Industrial Incentive 2011

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Bihar Industrial Incentive Policy- 2006 has been reviewed with an

objective to attract domestic and foreign investment as well as

revival and expansion of business operations of the existing

industrial units by providing the right industrial ambience.

Under this proposed policy, there are provisions for grantingincentives such as, 100% Exemption on Stamp Duty and

Registration Fees during the pre-production phase, Capital

Subsidy for industrial units, inclusion of Entry- Tax in the re-imbursement of 80% of VAT, incentive also to existing units for

Captive Power Generation / Diesel Generating sets and subsidy

on non-conventional sources of energy production, re-imbursement of expenses incurred on project reports, technical

know-how fees, Quality Certification, Electricity Duty etc.


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The definition of the 'Industrial unit / Industrialestablishment as defined in Annexure I, entry 2means any unit / establishment engaged or tobe engaged in manufacturing / processing /servicing industry under the categories specifiedin this Policy & the Industries which are listedunder the First Schedule of the Industries(Development and Regulation) Act 1951 asamended from time to time. Which [Entry 2

c(6)] also includes Providing services relating toInformation Technology, Telecommunication orelectronics including satellite linkage and audioor visual cable communication.


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As defined in the Policy "New IndustrialUnit" means an industrial unit in which

commercial production hascommenced within five years from 1stJuly, 2011. Every new tower installedwithin the said period is the New Unit for

the Telecommunication InfrastructureProviders


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Pre Production

Incetive

A. Stamp Duty and RegistrationFees 100% exemption from Stamp Duty

/ Registration Fees being levied onLease/ Sale / Transfer of IndustrialLand/Shed, for the first time . Thiswill not be applicable insubsequent stages of Lease / Sale/ Transfer. This incentive will be

available to new units only (EveryNew Mobile Tower is the new unit)

If, for any reason, the aboveincentive is not availed by the unitand the land is purchased, theabove Stamp Duty and

Registration Fees will bereimbursed by the department tosuch units at the post productionstage.


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Under the present policy, incentives likeProject Report Incentive, Incentives on

land / shed, financial assistance foracquiring Technical Know-How, CapitalSubsidy etc. will be available. The upperlimit for such reimbursement will be Rs.

600 lacs (Six hundred lacs). This will beexcluding the subsidy on Captive PowerGeneration / Diesel Generating set.


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Re-imbursement of 50% of the cost incurred

in the project report preparation by the

industrial units will be made, if the project

report is prepared by the consultancy firmsrecognized by the Industry Department. The

upper limit of reimbursement of cost of

project report is raised from Rs. 2 lacs to 15lacs if the report has been prepared for

Carbon Credit and the unit gets Carbon

Credit.


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If any entrepreneur acquires TechnicalKnow-how from any recognized National

Level Institution or State Level Institutionsto establish or to expand his industry,he/she will be reimbursed 30% (maximumRs. 15.00 lacks) of the fees paid to the

institution/organization for the technicalknow-how.


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VAT Incentive This facility will be available to new MSME/Large

Industries.

Finance (Commercial Taxes) Department willreimburse the amount of VAT aftercertification/verification of the payment of VAT,for the unit in production.

All new units will be entitled to avail 80%reimbursement against the admitted VATamount deposited in the account of theGovernment, for a period of ten years. Theceiling for this reimbursement will be 300% of thecapital Invested.


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Entry Tax by new Industrial units aftercommencement of commercial

production, will be included in theamount of 80% VAT for the purpose ofreimbursement. This incentive will also beavailable to operational existing units

and all such units will get this incentiveonly after the effective date of thisPolicy.


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Presently working industrial units will getre-imbursement of 25% of the VAT/Entry-tax deposited in the account ofGovernment against admitted VAT. Thisre-imbursement will be valid for only fivecontinuous years. In case of expansionby the working units, the said industrialunits will also get re-imbursement benefiton VAT/Entry- tax on the expandedportion only.


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100% exemption in luxury tax for sevenyears

100% Re-imbursement of electricity dutyfor seven years

100% exemption in land conversion

charge


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In order to revive the sick industry, a corpusfund will be created, which will be utilized forproviding financial assistance in least possibletime to sick small and medium industrial unitsfor which the rehabilitation package has beenapproved.

Any industrial unit, generating directemployment of at least 100 persons after the

implementation of this industrial policy, will bepaid an incentive by the State Governmentequivalent to the EPF amount paid by suchunits for new employees for a period of oneyear from the date of their employment


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In order to avail the benefits of the IndustrialIncentive Policy, one need to get itselfregistered and get the Certificate of

Registration containing the productivecapacity of the industrial undertaking andsuch other particulars as may be prescribedby the Industry Department, Government of

Bihar. The said Certificate of Registration should

be submitted to all concerneddepartments.


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The benefits of the Industrial IncentivePolicy has not been availed by any of

the Companies in the Telecom Industry.But this Policy shall not only benefit Ourcompany in existing structure but alsothe exemption from imposition offees/charges under Bihar AgriculturalLand (Conversion for Non-AgriculturalPurposes) Act, 2010.


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Thank You- Saurabhdeo Sharma

Industrial Incentive 2011

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