Frequently Asked Questions
Package Scheme of Incentives   
DIC schemes 
Cluster  
ELP   
Special Economic Zone
BT / IT  
Exports  
Industrial Entreprenuers’ Memorandum

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Package Scheme of Incentives
  1. Which is the current Package Scheme of Incentives?

            Normally any Package Scheme of Incentives is valid for a period of 5  years.  The current scheme is valid from 01.04.2007 to 31.03.2012 and is called the Package Scheme of Incentives, 2007 (PSI-2007).

  1. Which activities are eligible under the present scheme?

Please refer to para 1(1.1) of PSI-2007 for list of eligible activities.
New and Existing Manufacturing Enterprises that have taken at least one effective step on or after 01.04.2007, are eligible under PSI-2007.

  1. What are Effective Steps?

Effective possession of land (registered sale / lease deed with physical and legal possession), constitution formation, and procurement of Industrial Entrepreneur’s Memorandum (IEM) or filing of memorandum under MSMEI Act with the concerned District Industries Center (DIC), constitute the effective steps under PSI-2007.

  1. Where should application be filed?

 

  1. For eligible micro and small manufacturing enterprises, DIC of the district in which the manufacturing facility is located or proposed to be set-up. 
  2. For eligible medium manufacturing enterprises, the implementing agency is the concerned Regional office of the Directorate of Industries. 
  3. All large and mega eligible units will apply to the Directorate of Industries, Mumbai.  The contact details of the implementing agency are provided in the details available at “Organizational setup”       on the Home page.
  1. What is the procedure for availing benefits under PSI-2007?

Application in ‘prescribed form’ (Form-I for New Unit and Form-IV for Expansion/diversification) together with documents establishing completion of Effective steps and a detailed project report (list of specific documents to be enclosed) is provided with the application form should be submitted, to the concerned Implementing Agency. Upon start of commercial production, documents establishing commencement of production, and creation of assets should be submitted (list provided with the application form) to the Implementing Agency.  Upon satisfying itself about the eligibility of unit, the implementing agency shall issue Eligibility Certificate (EC) specifying the quantum of admissible incentives and other relevant details.

            Based on the EC, the Sales Tax Department shall issued and Identification Certificate (IC) for the purpose of case of reconciliation of taxes paid.
            Subsequent to issue of EC, annual claims sanction of Industrial Promotion Subsidy (IPS), Octroi duty refund, Royalty refund, Reimbursement of EPF & ESI (low HDI districts and zero-VAT units only), and Interest subsidy whichever applicable shall be filed with the Implementing agency.  The procedure for filing of such claims is provided on this web-site.

  1. What is “Operative Period”?

The period for which an Eligibility Certificate holder requires to fulfil all the terms and conditions of the EC and agreements executes with the Implementing Agency, is called the “Operative Period”.  The operative period in force at present is as under;.

Micro & Small Enterprises             -             5 years
Medium/ Large Enterprises            -             7 years
Large Enterprises                             -           10 years           

Please go through the Government Resolution No.PSI-2108/CR-35/Ind-8, dated 21st May, 2008 issued by the Department of Industries, Government of Maharashtra to obtain complete details on this issue.

  1. What are “Procedural Rules” under PSI-2007?

The Procedural Rules 1980 provide details of procedural aspects under PSI-2007.  Although Procedural Rules 1980 are in force today, a number of sections have been modified while some are no more relevant to the present scheme.  In case of any doubt or classification, please contact the Implementing Agency.

  1. Which special benefits are available to eligible enterprises in Low HDI districts?

In addition to regular incentives available to all eligible units, New units setting up facilities in notified low HDI districts (.  Gadchiroli, Yavatmal, Jalna, Nandurbar,  Washim, Dhule, Nanded, Osmanabad, Buldhana, Chandrapur), and employing at least 75% local persons as defined in the Employment of Local Persons Policy, will be offered 75% reimbursement of expenditure on account of contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) Scheme for a period of 5 years.

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DIC schemes

Q. 1 -Is there any financial assistance schemes for educated unemployed youth for setting up their business/venture ?
Ans -Yes. There are numerous schemes implemented by various State Government Departments/Corporations  such as Social Justice Department, Mahatma Phule Scheduled Caste Development Corporation, Vasantrao Naik VJ/NT Development Corporation, etc.  Besides these departments, the Directorate of Industries through its District Industries Centres at District Level and Joint Director of Industries, Mumbai Metropoliton Region at Mumbai, implements Prime Minister’s Employment Generation Programme (PMEGP), Seed Money Scheme and District Industries Centre Loan Scheme for unemployed youth.  
Q. 2 -Kindly explain the brief features of financial assistance schemes implemented by Directorate of Industries ?
Ans -There are mainly three schemes viz. PMEGP, Seed Money Scheme and District Industries Loan Scheme implemented by Directorate of Industries for unemployed youth.  The brief features of these schemes are described below :-
A) PMEGP
•     Coverage :-
Industry projects upto Rs. 25 lakhs investment and service/business projects upto Rs. 10 lacs investment are eligible under the scheme.  Project cost will include fixed capital  (excluding land cost)plus working capital.
•     Extent of assistance :-
90% loan for general group and 95% for special group will be available from public sector banks, Regional rural banks, IDBI.  In urban areas, 15% margin money subsidy for general group and 25% for special group will be available through KVIC.  In rural areas, the margin money subsidy will be 25% to 35% respectively.  Special group include SC/ST/OBC/minority/woman/ex-servicemen/physically handicapped.

