THE

JHARKHAND GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

22 Ashadh , 1943 (S)

RANCHI, Tuesday, 13^thJuly, 2021

INDUSTRIES DEPARTMENT

--------

NOTIFICATION

9^th July, 2021

Notification No. - 06/U.Ni./Vividh(Au.Ni.)-07/2021- 552.

Jharkhand Industrial and Investment

Promotion Policy 2021

Introduction

Background

Jharkhand is in the Eastern part of India and is bound by the state(s) of Bihar on the north, West

Bengal on the east, Orissa on the south, and Chhattisgarh on the west. Jharkhand’s proximity to the

Seaports viz. Kolkata (400 km from Ranchi), Haldia (420 km from Ranchi), Paradip (560 km from

Ranchi), and a Dry-Port at Jamshedpur, make the State an attractive destination for Export Oriented

Units (EOUs). Due to its location near the Eastern seaboard of India, the state is well-placed to serve

No. 351

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

the ‘Act East’ policy of the Government of India. It offers considerable freight and time advantage to

entrepreneurs interested in doing business with the South East Asian and East Asian markets.

Jharkhand offers excellent rail and road connectivity to the rest of India. Eastern Dedicated Freight

Corridor passes through the state and connects it with West Bengal, Bihar, Uttar Pradesh, Delhi,

Haryana and Punjab. Jharkhand is also well-served by an excellent network of National Highways

connecting it to the hinterland and major metropolitan markets of India. The combined population of

Jharkhand with its four adjoining states is about 247.5 million, which is nearly 25% of the country's

population, making it very advantageous from a market access perspective.

Jharkhand is endowed with a wide variety of natural resources and is one of the most attractive

destinations for setting up mineral-based units because of its vast mineral reserves and an industrious

workforce. Around 30% of Jharkhand’s geographical area is covered with highly bio-diverse forests,

thus affording ample opportunities for the development of Minor Forest Produce-based industries and

AYUSH centric units. Also, its agro-climatic conditions are suitable for the development of a wide

variety of agro and allied industries.

Being proximate to precursor materials for the Iron industry provides Jharkhand with a distinct

advantage in the Iron and Steel Sector. With many auto-grade steel plants being set up, Jharkhand

offers unique advantages with respect to savings in freight cost for sourcing cold-rolled sheets.

Jharkhand’s automotive industry produces a wide range of products from simple nuts and bolts to

complex items like shafts, radiators and axles supported by Tata Motors as the anchor company.

Jharkhand is presently producing about 20-25% of total steel being produced in the country. With the

proposed expansion of a number of integrated Steel plants, Jharkhand will be soon producing enough

Steel to turn the state into the steel-hub of India.

The Government of India has launched ambitious programs like Make in India, Skill India, Digital

India, Start-up India, Smart-City Swachh Bharat, Aatmanirbhar Bharat to improve the standard of

living of the common people and revenue generation for social sector activities. Coupled with the

Government of Jharkhand’s thrust on employment generation, these programs have the potential to

lead to unleash a wave of sustainable development and create livelihood opportunities for the welfare

of people.

The State has a rich presence of major Industrial houses, a number of reputed educational institutes

and centres of excellence in the field of management, science and technology. Recognising the

employment generation potential of MSMEs, the Government of Jharkhand is committed to creating

livelihood security for the local population.

The rationale for the Policy

Jharkhand is becoming the vanguard of industrialisation among the Indian States. The government of

Jharkhand is keenly working on skill development and improving exports from the State.

Decentralised employment augmentation through the promotion of labour-intensive industries such as

Mining and Minerals, Agriculture and Processed Food etc. is one of the key prongs identified by the

Government of Jharkhand. The government of Jharkhand is encouraging investments in mineral

exploration, Steel, Plastics, Chemicals, Electrical, Cement, Metallurgy and Automobile components,

Light Engineering and Textiles amongst others.

Jharkhand handled the COVID-19 pandemic with a coordinated effort, but the economy and

developmental progress has been adversely affected due to disruption of supply-chains and crash in

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

overall demand. The major industries of the state including construction, mining, tourism, automobile

and light/ heavy engineering were amongst the worst hit leading to a crash in exports from the state.

The manufacturing and service industry needs to be revived and with this aim, the policy has been

revised to provide investors with regulatory support.

To rejuvenate the existing rural industries including sericulture, handloom, handicraft, khadi, textile,

etc, it is envisaged to assist them in modernisation/technological up gradation and provide necessary

common facilities, backward and forward linkages including product design, marketing support, etc. to

make them globally competitive.

The Government realises that export units in the state need to be modernised by adopting the latest

technologies, undertaking skill up gradation and diversification. Thus, this policy envisages several

measures for facilitating export promotion and marketing including Infrastructure support for exports

and fiscal incentives which will enable the exporters to achieve higher numbers.

The State Government, with an aim to accelerate Industrial development, has desired to set up

Private, Joint Venture and PPP mode Industrial Park consisting of a minimum of 50 acres with a

minimum of 15 industrial units. In the case of sector-specific industrial parks, the minimum area shall

be 10 acres with a minimum of 5 industrial units through a Special Purpose Vehicle (SPV) registered

under the Companies Act.

Jharkhand is progressing fast on adopting investor-friendly best practices in the state to facilitate

investments and generate avenues of employment for the welfare of people. Measures like Jharkhand

Investment Promotion Board, single-window clearance, online payments, online verification, third-

party certifications, self-certification, time-bound approvals, availability of information online, standard

operating procedures for approvals, deemed approvals, etc. have been adopted by most of the

departments and government agencies.

This policy has been drafted after intensive interaction with representatives of industries, industry

associations, investors, subject experts etc. and efforts have been made to accommodate their views.

This policy proposes to provide an attractive and tailor-made investment package to the industry to

promote industrialisation and create a multiplier effect in the State’s economy. Due care has been

taken to ensure that the packages provided in this policy are amongst the best in the country to attract

more industry and investment into the state.

Vision, Mission and Targets

Industrial development promotes higher capital formation, raises wage in comes and absorbs surplus

workforce to bring about equitable development. Accordingly, the Government of Jharkhand has

accorded the highest priority to industrial growth as a means to mitigate poverty and unemployment.

Jharkhand Industrial and Investment Promotion Policy 2021 aims to establish state-of-the-art

infrastructure, promote manufacturing, enhance inclusivity, foster innovation and create employment

opportunities across sectors.

VISION STATEMENT

The state intends to be the most preferred destination for investors by providing favourable business

climate, excellent infrastructure, progressive and conducive industrial relations. This policy focuses on

creating a conducive eco-system that makes industries based in Jharkhand innovative and globally

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

competitive. This policy also focusses on ensuring that the state is prepared for adapting itself to

Industry 4.0 and other new-age technologies. The government of Jharkhand lays utmost emphasis on

sustainable industrial development anchored by capacity building at the grassroots level.

MISSION STATEMENT

The mission of this Policy is to facilitate rapid and sustained growth of Industry and to increase its

share across the GSDP over the next decade. This is envisaged to be achieved by

Providing an effective, proactive and supportive institutional mechanism.

ii.

Evolving and implementing promotional strategies.

iii.

Building supportive infrastructural facilities like warehouses, Common Facility Centres, etc.

iv.

Marketing development assistance, R&D on global market research and testing laboratories

support, etc.

Key Objectives of the Policy

To achieve the mission stated above, the following objectives have been set by the Government of

Jharkhand:

To generate employment of 5,00,000 by attracting investments of more than Rs. 1,00,000

Crore in the state of Jharkhand.

ii.

To convert Jharkhand into a favoured destination for investors and to promote sustainable

industrial growth of the State.

iii.

To create a time-bound, web-based transparent working mechanism for project clearance,

Date of Production declaration and financial and non-financial assistance and clearances.

iv.

Strengthening the infrastructure such as warehouses, Inland Container Depots (ICDs), Cold

Storages, rail-road connectivity from Industrial Clusters, Tool Rooms, etc.

To focus on industries with export potential and to encourage and motivate such industries for

increasing the volume of exports and also to focus on export items manufactured from 100

percent indigenous inputs normally done by the MSME sector.

vi.

To establish linkages between OEMs and MSME/ ancillary industries.

vii.

Provide a simple, proactive, and supportive institutional mechanism for the rapid growth

across sectors.

viii.

To promote employment generation in industrial and services sectors by providing facilitation

under Industrial and Investment promotion Policy, MSME Act 2006 and other policy

interventions.

ix.

To bring about technology and skill up gradation in the traditional sectors like Mineral-based

products, Handicrafts, Handlooms, Agriculture and Processed Food products to enhance

value addition and quality competitiveness.

To increase the level of processing, reduction of wastage, value addition, enhance the income

of farmers as well as increase exports thereby resulting in the overall development of food and

feed processing sector.

xi.

To promote innovation, start-ups and technology transfer.

Industrial Development Strategy

The strategy for achieving growth seeks to promote collaboration among regional value chains by

encouraging innovative activity and sector-specific interventions, such as:

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

• Promotion of private investment and PPP mechanism for the development of infrastructure -

road, power, telecom, industrial estate, industrial clusters and industrial parks including rural

industrialisation e.g. Sericulture, Khadi, Handicraft, Food Processing, Handlooms, Bamboo,

Leather and Lac etc.

• Appropriate arrangements for ensuring timely and adequate flow of credit to industries

especially the MSME sector.

• Development of strong networking with Export Promotion Councils, ITPO, Sectoral

Associations and MSME associations.

• Development of international trade service providers to boost international trade.

• Strengthening of Single Window System for facilitating exporting industries.

• Better land management and increasing the availability of developed plots readily for new

investors.

• Special incentives for women and SC/ST entrepreneurs to promote inclusivity.

• Institutionalisation of Monitoring, Evaluation and Grievance Redressal Mechanism.

• Institutionalisation of consultation mechanism with stakeholders and Industrial associations.

• Thrust to entrepreneurship and skill development programmes.

• Accelerating the development of Infrastructure.

• Promotion of labour-intensive industries.

• Focused approach for industrially under-developed areas.

• Encouraging Universities for start-ups and innovative product development by supporting

technology up-gradation, research and development.

• Promotion of trade facilitation and e-governance.

• Conducive labour reforms and increased Ease of Doing Business in the state.

• Focused approach on 'Make in India' program.

Potential Product Groups for Export

Jharkhand, with its abundant mineral resources, has vast potential for increasing the overall exports

from the State in various sectors. Some of the key areas for exports include engineering goods,

sericulture, handloom and handicraft, lac, refractories, cashew nut, cement, mica, agricultural

products, iron and steel, automobile and automobile components, shellac products, processed honey,

gems and precious stones, floriculture, electronics and software products, etc. The state has already

emerged as a favourite destination for investors in the area of iron and steel, aluminium, cement,

granite, ornamental stones etc.

Product Promotion Group

Product Promotion Groups comprising of exporters, manufacturers and various related agencies are

proposed to be established for proper interaction between manufacturers and exporters for evolving a

strong support system. The promotion groups will be as follows:

(i) Sericulture, Handloom, Textile and Handicraft Promotion.

(ii) Engineering, Chemical and Allied Products Promotion.

(iii) Agriculture, Forest Product, Food Processing and Value Addition activity promotion.

(iv) Mineral Product and Metallurgical Product Promotion.

(v) Electronics and Software Products Promotion.

(vi) Refractory Product, Granite and Precious Stone Product Promotion

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

(vii) Any other sector Department may like to include in promotion groups

Preference for local product

The government of Jharkhand already has a Procurement policy for the preference of goods and

services from MSME located within the state. In addition to this, large and mega projects are

producing many products which are having consumption in the local market. Local consumption of

locally produced products will have higher tax realisation to the State. Given the above, local products

which are meeting the specifications and quality standards shall be encouraged to meet the local

demands and necessary support shall be extended to them.

Policy Provisions for Industrial Development

India is experiencing competitive and cooperative federalism and the basic strategy for

industrialisation should be linked to the advantage of the State. The State of Jharkhand possesses

some unique advantages over other states. The government of Jharkhand proposes the following

strategic measures to enhance the industrialisation of the State.

RAW MATERIALS SECURITY

Drastic changes have happened at the national level in the natural resources allocation policies in

recent times. These changes have constrained the development of mineral-based industries, leading

to a slowdown in the sectors in the country, especially, mineral-rich states like Jharkhand. The

Government of Jharkhand now proposes to make industry-friendly policy initiatives:

It is proposed to provide raw material linkages or to provide coal through fuel supply agreement (FSA)

as provided in the new Coal Distribution Policy of Ministry of Coal, Government of India to industrial

units that have put up their units in the State for value addition to the raw materials either through

MDO or JV companies through the Jharkhand State Mineral Development Corporation (JSMDC) or

through Central PSUs.

VALUE ADDITION

The State of Jharkhand is blessed with huge natural resources such as minerals, forests, horticulture,

water resources etc. Value addition to these resources will enable the State to develop fast.

The State can be roughly divided into eight major zones based on raw material deposits and

industrialisation. Below list is non-exhaustive:

Palamau – Garhwa

Deposits of Iron Ore, Dolomite, Coal, Graphite, China Clay and

granite

Lohardaga

Industrial

Area

Latehar

Aluminium Industries based on bauxite reserves, Power Plants

Koderma– Hazaribagh Industrial

Area

Mica based Industries, Power, Cement, Glass, Alloy Steels,

Refractory and Power Plants

Ranchi Industrial Area

Medium and Large-Scale Industries, IT-ITES, Food and Feed

Processing

Dhanbad-Bokaro Industrial Area

Coal and Steel, Refractories, Coal-based Power Plants

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Singhbhum

Industrial

Area

(Jamshedpur and Adityapur) and

Singhbhum, Kolhan Division

Iron and Steel, Automobile and Auto Component, Cement,

Uranium, Copper and Gold Mining, IT-ITES, Forest Produce

based, Horticultural Food Processing, Silk and Textile

Ghatsila Industrial Area

Copper, Automobile and auto component and Forest-based

Industries

Deoghar-Jasidih

and

SanthalPargana

Oil Mills, Glass, Steel, Aromatic-Medicinal Plant, Medicine, Coal-

based power plants, silk-textile, food and feed processing

industries

Industries will be encouraged to secure better waste management through innovative technology for

pollution prevention and abatement. Enhancement of revenue through a carbon credit mechanism is

proposed. A nodal agency will be identified for the promotion of carbon credit trading that will provide

technical, financial and institutional support to interested companies.

INCLUSIVE GROWTH

After passing through various phases of growth, the State’s economy is set to enter the next phase

marked by a high rate of expansion and focus on ‘inclusive growth’.

Inclusive growth brings about equitable distribution of wealth and is necessary for sustainable

development. The key components of this growth strategy include a sharp increase in rural

investment, rural infrastructure and rural employment, besides the development of backward industrial

areas. The policy intends to boost employment and ensure balanced regional development by

providing equal opportunity for vulnerable groups particularly women, PVTGs, SC and ST in the

under-developed areas

PROMOTING LABOUR INTENSIVE INDUSTRIES

The role envisaged for labour-intensive industries is to fully exploit the economic scenario and

leverage the low labour cost. The government intends to provide incentives for the following focus

sectors: Pharmaceuticals, Light Engineering, Garment, Apparels, Cosmetic industry, Agro and Food

processing and others similar sectors which will be defined from time to time. Separate and specific

incentives would be earmarked for the development of labour-intensive industries. Investment in this

sector is likely to create vast opportunities for ancillary and downstream industries in the MSME

sector.

