0. State Level Best Practices for Investment Promotion
At present, 10 state-level best practices are being studied by DIPP
These best practices will be carefully documented for nationwide replication
Sources used for identifying these practices include:
NIUA Study (2008)
World Bank ‘Doing Business’ report (2009)
Surveys by CII
Presentations made by states
Breakup of 10 Best Practices

1. Identified Best Practices
Land Acquisition Package,
Haryana
Water & Sewerage connection and Occupancy Permit, Greater Noida
E Stamping, New Delhi
Standardization of Property Documents, Rajasthan
Single Window System for Industries, Orissa
SIR Ordinance, Gujarat
GIS System, Bhubaneshwar Development Authority
Registering, filing & payment of state V.A.T and CARD, Andhra Pradesh

2. List of Best Practices Procedure Best Practices Key Feature
1. Issue of Construction
Permits by Area Development Authority.
‘GIS System’ of BDA (Orissa)
Comprehensive development plan for the town was integrated with Remote Sensing maps to prepare up-to-date land use map
2. Water & Sewerage Connection
Greater NOIDA (UP)
Provision of water connection with all civil works is done before giving possession to allottee
3. Occupancy Permit
‘Architect on Record’ of Greater NOIDA (UP)
Approvals given on certification by Registered Architects
4. Registration, Filling and Payment of State V.A.T
Andhra Pradesh
Simplicity in Registration, electronic filing of return & payment of taxes
5. Encumbrance & Title Verification
CARD of Andhra Pradesh
Search of Title, Property Registration & Valuation are done electronically

3. List of Best Practices Procedure Best Practice Key Feature
6. E-Stamping
Delhi
Secured electronic payment of stamp duty
7. Standardization of Property Documents
Rajasthan
Ease of preparing property documents due to standardization of property documents
8. Land Acquisition Package
Haryana
The land owners will be paid annuity for 33 years over & above the usual land compensation
9. Single Window System for Industries
Orissa
Submission of composite application and single nodal point of contact
10. SIR Ordinance
Gujarat
To facilitate development of economic hubs as per global standards

4. Best Practices Relating to Construction Permits

5. Geographic Information System (GIS) - BDA
GIS was developed by BDA for capturing, managing & analyzing geographical information such as types of land, census tracts, sites, roads, buildings etc.
Comprehensive development plan for the town was integrated with Remote Sensing maps to prepare up-to-date land use map
Digitalization of BDA Development plans using GIS system first implemented in 1999 and subsequently updated constantly

6. Geographic Information System (GIS) - BDA
Key Benefits to Public
It is fastest to obtain land use permission (1 day) in Bhubaneshwar
In India on an average it takes 16 days to obtain land use permission
In Bhubaneshwar, it used to take 50 days to obtain land use permission
Key Benefits to Government
Helps State Revenue Authority to know the up to date status of land utilization
Effective development control and reduction in unauthorized constructions

7. GIS System - Bhubaneshwar Development Authority
Legal & Administrative Changes
The Orissa Development Authorities Act, 1982 was revised to give legal status to the GIS system
Land use information cell was established to provide information related to land use and building byelaws to the public
Proper training was provided to staff to use new computerized system
Technology
Maps were digitalized using ARCINFO and ARC VIEW software
Financial Implications
Project was funded by BDA internal funds
Recovery of cost planned through user fees (i.e. 100 Rs/ User)

8. Water & Sewerage Connection - GNIDA
Key Features
Provision of water & sewerage connection with all civil works are done before giving possession to allottee.
Design / Specification / Modules for water & sewer connections institutionalised according to land-use and plot sizes
GNIDA using this practice since
Layout for sectors along with detailing of Water & Sewer connections to individual plots are pre planned
Key Benefits to Public
It is fastest to obtain water and sewerage connections (7days) in Greater NOIDA
In India on an average it takes 16 days to obtain permanent water & sewerage connection
Key Benefits to Government
Pre-possession of connections avoids repetitive road cutting at later stages

9. Architect on Record – Greater NOIDA (GNIDA)
Key Features
GNIDA empowers the architects registered with the Council of Architecture (COA) for sanction/ approval of Building Plans/ Occupancy Certificate on individual residential plots allotted by the authority
GNIDA using this practice since 2003
Acknowledgement of application along with checklist to the authority deemed as receipt of Occupancy / Completion Certificate
Key Benefits to Public
Immediate grant of occupancy permit approval facilitated by third party certification
Key Benefits to Government
No separate staff to be engaged for granting occupancy permit
Also no payment are required to be paid to architect by GNIDA