    1. •           Eligibility :
      1. Any individual, above 18 years of age
      2. For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should  have at least VIII standard pass educational qualification.
      3. Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
      4. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
      5.     Institutions registered under Societies Registration  Act,1860;
      6. Production Co-operative Societies, and  Charitable Trusts.
      7. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
  1. Implementing Agencies :-

In urban areas, the scheme will be implemented through DIC, while in  rural areas through KVIC/KVIB/DIC all three agencies.

B) Seed Money Scheme (SMS)

  1. The objective of the scheme is to encourage unemployed person to take up self-employment ventures through industry, service and business, by providing soft loans to meet part of the margin money to avail institutional finance.
  2. Eligibility :

Local unemployed person or group of persons fulfilling:

  1. (1) Age Group: 18 to 50 years
  2. (2) Qualification: Std. VII pass
  3. (3) Domiciled in the state of Maharashtra for the last 15 years.
  1. Scope –
  2. Project cost upto Rs. 25 lakhs for industry, service and business activity.
  3. Seed Money assistance at 15 per cent of the project cost approved by financial institutions is offered. In case of projects costing up to Rs. 10 lakhs, the quantum of assistance ranges upto 15 per cent for General category and 20% for SC/ST and OBC/NT/VT/Handicapped upto 20 per cent.
  4. Seed Money component up to 3.75 lakhs maximum.
  5. Bank loan 75% of the project cost.
  6. The rate of interest on seed money is 6% and if the borrower pays the repayment of installment regularly and within scheduled time, then the borrower will get rebate of 3% in interest. So he has to pay only 3% interest.
  7. If the installment is not repaid in time, it will attract 1% penal interest.
  8. The repayment of loan starts after three years in four yearly installments for industry cases. In other cases repayment starts after six months of loan availment.

C) DISTRICT INDUSTRIES CENTRE LOAN SCHEME :

  1. The objective of the scheme is to provide financial assistance in the form of margin/seed money for the promotion of tiny industries in semi-urban and rural areas with a view to generate employment opportunities including self employment.
  2. Margin money assistance is admissible only to those units whose investment in plant & machinery does not exceed Rs. 2 lacs.  
  3. All towns and rural areas having population of less than 1 lac are covered under the Scheme. 
  4. The extent of assistance is 20 % of the total investment or Rs. 40000/- whichever is less in case of entrepreneur belonging to general category and in case of entrepreneur belonging to scheduled caste & scheduled tribe, assistance upto 30 % of total fixed capital investment or upto maximum of Rs. 60000/- which ever is less is provided. 
  5. All units falling within the purview of the Small Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are covered under the Scheme.
  6. The State Government’s rate of interest on this loan is 4 % and repayment is to be done within 7 years.
  7.  This scheme is particularly useful for rural artisans.

Q. 3 -Which are the Implementing Agencies for the financial assistance schemes such as PMEGP, Seed Money Scheme & DIC Loan Scheme?Ans. -At district level, these schemes are implemented by General Manager, District Industries Centre of respective district (PMEGP scheme is also implemented by KVIB & KVIC in rural areas).  In Mumbai, PMEGP & Seed Money Scheme (excluding DIC loan scheme) isimplemented by Joint Director of Industries, Mumbai Metropoliton Region, Mumbai.
Q. 4 -Is there any collateral security to be given to Implementing Agencies ? Ans. So far as DIC/ Joint Director of Industries, Mumbai Metropoliton Region, Mumbai is concerned, no collateral security is insisted.  However, in case of Seed Money Scheme and District Industries Centre Loan Scheme, second charge is to be created on the assets created.
Q.5 -Is there any scheme for the first generation entrepreneurs to get entrepreneurial training from Directorate of Industries ?Ans. -Yes. There is one scheme called Entrepreneurship Development and Training Programme which is implemented by Directorate of Industries through recognized Training Institutions such as MITCON Consultancy Services Ltd. and Maharashtra Centre for Entrepreneurship Development (MCED).  Under this scheme, the aspects such as the Entrepreneurship Development and Technical Training are covered.

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Cluster

S.N.

Question

Explanation

1.

What it is the definition of Cluster?

A group of enterprises located within an identifiable and as far as practicable, contiguous area, producing same/similar product/ services.

2.

What are the features of the cluster?

  1. Clusters have common challenges and opportunities
  2. Similar level of technology and structures
  3. Similarity or complementarity in the methods of production, quality control and testing, energy consumption, pollution control etc.

3.

Pl. Explain the scheme.

Govt. of India, Ministry of MSME has announced the scheme for Micro and Small enterprises for enhancing their  productivity and competitiveness as well as capacity building. The name of scheme is  Micro and Small Enterprises- Cluster Development Programme.- MSE-CDP

4

Who implement the Cluster Development Programme?

Cluster projects are implemented by Special Purpose Vehicles (SPV) consisting of the actual/ likely cluster beneficiaries/ enterprises organised in any legally recognition, like co-operative society, registered society, trust, company etc.

5

What are the main steps in cluster development?

The main steps are :    1) Selection of Cluster 2) Selection of CDE 3) Trust Building 4) Diagnostic study 5) Preparation of action plan 6) Approval of budget and leveraging of funds from various institutions. 7) Implementation of action plan 8) Monitoring and evaluation 9) Handing over and exit 10) Self management phase.

