No. ____26115____/I,
XIV-HI-26/2001
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
Ø
Win the trust
of the industry by demonstrating the commitment of the Government to attract
investors;
Ø
Create a
positive perception of the State as a desired destination for industrial
investment;
Ø
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: -
q
Part A Statement of Mission and Objectives
q
Part B Definitions and Interpretations
q
Part C Policy Instruments
***
PART- A
Statement of Mission and Objectives
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.
4.2A To attract Mega Projects into the
State, Special package of incentives
may be considered for new Industrial Projects with a capital investment of
Rs.300 crores and above on a case to case basis keeping in view the National Policy on Sales Tax related incentives.
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 centers 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 Centers, 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.