10. Best Practices Relating to Paying Taxes

11. Registration, Filing & Payment of State VAT in AP
Key Features
Registration certificates are issued through VATis, an online software application
e-Registration application software has been developed and will be launched shortly. This will help dealers to apply for V.A.T registration online ( Internet)
Dealers can file the return through internet and e-seva centers
Dealers can view the details of returns and the payments filed by them through the
internet using ‘Dealer ledger’ application facility
Key Benefits to Dealers
Registration certificate is issued within 24 hours in case of non risk dealers
Dealers are not required to pay fee and security deposit at the time of registration
Simplicity due to electronic payment and filing
Key Benefits to Government
There was a 20.21% growth in tax revenues after implementation of this system.
Cost of tax collection came down significantly

12. Registration, Filing & Payment of State VAT in AP
Legislative and Administrative changes
The Andhra Pradesh Value Added Tax (V.A.T) Act, 2005 came into force on 1 April 2005
The V.A.T Act in Andhra Pradesh is administered by the Commercial taxes department (department to collect VAT and other taxes)
Training was provided to tax officials prior to implementation of V.A.T
Technology
Custom build software was developed to handle registration, filing & to accept payment of V.A.T

13. Best Practices Relating to Property Registration

14. Computer Aided Registration of Deeds (CARD) - AP
Key Features
CARD is a simplified and decentralized digital property registration system through 200 Sub- Registrars’ offices (SRO) of Andhra Pradesh
This system simplifies and expedites the registration process, provides certificates for non encumbrance and assists in market valuation of properties
In 1997 CARD system was introduced in two SRO
In 1998 CARD system was extended to about 432 SRO
CARD was adjudged one of the ten finalists in the International Innovation awards 2000

15. Computer Aided Registration of Deeds (CARD) - AP
Key Benefits to Public
Approximately 1 day is required to register property under CARD system
Earlier it used to take approx 17 days to register property
Key Benefits to Government
Land revenue growth of 19.75% was recorded in the year preceding when CARD system was introduced
Within Six months of the launch of the CARD project, about 80% of all land registration transactions were carried out electronically
AP Land Registration Revenue,

16. Computer Aided Registration of Deeds (CARD) - AP
Legal & Administrative Changes
The Registration Act, 1908 (Central Act), in its application to the state of AP, was amended to facilitate for the following:
The process of registration of any category of documents may be completed and copying done with the help of electronic devices like computers, scanners and CDs and copies preserved and retrieved when required.
Copies of documents registered and stored electronically, retrieved, printed and certified by the sub-registrar shall be received as evidence
The software to be used for registration shall be prescribed by the Inspector General.
SROs were divided into 3 categories based on the number of documents registered and the revenue derived from each office.
One to three weeks training was organized for different categories of officers ( cost 9% of total project cost )
Technology
A 386 server operating with 14 terminals was set up at a cost of about $31,000 (Rs 13.3 lakh)
Financial Implications
Initially USD US$3 million (Rs.13 crore) were spent.

17. E Stamping - Delhi Key Features
E Stamping is computer based stamping of documents where record keeping agency maintains the database electronically instead of physical stamping of documents which could be forged or duplicated
Have special Security features such as optical watermark, 2D Barcode and microprint (superfine printing of important details invisible to naked eyes)
Delhi government introduced E-stamping since 1st Apr 2008
Prevented circulation of Fake Stamp papers in market

18. Key Benefits to Government
E Stamping - Delhi
Key Benefits to Public
No fear of fake paper or forgery. The certificate generated is tamper proof
Certificate generated has a Unique Identification Number
Key Benefits to Government
Curbs the revenue loss in future due to fake or forged stamp papers
Saving on the cost of printing and handling of Stamp papers
The new system generate the audit trail, MIS reports, verify certificate

19. Standardization of Property Documents -Rajasthan
Key Features
Bureau of Investment Promotion of Rajasthan introduced 34 types of standardized property registration documents
This practice was implemented under Sarathi project which was initiated in 2003
Time for entire process of registration was brought down from 72 hours to 25 minutes
Key Benefits to Public
Ease of preparing property documents due to standardization of property documents
Enables self preparation of property registration documents

20. Best Practices for State Level Single Windows

21. Single Window Clearance - Orissa
Key Features
18 out of 20 major approvals / clearances are provided through single nodal point by using a Combined Application form (CAF)
Provision for deemed approval by department/ authority, in case the approval is not granted within the time limit specified by GoO under Orissa Industrial (Facilitation) Rules

22. Single Window Clearance - Orissa
Key Benefits to Private Firms
Time Bound Clearances – Faster clearances
Concerned authority process the application and communicate its decision to the nodal agency within the time limit specified (not to exceed 30 days from set time limit)
Key Benefits to Government
Higher industrial growth will contribute to overall economic growth
High rate of Orissa’s Economic growth through industrialization
The economic growth rate is up from 4 % in the 1990s to about 8.5 % over the past five years