INDUSTRIALIZATION OF UNDER-DEVELOPED AREAS

Over the years, additional fiscal incentives had been used as a strategy to attract investment to the

industrially under-developed areas. National and international experience shows that without the

development of basic minimum infrastructure, attracting industries to these regions is impossible.

This policy envisages a change in the strategy of development for these areas. The policy proposes

upliftment of socio-economic conditions, 24x7 electricity supply, increased road, rail connectivity and

high-speed internet connectivity.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

The policy emphasises a need to ensure balanced regional development in Jharkhand using adding

value, facilitating linkages and leveraging regional advantages. Some regional factors, such as those

related to physical features and geographical location cannot be easily altered, but others can be

strengthened by improving quality and access to skill training, education, and infrastructure and

assured power connectivity.

Focus Sectors

Jharkhand has a natural advantage in some sectors like Mining, Mineral based industries, steel, coal-

based thermal power plants, coal to poly-generation industry, food processing, automobile and auto

component, textiles and handicrafts, etc. However, the full potential of the state is yet to be exploited,

especially for employment generation and improving the living standards of the people. Some of the

thrust areas under the new policy are identified below:

High Priority Sectors

TEXTILE AND APPARELS

The textile sector makes a significant contribution to the Indian economy: 2% to the GDP, 12% to

export earnings, 7% to industrial production and employs 4.5 crore people directly and higher

numbers indirectly.

Jharkhand Government had announced the Textile and Apparel Policy, 2016 to strengthen the entire

value-chain of the textile industry through capital infusion, technology transfer, skill up gradation and

handholding. The policy was appreciated by all the stakeholders and empirical evidence of its

outcome has been overwhelming. Since the inception of policy in 2016, 11 units have started

operations, more than 40 units have shown interest and still receiving an encouraging response. The

textile industry has led to employment generation largely among women leading to a reduction in

distress migration and human trafficking.

Jharkhand is being developed as a textile hub. There has been phenomenal growth in Sericulture

Sector and the state has the highest production of Tasar silk in India. Jharkhand primarily exports

Tasar silk to the US, the UK, Germany, France, Turkey, Japan, Australia, Sweden and Switzerland. In

addition to silk weaving, the State has taken adequate measures for the revival of cotton wool

weaving.

The Government of Jharkhand is committed to upgrade the facilities in Industrial Training Institutes for

apparel production. An autonomous institute of quality apparel training will be set up on its own or in

joint venture/collaboration with multiple agencies/institutes. Financial assistance will be extended to

Jharcraft and /or any reputed organization/institute which has run and managed such an institution in

the state.

Networking of training institutions will be done by the Directorate of Handloom and Sericulture and a

detailed database will be maintained. The Government intends to notify all Textile and Apparel Parks

as Public Utility Services.

Government of Jharkhand seeks to promote interaction between the tribal artisans of Jharkhand and

the mainstream designers from reputed design organizations considering the richness of Jharkhand

Artisans in handicraft. The aim of Government is to expand the product range and designs. The

synergy between these two can generate marketable ducts of art and handicraft for the top-end global

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

market. There are more than 40 types of handicrafts such as Ratha, applique, satin stitch, tie and dye,

terracotta, tasar print, papier-mache, dhokra, making agarbatti or incense-sticks, bamboo and leather

craft, patkar and jadopatiya painting, tribal Jewellery, pearl jewellery and paper packaging are made

in different parts of the state.

Fiscal Incentives for Textile, Apparel and Footwear Units (as per the Textile, Apparel and

Footwear Policy 2016)

Incentives

Details (Chapter 8 of the Textile, Apparel and Footwear

Policy 2016)

Capital Investment Subsidy

20%, up to Rs 50 crore.

Interest Subsidy

7% or 50% of the interest rate (whichever is lower) For 5

years up to Rs 1 crore.

Net SGST Subsidy

100% for first 7 years + 40% for next 3 years.

Stamp duty& Registration Fee

100% reimbursement

Quality Certification

Upto Rs 10 Lakhs.

Patent Registration

Upto Rs 10 Lakhs.

Cluster Development

15% Grant of grant released by GoI.

Power Tariff

50% of power tariff for 7 years.

Export Subsidy

Special Incentives to Export Units.

Construction of Dormitories

50% cost of land up to Rs. 50 lakh

Mandi Fees/ Tax Exemption

On raw materials.

Electricity Duty

100% exemption for 7 years.

Employment generation subsidy

•

One-time support of maximum Rs. 13,000 for

capacity building of persons belonging to Jharkhand

•

Employment generation subsidy of Rs. 5000 per

month per worker for 7 years (Rs. 6,000 for SC/ ST/

Women)

•

Reimbursement of Rs. 1,000 per person per month

towards expenditure on ESI & EPF for 5 years

Information of the incentives and other policy initiatives for Textiles and other related industries are

detailed out in “Textile, Apparel and Footwear Policy 2016”. The Policy increased the level of

employment, attracted greater investments and has helped in combating distress migration especially

for the woman of the state.

It is proposed that the incentives offered to Textiles, Apparel and Footwear Industries are extended to

the Handicrafts Industry. In addition, the units engaged in Handicrafts are eligible to receive a

reimbursement of 50% of the contribution to the wage rate per local employee per month (local

employee here indicates the employee who is a domicile of Jharkhand) for a period of 5 years. The

unit needs to have a minimum of 70% of the local employees engaged in the core process for availing

this incentive.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

AUTOMOBILE, AUTO COMPONENTS AND ELECTRIC VEHICLES

Globally the focus is now on reducing Carbon footprint and technology advances mainly in the battery

pack manufacturing sector, have increased the scope for adoption of e-vehicles. India’s electric

vehicle market could be worth $206 billion (Rs.14,42,000 crore) in ten years, and the sector will attract

a cumulative investment need of $180 billion (Rs. 12,50,000 crore) in vehicle production and charging

infrastructure until 2030 to meet India’s EV ambition.

Tata Motors, one of India’s leading automobile companies, began manufacturing of commercial

vehicles in the early 1950s at Jamshedpur. More than 600 auto ancillary industries have been

subsequently set up at Adityapur, Jamshedpur to cater to the needs of automobile companies. It has

generated direct employment for more than twenty-five thousand individuals and several times of it as

indirect employment. All types of auto-grade steels are being produced in Jamshedpur since the

1980s. The aim is to establish Jharkhand as an automobile hub in India.

Adityapur Auto-Cluster has been made operational at Jamshedpur to extend common facilities, such

as testing centre, design lab, tool rooms, calibration plants, IT Training Centre, effluent treatment

plant, etc., to auto component makers. Automobile Vendor Park is planned to be established under

PPP mode or Private sector by Mega Automobile Manufacturing Units. Ambitious policy

announcements are critical in stimulating the e-vehicle rollout in major markets. The Government of

Jharkhand intends to steer its policy to enable e-vehicle and spare part and ancillary unit

manufacturing in the state and provide a robust institutional landscape to invite e-vehicle

manufacturers to the state.

Based on the demand from the industry, the Government is also planning on allocating an EV Cluster

in the state on the lines of the already existing auto cluster at Jamshedpur.

Incentives to Auto Sector (as per Jharkhand Automobile & Auto Component Policy 2016)

Incentive

Details (Chapter 5 of the Automobile and Auto-

Component Policy 2016)

Capital Subsidy for Common

Infrastructure

Financial Assistance of 50%fixed capital investments, up

to a maximum of Rs. 20 Crore

CST Concession for

manufacturing units

100%, for period of 10 years.

Subsidy on VAT

For new MSME units

80%, upto maximum 150% of capex spent in 5 years

For new large projects

75%, upto maximum 150% of capex spent in 7 years

For new mega & ultra-mega

projects

75%, upto maximum 150% of capex spent in 12 years

Patent & Quality Certification

for MSME

Patent Registration

75% of the cost incurred, upto max Rs 25 Lakhs.

Quality Certification

50% of the cost incurred, upto max Rs 5 Lakhs.

Other Incentives

Marketing

Expansion/ modernization/ diversification

Capital & Interest subsidy to MSME

Stamp Duty &Registration fee Exemption

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

For the details of the incentives, the Jharkhand Automobile & Auto Component Policy 2016 may be

referred to.

AGRO-FOOD PROCESSING AND MEAT PROCESSING INDUSTRIES

Jharkhand has huge untapped potential in Agriculture, Horticulture, Fishery, Animal Husbandry and

Meat Processing Industry. The wide product base, a high volume of round the year production,

strategic geographical location, abundant sunlight and high domestic demand project horticulture as

the thrust area for development in Jharkhand. More than 5,000,000 MT vegetables are produced in

Jharkhand, which is about 6% of the total national production of vegetables, and 30%-35% of this

production is surplus and available for export/ processing.

Jharkhand has set up two Food Parks and Meat park planned at BAU (Birsa Agriculture University).

These food parks offer several advantages to the investors in terms of infrastructure and connectivity.

The state is also investing in strengthening the cold storage network with 58 cold storage already on

the ground while many cold storages are under various stages of development.

The meat sector in the State is pre-dominantly unorganized. There are very few modern abattoir and

processing facilities in the State. In spite of a large livestock population, the meat industry in the State

has not yet evolved to its potential. The output of meat has increased in the state from 62.48

thousand tonnes in 2019-20 to 67.25 thousand tonnes in 2020-21 indicating an annual growth of

around 8 per cent. The production of meat has shown an upward trend in last nine years and

accordingly state government is planning to promote Meat processing industry seeing the local

demand and available ecosystem for meat processing. To facilitate further growth in this sector,

Government is planning to put thrust on Meat processing and allied sector.

The state is also investing in strengthening the cold storage network with 58 cold storages already on

ground while many cold storages are under various stages of development.

Incentives for Agro and Food Processing Industries (as per Jharkhand Food Processing

Industry Policy 2015)

Establishment

Grant in aid

Fiscal Capping

Agro based Food Processing and / or Meat

Processing Units (New Unit, Modernisation,

Upgradation, Expansion & Diversification)

35%-45%

INR 5 Crores

Cold Chain, Value Addition and Preservation

Infrastructure

35%-50%

INR 7 Crores

Interest subvention @ 6% for 5 years and every

year subsidy will be paid to the Bank /FI directly,

Subject to a maximum of Rs. 2 crores

6%-7%

INR 2 Crores

Primary Processing Centres / Collection Centres

in Rural Areas

50%-75%

INR 2.5 Crores

Mega Projects in Food & Meat Processing (more

than Rs. 30 crores (excluding Working Capital))

35%-45%

INR 12 Crores

Interest subvention for a period of 7 years and

every year subsidy will be paid to Bank/FI directly

for the Mega Projects

6%-7%

INR 3 Crores

Establishment and Modernisation of Meat and

Fish Shops

50%-75%

INR 5 Lakhs

Features of the policy and support to the sector are mentioned in Food Processing Industry Policy

2015.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

PHARMACEUTICALS

India has a prominent and rapidly growing presence in global pharmaceuticals. India is the largest

provider of generic medicines, occupying a 20% share in global supply by volume and supplies 62%

of global demand for vaccines. Pharmaceuticals export from India stood at US$ 16.3 billion in FY20.

The total market size of the Indian Pharma Industry is expected to reach US$130 billion by 2030.

The state of Jharkhand has identified the Pharmaceutical sector as a Thrust Sector in its Industrial

Policy. The market value of the Pharma Industry in the state has grown from Rs 896 Cr in FY15 to Rs

1248 Cr in FY17. The market has grown on an average of 18% during the last 3 years. The state is

contributing 5% of the market in East India and 1% of the overall Indian Pharmaceutical Market.

Jharkhand has the key resources: infrastructure, natural resources, cost-competitiveness, a sound

policy and regulatory environment, required to create a conducive eco-system for the manufacturing

industry and to attract investments in this sector.

A dedicated Pharma park having an area of 35 acres has been proposed to be established in

Bijupara, Ranchi. The project is approved by the Ministry of MSME to tap the grant under Micro Small

Enterprises – Cluster Development Programme- (MSE-CDP) scheme. Out of the 35 acres about 23

acres of land has been demarcated into 54 plots.

For the development of the Pharmaceutical Sector, the following incentives are proposed to the

Pharma Units under this policy.

Incentive

Provisions Proposed under this Policy

Capital Incentives

Subsidy

25% of the FCI subject to the following limits.

•

Micro – Rs. 1 crore

•

Small – Rs. 5 crore

•

Medium – Rs. 10 crore

•

Non MSMEs – Rs. 25 crore.

Additional 5% for SC/ST/Women/Differently abled

Entrepreneurs

Interest Subsidy

Interest subsidy for timely payment @ 5% per annum on total

loan availed for period of five years from date of commercial

production subject to total maximum limit of

•

Rs. 15 Lakhs for Micro Enterprises

•

Rs. 50 Lakhs for Small Enterprises

•

Rs. 1 crore for Medium Enterprises

•

Rs. 3 Crores for non-MSME Sector units

Stamp Duty &

Registration Fee

•

100% reimbursement

SGST

•

New MSME units: 100% of the NET SGST amount paid

for a period of 5 years subject to the maximum of 100%

of total Fixed Capital investment made by the units

•

New Large units:100% of the NET SGST amount paid

for a period of 7 years subject to the maximum of 100%

of total Fixed Capital investment made by the units

•

New Mega units: 100% of the NET SGST amount paid

for a period of 9 years subject to the maximum of 100%

of total Fixed Capital investment made by the units

•

Ultra-mega units: 75% of the NET SGST amount paid

for a period of 12 years subject to the maximum of

100% of total Fixed Capital investment made by the

units

Patent Registration

•

50%, upto Rs 10 lakh per patent

Quality Certification

•

50%, upto Rs 10 lakh

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

ELECTRONICS SYSTEM DESIGN AND MANUFACTURING (ESDM)

The government of Jharkhand introduced the “Jharkhand ESDM Policy 2016” to establish a self-

reliant Electronics System Design and Manufacturing (ESDM) Industry that caters to domestic needs

besides gaining a foothold in the international market. The policy features include the development of

human resources, creation of local demand for electronic products, promotion of ESDM companies in

the State, creation of ecosystem for innovation and promotion of R&D.

The sanctioned Electronic Manufacturing Cluster at Adityapur, near Jamshedpur, has recently been

operationalized. The Cluster boasts of state-of-the-art facilities and developed plots for setting up of

new units in ESDM sector.

A state-of-the-art Electronic Manufacturing Cluster (EMC) under the scheme of the Government of

India related electronic park constructed in Adityapur. It is spread over on 82.49 acres of land. Out of

total area 82.49 acres of land, 49 acres of land will be used by 51 units to produce electronic related

products.

Apart from this, infrastructure work has been done on 33.61 acres of land for the convenience of all

the units

So far, about 22 acres of land has been allotted to 30 units in the allocated land. In addition to the

plot, JIADA has developed the future ready buildings on 5 acres of land, which is named “Flatted

Factory”. In which a total of 92 units can start their production at micro scale immediately. The

process of allocation is still going on. There is a possibility of investment of about Rs.400 crores and

about direct employment generation of 10000 people.

Incentives to ESDM Sector (as per Chapter 4 of Jharkhand ESDM Policy 2016)

For all ESDM Units

(i) Income Tax Reimbursement - for a period of 5 years (not covered under the 25%

cap)

(ii) Capital / Investment Reimbursements – 10% of FCI (Subject to maximum of Rs.