6

What are objectives of Cluster Develop Programme ?

To conduct the soft activities and hard activities under soft and hard interventions for following objectives :

  1. To enhance the productivity and competitiveness of micro and small enterprises.
  2. To facilitate economies of scale in terms of deployment of resources.
  3. To built capacity of MSEs through formation of SHG, Mutual credit guarantee funds, BDS development etc.

7

Which are the main activities in cluster Programme?

In cluster Programme there are following two main activities
  1. Soft activity : This includes interventions for soft activities viz capacity building, market development activities, management development and technology up gradation .
  2. Hard Activity :  This includes intervention for hard activities viz. Establishment of common facility center (CFCs) etc.

8

Who will make available land for cluster projects?

Cluster developing agencies, Special Purpose Vehicle (SPV) has to arrange suitable and viable land for cluster project by their own.

9

Are there any priority for special categories?

Cluster should have suitable presence of (1) Women entrepreneur (2) Entrepreneur belongs to SC/ ST/ OBC/ Minorities etc. (3) Micro enterprises.

10

What are the special benefit for micro & Village enterprises?

Clusters of micro and village enterprises have the provision of enhancing financial support  by 10%

11

What is the  time duration for completion of cluster project?

As per existing guidelines project duration for cluster is 3 years.

12

What is the role of CDE in cluster scheme ?

CDE- cluster Development Executive  plays very important role in the project. He is the officer from the Govt. agencies and one of the member of SPV. He conceptualizes the overall developmental strategy of the cluster, co-ordinates the activities  and initiates implementation.

13

Specify the financial support from GOI under MSE-CDP scheme in the cluster.

Contribution of Ministry of MSME (Govt. of India)  will not exceed 80% of the total project cost. Subject to a ceiling of Rs. 10 crores per project including Rs. 10 lakh for soft activities under soft interventions.

14

Is there any contribution from beneficiaries in cluster scheme ?

Scheme expects at least 10% contribution from stake holders/ beneficiaries of the cluster projects.

15

What will be the ultimate result due to cluster projects?

  1. Increased income, investment, capacity utilization, cost deduction, community empowerment, energy conservation, pollution control. 
  2. Infrastructure creation and linkage through govt. scheme.
  3. Enhance collective economic efficiency
  4. Developing culture of co-operation and team work
  5. Strengthened local governance strength.
  6. Creation of competitive market.
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Local Employment Branch

Related Local Employment Branch
Q-1.    What is the definition of local Person?
Ans.  The person who is residing in Maharashtra since from last 15 years is called as local person. 
Q-2. For proving 15 years Domicile what documents are required ? For establishing 15 years domicile any one of the following documents are required. 

  1. Domicile Certificate issued by Competent Revenue Authority.
  2. Caste Certificate issued by Competent Authority.
  3. Documents such as Property Tax returns.
  4. School Living Certificate or any others documents establishing 15 years domicile.

Q-3.    What is the policy about Employment of Locals Persons in industries ?
Ans:  As per existing policy, every industrial enterprise (micro, small, medium, large & mega industrial enterprise) has to provide minimum 50% employment in supervisory category and 80% in other category including supervisory category to locals persons.

Q-4.  If any G.R./ Notification / Ordinance is issued in this connection ?
Ans:    Yes, the State Government in Industries, Energy & Labour Department has recently issued a revised G.R. dated 17.11.2008 in connection with providing employment to all micro, small, medium, large & mega industrial enterprises.

Q.5.    Which department of State Government maintains the data or control / monitoring the employment of local persons?
Ans:  Under Directorate of Industries, the District Industries Centres / Joint Director of Industries, Mumbai Metropolitan Region maintain the data and monitoring the local employment.

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Special Economic Zone

Frequently Asked Questions on - Special Economic Zone?
Q.  What is a Special Economic Zone?

  • Special Economic Zone (SEZ) is a specifically delineated duty free enclave with all required infrastructure provided under single administrative umbrella primarily meant for locating industries which manufacture and export goods and services . These enclaves shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.

Q. Who can set up SEZs?   

  • Under section 3, a Special Economic Zone can be established either by   Central Government ,State Government or its agencies, private/public/joint sector or any person for manufacture of goods or rendering services or for both or as a free trade and warehousing zone . 

