, please visit the website http://www.westbengalgovt.org/site/incentives/index.htm