10 crores)

(iii) Interest subsidy - 50% of interest paid or Rs. 1 crore

(iv) Registration and stamp duty concession – 100%

(v) CST incentive – 25%

(vi) Reimbursement of 100% of Electricity Duty for 10 years

(vii) Quality certification – 100%

(viii)

Technology acquisition fund – 50% of the cost up to a maximum of Rs. 1

crore for 5 years

(ix) Recruitment Assistance - @ Rs. 20,000 per employee with minimum annual

recruitment of 10 members

(x) Patent assistance – upto 30 lakhs

(xi) Market development assistance

(xii) Employment generation grant on EPF for a period of 5 years

Total Fiscal incentives paid shall not exceed 25% of capital Cost

Details of the policy and support to this sector are mentioned in the Jharkhand ESDM policy 2016.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Priority Sectors

STARTUPS &INCUBATION CENTERS

Collaboration between industry and universities brings in seamless access to the most advanced

technology, academic research and comprehensive knowledge in a cost-effective manner as the

universities possess a large pool of expertise. University-industry interaction includes seminars,

workshops, training, contract research, consultancy, incubation, patenting, spin-offs and the ilk. The

State Government will actively promote start-ups and once the idea is commercialized, the start-up

incubators shall be provided with necessary assistance as per Startup action plan of DPIIT,

Government of India.

a) Knowledge-hub incubators to set up in association with IIM-Ranchi, XLRI-Jamshedpur, BIT-

Mesra, NIT-Jamshedpur, BIT Sindri and other similar reputed institutions to support the start-

ups and growth of high Technology Ventures

b) Agri-Business incubator is proposed to be established with the support of institutions like

National Science and Technology Entrepreneurship Development Board (NSTEDB),

Department of Science and Technology, Government of India and Government of Jharkhand

for providing opportunities for entrepreneurs to incubate agriculture technologies so that they

become effective for

Agri-business ventures

ii.

Business consultancy

iii.

Facilitator of funding

iv.

Infrastructure and facilities access in the incubator

c) Birsa Agriculture University shall be encouraged to establish incubation centre at its campus

for the development of start-ups in agriculture sector. In this venture, SFAC shall also be

roped in.

d) Government of Jharkhand proposes to provide financial grants up to Rs. 10 Crore or 90% of

the project cost, whichever is lower for incubation centre in these identified higher education

institutions through Single Window Clearance mechanism.

Incentives to Start ups Incubation Centres (as per Jharkhand Start-up Policy 2016)

GST

100% reimbursement

Patent (national/international) filing cost

100% reimbursement

Registration fee & stamp duty on land

purchase

100% reimbursement

Electricity bills

30% reimbursement

Municipal Duties

3 years moratorium on payment of municipal

duties

Reimbursement of Lease rentals

50% of lease rentals for a period of 3 years for

plug and play built up office space – maximum

of Rs. 5 Lakhs per annum

Internet Bandwidth Reimbursement

30% of the amount paid – maximum of Rs.

60,000 per annum

Electricity Bill Reimbursement

30% of the amount paid to discoms with a

maximum limit of Rs. 60,000 per annum

For the details about the incentive for Start-ups, Jharkhand Start-up Policy 2016 may be referred.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

EDUCATION AND TECHNICAL INSTITUTES

Currently, Jharkhand has 32 Universities of which 5 are Institutes of National Importance. The state

has 14 Private Universities and 11 Public Universities. Post 2018-19, 7 new universities have been

opened in Jharkhand. The Government is committed to providing better and quality education,

especially in the remote rural areas. Currently the State Government is focussing on Promoting online

courses, linking higher education to society, integrating skill development in higher education and

constantly developing engagement with industry to link education to employability developing the best

teachers.

Source: Economic Survey of Jharkhand 2020-21 (page no 275-275)

In order to develop better educational facilities in the state, the following incentives for the Education

Sector have been proposed in this policy.

Incentives will be applicable for Institutes meeting the UGC guidelines- World Class Institution

deemed to be university Regulations, 2016 and under amendment in clause 11.7 of Regulation 2021,

if any Institute of Eminence Deemed to be University desired to establish off-campus, then the

incentive can be applicable for such institutes only.

Engineering Colleges and Technical Institutes

Minimum 100 seats and

atleast

streams

engineering with adequate

infrastructure

Upto 25% of the Capital Investment (apart from Land)

made subject to a maximum limit of Rs. 20 crore

Interest Subsidy Upto 5% for a period of 5 years

100% reimbursement of stamp duty and registration fee

For Private Universities, Incentive will be applicable based on grading by National Assessment and

Accreditation Council (NAAC) as per below detail

NAAC Grading

Incentive (In Rs Crore)

B+

B++

A+

A++

(Note: If a University graduates from one grade to another, then it is eligible to the difference amount

between the two grades as per the above table. For ex: If a University moves from Grade B to Grade

B+, then it is eligible to get 1 Cr6-5) as incentive, whereas if it directly gets a grade of B+, then it is

eligible for Rs. 6 Crores incentives and so on.)

Above incentive related to Private Universities will be disbursed after approval from the Department of

Higher, Technical Education & Skill Development.

Traditionally, Sports were largely considered as an extracurricular activity due to limited career

options. However, with time the scenario has changed with Sports emerging as an industry with the

potential of creating multiple job opportunities. Scientific approach integrated with innovation and

Universities

Colleges

313

Degree level Technical Institutes

Polytechnics

Medical Colleges

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

technology needs to be adopted to train the raw potential talent to continuously improve their

performance standards. Science, Nutrition, Medicine, Psychology, Rehabilitation, Strength and

conditioning are the important elements for preparation of a sportsperson. There is a growing demand

for people keen to study subjects related to sports and physical education.

Government of Jharkhand is focussed on setting up State of the Art Sports University in the State.

The Sports University would offer various professional pathways for those keen on to build a career in

sports and physical education.

•

The admission to this university shall be open to all with a certain percentage for Sports quota.

•

The University would produce professionals in all the verticals under the Sports domain.

•

The R&D Department at Sports University would enable students studying sports sciences

and other streams to be actively engaged in research work that aids the natives.

With the world propelled by new technologies every other day, research forms the mainspring of the

growth in this sector. Therefore, Sports University should aspire to transform the lives of young

budding talents through their innovative ideas to contribute for research purposes. It would also focus

to promote the Institute-Industry relations.

The Jharkhand Government will be encouraging education funds for the Sports from various

corporates, NGOs, NRIs and Private bodies in order to promote Sports in the state. There would be

25% quota for sportspersons in the Sports University to register and take up the courses.

HEALTHCARE

Jharkhand has 8 Medical Colleges, 23 District Hospitals, 13 Sub-Divisional Hospitals, 188 Community

Health Centres, 330 PHCs and the combined bed strength of these hospitals is 11184 beds. The

State is also taking steps to increase the bed strength of Government Hospitals. However, it has been

noted that there exists a significant gap in health infrastructure as per IPHS Standards.

Especially in the light of COVID-19 Pandemic, health infrastructure including private investment needs

a big boost. Despite having significant rural and tribal population with half of the areas falling in hilly

terrain, the State aims to take healthcare to the last mile. A comprehensive effort is being made by the

State Government to fill infrastructural gaps and Human resources gap on many fronts.

The efforts may be augmented by support through various kinds of subsidies to the private and other

sectors. For setting up of the following Medical Institutions/Facilities, incentives have been proposed

in this policy:

(i) Multi-Specialty Hospital (Grade I) having:

a. Capital Investment of at least INR 10 Cr

b. Two or more specialties with ICU, OT (major, minor), Labour room, Diagnostics,

Pharmacy etc.

c. At least 50 beds for specialty care

d. Entry level NABH accreditation.

(ii) Multi-Specialty Hospital (Grade II) having:

a. Capital Investment of at least INR 25 Cr

b. Two or more specialties with ICU, OT (major, minor), Labour room, Diagnostics

Pharmacy etc.

c. At least 100 beds for specialty care

d. Entry level NABH accreditation.

(iii) Super-Specialty Hospital having:

a. Minimum Capital Investment of INR 50 Cr

b. Facility for diagnosis and treatment of patients, offering one or more Super Specialty

Services. Super Specialty Services shall include the following:

Medical Super Specialty: Cardiology, Clinical Hematology including Stem Cell Therapy,

Clinical Pharmacology, Endocrinology, Immunology, Medical Gastroenterology,

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Medical Genetics, Medical Oncology, Neonatology, Nephrology, Neurology, Neuro-

radiology etc.

Surgical Super Specialty: Cardiovascular Thoracic Surgery, Urology, Neuro-Surgery,

Pediatric Surgery, Plastic & Reconstructive Surgery, Surgical Gastroenterology,

Surgical Oncology, Endocrine Surgery, Gynecological Oncology, Vascular Surgery,

Spine Surgery, Organ Transplant etc.

c. At least 150 beds for specialty beds including 25% beds reserved for super specialty

care

d. Final level NABH accreditation.

(iv) Nursing Colleges commencing Post Graduate Degree Programmes or Specialty Nursing

Courses recognized by Jharkhand Nursing Council

Following incentives have been proposed for setting up of the above Medical Institutions/ Facilities:

A. Subsidy on Capital Investment:

Category

Subsidy

Multi-Specialty Hospital

(Grade I)

Upto 25% of the Capital Investment (apart from Land) made subject to

a maximum of INR 5 Cr

Multi-Specialty Hospital

(Grade II)

Upto 25% of the Capital Investment (apart from Land) made subject to

a maximum of INR 12.5 Cr

Super-Specialty Hospital

Upto 25% of the Capital Investment (apart from Land) made subject to

a maximum of INR 25 Cr

Nursing Colleges

Upto 25% of the Capital Investment (apart from Land) made subject to

a maximum of INR 1 Cr

B. Interest Subsidy upto 5% for a period of 5 years

C. 100% reimbursement of stamp duty and registration fee for the first transaction of a particular

plot of land (lessee of JIADA/industrial parks will not be eligible for this benefit)

TOURISM

Tourism witnessed a steep decline in 2020 due to COVID-19 outbreak. The sector had slowed down

in 2018-19 and contributed five percent share to India’s total GDP and almost 13 percent to total

employment in India. However, as per the Economic Survey of India 2021, this sector will revive with

the ongoing vaccination drive.

The Department of Tourism, Art & Culture, Sports and Youth Affairs is formulating Jharkhand Tourism

Policy 2021.The primary objective is “to reinvent and position Jharkhand as a must-visit destination” in

India. It also aims to create 75,000 jobs focussing on the backward and vulnerable community and

give capital investment incentives.

Jharkhand state is endowed with rich cultural heritage and bestowed liberally with bounties of nature.

A fascinating State with luxuriant forest, captivating wildlife, enthralling waterfalls, exquisite

handicrafts, sprawling water bodies, enchanting classical and folk dances and music and above all

hospitable and peace-loving people. The State Government would actively encourage both-Indian

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

and foreign private investment/ participation in tourism infrastructure projects. The Government would

also be prepared to participate in joint ventures for such infrastructure development projects.

Incentives to Tourism Sector will be given as per Tourism Policy 2021 to be finalized by

Department of Tourism, Art & Culture, Sports and Youth Affairs

IT AND ITES

Government of Jharkhand has already introduced IT policy “IT/ITeS Policy 2016” that envisages

providing a proactive and industry-friendly climate conducive for expansion of IT companies.

Incentives and assistance will be provided for allotment of land, mega IT/ ITeS projects, development

of IT/ ITeS Technology Park, registration/ stamp duty concession, lease rentals, Electricity Duty

Exemption and Industrial Tariff for IT/ITeS. The policy will also work towards establishing the state as

a preferred IT destination for Micro, Small and Medium Enterprises (MSMEs) by providing assistance

in interest rate subsidy, quality certification, technology acquisition fund, skill enhancement, R&D

institutions, establishment of premier IT institutions, patent assistance, market development,

simplification of labour laws, subsidy on Bandwidth for Connectivity (for BPOs/KPOs) and exemption

from zoning regulations. The Key incentives provided for the industry under IT/ITeS Policy 2016 are

as below.

a) Mega IT units will be exempted from electricity duty for five years.

b) New IT – ITES as well as expansion units investing between Rs 5 crores and Rs 50

crores and employing more than 100 direct workers would be eligible for a Capital /

Investment reimbursement of 10% of total investment made.

c) 100% reimbursement of stamp duty, transfer duty and registration fee paid by IT-ITES

industries on sale / lease deeds on the first transaction.

d) 50% reimbursement of stamp duty, transfer duty and registration fee paid by IT – ITES

industries on sale / lease deeds on the second transaction.

e) Facilities at (c) and (d) will not be available for JIADA land.

f) Lease rentals (including premises on rent) up to 50% of actual cost incurred subject to

a maximum of Rs 5 lakh per annum will be reimbursed up to a period of three years for the

plug-and-play built up office space of minimum 2500 sq. ft. These units will not be allowed to

take benefit under land / building component of CPIS. However, other component of CPIS like

incentive for plant, machinery etc. can be availed by them.

g) Government will encourage Captive Power Generation in IT-ITES locations. 40% of the

capital expenditure incurred in soundless captive power generating sets will be

reimbursed. This will be one-time incentive under CPIS (by clubbing the pollution control

equipment incentive and environment friendly programme).

The above set of policies for IT Sector are general guidelines. Further details over and above these

policies are covered by IT/ ITeS Policy 2016 of Department of Information Technology& e-

Governance, Government. of Jharkhand

BREWERIES AND DISTILLERIES

Considering the impact of COVID-19, there has been steep rise in demand of hand sanitizers and

other alcohol products however, existing manufacturing facilities in Jharkhand have not been able to

fulfil the demand. In order to meet the growing demand of distilleries products, Government of

Jharkhand is planning to launch Distillery Promotion Policy for the Industries involved in production of

distilleries products.

For the purpose of development of this sector, a reimbursement of maximum 25% of the VAT paid by

the Brewery and Distillery shall be reimbursed for 5 years, subject to a maximum ceiling of 200% of

the Capital Investment. The units which commence production in first two years of the policy period

can avail the full benefit of 25% if the DOP is within the first two years of this policy period. The units

whose DOP is beyond two years but within the expiry of this policy, the reimbursement would be 15%

for operational period of the policy as per their DOP.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

RENEWABLE ENERGY

To achieve a sustainable development route that provides for advancement in economic as well as

environmental objectives, the Government of Jharkhand is determined in taking necessary steps to

encourage the generation based on renewable energy resources. The

State has high solar insolation around 300 days of clear sun and offers good sites having potential of

more than 4.5 to 5.5 kWh/m2/day, which the State intends to harness to support the energy

requirements of the State.

Jharkhand aims to encourage participation of Private Sector to set up Solar Power based projects in

the State and increase solar power generation to 2650 MW in a phased manner, build a favourable

atmosphere for setting up Solar Power projects, ensure energy security of the State by stable and

non-polluting means and promote local manufacturing facilities which will generate employment in the

State.

The State shall promote development of solar park on non-productive Government land or any other

land falling within the area of solar park. It shall also extend all facilities and fiscal incentives provided

by central Government / National Solar Mission to the Manufacturers and Power Project Developers

in Solar Park. Promotion of development of Solar Power Plants on the Canal Top and on the banks of

canal is also being focused upon.

Incentives to Renewable Energy Sector (as per Jharkhand State Solar Power Policy 2015 &

Jharkhand Energy Policy 2012)

•

A power plant generating power from renewable sources, will not be liable to pay 50%

electricity duty for a period of 10 years.

If the power is being sold to the State Utility or consumers within the State, shall also be

provided concessional access to the T&D network to encourage renewable power

development.

•

Mega Projects (with investment in fixed assets in excess of Rs. 100 Crore) will be allowed to

have captive power plants. Technologies like power from waste heat recovery, and to wheel

power to sister concerns will also enjoy 50% exemption from electricity duty for a period of 5

years.