Q. Can Foreign Companies set up SEZs?

  • Yes

Q. What is the process involved in establishment of an SEZ?

  • A Developer /An Entrepreneur who is willing to start SEZ needs to locate the area with the minimum land requirement as per SEZ -2006 Rule 5(2) i.e. Minimum (10 Hectares)for IT/ITES SEZ, Minimum (40 hectares) for Free Trade & Warehousing Zone and for Multi Services (100 hectares ) & for Multi product (1000 hectares)
  • After identifying the area an applicant needs to be submitted in Form A to the State Government (Rule 3) indicating name and address of the applicant, status of the promoter along with a project report covering the following particulars
  • Location of the proposed Zone with details of existing infrastructure and that proposed to be established;
  • Its area, distance from the nearest sea port / airport / rail / road head etc.
  • Financial details, including investment proposed mode of financing and viability of the project.
  • Details of foreign equity and repatriation of dividends etc., if any
  • Whether the Zone will allow only certain specific industries or will be a multi-product Zone.
  • The State Government while recommending the proposal shall commit to provide the facilities and incentives such as exemption from state and local levies, exemption from electricity duty, Single Window Clearance under the state laws , etc. as provided in sub-rule (5) of Rule 5 of the SEZ Rules 2006 .
  • The State Government has to forward the proposal with its recommendations within 45 days from the date of receipt of such proposal from the developer to the Board of Approval (BoA) addressed to Director(SEZ)/Deputy Secretary, Department of Commerce, Udyog Bhavan, New Delhi.
  • The Developer also has  the option to submit the proposal in Form A directly to the Board of Approval via Director(SEZ)/Deputy Secretary, Department of Commerce, Udyog Bhavan, New Delhi., in such cases the applicant (Developer/Entrepreneur) shall have to obtain the concurrence of the State Government within 6 months from the date of such approval.
  • After approval by the Board , the Department of Commerce issues Letter of Approval (LoA) to the applicant (Developer/Entrepreneur) for establishment of SEZ (Rule 6).
  • After receipt of the Letter of Approval (LoA) and on submission of details of the land with proof of ownership /leasehold rights of the land, possession certificate and non encumbrance certificate duly certified by the district revenue authorities and on inspection by the jurisdictional DC, Department of Commerce, shall notify the area as an SEZ (Rule 7 and 8).
  • The applicant is required to submit details of the authorized operations proposed to be undertaken in the SEZ so as to obtain authorization for the same from the Board of Approval (BoA).Exemptions of duties and taxes are extended only for the authorized operations.
  • Procurement of goods for development of SEZ (for developer only) for authorized operations shall be approved by the Approval Committee at the Zone Level on the basis which goods can be procured without payment of customs duty and excise duty by the developer.

Q. What is a processing and non-processing area?

    • A processing area is that area of an SEZ where units can be located for manufacture of goods or rendering of services .Atleast 50% of the area shall be earmarked for developing the processing.
    • The non-processing area is the area which is intended to provide support facilities to the SEZ processing area activities and may include commercial and social amenities/infrastructure.

Q. Who can be a Co-developer?

  • The infrastructure facilities of the SEZ’s are normally to be developed by the developer. The developer if desires , that certain facilities or portion of the SEZ to be developed by another person , then the developer can ask the person to file an application with Board of Approval to be considered as a Co-developer . For this the consent of the developer is must. There has to be MoU between Developer and Co-developer and the copy of the same has to be submitted to BoA along with the application of the Co-developer.

Q. What are the facilities Incentive/ Facilities to SEZ Developer?

  • 100% FDI allowed for:

(a) Townships with residential, educational and recreational facilities on a case to case basis,
(b) franchise for basic telephone service in SEZ.

  • Income Tax benefit under ( 80 IA ) to developers for any block of 10 years in 15 years
  • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs.
  • Exemption from Service Tax /CST.
  • Income of infrastructure capital fund/co. from investment in SEZ exempt from Income Tax
  • Investment made by individuals etc in a SEZ co also eligible for exemption u/s 88 of IT Act
  • Developer permitted to transfer infrastructure facility for operation and maintenance.
  • Generation, transmission and distribution of power in SEZs allowed
  • Full freedom in allocation of space and built up area to approved SEZ units on commercial basis.
  • Authorized to provide and maintain service like water, electricity, security, restaurants and recreation centers on commercial lines.

Q. How to set up a unit in SEZ?

  • For setting up a manufacturing, trading or service units in SEZ, 3 copies of project proposal in the format prescribed at Appendix 14-IA of the Handbook of Procedures, Vol.1 to be submitted to the Development Commissioner of the SEZ.

Q. How many units can be allowed in a SEZ?

  • There is no restriction on the number of units in the SEZ Act. The space availability depends on the floor space index (FSI) available on that area and Developers capacity to construct.

Q. What is the approval mechanism for the units?

  • All approvals to be given by the Unit Approval Committee headed by the Development Commissioner. Clearance from the Department of Policy and Promotion/Board of Approvals, wherever required will be obtained by the Development Commissioner, before the Letter of Intent is issued.

Q. What are the incentive/facilities available for SEZ units?

      Following incentive/ facilities to SEZ enterprises:

      Customs and Excise:

  • SEZ units may import or procure from the domestic sources, duty free, all their requirements of capital goods, raw materials, consumables, spares, packing materials, office equipment, DG sets etc. for implementation of their project in the Zone without any licence or specific approval.
  • Duty free import/domestic procurement of goods for setting up of SEZ units.
  • Goods imported/procured locally duty free could be utilized over the approval period of 5 years.
  • Domestic sales by SEZ units will now be exempt from SAD.
  • Domestic sale of finished products, by-products on payment of applicable Custom duty.
  • Domestic sale rejects and waste and scrap on payment of applicable Custom duty on the transaction value.

           Income tax

  • Physical export benefit
  • 100% IT exemption (10A) for first 5 years and 50% for 2 years thereafter.
  • Reinvestment allowance to the extend of 50% of ploughed back profits
  • Carry forward of losses

           Foreign Direct Investment:

  • 100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ units except arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobacco substitutes.
  • No cap on foreign investments for SSI reserved items.

           Banking / Insurance/External Commercial Borrowings

  • Setting up Off-shore Banking Units allowed in SEZs. OBU's allowed 100% Income Tax exemption on profit for 3 years and 50 % for next two years.
  • External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions.
  • Freedom to bring in export proceeds without any time limit.
  • Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment from it.
  • Commodity hedging permitted.
  • Exemption from interest rate surcharge on import finance.
  • SEZ units allowed to 'write-off' unrealized export bills.

