Policies of Government of Odisha

Policies of Government of Odisha
Facilitation for promotion of Micro, Small & Medium Enterprises Director of Industries, Odisha, Micro, Small & Medium Enterprises Department

(Investment in Plant & Machinery) (Investment in Equipments)
Definition of Micro, Small & Medium Enterprises The definition of Micro, Small & Medium Enterprises is laid down by Government of India in Micro, Small & Medium Enterprises Development Act, 2006 Categories Manufacturing (Investment in Plant & Machinery) Services (Investment in Equipments) Micro Does not exceed ₹25 lakh Does not exceed ₹10 lakh Small More than ₹25 lakh but does not exceed ₹5 crore More than ₹10lakh but does not exceed ₹2 crore Medium More than ₹5 crore but does not exceed ₹10 crore More than ₹2 crore but does not exceed ₹5 crore

POLICY PROVISIONS

Easing of doing business involves
Appropriate policy framework Transparency in implementation Definite timeline for disposal

Policy Frameworks Sl 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 6. Odisha Youth Innovation Fund Scheme 7. Cluster Approach

Odisha Industries (Facilitation) Amendment Rules, 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 dated 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, 2015
Investor having no land Investor having less than 25% of required land Investor having 25% or more of required land CAF Schedule I for assessment of land & utility Through DLNA DLFC CAF Schedule IA for Clearance through DLNA for recommendation Recommendation for availability of land Decision in DSWCA DLNA Concerned Authority Decision of Concerned Authority communicated to proponent 42 Clearances included within maximum 60 days.

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 3. Consent to establish a. ‘A’ Category after obtaining environmental clearance 60 b. ‘B’ Category after obtaining environmental clearance 45 c. ‘C’ Category 4. Permission under Hazardous Waste (Handling & Management) Rules 5. Consent to Operate

Timeline for consent & approval
Sl. No. Department Disposal of Application Time Limit (Working Days) Labour & ESI Directorate of Factories and Boilers 6. Approval of Factory Plan for Non-Hazardous factories 30 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 10. Renewal/Amendment/Transfer of factory license 11. Issue of duplicate license 12. Inspection of Boilers & issue of provisional orders to operate boilers 15 13. Approval of repair order of Boilers 14. Steam pipeline drawing approval 15. Registration of Boilers 16. Endorsement of Certificates of Boiler Operation Engineers, Boiler Attendants and Welders issued by other States 17. Revalidation of Welders’ certificates

Sl. No. Department Disposal of Application Time Limit (Working Days) Labour & ESI Labour Commissioner 18. Registration under Odisha Shop and Commercial Establishment Act,1956 15 19. Renewal of Registration under Odisha Shop and Commercial Establishment Act,1956 20. Contract Labour(R & A)Act,1970 i)Registration (one time) ii)Licence iii)Renewal (annual) 21. Industrial Employment Standing Order Act, 1946 45 Housing & Urban Development UDA/Municipalities 22. Building Plan Approval 60 23. Issuance of Occupancy Certificate (Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs 30 24. Trade License 25. Water Connection 26. Conversion of Land Use under master plan

Sl. No. Department Disposal of Application Time Limit (Working Days) Finance Commercial Taxes 27. Registration under VAT Act 3 28. Registration under CST Act 29. Registration for Profession Tax 30. Sanction of incentives under IPR 2015 30 Industries IDCO Decision on Land Allotment within IDCO Estates outside BMC Area 31. Allotment Letter after receipt of recommendation letter from Single Window Authority 32. Execution of Lease Agreement subject to compliance of T & C of allotment 15 33. Issue of Possession Certificate Decision on Land Allotment within IDCO Estates within BMC Area 34. Allotment Letter after receipt of recommendation from HLCC 35. Execution of Lease Agreement subject to compliance of T & C 36.