•

The Equipment purchased for installation of solar plants are exempted from payment of SGST

•

Grant of 4% of Wheeling Charges for power generated from Solar Power Projects

•

Cross Subsidy Surcharge shall be exempted for Third Party Sale.

LIGHT AND MEDIUM ENGINEERING

The Light Engineering sector is one of the most Export oriented sectors in India and attracts

considerable amounts of FDI. Jharkhand with its rich industrial base and capital good industries is one

of the foremost Engineering goods manufacturing destinations in India.

Favourable conditions such as low manufacturing cost, rich technology base, and skilled human

resource base coupled with favourable regulatory policies can further propel the growth of Light

Engineering in the State. Considering Government of India’s push on Aatmanirbhar Bharat and

infrastructure development, the Light Engineering sector is expected to grow at around 8-10% over

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

the next decade due to the guaranteed demand and various investment incentives offered at the

State and Union level.

The sector has the potential of becoming a game changer in Jharkhand’s economy since most of the

Light Engineering units are employment-intensive and small scale. Such units favour a decentralised

and dispersed growth rather than being concentrated in a few pockets. Industries such as Bicycle

manufacturing, electrical manufacturing, overhaul etc. have the potential to absorb the surplus labour

force that was forced to return to Jharkhand from different parts of India due to COVID-19 pandemic.

For the development of Light & Medium Engineering Sector in the state, the following incentives are

proposed under this policy.

Incentive

Proposed Policy Provisions under this Policy

Capital

Incentives

Subsidy

25% of the FCI subject to the following limits.

•

Micro – Rs. 1 crore

•

Small – Rs. 5 crore

•

Medium – Rs. 10 crore

•

Non MSMEs – Rs. 25 crore.

Additional 5% for SC/ST/Women/Differently abled Entrepreneurs

Interest Subsidy

Interest subsidy for timely payment @ 5% per annum on total

loan availed for period of five years from date of commercial

production subject to total maximum limit of

•

Rs. 15 Lakhs for Micro Enterprises

•

Rs. 50 Lakhs for Small Enterprises

•

Rs. 1 crore for Medium Enterprises

•

Rs. 3 Crores for non-MSME Sector units

Stamp

Duty

Registration Fee

•

100% reimbursement

SGST

•

New MSME units: 100% of the NET SGST amount paid

for a period of 5 years subject to the maximum of 100% of

total Fixed Capital investment made by the units

•

New Large units:100% of the NET SGST amount paid for

a period of 7 years subject to the maximum of 100% of

total Fixed Capital investment made by the units

•

New Mega units: 100% of the NET SGST amount paid for

a period of 9 years subject to the maximum of 100% of

total Fixed Capital investment made by the units

•

Ultra-mega units: 75% of the NET SGST amount paid for

a period of 12 years subject to the maximum of 100% of

total Fixed Capital investment made by the units

Patent Registration

•

50%, upto Rs 10 lakh per patent

Quality Certification

•

50%, upto Rs 10 lakh

Development of Industrial Ecosystem

Jharkhand has been in the forefront when it comes to the development of the Industrial Ecosystem in

the recent past. The Ecosystem Development focusses on promoting inward investments into the

state, getting ready for New Age and Sustained Technologies, by ensuring efficient Infrastructure

(both logistics and industrial infrastructure) as well as a focussed approach to developing new

industrial areas.

The quality infrastructure facilities available in the State assist in growth of business and industry

along with promoting fair competition. In addition to social development and generation of new

employment opportunities, it also helps in attracting indigenous and foreign investment. Development

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

of Industrial infrastructure in the under-developed regions of the state has been identified as one of

the strategies to attract industries and investments into these regions.

Promotion of Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is one of the key indicators for determining the attractiveness of a

global investment destination. This is also an important way of transmitting skills, knowledge and

technology to the State and an important driver of industrial performance.

a) In view of the above, it is proposed to enter into technological collaboration with overseas

corporate bodies / multinational companies / NRIs for foreign investment and latest

technologies in selected sectors, such as infrastructure, power, mineral development, food

processing, biotechnology, non-conventional energy etc. on mutually advantageous basis.

Overriding priority shall be given to such investors

b) Efforts will be made to institutionalise these collaborations for need assessment, road mapping

of FDI’s and to provide special care in timely clearances

c) In order to promote FDI, the State Government proposes to set up NRI cell both at National

Capital and Ranchi which will work as interactive platform and facilitate NRI / PIO investors in

setting up industries in the State. It will also help in the redressal of their grievances. It may

also extend support to other enterprises of the State by facilitating their import-export with the

help of NRIs / PIOs

d) The Government proposes to organise investors meet in India and abroad in association with

Industrial associations, Overseas Indian Facilitation Centre (OIFC) and other organizations.

Efforts will also be made to facilitate visits of investors, entrepreneurs and officials for

participation in major trade fairs / investors meet organised within or outside the country with

special emphasis on attracting Foreign Investments into the State.

Promotion of Clean and Green Technologies

Infrastructure is one of the largest components of public investment programs in developing countries

but it is a highly sensitive area in respect of environment protection. Globally, a very high degree of

importance is attached to minimising negative externalities associated with industrialisation and

developmental processes.

The state, fully in agreement with the principle of sustainable growth, is conscious of its responsibility

of ensuring a clean and green environment. Various initiatives are taken by the Government to both

minimize the detrimental impact of the infrastructure and enhance the positive contribution to the

environment. This Policy intends to provide several incentives to encourage greater compliance with

the environmental standards as well as encourage adopting cleaner production techniques and going

for green technologies and processes to protect the environment and ecology.

Under the scope of this policy, following are being prepared:

a) Financial assistance for establishment of common solid waste management facility shall be

provided to JIADA.

b) The financial assistance shall be provided for the establishment of common effluent treatment

plant, hazardous waste management facility and solid waste management facility to JIADA.

c) Need based financial assistance for development of Green Industrial Estate.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Efforts shall be made to complete these projects either through PPP mode or on the basis of own

initiative of JIADA within this financial year to provide common infrastructure facility within the

common area.

Promotion of Non-Conventional energy

For the State to have an inclusive development model, its increasing energy requirements need to be

decentralised and met through ecologically friendly renewable energy cutting down on its dependence

on non-renewable energy sources. The state proposes the concept of a sustainable development

model where energy requirements would be dealt with in a decentralized manner focussing more on

non-conventional energy sources like solar, wind and biomass. The State therefore plans to promote

increasing use of renewable and environmental friendly sources of energy.

Industrial Finance

The Government appreciates that inadequate industrial finance is the biggest bottleneck in the rapid

growth of the State. The Government intends to take such measures, which would promote easy flow

of finance to industrial units and entrepreneurs.

a) The State Government shall make efforts to ensure opening up of Regional / controlling offices

of Banks / Financial Institutions and posting of senior officials having sufficient delegation of

powers to enable speedy credit decisions on the spot.

b) The lead banks in their respective districts would take up preparation of “Industrial Credit

Plans” at the district level to accelerate the flow of credit to the industry sector with emphasis

on SSI, Tiny and Cottage Industries for which separate targets would be fixed.

c) The State Government would make efforts to open specialised SSI bank branches in the State

to cover all districts having concentration of SSI units, in a time bound manner.

d) The State Government shall also invite Private Sector Banks / Financial Institutions to provide

financial services to various industrial units.

e) To facilitate easy flow and recovery of micro credit, financial institutions such as NABARD,

SIDBI, Co-operative Banks, and Commercial Banks etc. would be encouraged to extend credit

to Self Help Groups (SHG).

f) The State Government would take necessary steps to facilitate empowering of the commercial

banks and funding institutions to ensure speedy and expeditious recovery of the credit

extended.

Land for Industrial Development

Readily available and adequate extent of land is a pre-requisite for industrial development. The State

would focus more on making available allottable industrial lands with comprehensive infrastructure

facilities to the project proponents across the State. Therefore, following action plan has been

prepared to make available the required land:

•

To provide land for establishment of industrial areas, industrial estates and new industrial units,

Industrial Area Development Authorities will strengthen and expand their land bank by identifying

barren, un-irrigated land and unutilised land of government departments and corporations in their

respective areas

•

As far as possible, land of sick and locked out industries will also be included in land bank.

Industrial authorities, institutions and Directorate of Industries will systematically compile land

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

availability information to be accessible to potential investors through the Single Window Portal of

the State

•

Industrial authorities shall identify the land up to Anchal level in the State to develop Mini Industrial

Areas, as per the demand of Micro and Small industries

•

All steps in the process of land acquisition for the industries would be completed in a time bound

manner to enable the timely execution of industrial projects. The resumption of land acquisition for

industrial purpose would be done on priority basis

There are four regional authorities under Jharkhand Industrial Area Development Authorities (JIADA),

namely, JIADA –Ranchi, JIADA –Bokaro, JIADA - Santhal Parganaand JIADA –Adityapur. These

authorities are responsible for acquisition of land and development of infrastructural development

such as roads, drainage, water supply and public utilities for the industrial area under their control. It

is also aimed to extend advisory services to MSME industries and helping in their growth in putting

marketing supply.

Department of Industries has notified objective criteria for allotment of land in these industrial areas in

addition to above mentioned regulations and also issued a notification for earmarking of industrial

areas on the basis of criteria like type of industries and pollution level.

Industrial Parks Development – Support to Developers

Industrial Parks have played a pivotal role in industrialisation across the globe. Government of

Jharkhand has decided to provide assistance to the private industrial parks also. This is because

Private Parks also require assistance in developing common infrastructure in the park and provide

facilities to the participating units. This policy proposes incentives and concessions for Public, Private,

PPP, JV Industrial Parks:

•

50% of the project cost, up to maximum of Rs 10 crores, incurred on development of

infrastructure for general industrial parks.

•

50% of cost, up to maximum of Rs 7 crores, incurred on development of infrastructure in the

sector specific private industrial parks.

•

The incentives for development of infrastructure of private industrial park will be based on

project cost.

•

The developer of industrial park availing incentives under this policy will not be provided

incentives under any other schemes of the state government, unless specified otherwise,

while granting approval of the project. However, the industrial units set up in the private

industrial park shall be entitled to the benefits and incentives as provided under Jharkhand

Industrial and Investment Promotion Policy and any schemes of the Central and state

Government being in force at that time.

To encourage industrial activities of specialised nature at suitable location, sector specific industrial

parks have been envisaged in the State.

Following industrial parks are planned to be set up under Government/ Private/ Joint Venture or PPP

mode:

1) Apparel Fibre and Textile Park.

2) IT Park / Software Technology Park (STPI).

3) Gems and Jewellery Park.

4) Biotech and Herbs Park.

5) Chemical and Pharmaceutical Park.

6) Food Processing and Meat Processing Park.

7) Automobile vendor - ancillary industries Park.

8) Any other such activities eg: Ceramic Park, Plastic Park, Knowledge Park, Film City, etc.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Logistics Infrastructure

ROAD NETWORK

Superior road network is essential for inclusive development of any State. Hence, for the development

of infrastructure in this area, a comprehensive action plan is proposed for connecting all regions with

State highways and other roads.

RAILWAY NETWORK

The existing railway-system is being modernised, expanded and up-graded with the support of the

Indian railways.

Projects like Doeghar-Dumka, Ranchi-Lohardaga are completed which improve connectivity.

Inland Container Depot is being set up at Tatanagar to facilitate export and high-speed. Freight and

passenger train services are also going to be introduced. Eastern Dedicated Freight Corridor passes

through Jharkhand covering all the northern states and has connectivity to ports.

AIRWAY LINKAGE

The industrial and tourism development needs airway linkages to be developed and strengthened in

the State.

Existing Ranchi Airport is well connected to Delhi, Mumbai, Kolkata, Bangalore and Patna, with

several flights running daily. Government of Jharkhand will coordinate with airline companies for

operation of more commercial flight services from Ranchi airport. Efforts shall be made with

appropriate authority for commercial operation of Jamshedpur airport. Air Taxi service between major

towns/ cities/ industrial centres, is underway. Also, Air Cargo complex is being setup at Ranchi for

products of export oriented industrial units and transportation of perishable goods from the state with

the financial assistance from Government of Jharkhand.

Aerospace industries, manufacturing of drones, maintenance of aircrafts etc are the sunrise industries

in the country. Existing infrastructure available in the air strips of the state shall be utilised to

encourage setting up of these industries and services in the state.

GAS PIPELINE NETWORK

To ensure availability of ample natural gas as clean energy for industrial development, a Gas Grid will

be developed in the State. Necessary steps will be taken to ensure supply of natural gas according to

industrial and domestic demand in the State.

Prominent industrial areas will be identified and included in the gas grid map by coordinating with Gas

Authority of India Ltd (GAIL) and other oil & gas companies operating in similar fields engaged in

laying the proposed natural gas pipeline network from east coast of the country. Efforts would be

made to make gas available through pipeline to maximum areas, especially industrial locations. MoU

has been already signed between Government of Jharkhand and GAIL to establish gas pipeline

network in the state.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

POWER

The availability of coal in abundance makes Jharkhand an ideal state for setting up thermal power

plants. The Government of Jharkhand has signed MoU with the Government of India as a token of its

commitment to the reforms in the power sector and Jharkhand is the first state to come under UDAY

Scheme.

The work on renovation and modernisation of existing power generating stations has already

commenced. In order to accelerate the growth in the power industry, the State government is also

encouraging public/ private participation and is inviting investment from the industry.

Government of Jharkhand had signed an MOU with NTPC to develop a 4000MW power plant at

Patratu thermal power station. Phase-I of Patratu Super Thermal Power Station is expected to

commission in fourth quarter of 2022-2023.

State Government Power Distribution Company is providing power connections to industrial units

through Single Window system. In addition to this, investors would have an option of getting power

connection from DVC and JUSCO in some industrial areas in the state as an alternative to power

source apart from JBVNL.

WATER SUPPLY AND DRAINAGE

Of all the critical factors for industrialisation, water is an essential one. Sufficient water is available in

the state; therefore, to supply water according to the demand of industries and to strengthen the

drainage system for water and waste, efforts will be made to ensure private participation. Water would

be made available to the industries on priority basis. For this purpose, rainwater harvesting, recycling

of used water by industries, laying of separate pipeline for industrial water use will be promoted as per

State water policy.

•

Efforts will be made to impress on investors to implement appropriate measures for rational

use of this scarce resource and the need for adoption of minimum water consumption

technologies and also fixing the percentage of water requirement to be used by recycling of

water after use in industries and treatment of waste water

•

Department of Water Resources in consultation with Department of Industries, Department of

Energy and other Departments will make periodical review of allocation of water to

Industries/Power plants etc. and reduce/deal locate/reallocate the water on actual requirement

keeping in view the immediate future need

•

Storage intervention by industrial units will be encouraged to meet the industrial water demand

during non-monsoon period

TELECOMMUNICATION NETWORK

It is extremely important to further strengthen telecommunication system in the state since it is the

backbone of IT/ ITeS sector and e-governance. This sector has been identified as priority for the

state, so that its benefits are available to the rural and urban areas in addition to industries.

State government shall promptly provide necessary administrative assistance to agencies related to

the development of broadband, high speed communication and data connectivity, and similar new

technologies for transfer of information and data at high speed.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Jharkhand State Information and Communication Network (Jharnet) is the State-of-the-art

communication network connecting State headquarters with headquarters of 24 districts, 35 sub-

division and 212 blocks. Jharnet is a broad band IP based E-Governance network which provides a

secure platform to transfer data across the State.