Central Sales Tax Act:

  • Exemption to sales made from Domestic Tariff Area to SEZ units.
    Income Tax Act:

Service Tax:

  • Exemption from Service Tax to SEZ units

Environment:

  • SEZs permitted to have non-polluting industries in IT and facilities like golf courses, desalination plants, hotels and non-polluting service industries in the Coastal Regulation Zone area
  • Exemption from public hearing under Environment Impact Assessment Notification

Companies Act:

  • Enhanced limit of Rs. 2.4 crores per annum allowed for managerial remuneration
  • Agreement to opening of Regional office of Registrar of Companies in SEZs.
  • Exemption from requirement of domicile in India for 12 months prior to appointment as Director.

Drugs and Cosmetics:

  • Exemption from port restriction under Drugs & Cosmetics Rules.

Sub-Contracting/Contract Farming

  • SEZ units may sub-contract part of production or production process through units in the Domestic Tariff Area or through other EOU/SEZ units
  • SEZ units may also sub-contract part of their production process abroad.
  • Agriculture/Horticulture processing SEZ units allowed to provide inputs and equipments to contract farmers in DTA to promote production of goods as per the requirement of importing countries.

Q. Whether SEZs have been exempted from Labour laws?

  • Normal Labour Laws are applicable to SEZs, which are enforced by the respective state Governments. The states Government have been requested to simplify the procedures/returns and for introduction of a single window clearance mechanism by delegating appropriate powers to Development Commissioners of SEZs.

Q. What are the facilities for Domestic suppliers to Special Economic Zone?

  • Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export. DTA supplier would be entitled to:
  • Drawback/DEPB
  • CST Exemption
  • Exemption from State Levies
  • Discharge of EP if any on the suppliers
  • Income Tax benefits as applicable to physical export under section 80 HHC of the Income Tax Act.

Q. Who monitor the functioning of the units in SEZ?

  • Performance of the SEZ units monitored by a Unit Approval Committee consisting of Development Commissioner, Custom and representative of State Govt. on annual basis.


Q. Are SEZ's controlled by Government?

  • In all SEZ’s, the statutory functions are controlled by the Government. Government also controls the operation and maintenance function in the 7 Central Government controlled SEZs. In rest of the operation and maintenance are privatized.

    Q. What are the special features if we come to the zone?
  • The units would be entitled for a package of Incentives and a simplified operating environment

    Q. What about the Licenses for Imports?
  • No License is required for imports, including second hand machineries.

    Q. What is the practical role of Development Commissioner?
  • Development Commissioner is the nodal officer for SEZs and help in resolution           of problem, if any, faced by the units / developer.

    Q. Routine examination of goods by customs in the EOU is common.
  • Will the same practice continue at the SEZ?

Customs examination is to the bear minimum. SEZ units function on self certification basis.

Q. Will it be possible to supply to other units in SEZ?

    YES. Inter Unit Sales are permitted as per the Policy. Buyer procuring from another unit pays in Foreign Exchange.

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BT / IT

Q-1) What is the definition of Biotechnology enterprise / unit ? Ans : 'Bio-Technology (BT) Unit' means a unit engaged in Research and Development and/or manufacture of products which use or are derived by using (a) living systems, (b) enzymes, (c) Bio-catalysts derived therefrom, in any of the following fields:

  1. Genetic Engineering/ Gene Engineering
  2. Cell Engineering/ Cell Culture
  3. Bio process engineering
  4. Protein Engineering
  5. Tissue Engineering
  6. Microbiology
  7. Bio-chemistry
  8. Bio-Informatics - ( Assembly of data from genomic   analysis into accessible form)  
  9. Genomics  - ( The molecular characterization of all species)
  10. Bio-Transformation -  ( The introduction of one or more genes conferring potentially useful traits into plants, livestock fish and tree  species)
  11. Molecular breeding-  ( The identification  and evaluation of desirable traits in breeding programs by the use of marker assisted selection  for plants, trees, animals and fish )
  12. Embryo Manipulations
  13. Pharmacogenomics
  14. Proteomics
  15. Allo-transplantation
  16. Xeno Transplantation
  17. Bio Chips.
  18. Gene Therapy
  19. Bio- instrumentation 
  20. Regeneration technology
  21. Biological Drugs.

Q-2)    What is the eligibility criteria for BT Park ?
Ans: The BT Park should have minimum land area of 2 acres or 20000 Sq.ft. of Built Up Area (BUA). 
Q-3) What is the procedure for getting LOI /Registration as BT unit ? Ans : A – For getting LOI as BT unit, one has to apply in prescribed application form along  with following documents to Competent Authority.
a) Affidavit ( Annexure-V )
b) Certificate from designated Certifying Agency (Annexure -VI)
c) Locational clearance from DI/JDI,MMR/MIDC/Local Authority, as the
case may be.
B- Existing BT Units (those which have started their BT activities / production)
should apply for BT Registration with the following documents to Competent
Authority.