Sl. No. Department Disposal of Application Time Limit (Working Days) MSME 37. Approval of EM-I* 1 38. Approval of EM-II* 2 39. Sanction of Interest Subsidy, Capital Investment Subsidy and VAT Reimbursement 30 Home Directorate of Fire 40. No Objection Certificate Revenue & Disaster Department 41. Conversion of land use in all other areas (except ULBs) 60 Health & Family Welfare 42. License under Drug and Cosmetics Act * Entrepreneur Memorandum has been discontinued by Ministry of MSME, Government of India from

INDUSTRIAL POLICY RESOLUTION, 2015

Existing Units taking up Expansion / Modernization / Diversification
IPR contd.. Effective Date Eligibility- Units made 1st. Fixed Capital Investment after the Effective Date ( ) and commence Production within 3 years for MSME and 5 years for Large Industries of 1st. F C I Existing Units taking up Expansion / Modernization / Diversification Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2015 (Negative list) shall not be eligible for fiscal incentives under this policy

IPR contd.. “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. “Priority Sector” means–Industrial units fall within following categories: Sl. Category a. Agro and Food Processing b. Ancillary and Downstream c. Automobiles and Auto-components d. Manufacturing in Aviation and Maintenance Repair &Overhaul (MRO) e. Bio-technology f. Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight as base raw material g. Gem stone cutting and polishing h. Handicraft, Handloom, Coir and Leather products i. Information technology, IT enabled service and ESDM units j. Petroleum, Chemicals & Petro-chemicals k. Pharmaceuticals l. Plastics and Polymers m. Sea food Processing n. Shipbuilding and construction of other floating vessels/ Ship repair o. Textile including Technical Textile & Apparel p. Tourism and Hospitality (All the units/activities specified in Para 6.11 of Odisha Tourism Policy are eligible units) q. Any industry other than mineral extraction and mineral based, which exports more than 50% of its total turnover, duly certified by the Director, E P & M 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 S F C Act 1951/ S A R F A E S I 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

Category Districts A All other districts other than Category B B
IPR contd.. IPR contd.. Category of Districts for Administration of Incentives 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.

Concessional Industrial Land Rate Other than Municipal / NAC Area
IPR contd.. IPR contd.. 4. Land at Concessional Rate Zone Location Concessional Industrial Land Rate (Rs. Lakhs / Acre) A Urban areas under the jurisdiction of Bhubaneswar Municipal Corporation area. Rs. 125 Lakhs/ Acre 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 Municipal / NAC area Other than Municipal / NAC Area C Revenue Sub-Divisions of Bhubaneswar (except BMC area), Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur. Rs. 15 Lakhs / Acre Rs. 6 Lakhs / Acre. D Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur, Keonjhar, Talcher Rs.10 Lakhs / Acre Rs. 4 Lakhs / Acre E Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Jeypur, Koraput, Rayagada, Sundargarh Rs. 6 Lakhs / Acre Rs. 2 Lakhs / Acre 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 Rs. 3 Lakhs / Acre Rs. 1 Lakh / acre Ground Rent will be 1% of the land value 10% of the land for large projects limiting to 300 Acre shall be earmarked for ancillary & downstream industrial park

5.Exemption of premium on conversion of Ag. Land for Industrial Use
IPR contd.. 5.Exemption of premium on conversion of Ag. Land for Industrial Use New Industrial units and existing industrial units taking up E / M / D, new Industrial units and existing industrial units in Priority Sector taking up Expansion / Modernization / Diversification (E / M /D) Category Quantum Time Frame Micro & Small Sector 100 % up to 5 Acres Shall apply within the period of implementation ie 3 years for New MSMEs & 5 years for New 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 6. Stamp Duty Exemption No stamp duty for land allotted by the Govt to IDCO or Govt / IDCO to Private Industrial Estate Developers Transfer of land / shed by Govt, IDCO & Private Industrial Estate Developers to new industrial units and existing industrial units acquiring fresh land for E / M / D Category Quantum Time Frame 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 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. Units under proprietary /partnership firms to be converted to companies for rehabilitation on the recommendation of the SLIIC. Where reconstruction and amalgamation of Companies is sanctioned by the Court under Section 394 of the Companies Act ( Subject to conditions enunciated in IPR) 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.