All district headquarters are connected by optical fibre cable media and advanced technologies that

help linking rural area through WLL networking which are in place. All gram panchayat headquarters

will be connected via optical fibre network.

INFRASTRUCTURE SUPPORT FOR EXPORTS

EXPORT INFRASTRUCTURE

Sound physical Infrastructure with availability of key utilities will attract investors. Further, export

infrastructure is key to support exporters for movement of goods and logistics of shipment. Special

emphasis will also be given for quality power and high-speed internet facility. Additional and critical

export related infrastructure will be developed with fund from state budget.

The concerned Departments/ Organizations of the Government would be mandated to reserve certain

percentage of their annual budget for supporting critical projects coming under their purview.

INCREASING RAILWAY NETWORK

The State would prevail upon the Central Government for taking up new railway projects specially to

provide port connectivity from major business centres of the State. These rail network corridors will

provide an impetus for industrial growth across various export pockets. Railway sidings to industrial

corridors would also be provided for easy movement of goods.

ENCOURAGING ICDS & CFCS

Inland Container Depots (ICD) are important parts of the rail network for movement of containers. The

state presently has only one ICD at Jamshedpur. More ICDs will be established at other clusters.

Dedicated Eastern Freight Corridor between Amritsar and Kolkata is passing through the State.

Container Freight Station (CFSs) facilities are vital for movement of export goods and these facilities

are not available currently in the State. Development of CFSs would be encouraged at potential

locations to help exporters especially in MSME segments which generally ship small quantities as

they cannot utilize a full container load.

TRADE AND INFORMATION CENTRE

State-of-the-art Trade and Information Centre like World Trade Centre equipped with all trade related

facilities for display of goods, conduct of buyer-seller meets etc. will be made available to exporters.

An Exhibition and Convention Centre is proposed at Ranchi. In addition to this, kiosks will be

established at the Four Jharkhand Industrial Area Development Authorities.

PRODUCT SPECIFIC PARKS

With a view to provide common services for certain thrust products for exports, State would establish

product specific parks (PSP) in areas close to the manufacturing centres of such identified products.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Such parks may be set up in Food Processing, Engineering and Auto component and value-added

products of minerals which have potential for exports.

Industrial Infrastructure

SPECIAL ECONOMIC ZONE (SEZ)

The Government of Jharkhand intends to develop SEZ and other export-oriented parks for fast

industrial growth of the state. For this purpose, land acquisition and infrastructure development shall

be supported through state budget.

INDUSTRIAL CORRIDOR

Transportation and communication add cost to the finished goods as well takes time. The Department

of Industries has earlier requested JINFRA to prepare ‘Diagnostic Study’ for Industrial Corridor along

Ranchi-Patratu-Ramgarh State Highway. Preliminary Diagnostic Assessment report has already been

prepared.

State Government shall also initiate necessary steps to identify/ promote / develop new industrial

corridors. Efforts will be made to develop the corridor with 25 KM each side of 4 laning across

industrial corridors. The Industrial Corridor will be equipped with an array of infrastructural support

such as power facilities, rail connectivity, Industrial Estates, SEZs and cluster with top-of-the line

infrastructure.

PROMOTION OF CLUSTER DEVELOPMENT IN THE STATE

The State Government will promote cluster development of industries under existing schemes of

Government of India. All necessary support shall be extended for cluster development of industries

under the relevant schemes of Government of India viz Small Industry Cluster Development

Programme of Ministry of MSME and IIUS Scheme of Directorate of IPP

Quality of infrastructure in industrial clusters of the State would be upgraded through a cluster

development action plan in collaboration with industries and all other concerned departments /

agencies availing the Government of India schemes. State Government will support and supplement

the cluster plans depending upon the nature of cluster, sustainability of activities and other

considerations

Clusters are being implemented to increase productivity, upgrade technical skills, competitiveness

and capacity building of enterprises. Adityapur Auto Cluster has state-of-art testing facilities and

CETP, and Hazardous Waste Management facility is under construction. Electronic Manufacturing

Cluster has been developed at Adityapur.

Schemes for Revival of Sick Units

Sick enterprises lead to problems like unemployment, revenue loss to State and Central Government

and increase in non-productive assets. Sickness is due to various reasons like obsolete product or

technology, poor management, financial and marketing problems etc. This needs support from

financial institutions, Government and from owners for converting non-productive assets to productive

assets. The state may financially support an enterprise by a new promoter to acquire or purchase a

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

sick entity for making it viable. With this view, comprehensive package will be formulated for revival of

viable sick enterprises.

The State first will form Asset Reconstruction Corporation to help revive the Sick Industrial Units.

General Industry

The State Government intends to take measures for prevention of sickness and revival of willing and

viable sick industries. Periodic coordination meetings with the industrialists / entrepreneurs and

financial institutions by Jharkhand Industrial Area Development Authority under the Chairmanship of

Regional Directors of JIADA under their command area and at the State level under the Chairmanship

of the Director of Industries for the rest of areas shall be reviewed to ensure early detection of

sickness / problem, and preventive measures for the same shall be taken.

MSME Sector

For the revival of willing and viable MSME units, the State Government proposes to form a State

Level Apex Body with Director of Industries as its head to consider such revival efforts. The State

Level Apex body for rehabilitation of sick industry would recommend required restructuring of

management, funding etc. for approval of Government under existing provisions.

The sick MSME units would be identified by such Apex body w.e.f. such date as per the guidelines

issued by RBI. Appropriate packages of relief and concessions for such units would be approved for

their rehabilitation. The units declared sick by such body and opting for rehabilitation shall be eligible

for relief and concessions by banks and financial institutions, as per the guidelines of the RBI within a

specified time frame.

Functional Aspects

Sick units shall be eligible for all incentives on fresh and new investment for revival available to new

units under this policy, provided the unit has not availed incentives as a sick unit under any earlier

industrial policy.

The Guidelines of the Reserve Bank of India / SIDBI would be relied upon to identify the sickness in

Micro, Small and Medium Units.

Sick units shall be allowed full rebate on delayed payment surcharge during the period of sickness, if

it is included in the dues of Electricity Board.

In case of disconnection of electricity, the sick unit shall be exempted from AMG charge and other

contractual guarantee charges for the period of disconnection.

The balance amount of electricity dues of such sick unit after deduction of the aforesaid amount shall

be paid by the unit in such instalments as may be determined by such Apex body on case to case

basis without any delayed payment surcharge. However, if such unit fails to pay any instalment in

time, for such delay in payment, it shall be liable to pay delayed payment surcharge for such duration

at the rate fixed for such delayed payment surcharge.

The Committee shall make an assessment of sick / closed State Public Sector Undertakings and for

revival of technically and economically viable such undertakings, recommend adequate measure

which may include manpower rationalization / disinvestment / financial restructuring etc.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Rehabilitation measures for sick / closed but potentially viable industrial units may inter-alia include

financial support / relief and concessions from various Government Departments / organizations and /

or additional facilities including allocation of power from SEB / DVC and any other agency / statutory

body / local authority.

Sick units can avail exit policy of Industrial Area Development Authorities of the State after approval of

competent authority.

Incentives

The Sick Units shall be entitled to get

1. Deferment of Recovery of Arrears of Electricity Duty, Power Bills, Property Tax, Water and

other Charges for a period of 5 years.

2. Reimbursement of 50 % of diagnostic cost, maximum up to Rs. 2 Lakhs in addition to the

existing provisions.

Fiscal Incentives

Government of Jharkhand proposes to provide the best incentives, exemptions and concessions for

industrial units to be established in the state. The procedure for the above shall be streamlined and

made online to have easy and transparent access.

Comprehensive Project Investment Subsidy (CPIS)

a) MSME units shall be entitled to get CPIS for investments made in fixed capital investment.

Subsidy under CPIS for MSME shall be admissible at the rate of 25% of investments made in

fixed capital investment.

b) Non MSME Units shall also be entitled to get Comprehensive Project Investment Subsidy

(CPIS) for investment made in:

• Plant and Machinery

• Pollution Control Equipment

• Environment friendly alternative power generation equipment

• Employee Welfare (EPF, ESI, Health Insurance Scheme)

c) The qualifying amount of investment for subsidy for non MSME units under CPIS will be

calculated giving weightage of 50% to investment made in Plant and Machinery, 20% each to

investment in pollution control equipment and environment friendly alternative power

generation equipment and 10% to investment in employee welfare (EPF, ESI, Health

Insurance)

Type of Unit

Maximum Limit

Maximum Admissible

Subsidy

Micro

25% of FCI

Rs. 1 Cr

Small

25% of FCI

Rs. 5 Cr

Medium

25% of FCI

Rs. 10Cr

Non-MSMEs

25% of FCI

Rs. 25Cr

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

d) Applicable CPIS will be disbursed to MSME and Large sector units in two instalments with

50% in first year and balance 50% in third year while for Mega/ Ultra Mega units, CPIS will be

disbursed in three instalments with 50% in first year, 25% in third year and balance 25% in fifth

year.

e) SC/ST/Women/Differently abled Entrepreneurs will avail 5% additional benefit under CPIS.

This benefit shall be applicable only to residents of Jharkhand. For the purpose of this clause,

those persons will be eligible for benefit under SC/ST category that are issued caste /

residential certificate to this effect by competent authority as notified by Government of

Jharkhand. Similarly, those persons will be deemed to be of differently abled category that are

certified by a competent Medical Board to have Differently abled of more than 40%

f) Industrial units entitled for benefits in the above category under Government of India Scheme

will not be eligible to get benefits under the same category under this policy.

General Incentives

STAMP DUTY AND REGISTRATION FEE

All Industrial units will enjoy 100% reimbursement of stamp duty and registration fee for land directly

purchased from the raiyats / acquired through consent award (lessee of JIADA / industrial parks will

not be eligible for this benefits). This facility will be granted only for the first transaction for a particular

plot of land

QUALITY CERTIFICATION

a) High priority is being accorded by the State government for improvement of quality of the

industrial units and will be provided with assistance for obtaining quality certification from

B.I.S. and other internationally recognised institutions @ 100% of the expenditure incurred

up to maximum of Rs. 10.00 lakh

b) Units obtaining certification / accreditation under any of the following internationally recognised

/ accepted standards will be eligible for the benefit

• ISO-9000 Quality Management System

• ISO-14000 Environmental Management System

• ISO-18000 Occupational Health and Safety Standards

• BIS certification

• Social Accountability Standards

• Green Energy Certificate

• Bureau of Energy Efficiency (BEE) Certificate

• LEED Certification in New and renewable Energy

• Internationally accredited eco-labels OKE-TEX 100 etc.

• Any other nationally/ internationally accredited certification that will enable better

market positioning

c) An Enterprise can avail the facility for more than one certification during the policy period

subject to maximum limit

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

d) Incentives for quality certification (ISO-9000, ISO-14000 etc.) are also being given by

Government of India. State Government will promote and facilitate the Unit getting such

benefits on priority basis

PATENT REGISTRATION

Industrial units will be encouraged for filing their successfully generated, registered and accepted

patents based on their original work / research. The State Government will provide financial

assistance of 50% of the expenditure incurred, up to a maximum of Rs. 10 lakh, per patent. Out

of these a maximum of Rs 4 lakh may be given on expenditure incurred in filing of patent, attorney

fees, patent tracking etc. and up to maximum of Rs. 10 lakhs on final acceptance of the patent.

SUBSIDY / INCENTIVE ON SGST

This facility will be available to all industries including MSME, Handloom, Sericulture, Handicraft,

Khadi and village industries products, as given below:

a) New MSME units will be given incentive of 100% NET SGST per annum for five years from

the date of Production with a ceiling of maximum 100% of total fixed capital investment made.

b) New large projects will be given incentive of 100% of NET SGST per annum for seven years

from the date of Production with a ceiling of maximum 100% of total fixed capital investment

made.

c) New mega projects will be given incentive of 100% of NET SGST per annum for nine years

from the date of Production with a ceiling of maximum 100% of total fixed capital investment

made.

d) New ultra-mega projects will be given incentive of 75% of NET SGST per annum for twelve

years from the date of Production with a ceiling of maximum 100% of total fixed capital

investment made.

e) Industrial units which have qualified to be new unit by expansion / modernisation /

diversification will be entitled to get similar benefits in respect of SGST. However, they have to

maintain separate record of production, investment details and SGST paid/ payable after such

expansion / diversification / modernisation. In case, maintaining a separate record is not

possible by such units the benefit to such eligible units shall be available in the ratio of

installed capacity.

f) Any unit claiming these benefits will have to get registered with Commercial Taxes

Department, Government of Jharkhand and shall have to file all their statutory returns.

g) Industrial units shall be eligible for reimbursement of NET SGST paid as per their criteria

provided. Operational guideline for reimbursement of NET SGST will be issued separately.

GRANT FOR CLUSTER DEVELOPMENT

A grant of 15% of the grant released by the Government of India shall be offered by State

Government to Cluster schemes approved by Government of India for the State to SPV/ promoter.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

INCENTIVE FOR CAPTIVE POWER PLANT

100% Electricity duty of New or existing industrial units setting up captive power plant shall be

reimbursed after payment of electricity duty for a period of five years for self – consumption or captive

use (i.e. in respect of power being used by the plant) from the date of its commissioning.

INTEREST SUBSIDY

New MSME units and non MSME sector units shall be entitled to interest subsidy for timely payment

@5% per annum on total loan availed from public financial institutions / Banks for period of five years

from the date of Commercial Production subject to total maximum limit of

•

Rs. 15 Lakhs for Micro Enterprises

•

Rs. 50 Lakhs for Small Enterprises

•

Rs. 1 crore for Medium Enterprises

•

Rs. 3 Crores for non-MSME Sector units

Units which are classified as Non-performing Asset (NPA) at the time of making the application will

not be eligible to avail such incentive.

In addition to the interest subsidy, the guarantee fee charged under the Credit Guarantee Trust for

Micro and Small Enterprises (CGTMSE) scheme to Micro and Small Enterprises (MSEs) will be

reimbursed to the enterprises in order to improve the CGTMSE coverage for collateral free loans in

the state.

Special Incentives

ANCHOR UNIT SUBSIDY

In addition to the incentives above, the Eligible Anchor Units shall receive an additional 5% of the

Capital Subsidy. This is applicable to the First 2 Anchor Units in a District. The details of the Anchor

Units and the procedure shall be detailed out in the guidelines.

EARLY BIRD SUBSIDY

For the Units that come up within a period of two years from the Date of Notification of this policy,

Additional 5% of the Capital Subsidy shall be provided in addition to the other incentives mentioned in

this Policy. The details of the Early Bird Subsidy and the procedure shall be detailed out in the

guidelines.

INCENTIVES FOR BREWERIES AND DISTILLERIES

For the Purpose of development of this sector, a reimbursement of maximum 25% of the VAT paid by

the Brewery and Distillery shall be reimbursed for 5 years, subject to a maximum ceiling of 200% of

the Capital Investment. The units which commence production in first two years of the policy period

can avail the full benefit of 25% if the DOP is within the first two years of this policy period. The units

whose DOP is beyond two years but within the expiry of this policy, the reimbursement would be 15%

for operational period of the policy as per their DOP.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Note: This incentive shall not be applicable if penalties are imposed on the units and if there is a

difference of amount between the as assessed and accepted under the prevailing rules. Industries

Department in conjunction with the Excise Department shall come up with the detailed guidelines for

operationalizing this incentive.