  1. (a) Application for Registration in the prescribed form (Annexure-IV).
  2. (b) Affidavit ( Annexure-V )
    1. (c) Locational clearance from Directorate of Industries / MIDC Local
    2. Authority as the case may be.
    3. (d) C.A's certificate regarding turnover of Bio-Tech products / activities
    4. exceeding  75 % of total turnover (Annexure-VII)
  3. (e) BT Letter of Intent ( if obtained  )
  4. (f) Certificate from designated Certifying Agency

( Annexure-VIII for existing BT unit ).
1) What is the procedure for getting LOI /Registration as BT Park ?Ans : For getting LOI/ Registration as BT Park, one has to apply in prescribed application
form along with following documents to Competent Authority.
1. Developer company constitution documents.
A. For Private Limited Company

  1.  Certificate of incorporation with memorandum & Article of    Association.
  2.  Board resolution for development of BT Park
  3.  Letter of Authority for application (Authorized signatory) 

B. For Public Ltd. Company

  1.  Certificate of incorporation with memorandum & Article of    Association.
  2.  Board resolution for development of BT Park
  3.  Letter of Authority for application.

C. For partnership Firm  

  1.  Copy of partnership deed
  2.  Copy of firm registration
  3.  Letter of authority for application

D. Cooperative Society

  1.  Registration under Society Act.
  2.  Letter of authority for application

E. Charitable Trust.

  1.  Registration under Public Charitable Trust Act.
  2.  Letter of authority for application

2. Land documents 
A. For own Land

  1.  Copies of 7/12 abstract of Land
  2.  Copy of index
  3.  Copy of Property Card
  4.  ULC /BTAL Permission if applicable

B.        For lease/Development Agreement land

  1.  Copy of Agreement executed with the Landlord
  2.  Power of authority to leases
  3.  Copy of Land possession letter
  4.  ULC Permission if applicable
  1. Copy of Challan of fee deposited in Govt. treasury for Rs. 5000/
  2. Copy of Zone confirmation certificate issued by appropriate authority
  3. Building Plan approval copy with letter of approval
  4. Copy of Building construction commencement certificate issued by appropriate authority
    1. 7.         MPCB consent for establishment of BT Park
      1. Permission for CETP
      2. Solid Hazardous waste disposal agreement approval
    2. 8. Copy of receipt of application submitted to (Whichever is applicable)
      1. Ministry of Environment and Forests (MoEF)
      2.  Genetic Engineering Approval Committee (GEAC).
      3.  Indian Council of Medical Research (ICMR)
      4.  Maharashtra Pollution Control Board (MPCB)
      5.  Drugs and Cosmetics Act, Ministry of Health and Family Welfare
      6.  Atomic Energy Regulatory Board  (AERB)] Govt. of India
      7.  CPCSEA (Committee on Prevention of Cruelty and Supervision of     Experiments on Animals)
    3. 9.         Water supply arrangement made
      1. Proof of Water supply arrangement for BT Park
      2. Provision of common supply for distilled water / chilling plant requirement of laboratories likely to be established in BT Park.
    4. 10.       Motive Power
      1. Agreement made for dedicated substation for required motive power
      2. Separate feeder for dedicated substation
      3. Standby arrangement for not less than 30% of total power requirement.
  5. Affidavit in prescribed form provided with application form.
    1. 12.       Agreement made for utilities
      1. Chilling plant
      2. Steam generation
      3. Storage facility ( Raw material and finished product)
  6. Building plan approval from Department of Industrial Safety and Health.

 

2)        Who is Competent Authority to grant LOI / Registration to BT unit / BT
park? Ans :  For Greater Mumbai, the Competent Authority is Joint Director of Industries, Mumbai Metropolitan Region and for rest of the Districts, the Competent Authority is General Manager, District Industries Centre of respective District.
For BT Parks located within Mumbai Metropolitan Region, the Competent Authority is Development Commissioner (Inds.), Directorate of Industries, Mumbai. For BT Parks located out side Mumbai Metropolitan Region, the Competent Authority is the General Manager, District Industries Centre of respective District.
3) What are the Benefits of obtaining LOI / Registration as BT unit ?
Ans :  Once the BT unit gets LOI / Registration, it is entitled to get various incentives such as Industrial Promotion subsidy, Stamp duty exemption and Electricity duty exemption, etc.  under Package Scheme of Incentives. 
4) What are the Benefits of obtaining LOI / Registration as BT Park ?
Ans : Once the BT Park gets LOI / Registration, it is entitled to get double floor space
index from respective Planning Authority, upon payment of 25 % premium of the
present day market value of the land under reference as indicated in the Ready
Reckoner.
5) Which are the Designated Agencies who can certify as  BT unit ? Ans : Following is the List of Designated Certifying Agencies :


1
Head of Biotech Department, Bhabha Atomic Research Centre, Tel : Fax : 5505002/5563128 5505151

2

Trombay, Mumbai 400 085 Head of Biotech Department, Indian Institute of Technology, Powai , Mumbai 400 076

Tel. : 5722545 Fax:5723480(G)/5723546 (P)

3

Head of Biotech Department, Tata Institute of Fundamental Research, Dr. Homi Bhabha Rd.,

Tel : 2172971 Fax 2152110/81

 

Nevy Nagar, Colaba, Mumbai 400 005.

 

4 5

Head of Biotech Department, University Department of Chemical Technology, Nathalal Parikh Marg, Opp. Khalsa College,     Matunga (East),  Mumbai 400 019. Head of Biotech Department, Cancer Research Institute,

Tel : 4145616 Fax : 4145614 Tel : 4136304/4184579

 

Tata Memorial Centre,

 

 

 Mumbai 400 012.