7. Interest Subsidy Category Quantum Time Frame 8. Energy Category
IPR contd.. 7. Interest Subsidy New MSME and non MSME Priority sector 5% per annum on term loan for Five years / Seven years for Industrially Backward districts from the date of commencement of production Guarantee fee charged under CGTMSE will be reimbursed to Micro & Small Enterprises Category Quantum Time Frame 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 . 8. Energy Exemption of electricity duty for 5 years Category Contract Demand Time Frame New MSMEs Contract demand up to 500 KVA Shall apply within 1 year from the date of Production New units in Priority Sector Contract 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 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. One-time reimbursement of cost of Energy Audits Category Quantum Time Frame 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

Sl. Category Quantum Period Maximum Time Frame 9. VAT Reimbursement
IPR contd.. 9. VAT Reimbursement Sl. Category Quantum Period Maximum Time Frame i) 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 Limited to 200% of cost of Plant & M/c iii) Existing MSME taking up E / M / D 75% of VAT paid on increased production 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 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 Nine (9) years vi) Anchor Tenant in each industrial park NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced 10. Entertainment Tax Category Quantum Time Frame 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 Production ii. Existing cinema hall is upgraded to a multiplex and modernised with minimum investment of Rs. 1 crore 100% ET paid NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced

11. Entry Tax Reimbursement
IPR contd.. 11. Entry Tax Reimbursement Sl. Item Category Quantum Period Maximum Time Frame i) Plant & Machinery New MSMEs and Priority Sector 100% of Entry Tax paid on acquisition of plant & M/c One time ─ 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 ii) Raw Materials New MSMEs and Priority Sector units 100% of Entry Tax paid Five years 100% of cost of Plant & M/c Shall apply within six months from the end of each financial year Existing industrial units in MSMEs & Priority Sector units taking up E/ M/ D 100% of Entry Tax paid on additional raw materials 100% of cost of additional Plant and machinery New Pioneer Units under each Priority Sector 100% of Entry Tax paid Seven years 100% of cost of plant & M/c NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced

12. Employment Cost Subsidy
IPR contd.. 12. Employment Cost Subsidy New and existing units undertaking E/M/D employing skilled and semi-skilled workers of domicile of Odisha as regular employees shall be reimbursement expenditure on contribution for ESI and EPF Sl. Category of Enterprise Category of Employee Quantum Period Time Frame i. Micro Enterprises & Small Enterprises Male workers 75% 5 years Shall apply within Six months from the end of each Financial Year Female workers 100% ii. Medium Enterprises 50% 3 years iii. Priority Sector Skilled and semi-skilled workers of domicile of Odisha –displaced for the establishment of the said Indl unit as regular employees iv. New and existing Industrial units undertaking E/M/D in MSME and Priority Sector Persons with Disabilities NB: For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2 years 13. Patent Registration New Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification Quantum Time Frame @ 100% of the registration cost up to maximum of Rs.10 Lakhs. Shall apply within 1 year from the date obtaining Patent Registration

14. Quality Certification
IPR contd.. New and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification Quantum Time Frame For quality certification & its renewal for next consecutive two years i.e. for a period of 3 100% 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 15. Assistance for Technical Know-how New Industrial units in Micro, Small & Medium Enterprises and Priority sector Type Quantum Time Frame Indigenous technology 100% of cost of technical know- how up to Rs.1 Lakh Shall apply within 1 year from the date of starting Production Imported technology. 100% of cost of technical know- how up to Rs.5 Lakhs 16. Entrepreneurship Development Subsidy Budding entrepreneurs to undergo Management Development Training in reputed national level institutions Quantum Time Frame 75% of course fee limited to Rs.50,000 per course Shall apply within 30 days of completion of Management Development 17. Environmental Protection Infrastructure Subsidy MSME adopting Zero Effluent or Waste Water Discharge (ZLD) Quantum Time Frame 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

18. Capital Grant to Support Quality Infrastructure
IPR contd.. 18. Capital Grant to Support Quality Infrastructure Category Quantum 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. 19. Anchor Tenant Subsidy Lead investment by a reputed investor to promote and facilitate further investment in the designated industrial Park / Estate (first tenant industry) Quantum Time Frame 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 20. 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. 21. Marketing Assistance to Industries Association Marketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion in International Trade Fairs abroad Quantum Time Frame @ 50% of total rent subject to a maximum of Rs.10 Lakhs Shall apply at least 1 month before participating in the Trade Fair