INCENTIVES FOR SETTING UP OF EDUCATIONAL AND TECHNICAL INSTITUTES

Willing organisations / investors setting up Medical Colleges, Private Universities (with at least 30% of

total intake for professional Job oriented courses), Engineering Colleges in the State, and adhering to

the established norms of their respective National bodies eg. MCI / AICTE etc will have the status of

Industries. These institutions must adhere for reservations in admission to the students of the State

who are residents of the State as per norms stipulated by Personnel Department and Higher &

Technical Education Department of Government of Jharkhand.

Incentives will be applicable for Institutes meeting the UGC guidelines- World Class Institution

deemed to be university Regulations, 2016 and under amendment in clause 11.7 of Regulation 2021,

if any Institute of Eminence Deemed to be University desired to establish off-campus, then the

incentive can be applicable for such institutes only.

Engineering Colleges and Technical Institutes

Minimum 100 seats and

atleast

streams

engineering with adequate

infrastructure

Upto 25% of the Capital Investment (apart from Land)

made subject to a maximum limit of Rs. 20 crore

Interest Subsidy Upto 5% for a period of 5 years

100% reimbursement of stamp duty and registration fee

For Private Universities, Incentive will be applicable based on grading by National Assessment and

Accreditation Council (NAAC) as per below detail

NAAC Grading

Incentive (In Rs Crore)

B+

B++

A+

A++

(Note: If a University graduates from one grade to another, then it is eligible to the difference amount

between the two grades as per the above table. For ex: If a University moves from Grade B to Grade

B+, then it is eligible to get 1 Cr6-5) as incentive, whereas if it directly gets a grade of B+, then it is

eligible for Rs. 6 Crores incentives and so on.)

Above incentive related to Private Universities will be disbursed after due approval and consultation

with Department of Higher, Technical Education& Skill Development.

INCENTIVES FOR SETTING UP OF HEALTHCARE FACILITIES

The efforts may be augmented by support through various kinds of subsidies to the private and other

sectors. For setting up of the following Medical Institutions/Facilities, incentives have been proposed

in this policy:

(v) Multi-Specialty Hospital (Grade I) having:

e. Capital Investment of at least INR 10 Cr

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

f. Two or more specialties with ICU, OT (major, minor), Labour room, Diagnostics,

Pharmacy etc.

g. At least 50 beds for specialty care

h. Entry level NABH accreditation.

(vi) Multi-Specialty Hospital (Grade II) having:

e. Capital Investment of at least INR 25 Cr

f. Two or more specialties with ICU, OT (major, minor), Labour room, Diagnostics

Pharmacy etc.

g. At least 100 beds for specialty care

h. Entry level NABH accreditation.

(vii) Super-Specialty Hospital having:

e. Minimum Capital Investment of INR 50 Cr

f. Facility for diagnosis and treatment of patients, offering one or more Super Specialty

Services. Super Specialty Services shall include the following:

Medical Super Specialty: Cardiology, Clinical Hematology including Stem Cell Therapy,

Clinical Pharmacology, Endocrinology, Immunology, Medical Gastroenterology,

Medical

Genetics,

Medical

Oncology,

Neonatology,

Nephrology,

Neurology,

Neuroradiology etc.

Surgical Super Specialty: Cardiovascular Thoracic Surgery, Urology, Neurosurgery,

Pediatric Surgery, Plastic & Reconstructive Surgery, Surgical Gastroenterology,

Surgical Oncology, Endocrine Surgery, Gynecological Oncology, Vascular Surgery,

Spine Surgery, Organ Transplant etc.

g. At least 150 beds for specialty beds including 25% beds reserved for super specialty

care

h. Final level NABH accreditation.

(viii)

Nursing Colleges commencing Post Graduate Degree Programmes or Specialty Nursing

Courses recognized by Jharkhand Nursing Council

Following incentives have been proposed for setting up of the above Medical Institutions/ Facilities:

D. Subsidy on Capital Investment:

Category

Subsidy

Multi-Specialty Hospital

(Grade I)

Upto 25% of the Capital Investment (apart from Land) made

subject to a maximum of INR 5 Cr

Multi-Specialty Hospital

(Grade II)

Upto 25% of the Capital Investment (apart from Land) made

subject to a maximum of INR 12.5 Cr

Super-Specialty Hospital

Upto 25% of the Capital Investment (apart from Land) made

subject to a maximum of INR 25 Cr

Nursing Colleges

Upto 25% of the Capital Investment (apart from Land) made

subject to a maximum of INR 1 Cr

E. Interest Subsidy upto 5% for a period of 5 years

F. 100% reimbursement of stamp duty and registration fee for the first transaction of a particular

plot of land (lessee of JIADA/industrial parks will not be eligible for this benefit)

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

INCENTIVES FOR HANDICRAFTS

It is proposed that the incentives offered to Textiles & Apparel Industry are extended to the

Handicrafts Industry. In addition, the units engaged in Handicrafts are eligible to receive a

reimbursement of 50% of the contribution to the wage rate per local employee per month (local

employee here indicates the employee who is a domicile of Jharkhand) for a period of 5 years. The

unit needs to have a minimum of 70% of the local employees engaged in the core process for availing

this incentive.

SPECIAL FOCUS ON SPORTS GOODS MANUFACTURING

Government of Jharkhand also supports the manufacturing of sporting goods in Jharkhand. The

Government is committed to establishing an enabling environment to attract more investments to

support a robust sport manufacturing environment. The support to the sports' goods manufacturing

industry in the State is provided by way of incentivising in allotment of land, exemption in electricity

duty, stamp duty, capital subsidy etc. as per the provisions of this policy.

Non-Fiscal incentives

MEGA & ULTRA MEGA PROJECTS

Mega and Ultra-mega projects are eligible for non-fiscal incentives in addition to fiscal incentives

mentioned above. These projects may have unique issues/ constraints which may be specific to the

concerned project and it may vary from project to project.

The Non-fiscal incentives are like:

•

Specific infrastructure support

•

Raw material linkage / security

•

State government’s assistance in land acquisition / land purchase

•

Extension of public utilities like police station, security arrangements etc.

•

Any other support

In case of Mega and Ultra-mega projects, Governing body shall approve these non-fiscal incentives

specific to the particular project requirements and may be included in the first stage or second stage

MoU as deemed fit.

Mega and Ultra-mega projects have a multiplier effect integral for employment generation and for

inclusive growth. The development of Mega and Ultra-Mega industries will attract ancillary and

auxiliary industries in the MSE sector leading to a positive domino effect in the economy.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

PROMOTION OF WOMEN, SC/ST AND PHYSICALLY CHALLENGED ENTREPRENEURSHIP

The State Government identifies new projects and incentives in this policy for women, SC/ST and

Physically Challenged Entrepreneurship.

Specific training courses shall also be introduced. Measures to encourage women participation would

include additional Interest subsidy scheme, assistance for collateral free loans under CGTMSE

scheme and additional payroll incentives provided to generation of women employment.

State Government is planning to establish exclusive Industrial Park for Women Entrepreneurs.

PROMOTION OF YOUNG ENTREPRENEURS

The policy proposes to encourage entrepreneurship in youth (<35 years) by way of skill development

and idea encouragement. Importance will be given to the innovative content in the project rather than

the investment required. It will consider granting additional interest subsidy to such projects. Specific

courses to train Youth entrepreneurship will also be introduced.

PUBLIC PRIVATE PARTNERSHIP (PPP)

Improvement in infrastructure facilities is an integral factor for industrial development. To cater to the

infrastructure needs of the State, it is not possible to meet the financial requirements with budgetary

provisions of the government alone.

Additionally, to develop high end infrastructure facilities, large scale capital investment along with high

quality management and competence is required. Therefore, to encourage large scale investment in

the State, private sector partnership is being ensured in the execution of various infrastructure

projects. Introduction of international level access-controlled expressway network, high capacity

power stations and world class airport projects under Public Private Partnership will enable all round

development of the State.

There will be continuous encouragement to private participation in the development of infrastructure

facilities in the State. State government will ensure development of infrastructure facilities through

private or joint ventures as much as possible, but if it appears that in certain sectors private or joint

venture investment is not possible, State government will establish such infrastructure facilities by

itself.

Apart from Viability Gap Funding (VGF), Annuity based model and other models will also be

encouraged for Public Private Partnership (PPP) projects.

Special Thrust to MSMEs for Enhancing Competitiveness

MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the

last five decades. MSMEs contribute to nearly 8% of the country’s GDP, 45% of the manufacturing

output and 40% of the exports. They also provide the largest share of employment after agriculture

and hence, can contribute enormously to the socio-economic development of the state.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Development of MSME sector underscores entrepreneurship and innovation. Moreover, they are

complementary to large industries as ancillary units. Therefore, Government of Jharkhand places

strong impetus on the development of this sector.

IMPROVING SOPHISTICATION IN MSMES

Jharkhand has witnessed strong growth in MSMEs and wishes to strengthen the sector by making it

more technology driven. This support will come by way of interest subsidy for manufacturing and

service sector, quality certification, patent assistance for national and international, energy and water

conservation audit, market development assistance and support, raising capital through SME

exchange, reimbursement of CGTSME scheme for collateral free loan, State awards under MSMEs

and skill development etc. Support would also be extended for development of ancillary and auxiliary

enterprises for labour intensive industries.

TECHNOLOGY SUPPORT

The industrial sector, these days, suffers from lack of sophistication in technology. Up gradation of the

existing technology is a requirement of modern industrialisation process to ensure supreme quality.

The policy intends to extend financial assistance to industrial enterprises intending to upgrade their

technological setup. The policy encourages adoption of new and innovative technologies for

introducing greater efficiency in operations.

•

Financial support will be provided to each cluster for every innovative technology they adopt

and introduce in the manufacturing process

•

Government of Jharkhand will facilitate the setting up of R&D institutions by defraying part of

the project cost

•

Government of Jharkhand will facilitate the setting up new/up gradation of existing laboratories

by providing assistance on machinery and equipment

•

For organizations intending to undertake contract research, Government of Jharkhand will

provide financial support to the project cost

•

Financial support would be extended for the technology used under contract research

•

Financial support through partial reimbursement of cost for filing of domestic patents and

international patents

MARKET DEVELOPMENT INITIATIVES

Jharkhand government is taking adequate steps with the intention of giving enhanced visibility to local

produce from large industries and specifically from MSMEs. Cognizant of the efforts required to make

global distribution of local products a reality in accordance with the national "Make in India" policy,

Government of Jharkhand stresses on "Zero Defect" to produce globally competitive, locally

manufactured goods. lt is necessary that these products be marketed aggressively, and their

promotion facilitated by the Government.

One of the expansive marketing practices around the globe is participation in international and

domestic trade fairs to showcase one's products or wares. This gives the product its much-needed

visibility and brings buyers and sellers on a common platform. Spot purchases as well as long-term

partnerships are formed in such places besides helping to create a worldview of prevailing market

trends.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Since most MSMEs invest more in production and less in marketing, Government of Jharkhand would

make marketing credit available to them. The new Industrial and Investment Promotion Policy has

therefore taken upon itself the onus of facilitating the use of better marketing practices by the MSMEs

and shall provide financial assistance for:

•

Promotion of machinery purchase during the Exhibitions in Jharkhand

•

Promoting organizers to organize exhibitions in Jharkhand

•

Promotion of local exhibitions in Jharkhand

•

Promotion of MSME participation in the Exhibitions in India including Jharkhand by various

means like reimbursing their Stall charges

Government of Jharkhand would also take necessary steps to market the potential of the Industry.

The state will promote Jharkhand as the 'Exhibitions Hub' in India and provide a platform for

confluence of buyers and sellers.

A separate Cell in Directorate of Industries is proposed to be formed for the development of MSME

sector, focusing on marketing and procurement of goods and services by the State and Central

Government departments and organizations. Plant Level Advisory Committee will be formed in all

central PSUs to ensure the compliance of Government of India’s Procurement Policy and provisions

of Micro, Small and Medium Enterprises Development Act, 2006.

QUALITY CERTIFICATION

Quality improvement is strongly envisaged in the new industrial and investment promotion policy. The

assistance will be granted for national (approved by Quality Council of India) and International

certifications.

Financial assistance for 3 quality certifications which would comprise part disbursement of the

certification fees, cost of testing equipment, calibration charges, consulting fees and training charges

RAISING CAPITAL THROUGH SME EXCHANGE

This assistance would be raising funds through SME exchange on one-time basis.

FINANCIAL SUPPORT FOR THE DIAGNOSTIC STUDY

Diagnostic studies, aided financially by the Government of Jharkhand, would be carried out to assess

the viability of the sick enterprises. The study would aim at reviewing all aspects of the functioning of

sick units and assess the possibility of its renewed operation.

ENERGY AND WATER CONSERVATION AUDIT

Quality improvement is strongly envisaged in this Policy. The assistance will be granted for national

(approved by Quality Council of India) and International quality certifications for energy and water

conservation initiatives.

•

Financial support for Energy/Water audit conducted in an enterprise by a recognised

institution/consultant

•

Group of enterprise/cluster will be given priority

•

Financial assistance for machinery/ equipment would be given

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Lean manufacturing technique shall be encouraged in MSME sector to reduce wastage and improve

profit with the help of National Productivity Council and other reputed technical institutions

Incentives for Start-ups

INCUBATORS

CAPITAL SUBSIDY

Start-up Incubators shall get reimbursement of the amount of Capital Spent on developing the

Incubator up to a maximum amount of Rs. 1 crore.

STARTUP COMPETITION ASSISTANCE

The Incubators shall also get a reimbursement of 50% or Rs. 10 lakh (whichever is lower) for the

competition events organised by the Incubators in their respective Incubation Centre.

START-UP UNITS

The eligible start-ups shall receive the incentives similar to the MSME units. In addition, The start-up

units shall get up to Rs. 3 lakh per start-up as Seed Funding.

Fiscal Incentives for Export Units

CAPITAL INTEREST SUBSIDY FOR GOODS MANUFACTURERS

New Industrial export units will get be reimbursement of the amount of interest at the rate of 5%

payable on loan taken by them for procurement of plant & machinery from Banks/Financial Institutions

for a maximum period of 5 years. The maximum limit of the same will be Rs.50 lakhs per unit.

EXEMPTION FROM ELECTRICITY DUTY

100% Electricity duty of Export Oriented Units (EOUs), IT and Bio-technology unit industries in

Special Economic Zone (SEZs) and Electronics Hardware Technology Parks will be reimbursed after

payment of Electricity Duty for a period of 10 years.

ALLOTMENT OF LAND FOR EXPORTING UNITS

One of the key reasons for low investment in exporting sector has been the availability of land or high

cost of the same which deter a small manufacturer to start manufacturing. With a view to meet the

high export target, Government of Jharkhand will give priority in allotment of plot/ land to export

oriented units (those committing to exports over 50% of their production) in the industrial Area. The

present requirement of paying the total cost of land/ shed in Jharkhand Industrial Area Authorities

(JIADA) in one instalment will be changed to six half yearly equal instalments.

TRANSPORT SUBSIDY FOR SHIPMENT TO PORTS

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Being a land locked state, Jharkhand does not have any port. It has to send export shipments via rail/

road to any port of India, which increases the cost of transportation. To encourage exports from the

state, Transport Subsidy would be provided on the basis of costs incurred by exporters for shipment

to export transporting the goods to the ports. The amount of subsidy will not exceed Rs Twenty Lakh

during the financial year for an exporter.

EXPORT DEVELOPMENT ASSISTANCE (EDA)

Presently Market Development Assistance (MDA) is provided by Government of India to exporters for

market surveys, product development and participation in international trade fairs.