 

6

Head of Biotech Department, National Centre for Cell Science, N.C.C.S.Complex, Ganeshkhind Pune 411 007.

Tel : 5690922/5690931/ 5690941/5690951/ 5692256/5692257

7

E-mail - infonccs @ giaspnol.vsnl.net.in Head of Biotech Department, National Institute of Virology 20-A, Dr. Ambedkar Road,Post Box No.11, 

Tel : 6127301/2/3/4 Fax : 6122669.

 

Pune 411001.

 

8

Biochemical Sciences & Plant

Tel & Fax : 5893034

 

Molecular Biology Unit, National Chemical Laboratory, Dr. Homi Bhabha  Rd., Pune 411008 Maharashtra, India. E-mail pkr @ evns.ncl.res.in.

 

9

Head of Biotech Department, Haffkin Institute, Acharya Donde Marg, Parel, Mumbai 400 012.

Tel :  4150826
Fax : 4161787

10 Head of Biotech Department, Agharkar Research Institute Agarkar Road, Pune 411 004. Tel : 5652970/5654831 Fax : 5651542.
11 Director of Bio-Technology Deptt., Vasant Dada Sugar Institute, Manjari Budruk,Tq.Haweli, Distt. Pune 412 307 Tel: 9520 6993988/6993989 /94/95 Fax : 9520 6992735
12 Head of Biotech Department, National Environmental & Engineering Research Institute, (NEERI), Nehru Marg,Nagpur 440020. Tel: 0712 226071 Extn.205
13 Head of Biotech Department, Vidyapratisthan School in Bio-Technology,Vidya-Nagari, Bhigwad Road, Baramath 413133 Tel : (02112) 43714/43489 Fax: 44800
14 Head of the Department of Bio-Technology, Dr. Punjabrao Deshmukh Krishi Vishwa Vidhyalaya (PKV) Krishi Nagar Akola, Maharashtra.
Fax (0724) 58218/58219 58201/158091
15 Bio-informatics, University of Pune, Pune 411007 Maharashtra, India.E-mail director @ bioinfo.ernet.in     Tel : 5692039/5690195 Fax: 5690087
16 Head of the Department of Bio-Technology Amravati University, Amravati 444602, Maharashtra Tel : 662206 to 8 Fax : 662135,660949
17 Head of the Department of Bio-Technology,  Konkan Krishi Vidyapeeth (KKV),   Dapoli, Distt. Ratnagiri, Maharashtra 415712
Fax : ( 02358) 82074
18 Head of the Department of Bio-Technology, Marathwada Agricultural University (MAU) Parbhani, Distt. Parbhani, Maharashtra 431402. Fax : (02452) 235812.
19 Head of the Department of Bio-Technology,   ( Tissue Culture Lab ), Mahatma Phule Krishi Vidyapeeth (MPKV), Rahuri, Distt. Ahmednagar, Maharashtra. Tel : (02426) 43252
20 Head of the Department of Bio-Technology, Director, Govt. Institute of Science, Nipat Niranjan Nagar, Caves Road, Aurangabad 431004, Maharashtra. e-mail  : institute_o1@ satyam.net.in Tel : 331586,354814 Fax : 332103.
21 Head of Biotech Department, Central Institute of Fisheries Education,
Versova, Mumbai 400 061. 
 
22 Head of Biotech Department, Institute for Research in Reproduction, Jehangir Merwanji Street, Parel, Mumbai 400 012. Tel : 4148427/4144926
23 Head of the Department of Bio-Technology, University of Pune, University Road, Pune 411 007. Tel : 5695179 Fax : 5695179
24 Head of Biotech Department, Department of Bio-Technology, Rajiv Gandhi Bi-Technology Research Institute, LIT Campus, Amravati Road, Nagpur.  Tel : 560620 Fax 536223
25 Head of Biotech Department,  Faculty of Agricultural Sciences, Yashwantrao Chavan Maharashtra Open University Dnyan Gangotri, Near Gangapur Dam, Nashik 422 222. Tel : (0253) 230236  Fax : 231716
26 Head of Biotech Department, Bio Informatics Centre, University of Pune, Pune - 411 007. Tel.: 265 0087
27 Head of Biotech Department, Food and Drugs Administration, Bandra (East), Mumbai-400 051. Tel.:  6592364/65, 6591820 Fax: 6591959
28 Head of Biotech Department, Medical Education and Research, St. Gorge Hospital Compound, Mumbai-400 001. Tel.: 2620363/2620735
Fax: 2620562/2652168
     

6)        Is there any fees to be paid to Competent Authority while applying for getting LOI / Registration as BT unit / BT Park ? If yes, under which head, the fees is to be paid and where ?
Ans: For granting LOI / Registration as BT unit, no fees is charged. However, for getting LOI / Registration as BT park, the applicant has to pay Rs. 5000/- as processing fees in the prescribed challan to RBI under following head :
Head of the Account “0851 Village & Small Industries 102, Small Scale Industries Cottage & Small Industries 00851-002-6”
10) Whether the BT unit is also entitled to get Double Floor Space Index (FSI) ? Ans: Yes, provided the existing BT unit / units outside park should have minimum land area of 2 acres or 20000 Sq.ft. of Built Up Area (BUA). 
11) What is the percentage of Builtup area allowed for BT purpose and support services in a BT Park ? Ans : Out of total Builtup area of BT park, minimum 90% should be used for Biotechnology purpose and maximum 10 %  can be used for support services such as Cafeteria, Small Club House and Conference and Video Conferencing Hall. 