23. Employment Rating based Incentive (Priority Sector)
IPR contd.. 22. Film Industry Sl. Category Incentive a) 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. 23. Employment Rating based Incentive (Priority Sector) Sl. Type Incentive Time Frame a) Power Reimbursement in Power Tariff per unit for a period of 5 years Shall apply within six months from the end of each Financial Year 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. c) 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 Subsidy A1 / B1 10% of investment in Plant & M/c with a max. of Rs Cr A2 / B2 10% of investment in Plant & M/c with a max. of Rs Cr A3 / B3 10% of investment in Plant & M/c with a max. of Rs 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 contd.. Activities not eligible for fiscal incentives as per IPR 2015 but eligible for investment facilitation, allotment of land under normal rules at benchmark value/ market rate and recommendations to the financial institutions for term loan and working capital and to the Power Distribution Companies. Sl. Name of Activity Sl 01 Hullers and Rice mills with investment in plant and machinery of less than Rs.25 Lakhs for industrially backward districts and less than one crore rupees for other areas 20 Units for physical mixing of fertilizers. 02 Flour mills including manufacture of besan, pulse mills and chuda mills except investment in plant & machinery of more than Rs.25 Lakhs for industrially backward districts and less than Rs. 1 Crore for other areas (excluding Roller Flour Mills) 21 Brick-making units (except units making refractory bricks and those making bricks from flyash, red mud and similar industrial waste not less than 25% as base material). 03 a. Processing of spices with investment in plant and machinery with less than Rs.10 Lakhs for industrially backward districts and less than two crore rupees for other areas 22 Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than Rs. 20 Lakhs 03.b. Units without Spice-mark or Agmark 23 Saw mill, sawing of timber. 04 Confectionary with investment in plant and machinery with less than Rs.10 Lakhs for industrially backward districts and less than two crore rupees for other areas. 24 Carpentry, joinery and wooden furniture making except when part of a wood based cluster of at least 20 units 05 Oil Mills with expellers including oil processing, filtering, de-colouring, colouring, refining of edible oils and hydro-generation there-of except investment in plant & machinery of Rs.10 Lakhs in Indl. backwards areas. 25 Drilling rigs, Bore-wells and Tube-wells 06 Preparation of sweets and savouries etc. 26 Units for mixing or blending / packaging of tea 07 Bread-making (excluding mechanised bakery) 27 Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units 08 Mixture, Bhujia and Chanachur preparation units 28 Units for bottling of medicines 09 Manufacture of Ice candy 29 Bookbinding / Rubber stamp making / Making notebooks, exercise notebooks and envelopes. 10 Manufacture and processing of betel nuts 30 Distilled water units 11 Hatcheries, Piggeries, Rabbit or Broiler farming 31 Tailoring (other than readymade garment manufacturing units) 12 Standalone Sponge Iron plants 32 Repacking / stitching / printing of woven sacks out of woven fabrics 13 Iron and Steel Processors, such as cutting of sheets, bars, angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop hammer units etc. with low value addition 33 Pre- processing of oil seeds- decorticating, expelling, crushing, parching, and frying 14 Cracker-making units 34 Aerated water and soft drink units 15 Tyre retreading units with investment in plant and machinery of less than Rs.20 Lakhs 35 Bottling units or any activity in respect of IMFL or liquor of any kind 16 Stone crushing units. 36 Size reducing / size separating units / Grinding / mixing units with investment in plant & machinery of less than ten crore rupees except manufacturing of Cement with clinker 17 Coal / Coke screening, coal washing, Coal/ Coke Briquetting. 37 Polythene less than 40 micron in thickness / recycling of Plastic materials 18 Production of firewood and charcoal 38 Thermal power plants 19 Painting and spray-painting units with investment in plant and machinery of less than Rs.20 lakhs 39 Repackaging units Note: List of Industrial units indicated above may be modified by the Government from time to time

ODISHA FOOD PROCESSING POLICY, 2013

Eligible items Activity Item includes Remarks OFPP, 2013
Agro and Marine processing 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 Agricultural, horticulture and forest produce Projects in hi-tech and bio-technology based agriculture Food Processing 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 Warehouse Cold storage Transportation food items Reefer vans/ containers Processing machinery producers Quality assurance providers Food testing laboratory Certification agencies Research and Human Resource Development Research & Development Product & Crop Development Institutes Human Resource Development Courses in Food Processing, Agro Management

Illustrative list of eligible items:
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;

Illustrative list of eligible items (Continued)
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 )

List of ineligible items
OFPP, 2013 Sl 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 ) 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 ) 12 Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it).