•

It shall focus on the small and medium manufacturing units who wish to enter export field and

small merchant exporters of the state.

•

This include among others, financial support for visit of Trade Delegation to other countries,

participation in International Trade Fairs/exhibition, market survey reports, publicity in foreign

media etc., initially an outlay of Rs.1.00 Crore per year will be provided

MDA is not available to MSME exporters. Government of Jharkhand will extend the Export

Development Assistance to MSMEs for participation in approved International Trade Fairs at National,

International, State Level, Buyer-Seller meet and for exploring new markets for exporters organized

by ITPO/EPCs/Commodity Boards etc. both in National and International level. The scheme will be

administered by the Directorate of Industries.

Scheme

Eligibility

Details

Foreign

Exhibition/

Trade Fairs*

(a) MSME Exporters

registered

with

concerned

DIC/

JAIDA

75% of Stall charges paid up to maximum of Rs. 4,00,000/-

for one fair/ exhibition. Air fare 75% by economy class, max.

up to Rs. 50,000/- per Two person per unit per annum.

(b) Women

Export

Entrepreneurs

registered

with

concerned

DIC/

JIADA

90% of Stall charges paid up to maximum of Rs. 4,50,000/-

for one fair/ exhibition. Air fare 90% by economy class, max.

up to Rs. 60,000/- per Two person per unit per annum.

* Exporting organizations availing travel support from Government of India under similar scheme shall

not be eligible for the above-mentioned State Incentives.

An outlay of Rs 2 Crores per year will be provided under this head on First-Come-First-Serve basis to

MSME sector. The application for Export Development Assistance should be submitted at least 45

days before the fair/exhibition.

ASSISTANCE FOR REVERSE BUYER-SELLER MEET

International Buyers and Sellers meet at Ranchi will be organised every alternate year to boost the

exports of the state.

REFUND OF CERTIFICATION CHARGES

The State will refund expenses incurred for compulsory marking like Conformity European (CE), etc.

to the extent of 50 percent of expenses subject to a maximum of Rs. 2.00 Lakh per unit per annum for

export oriented units.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

BRAND EQUITY FUND

•

A brand equity fund with an allocation of Rs.1.50 crore per year will be setup.

•

This will be aimed at building strong globally competitive brands for products manufactured

/produce originating from Jharkhand.

MARKET RESEARCH FUND

A market research fund with an allocation of Rs.1.50 crore per year will be setup to activate a

mechanism for providing live and timely market information on products and markets which will help

the SME exporters to enter the export market directly.

GREEN PRODUCTION & MANAGEMENT

A reimbursement up to 75% of the cost, subject to a limit of Rs. 3 lakhs, of Energy and Water Audit

conducted by the units shall be made to the eligible units.

Focus on Export Promotion

Export Promotion

Jharkhand is endowed with a wide variety of natural resources and is one of the most attractive

destinations for setting up export-oriented units because of its mineral wealth coupled with its skilled

and industrious work force. The State is also rich in agriculture and forest resources. It has a number

of manufacturing units producing variety of items suitable for exports.

Exports yield several benefits which include creation of infrastructural facilities, adoption of new

technologies, skill up gradation and diversification, flow of large investment, increase in labour

productivity, generation of employment etc. All these have significant impact on the industrial climate

of the state. Exports are also needed to pay for imports and the spin-off effect of exports on State

economy can hardly be undermined. Exposure of MSME sector to international market helps them to

upgrade their marketing skills by attending to overseas buyers, trade fairs, learning quality needs and

statutory and customary practices of many countries.

Promotion of Trade and e-Governance means facilitation of foreign trade by way of promoting

effective and efficient delivery of services by various regulatory agencies involved in Foreign Trade.

Exporters/Importers would be enabled to avail services from these agencies in an online environment.

In order to boost exports, the State Government proposes to initiate the following measures:

a) Efforts would be made to have MoU/ strategic partnership / task force engagement with IIFT,

DGFT and FIEO for the promotion of export from Jharkhand on Value Added Products

b) Programmes would be organized with the help of reputed consultants / IIFT to sensitize

exporters about market intelligence, export documentation, finance and other critical areas of

export

c) Efforts would be made to set up a State-of-Art external Information Centre in collaboration with

different Chamber of Commerce and Industries Associations

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

d) Air Cargo Complex at Ranchi Airport would give the desired impetus to the export of products

like flowers, fruits, vegetables etc.

e) Inland Container Deport (ICD) with the assistance of Government of India has been set up at

Jamshedpur for large scale containerization of value added and manufactured exportable

goods. Similar facility at other places is proposed to be set up in consultation with Railways

and Department of Central Excise and Customs

f) Industries will be encouraged to participate in International Exhibitions and Trade Fairs. Visits

of trade delegations will also be supported financially by dovetailing the schemes of

Government of India

g) Export oriented units will be declared as essential services / Public Utilities Services

h) Export Awards will be provided to Export Oriented Units to recognize quality, R&D and

performance

A Board consisting of Secretaries of Finance, Industry, Transport and other related departments,

Director General & CEO/ Regional Chairman of FIEO (ER) and other Export Promotion Councils as

members would be set up. The Board will meet once in six months to discuss and address various

policy level issues and provide suggestions to enhance exports from the state.

State Export Promotion Committee

State Export Promotion Committee (SEPC) already constituted under the chairmanship of

Development Commissioner.

Export Promotion Committee

District Export Promotion Committees (DEPC) are formed under the Chairmanship of Deputy

Commissioner. The Chairman of the DEPC shall submit the activities report to Directorate of

Industries for review by the Empowered Committee at the State Level. The details of the members in

the DEPC shall be notified by the Government.

A time bound action plan will be chalked out by DEPC for the following:

Preparation of a comprehensive database on existing exporters in the district.

ii.

Identification of industries/traders who are routing their export through other merchant

exporters.

iii.

Identification of industries/traders with potential products for exports.

iv.

Resolving local problems of the exporting organisations and agencies.

In addition to the above, DEPC will also work out the following strategies for augmenting and

accelerating export:

Identification of constraints being faced by exporters and evolve measures for their solution.

ii.

Exporters channelizing their export through merchant exporters will be trained to export

directly and will be provided with market related information on regular basis.

iii.

DEPC will initiate proposals for developing export infrastructure in their districts to be

considered under various infrastructure development schemes.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Export Promotion and Marketing

The State Export Promotion Committee will look after the activities of export promotion and marketing.

A nodal agency in the Department of Industries will be identified to coordinate with all government

departments and export promotion councils to provide a favourable environment for the exporter. The

nodal agency shall interact with the exporter on one hand and the EPCs, exporter association, state

and central bodies on the other so that the implementation of State Export Policy can be ensured, and

the problems of the exporters may be resolved timely.

The nodal agency would also organize buyers sellers meet at regular intervals and arrange

participation of exporters in trade fairs and exhibitions both in the country and abroad. It would also

conduct project studies keeping in view the international market condition.

In addition to the above the nodal agency shall also perform the following functions:

Act as the Nodal Agency for undertaking all export promotion activities in the State.

ii.

Coordinate the export promotion activities of all the Departments/Agencies of the State

Government.

iii.

Liaison between the exporters and the various departments of Government of Jharkhand and

Government of India and other Government agencies for redressing the problems being faced

by the exporters of the State.

iv.

Liaison between Government of Jharkhand and Government of India to coordinate the

implementation of the various export promotional schemes/projects of Government of India in

the State and to explore the availability of funds from Government of India for the development

of export related infrastructural facilities.

Act as the Convener of the State Level Empowered Committee and other such export

promotion related committees.

vi.

Implement the export policy and export strategy for the State and other functions which will be

cleared by Department of Industries through operational guidelines and / or circulars.

Other Incentives to the Industry in General

SUPPLY OF RAW MATERIAL AND FUEL

The Jharkhand State Mineral Development Corporation (JSMDC) would be requested to supply raw

material and fuel (such as coal) to the exporting units on priority basis. Coal being most important

input to MSME exporters who are getting it through JSMDC shall be facilitated to ensure for meeting

their quality and quantity demands. Any hurdle in raw material supply to MSME exporter will be taken

with due care. Any other source of fuel like coal bed methane or other fuel shall be coordinated to

boost exports.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

DEVELOPMENT OF COMMON INFRASTRUCTURE FACILITIES

DEVELOPMENT OF TESTING AND RESEARCH LABORATORY

With a view to meet the increasing technical standards of products for exports State Government

would endeavour to increase awareness of standards and would also establish Testing & Research

facility along with Mini Tool Rooms for certain thrust products.

SKILL DEVELOPMENT & CAPACITY BUILDING

Skill development would be nurtured as shortage of skilled workers is likely to impact the growth in

exports. The State would tackle the challenge of making available adequate, best suited and ready-to-

employ skilled manpower to industry through proper synergy between industry and academia.

Jharkhand Skill Development Mission Society (JSDMS) is preparing a five year Road Map for skill

development in the state based on information given in the Jharkhand Skill Gap Study report

prepared by National Skill Development Cooperation. It may be pursued that courses on exports

related subjects are also taught.

State will encourage capacity building initiatives by industry associations and other organisations for

prospective exporters. Capacity of existing exporters would also need to be built, to handle various

crucial procedural aspects involved in export trade. Here also industry associations and agencies

would be encouraged by way of part funding of such capacity building programmes.

FACILITATING BUSINESS

Following measures will be taken to facilitate businesses to export goods & services from the state.

EXPORTER'S CARD

Exporter's card shall be issued to the exporters of Jharkhand having good track records for early

passage of export consignment at check gates of the Government on priority basis subject to the

condition that the provisions of rules, regulations, instructions, etc., issued by Government, then

prevailing, are not violated.

The Exporter's Card shall be issued based on the criteria to be defined by the State Export Promotion

Committee

The Exporter's Card would entitle the holder to minimum inspection and speedy clearance of all

proposals by all Departments of the State Government. The details of which will be notified by the

Department of Industries.

EXPORT AWARDS

The Export Award will be distributed annually among the exporters of Jharkhand for their outstanding

export performance in the State in different product groups. The application for Export Award and the

criteria of the scheme shall be detailed out in the guidelines.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Industrial Facilitation

Government of Jharkhand has accorded highest priority to improving business eco-system in the

state. With a view to steer rapid economic reforms and promote investment in the State, it is

imperative to create an environment which is congenial for entrepreneurship development. Industry

consultation, timely clearances, responsive administration and transparent government have been

identified as the corner-stone for improving business environment and boosting investor’s confidence.

To that end, the state shall provide both, pre and post investment services and facilitation for rapid

industrialisation.

Jharkhand Investment Promotion Board

Jharkhand Investment Promotion Board (JIPB) will be setup to advise the government on issues

related to attracting investments and building a positive word of mouth. Captains from the industry

have been invited to provide direction and guidance on measures to be taken to promote Jharkhand

as an attractive investment destination.

Coordination for the JIPB will be provided by the Department of Industries

The scope of work of the JIPB will be:

•

To deliberate on strategies to promote investments in Jharkhand.

•

To advice the government on issues related to attracting investments in the state

•

To work as Jharkhand’s brand ambassador for development of industrial environment in

Jharkhand.

•

Suggest ways for simplification of procedures, policy making and policy reforms and all such

works to be notified by Department of Industries.

Single Window Clearance Mechanism

For the promotion of investment and industries in the Jharkhand State, Department of Industries, has

established a Single Window Clearance System for Ease of Doing Business and to provide

mandatory clearances and disbursement of fiscal incentives within the time limit. This mechanism

shall have Single Window Clearances Committee under the Chairmanship of Principal Secretary,

Department of Industries with all the important Secretaries as members in this Committee. This

Committee shall approve all projects including financial incentives upto MSME level. For projects

other than MSME, this Committee shall recommend to the High Powered Committee for approval of

fiscal incentives.

The High Powered Committee exist under the Chairmanship of Chief Secretary, for granting

approvals of fiscal incentives for large Industries and this Committee shall recommend approval of

incentives for the mega and Ultra-Mega Projects to Governing body.

SINGLE WINDOW PORTAL

Jharkhand Single Window Clearance Act 2015 focusses to create an investor friendly environment

and improve ease of doing business in the State. This is being facilitated by providing accelerated and

time bound grant of various licenses, permissions and approvals, promoting industrial development

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

and facilitating new investments as well as by simplifying the regulatory framework by reducing

procedural requirements and rationalising documents.

All proposed or existing investments which need clearance under one or more of the applicable acts

are

eligible

for

facilitation

through

single

window

clearance

web-portal

(http://advantage.jharkhand.gov.in).

This e-platform is a one-stop service for investors planning to invest in Jharkhand from within the

state as well as other parts of the country and abroad. The main activities of this portal include:

•

Interactive system for identifying approvals for setting up of business and starting of business

operations.

•

Easy access to all information on procedure, timelines, formats etc.

•

Comprehensive checklist of all NOCs, licenses, registrations, etc., available online.

•

Combined Application Form (CAF) .

•

Single Sign-On at Single Window portal allows seamless integration of single window portal

with the respective department’s portal by eliminating the need of signing in multiple times as

well as the need of creating separate login credentials at various department portals.

•

Follow up action and coordination between the Government departments and investors.

SINGLE WINDOW CELL

The Single Window system has four cells for facilitation and for addressing the problems faced by

entrepreneurs. Departmental and domain experts have been appointed in Singe Window to provide

technical know-how on departmental and area specific issues pertaining to industry and business and

shall be involved in end-to-end grievance handling and investor facilitation. Nodal officers of various

departments are deputed and seconded to the cell for granting mandatory state approvals in the

Single Window System itself.

Ease of Doing Business

In sync with the ‘Make in India’ campaign launched by the central government; Jharkhand has

launched ‘Make in Jharkhand’ to enhance the experience of industry as well as society stakeholders.

Further, considering the push for an ‘Aatmanirbhar Bharat”, the Government of Jharkhand is making

rapid strides to stir entrepreneurship in the State by creating a robust regulatory ecosystem.

Government of Jharkhand accords highest priority to improving Ease of Doing Business and

therefore, has embraced the changes in new business environment over the last few months, which

led to Jharkhand being ranked among top five Indian states in the 2019 year ranking on “Ease of

Doing Business” (EODB) by DPIIT. Timely clearances and responsive post investment facilitation

services have been identified as the cornerstone for improving business environment and boosting

investor confidence.

Initiatives for Online Applications and Approvals

•

Online land allotment in industrial areas

•

Online application and payment for Land Registration, disbursal of incentives, Electricity

connection, Consent to Establish, Consent to Operate, authorizations

•

Registration, Licencing and Renewal of Certificate for employing Contract Labour, Registration

under Shops and Establishments Act, Registration of Societies and Firms, Registration under

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Building and Other Construction workers (RECS) Act, Grant and renewal of Factory License,

Approval of Factory Building Plan, Grant of License and renewal for Boilers

•

Requirement of renewal of certificates/ approvals/ licenses obtained by businesses for the 7

services would be simplified. Businesses can now get the renewals by paying the required

fees without the need for filling the forms and uploading the documents again. The 7 services

are:

o Registration under Shops & Establishment Act

o License for contractors under the provision of The Contractor Labour (Regulation and

Abolition) Act, 1970

o License under the Factories Act, 1948

o Registration of establishments under the Inter State Migrant Workers (RE&CS) Act,

1979

o Registration under Legal Metrology Act

o Drug Manufacturing/Selling/Storage License

o Trade License issued by Municipal Corporation

Skill Development Initiatives

With the state intending to be a frontrunner for attracting global investment, the employment

opportunities generated would also be on lines of industry demand. The policy has laid emphasis on

creation of opportunities that would directly augment employment in the State. The training module

should be developed with close involvement of industry and other stakeholders in the planning and

implementations stages for development of sector-specific skills. The policy strives to empower these

centres by bestowing sufficient autonomy in its academic, administrative, and management areas.