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FAQ Exports

Sr. No.

       Question

        Explanation

1.

 

 

What are  schemes  for  Export Promotion  of Govt. of Maharashtra ?

1) Participation in Industrial Exhibition and  Trade Fair.
2) Export Award Scheme for Best Exporters in the state.
3) 50% Ground  Rent Subsidy  to Small Scale Industries for participation in international  trade fairs/ exhibitions.

2.

What is the objective of the scheme   ?

The objective of this scheme is to promote and     encourage  exports endeavor by way of giving them opportunities to participate in National and International Trade Exhibition and  also to enable them secure lasting market avenues and also to provide opportunities to Small Scale entrepreneurs.

3.

Specify the incentives given to S.S.I. Units under the Export Scheme

1. The best exporters from different category / fields are awarded every year to motivate Export oriented units in the  State.   
2.  50% of Ground rent subsidy is given to   SSI units who participate in the international exhibitions  held by approved organizations.

4.

Role of Directorate of  Industries in promoting Export of Maharashtra state.

 Director of Industries facilitates to export drives / efforts and also motivate entrepreneurs to participate in international exhibitions.

 

5.

Is there any prescribed format and required related documents for obtaining 50% Ground rent subsidy to SSI.

List of required  documents is as follows :

  1. Application form in Prescribed  proforma duly filled in all respect.
  2. Certificate from Organiser for participation in International Fair.
  3. Recommendation from Concerned EPC’s/ approved organisations.
  4. A copy of  SSI Registration.
  5. An Affidavit in prescribed  Proforma
  6. C. A.’s Certificate.
  7. Original Space Rent Receipt of payment made to organisers .
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Industrial Entrepreneurs’ Memorandum

S.N.

Question

Explanation

1.

What is IEM?

Industrial Entrepreneurs Memorandum (IEM) is a application for acknowledgment of  unit.

2.

What is the eligibility for getting IEM?

The large scale industry having investment more than Rs. 10 crores in manufacturing sector and more thane Rs. 5 crores in service sector are primarily which is out side the purview of the licensing provisions and for the items (s) not exclusively reserved for manufacture by SSI sector have to file an application for Industrial Entrepreneurs Memorandum means IEM.

2.

In which case the IEM/ LOI is required ?

The promoter can filed IEM in following categories;
1.To set up a new industrial undertaking,
2. To effect substantial expansion of the industrial undertaking,
3. To manufactur a new article
4. To carry on business of existing SSI units after graduating into large scale industry.

3.

What is the procedure for filling of IEM?

The promoters has to make an application to Govt. of India in prescribed format alongwith Demand Draft of Rs. 1000/- in the name of Secretariat for Industrial Assistance (SIA), New Delhi  in six copies. The prescribed format is available on Directorate of Industries website: www.maharashtra.gov.in

4.

What will be the further steps after filling IEM?

After filling IEM to Govt. of India. Govt. of India gives acknowledgment receipt to the applicant and inform to Directorate of Industries. After receipt of acknowledgment, applicant can take further initiative step to set up the unit.

5.

What is the role of Directorate of Industries?

Secretariat for Industrial Assistance (SIA), New Delhi circulates office memorandum enclosing one copy of application for the necessary comments from Directorate of Industries. The Directorate of Industries offers the comments to the GOI in respect of location after getting appropriate documents/ certificate from the promoters.  Those industrial promoters have obtained IEM and gone into commercial production or implemented the project has to submit PART B with Govt. of India or Directorate of Industries in seven copies for the record.

6.

What is IL/ who can eligible for IL?

For setting up industrial units under IDR Act Industrial Development (Regulation) Act 1951 of Govt. of India it is necessary to obtain Industrial license or Letter of Intent.
(1)Activities reserved for public sector
 (2) Activities includes in Annex-II
 (3) Activity  reserve for SSI

7.

Which activities are reserved under public sector?

  1. Arms and ammunition and allied items defence equipment defence aircraft and warships.
  2. Atomic energy.
  3. The substances in the schedule to the Notification of the Government of India in the Department of Atomic Energy No. S.O. 212(F), dated 15th March 1995.
  4. Railway Transport.

 

Which activities are covered in Annex II ?

  1. Distillation and brewing of alcoholic drinks.
  2. Cigars and Cigarettes of Tobacco and manufactured Tobacco Substitutes.
  3. Electronic Aerospace and all types of Defense Equipment.
  4. Industrial Explosives including Detonating fuses, Safety fuses, Gun powder, Nitrocellulose and Matches.
  5. Hazardous Chemicals.
  6. Drugs and Pharmaceuticals ( according to modified Drugs Policy issued in 1994 as amended  in 1999).

8.

What is the procedure for filling of IL?

The promoters has to make an application to Govt. of India in prescribed format alongwith Demand Draft of Rs. 2500/- in the name of Secretariat for Industrial Assistance (SIA), New Delhi  in the six copies. The prescribed format is available on Directorate of Industries website: www.maharashtra.gov.in

9.

What will be the further steps after filling IL?

Applications received for IL to GOI are put up before  Licensing Committee for  further approval of License after seeking necessary confirmation from State Govt.

10.

What is the role of Directorate of Industries?

Necessary guidance/ co-ordination and reports to GOI.

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