Max. land to be available
OFPP, 2013 Incentives Effective Date If commenced FCI prior to , it must commence production during to If commenced FCI after , it must commence production within two years from date of 1st FCI. Sl. Incentive Quantum Time Frame 1. Rebate on Land 25% of price of IDCO Land in Normal Area. Additional 25% for KBK & potential food clusters. New units Within 6 months from date of Commercial Production Project Cost (Rs. in Cr.) Max. land to be available 1 to 50 Ac. 5.00 Existing E/D Within 6 months from date of Expansion or, Diversification Above 50 to 100 Ac Above 100 Ac.30.00 2. Capital Investment Subsidy (CIS) New, Expansion & Diversification cases and Top-up cases -do- General Category 25% of project cost (excluding cost of land); Max. Rs.2.00 cr. Women, SC & ST and units in KBK 33% of project cost (excluding cost of land); Max. Rs.3.00 cr. 3. Electricity Duty Exemption New Enterprises Maximum 10 years from Date of Production Exiting Enterprises Maximum 10 years from date of commencement of policy.

Incentives contd. OFPP, 2013 Sl. Incentive Quantum Time Frame 4. Interest Subsidy New and Top-up cases 5% p.a on working capital loan availed from public sector banks / OSFC for 1st five years from Date of Production; Max. Rs.5.00 lakhs per annum 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 Within 6 months from date of obtaining certification or, 6 months from date of notification whichever is later 6. Entry Tax Exemption On new and 2nd hand Plant & Machinery & Balancing equipment. 100% 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

OFPP, 2013 Incentives contd. Sl Incentive Quantum Eligibility Criteria
Time Frame 7. Mega Food Park, Sea Food Park Capital 20% of project cost to SPV Maximum – Rs 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 lakhs for Mega Food Park. If project report is prepared for carbon credit – 50% of consultancy charges with a cap of Rs lakhs In-Principle approval of MoFPI, GoI is required. VAT reimbursement % for 10 years Max -200% of Fixed Capital Investment New and Existing enterprise in the park 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; with a ceiling of Rs cr. for SC, ST, Women & for KBK districts. Exemption of Entry Tax on P&M and balancing items Exemption of Entry Tax on raw materials for 5 years from DOP As per other units set up outside Mega Food Park

MSME DEVELOPMENT POLICY, 2009

MSMED POLICY-2009 Contd. Effective Date Eligibility- New MSME Units made 1st Fixed Capital Investment after the Effective Date & Commenced 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