23. Single Window Clearance - Orissa
Legal & Administrative Changes
Orissa Industries Facilitation Act (OIFA) 2004 was introduced to facilitate single window industrial clearance
Industrial promotion and Investment corporation of Orissa Ltd. (IPICOL) was designated as state level nodal agency and high level clearance authority
DIC was designated as District level Nodal Agency
OIFA envisages a three-tier approval mechanism for according expeditious clearance to industrial projects based on the level of investment.
District Level Single Window Clearance Authority (for investments up to Rs. 50 crore)
State Level Single Window Clearance Authority (for investments more than Rs.50 crore but less than Rs. 1,000 crore)
High Level Clearance Authority (for investments more than Rs. 1,000 crore)
Financial Implications
Govt. of Orissa charge process fee within Rs.l.00 lakh to Rs lakh depending on the value of the application

24. Single Window Clearance - Orissa
Need for Single Window Clearance in Orissa
Approximately 20 approvals are needed to set up an Industry in Orissa.
To transform the state from a ‘lagging state’ to a rapidly developing industrial State.
Project Clearance
Annual Inspections
Secretarial Services
Project Appraisal Reports
Consultation & Escort Services
Nodal Agency
Investors
Concerned Departments
Clearance Authorities
Post Implementation Facilitation
Source: CII telephonic discussions with Team Orissa and State Presentations

25. Best practices for Planned Industrial Development

26. Rehabilitation & Resettlement of Land Owners - Haryana
Rationale for This Policy
To facilitate private sector developers to acquire land for industrial/ commercial purpose
Key Features
Under this the developers are liable to pay Rs.30,000/- per acre per annum with annual increase of Rs.1,000/- per acre for a period of 33 years for the land acquired for setting up of SEZ, technology city and park
In case of acquisition by the State Government, the payment shall be Rs 15,000 /acre per annum with an annual increase of Rs 500 / acre
The allotment of Plots will be made to each co-sharer depending upon his share in the land acquired for HUDA and HSIIDC as per scale mentioned in the entitlement
This policy is applicable to all those lands where award of compensation was announced on or after 5th March, 2005

27. Rehabilitation & Resettlement of Land Owners - Haryana
Key Benefits to Private Developers
State Government assists in the acquisition of land for all the joint venture projects for development of SEZs
The State Government also assists in acquiring left out pockets to ensure contiguity of SEZs.
Key Benefits to Land Owners
Other source of long term sustainable income in form of fixed annuity
Provision of yearly increment
In addition to the residential plots, commercial sites, measuring 2.75 X 2.75 mtrs. will be allotted in HUDA sectors
Such allotment shall be made to each co-sharer provided his share exceeds 2.5 acres, otherwise all the co-sharers will be allotted a single site

28. Rehabilitation & Resettlement of Land Owners - Haryana
Key Benefits to Government
Facilitates land acquisition by private sector - will boost industrial infrastructure development in Haryana
As a result of Policy for Rehabilitation & Resettlement of land owners, many private sector players have shown interest in the state for developing Industrial Model Townships, Industrial Parks and Technology Cities through private initiatives as well as in public private partnership

29. SIR Act 2009 - Gujarat Why SIR Act ?
Around 38 % of the Delhi-Mumbai Industrial Corridor (DMIC) fall in Gujarat
As part of DMIC, six mega industrial nodes (four industrial areas and two investment regions) have been proposed to be set up in Gujarat
On 6th January, 2009, the Gujarat Government promulgated a legal framework – The Gujarat Special Investment Regional Ordinance, 2009

30. SIR Act 2009 - Gujarat Key Features
The Ordinance enables to establish, develop, operate and regulate the Special Investment Regions in Gujarat
The state government is empowered to declare Investment Region or Industrial Area and designate them as Special Investment Region (SIR) by notification
An Investment Region will be developed in an area of more than 100 sq. kms and an Industrial area will be developed in an area of more than 50 sq. kms
The Ordinance provides for effective internal dispute settlement mechanism by setting up a three tier system.

31. SIR Act 2009 - Gujarat Key Benefits to industry/ projects
The ordinance provides for a single window clearance system
The Apex Authority- the GIDB will be the point of contact for establishing an economic activity, infrastructure or amenity in the SIR
Key Benefits to Government
It Will help government to set up world class hubs of economic activity on the lines of fast growing countries of the world
Legal & Administrative Changes
The proposed structure under SIR Ordinance will comprise of an Apex Authority
(GIDB), a Regional Development Authority (RDA) for each region, a Project
Development Agency and project specific SPVs.
The Apex Authority and RDA will make provisions for development, operation, regulation, management, planning and to grant permission and approval for any economic activity or amenity to be established in the SIR