Activities not eligible for incentives as per IPR 2007
MSMED POLICY-2009 Contd. Activities not eligible for incentives as per IPR 2007 Sl. Name of Activity Sl 01 Rice0 1hu Hullers and Rice mills with investment in plant and machinery of less than two crore rupees. 27 Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units. 02 Flour mills including manufacture of besan, pulse mills and chuda mills excluding Roller Flour Mill with investment in plant and machinery of less than one crore rupees. 28 Units for bottling of medicines. 03 Making of spices with investment in plant and machinery of less than two crore rupees and without Spice-mark or Agmark and brand name, pampad excluding pampad manufactured by Cooperative Societies. 29 Bookbinding. 04 Confectionary (excluding mechanized confectionary). 30 Rubber stamp making. 05 Preparation of sweets and numkeens, etc. 31 Making notebooks, exercise notebooks and envelopes. 06 Bread-making (excluding mechanised bakery). 32 Printing press. 07 Mixture, Bhujia and Chanachur preparation units. 33 Photo copying. 08 Manufacture of Ice candy and Ice fruits. 34 Stenciling units. 09 Manufacture and processing of betel nuts. 35 Processing of Stencil paper. 10 Hatcheries, Piggeries, Rabbit or Broiler farming. 36 Distilled water units. 11 "Iron and Steel Processors" including cutting of sheets, bars, angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop hammer units etc. 37 Distillery Units. 12 Cracker-making units. 38 Tailoring (other than readymade garment manufacturing units). 13 Tyre retreading units with investment in plant and machinery of less than ten lakh rupees. 39 Repacking and stitching of woven sacks out of woven fabrics. 14 Stone crushing units. 40 Laundry / Dry cleaning. 15 Coal / Coke screening units. 41 Photographic studios and laboratories. 16 Coal / Coke Briquetting. 42 Clinical/Pathological laboratories. 17 Production of firewood and charcoal. 43 Beauty parlours. 18 Painting and spray-painting units with investment in plant and machinery of less than ten lakh rupees. 44 Video parlours. 19 Units for physical mixing of fertilizers. 45 Guest Houses / Restaurants. 20 Brick-making units (except units making refractory bricks and those making bricks from flyash, red mud and similar industrial waste). 46 Goods and passenger carriers. 21 Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than ten lakh rupees 47 Decorticating, expelling, crushing, parching, and frying of oil seeds. 22 Oil mills including oil processing, filtering, colouring, decolouring, refining, hydrogenation, scenting etc except Oil refining with / without solvent extraction facility. 48 Fruit Juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). 23 Saw mill, sawing of timber. 49 Distillery, Bottling units or any activity in respect of IMFL or liquor of any kind. 24 Carpentry, joinery and wooden furniture making. 50 Size reducing, size separating units. 25 Drilling rigs, Bore-wells and Tube-wells. 51 Grinding and mixing units. 26 Units for mixing or blending of tea.

Time line for filing Application
Fiscal Incentives MSMED POLICY-2009 Contd. Incentives Eligibility Rate / period Time line for filing Application Capital Investment Subsidy (CIS) MSMEs (others) 10% of FCI up to Rs. 8 lakh Within Six months of Commencement of Production MSMEs of SC / ST/ Women, Technical Degree / Diploma holder entrepreneurs 12% of FCI up to Rs.10 lakhs VAT Reim-bursement 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

ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015

ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015
EFFECTIVE DATE Eligibility- Micro & Small Enterprises except MSEs declared ineligible under the extant & new policies of the State Mandatory Procurement from MSES - minimum twenty per cent (20%) of the annual value goods or services of the requirement Special provision for Procurement form M S ES owned by SC, ST, Physically Challenged, Women and Tech (Deg/Dip)- 4% out of 20% State Govt Depts, Heads of Dept, Boards, Corporations, Development Authorities and Improvement Trusts, Municipalities, N A Cs, Co-operative Bodies and Institutions aided by State Govt and Companies where Govt share is 50% or more, CPSUs, MoU signed projects in the State, Power Generation & Distribution Companies, Union Govt / State Govt aided projects / externally aided projects funded by donor etc shall procure.

ODISHA YOUTH INNOVATION SCHEME

ODISHA YOUTH INNOVATION SCHEME
"Odisha Youth Innovation Scheme" to encourage new ideas / demonstrative product, prototypes, patents, incubated products or services / development of any enterprise based on eligible innovative idea/ products/ services Financial Assistance Sl. Category Quantum i. Any New Idea Rs. 50,000 ii. Any Demonstrative Product, Prototypes, Patents, Incubated Products or Services Rs. 1,00,000 iii. Development of any Enterprise based on eligible innovative idea / products / services as prize money as a part of state level felicitation Rs 3,00,000 OSIC Ltd. is the Nodal Agency for implementation of the scheme

CLUSTER APPROACH

What is a Cluster ? Cluster in MSME Sector implies:
CLUSTER APPROACH What is a Cluster ? Cluster in MSME Sector implies: Concentration of economic enterprises, Producing a typical product / service or a complementary range of products / services, Within a geographical area (spans over a few village, town, city or adjoining area)

Types of Cluster Sl Type of cluster Criteria 1. Industrial / Artisan
CLUSTER APPROACH Types of Cluster Sl Type of cluster Criteria 1. Industrial / Artisan MSM enterprises with hired labour & electrically driven machinery / personal skills of artisan 2. Natural / Induced Evolution naturally or induced through special policy measures 3. Small / Large Volume of business, geographical area of spread or employment generation 4. Vertical / Horizontal Mutual relationship among producing enterprises 5. Dynamic / Underperforming Degree of vibrancy & growth in recent past 6. Export Primary market located abroad

Developing Cluster means ……
CLUSTER APPROACH Developing Cluster means …… Revitalizing the Industry Association, Identifying gaps in the Cluster and effort to bridge them, Providing new market linkages Pushing cluster to export Improving quality Setting up a common facilities (common machinery centre, common lab) in the cluster to be managed by entrepreneurs themselves Design inputs into cluster Sustainability

Schematic Support CLUSTER APPROACH Micro & Small Cluster Development Programme (MSE-CDP) – Government of India Office memorandum No. 1(17)/SICDP/Cluster/TM/2006 dated Of the Development Commissioner (MSME) 70% GoI funding for Common Facility Centres (CFC) with project cost up to Rs.15 crore Maximum 75% GoI funding for soft intervention (i.e. training, exposure visits, marketing assistance, capacity building, etc) with project cost up to Rs.25 lakh. Eligible cost of projects for infrastructure development upto Rs.10 crore with GoI funding upto 60%

Need based assistance for :
Schematic Support CLUSTER APPROACH State Initiatives for Micro & Small Cluster Development Programme (SIMSECDP) Industries Department Notification No.I-SI-5/2010.IND – 14824/I dated Need based assistance for : Awareness Campaigns & Sensitization of Stake holders & Support Institutions, Base line Survey, Hiring of consultants for Preparation of Project Report for Hard Component; Initiating trust building & soft activities like holding meetings of the stake holders, Exposure visits to replicate best practices

Status of Clusters in Odisha
Number of Clusters identified 56 ii. Preliminary DSR Completed 50 iii. DSR completed 33 iv. DSR under process 5 v. DSR proposal submitted to O/o DC (MSME) 3 vi. Soft interventions approved 10 vii. DPR submitted for approval of CFC (Pharmaceutical Cluster at Cuttack-Bhubaneswar and Cashew Cluster at Bramhagiri, Puri) 2 viii. CFC Sanctioned & project under implementation (Cashew cluster at Rambha, Ganjam and *Ayurvedic Cluster at Berhampur, Ganjam) ix. CFC completed (Bargarh Rice Milling Cluster) 1 * Assisted under AYUSH Cluster of Department of AYUSH, Government of India * * * *

Application Procedure
Eligible enterprise shall file their claim in the prescribed form along with documents within time limit as per the Operational Guidelines prescribed for each incentives under each policy. Policies & Operational Guidelines available at: Sl. Policy Department Website 1 Industrial Policy Resolution, 2015 & Operational Guidelines Industries Department Directorate of Industries 2. Food Processing Policy, 2013 & Operational Guidelines MSME Department 3. Procurement Preference Policy for MSEs, 2015 4. Odisha MSMED Policy, 2009 & Operational Guidelines 5. Youth Innovation Fund Scheme

Contact Details Sl. Organization Address 1 Industries Department 2.
Tel: / | FAX: / | | Web: index.htm 2. MSME Department Tel: | FAX: (FAX) | | Web: 3. Directorate of Industries, Odisha Killa Maidan, Buxi Bazar, Cuttack , Odisha Tel: | FAX:0671- | 4. Directorate of Export Promotion & Marketing Tel: | FAX: | | 5. Invest Odisha (Industrial Promotion and Investment Corporation of Odisha Limited – IPICOL) Tel: | FAX: | | 6. Odisha Small Industries Corporation Limited Industrial Estate, Madhupatna, Cuttack – 10 | Tel: | FAX : | |

THANKS

Policies of Government of Odisha

Similar presentations

Presentation on theme: "Policies of Government of Odisha"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Policies of Government of Odisha

Similar presentations

Presentation on theme: "Policies of Government of Odisha"— Presentation transcript:

Similar presentations

About project

Feedback