The policy recognises the need to develop 'Centres of Excellence' for sector-specific development of

industries in the state and capacity building of various departments and organizations of the

government.

Skill Development

Development of skilled manpower for the use of industry and trade is a thrust area. Skill up gradation

in the emerging skill sets will be focused on. In line with the Government of India initiatives,

Government of Jharkhand launched Skill development mission through Department of Labour,

Employment, Training and Skill development. In addition to the above initiatives, Department of

Industries proposes to develop skill in specific sectors as per the needs of the industry. The

participation of CPSU's/ Private investor will be promoted with involvement of Jharkhand MSME Tool

room, Jharcraft, Auto cluster, JIDC, JKVIB, etc.

Endeavour of the State Government will be to promote private sector investment for skill development

through market driven approach. Thrust will be given for skill development amongst women to

enhance their employability. Specialised Industrial Training Institutes (ITIs) shall be set up at locations

having heavy concentration of specialised workmen.

A special drive shall be undertaken for introduction of multi-skilling in areas such as material handling,

machine operation and maintenance, furnace operation and maintenance, automobile engineering,

plumbing, gemstone cutting and polishing, power engineering etc. Industries will be closely

associated with the design of the course including practical training.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Industry – institution interaction is proposed to be encouraged to identify skill sets required for the

industry and to develop such skill sets in the institutions imparting training.

Skill Development of unemployed / under employed youth is proposed to be undertaken utilizing the

services of existing partners of National Skill Development Corporation (NSDC). Advantage with

these vocational training providers funded by NSDC are that, through proper monitoring, it will be

possible to evaluate the impact of skill development programme through increase in the income of

beneficiary unemployed / under employed / self-employed youths.

Government of Jharkhand will also encourage sector-specific institutions that can impart vocational

skills in emerging sectors of handicraft, handlooms, sericulture, biotechnology, mining, agri-business,

food industry, aerospace and defence production, fisheries, imported wooden furniture manufacturing,

solar and other non-conventional energy, petroleum and petro chemicals.

Need-based support will be provided for setting up national/ international level training Centres/

courses and related R&D activities. Awareness program/ seminar assistance will be provided once

per year for all training courses.

Human Resource Development

There will be huge requirement of technical manpower in the State by upcoming industries. Therefore,

special efforts will be made on promoting new technical institutions, upgrading existing ones and

enhancing industry – institution linkages.

There are over half a dozen well established engineering colleges in the State imparting technical

education in almost all the important branches of engineering and an equal number of engineering

colleges is in initial stages of stabilization. Similarly, there are 13 government polytechnics in the State

and steps have been initiated to establish more polytechnics.

The State Government proposes to transfer existing and upcoming engineering colleges /

polytechnics /ITIs to competent educational / Industrial Groups for managing these so that the

requirements of qualified and skilled manpower of industries being set up in Jharkhand are easily met.

Under this, it is proposed to transfer existing buildings, laboratories, workshops, equipment’s etc. to

entrepreneurs so that the up gradation of the Institute is facilitated without any hassle within the

shortest possible time.

To facilitate the setting up of technical / educational institutions under private sector the Government

proposes to provide land from land banks for such institution to willing investors.

The concerned Department such as Department of Higher Education, Science and Technology,

Department of Labour, Employment Training and Skill Development and Department of Health,

Medical Education and Family Welfare may bring out detailed and separate guidelines for the

implementation of their proposals.

Entrepreneurship Development

Efforts will be made to inculcate entrepreneurial qualities through structured programmes and

schemes which will include the following:

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

a) Sourcing of services of a reputed consultant to identify the area for utilizing the

entrepreneurship opportunities in the State.

b) Establishment of an Entrepreneurship Development Institute and strengthening it through

various measures, including Government support, strategic alliances with national level

entrepreneurship institutes and linkages with industries, technical and professional institutions,

R &D, NABARD, Banks, PPP initiatives etc.

Special incentive will be given to SC/ST and women for pursuing entrepreneurship course from a

reputed institute. List of such institutes will be notified by the State Government from time to time.

JIADA will extend necessary help to entrepreneurs. Interaction programme will be organized by

JIADA for entrepreneurs undergoing training to sort out problems which are likely to be faced by them

Monitoring & Evaluation and Grievance Redressal

Industry facilitation and investment promotion are the some of the basic features of this policy

framework. With the objective of making the Single Window System stronger and powerful, Jharkhand

Single Window Clearance Act 2015 has been notified. This is one of the best in the country in terms

of compliance with Ease of Doing Business and offering statutory protection for the State level

business reform initiatives.

Monitoring

Investors may log onto the State’s Single Window Portal and apply for various approvals through the

CAF. The Single Window Cell shall monitor all projects and help in their facilitation in a time bound

manner.

The Single Window Cell acts as a repository of information regarding state infrastructure, information

about investment application processes and issues being raised across industry. It shall also act as a

source of information dissemination and shall provide additional information related to orders, rules

and regulations.

Coordination with the relevant departments and required updates is be provided to the investors

through this system.

Single Window Clearance Committee constituted under the Chairmanship of Principal Secretary/

Secretary- Industries periodically reviews the status of pending applications with the Single Window

System and with the concerned departments.

The nodal officers of department’s are also be deputed / seconded to Single Window for ensuring

time bound service delivery.

In the process, if an investor faces any difficulty, he/ she may call on the Single Window helpline

number wherein the technical experts shall provide all necessary assistance.

Grievances Redressal Mechanism

The State recognises that timely resolution of these issues is imperative. To resolve the issues

pertaining to different departments, a State Grievance Redressal Committee has been notified by

State government:

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

The committee shall be chaired by the Principal Secretary/ Secretary-Department of Industries. In

addition to the above, Principal Secretary / Secretary from other departments to which the complaints

pertain to, will be invited in the meetings.

If deemed necessary, on the decision of the Chair, the complaining Industrialist may be invited to put

forth his views in front of the committee.

The aggrieved investor before moving to any court shall apply before this Grievance Redressal

Committee for the redressal of grievances and disbursal of incentives.

The committee shall discuss the numbers as well as the reasons of the Deemed Approvals proposed

by the concerned department and also suggest the department to provide the approvals on time in the

future.

Aggrieved parties may register their grievance online through the Single Window Portal, which then,

shall be automatically sent to the nodal officer of the concerned department. An E-mail and SMS shall

also be sent to the parties upon receipt of the grievance.

The concerned department shall respond to the complaints online within five working days of their

receipt, which shall then be automatically sent to the complainant through SMS/Email.

Monitoring of Private Industrial Parks

The Directorate of Industries may engage a Project Monitoring Consultants (PMCs) if necessary, for

technical and financial evaluation of DPR submitted by SPV. PMCs from time to time will assist the

Directorate of Industries in project monitoring, evaluation, allotment of fund and its utilization.

Directorate of Industries will exercise supervision and control over Joint Venture and PPP mode

Industrial Park in the State under the direction of High-Powered Committee

Directorate of Industries through State Government Industrial Area Development Authority will

exercise supervision and control over private industrial park under their respective command area.

Private Industrial parks outside the command area of State Government Industrial Area Development

Authority will be supervised and controlled by respective DICs

The industrial units established under these industrial parks will be eligible for financial incentives and

concessions provided under Jharkhand Industrial Policy and any other schemes of Central and State

Governments time being in force

High Powered Committee will be empowered to prescribe / modify / add new forms, checklist and

procedure and will be empowered to issue additional guidelines in this regard

Miscellaneous Provisions

General Provisions

PUBLIC UTILITY SERVICES

The following categories of industries/ establishments are declared as “Public Utility Services” for the

purpose of application of provisions under Chapter-V of the Industrial Disputes Act 1947.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

•

Information Technology and IT Enabled Services.

•

Bio Technology

•

Agro-based processing

•

Electronics and telecommunications

•

Export Oriented Units and units in parks.

•

Infrastructure projects including industrial parks and SEZs

•

Mega and Ultra Mega Industries

•

Automobile and Auto components industries

EXEMPTION FROM SOME OF THE PROVISIONS OF FACTORIES ACT

Industrial units and establishments in the following categories are exempted from the provisions of

Chapter VI of Factories Act 1948 (working hours of Adults, subject to safety consideration of workers).

•

Information Technology and IT Enabled Services.

•

Bio Technology

•

Electronics and telecommunications

•

Export Oriented Units.

•

Industries set up in Special Economic Zones.

•

Mega and Ultra Mega Industries

•

Automobile and Auto components industries

The Industrial Estates, Industrial Areas, Industrial Parks, Growth Centres etc. shall be excluded from

the tax regime of the Municipal and other local authorities for management by local industries

associations, provided that the latter undertake to maintain the infrastructure of the industrial estates

either directly or through other agencies by taking consent of Urban Development Department or by

amendment of the relevant Act, if required. Urban Development Department shall frame the

guidelines and prescribe the fee for providing such services.

Biotechnology related units including laboratories may be allowed in urban areas in conformity with

Master Plan in force and following other relevant clearances.

Labour Reforms

Jharkhand has a long uninterrupted history of industrial peace and harmonic relationship between

labour union and management. This uniqueness of Jharkhand will be carried forward and pioneering

labour reforms shall be carried out for employment generation and labour welfare. A time bound

action plan shall be formulated for furthering labour reforms, in addition to the reforms mentioned

below and make labour law compliance online without physical touch point.

a) Jharkhand is the pioneer state for amalgamation of different records, registers and returns

required to be maintained under the various labour laws, flexible women working hours, and

introducing systems of “self-certification” for labour related compliance of routine nature

b) A system of joint inspection by various regulatory agencies such as Jharkhand State Pollution

Control Board (JSPCB), Labour Inspector, Chief Inspector of Factories and Boilers, Regional

Provident Fund Commissioner, and Regional Director, Employees State Insurance

Corporation has been notified and being implemented in the State

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

c) No surprise inspection on industrial units based on specific complaints except with the

approval of head of department and notification in this regard has already been issued

d) The implementation of these provisions from(a) to (c) shall be reviewed from time to time and

complaint, if any, of investors / companies will be received by the Single Window Cell of the

Industries Department

e) The State Government has authorized chartered engineers possessing requisite qualifications

to perform the duty of Inspector of Boilers with regard to registration, inspection and renewal

Environmental Clearance

a) To ensure smooth environmental clearance the State Level Environment Impact Assessment

Authority (SEIAA), and State Level Expert Appraisal Committee (SEAC) as provided in the

gazette notification dated 14.09.2006 part II, Sect. 3 (ii) of Ministry of Environment and Forest,

Government of India, New Delhi have been empowered.

b) The validity of the Consent to Operate is notified as 5 years, 10 years and 15 years for

industries falling under Red, Orange and Green Categories respectively.

c) State Government would extend necessary support to Jharkhand State Pollution Control

Board (JSPCB) for expediting the disposal of applications of investors / entrepreneurs for

environmental clearance. The following measures are envisaged to be undertaken for the

purpose.

Third Party Audit: Necessary support will be extended to JSPCB for organizing third party audit for

better compliance of environmental laws.

Skill Upgradation: Skill upgradation programme of technical personnel of JSPCB and related

organizations is envisaged to be organized in Environmental Engineering / Management.

State Award to Enterprises

Performance of industries are evaluated every year and on the basis of objective evaluation criteria,

suitable awards are given by the State Government for outstanding achievement in environment

management, labour welfare, R&D, Safety Profit maximization, innovative production, turnaround of

sick industries, corporate social responsibility, entrepreneurship and quality. Scheme of enterprises

adopting such best practices will continue to be recognised with State awards every year.

Memorandum of Understanding (MoU)

a) MoU may be agreed / signed between Government of Jharkhand and Investors for new

investment.

b) MoU may be agreed only for Mega and Ultra-Mega Industries.

c) Initially, MoU indicating the intention of the investor in brief about the proposed industry and

the possible facilitation to be extended by the State Government which will remain valid only

for a maximum period of 12 months.

d) Subsequently, second stage of MoU will be signed which will include complete details of the

project including DPR/TEFR with the site selected, resources required for the unit, possible

sources of funds, raw materials, consumables, utilities, manpower requirement, infrastructural

details, time-frame for implementation etc. Second stage of MoU shall have a validity of 3

years and on reasonable ground, the second stage of MoU may be extended for another two

years

e) MoU signed initially will automatically expire after one year if the second stage of MoU is not

signed with the State Government.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Date of Production (DoP)

All industrial units must obtain the Certification of Date of Production (DoP) from competent authority

for availing benefits under this policy. The Udyog Aadhar or Udhyam will not be sufficient to substitute

DOP certificate.

The "Date of Production" of an industrial unit shall mean the date on which the unit actually

commences commercial production of the item for which the unit has been registered.

The industrial unit becoming eligible can submit DoP application within one month of the

commencement of production as envisaged in DPR.

MSME units will get a maximum of six month's relaxation of time for submission of DOP application.

However, the application has to be submitted with expressed reason duly supported by documentary

proof. Director of Industries shall have the power to condone delay up to 6 months and Principal

Secretary/ Secretary of Industries shall have power to condone delay up to 1 year. Any delay beyond

one year shall be referred to Departmental Ministers from delay condonation.

Procedure for operationalization of the provision of the policy.

Implementation of various provisions covering the incentives, concessions etc. will be subject to the

issue of detailed guidelines / statutory notifications, wherever necessary in respect of each item by the

concerned Administrative Department.

Policy Period

The State Government may at any time amend any provision of this policy. Normally the policy will

remain operational for 5 years (01.04.2021 to 31.03.2026)

Doubts Resolution

a) Doubts relating to interpretation of any term and / or dispute relating to the operation of any

provision under this Industrial and Investment Promotion Policy shall have to be referred to the

Industries Department, Government of Jharkhand for clarification / resolution and the decision

of Department in this regard shall be final and binding on all concerned.

b) In case of any doubt the "English Version" of the policy will be considered an authentic

version.

Power of the State Government

Notwithstanding anything contained in the foregoing paragraphs of this industrial and Investment

Promotion policy, the State Government by issuance of notification in the official gazette may amend

or withdraw any of the provisions and / or the schemes mentioned herein above.

By the Order of the Governor of Jharkhand

Pooja Singhal,

Industry Secretary,

Department of Industry,

Government of Jharkhand.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Annexure – I: Definitions

1. Effective date: “Effective date” means the date on which the provisions of this Policy come

into force i.e. 01.04.2021. This Policy will remain in force for 5 years up to 31.03.2026.

2. Classification of Units

3. MSME Units: The classification of the MSMEs have been done by the Union Government of

India. As per the revised classification that came into effect on 1 July 2020, the criteria for

the manufacturing and services oriented enterprises are as follows:

a) Micro Enterprise: The investment in Plant and Machinery or Equipment is capped at

one crore rupees and the annual turnover is maximum five crore rupees.

b) Small Enterprise:The investment in Plant and Machinery or Equipment is capped at

ten crore rupees and the annual turnover is maximum fifty crore rupees.

c) Medium Enterprise:The investment in Plant and Machinery or Equipment is capped

at fifty crore rupees and the annual turnover is maximum two hundred and fifty crore

rupees.

Large Scale Industry: An industrial unit which has investment above medium scale industry as

specified by Government of India but investment lower than mega project as defined in this policy

shall be considered as largescale industry.

Mega Projects: Sector-wise Mega Project classification will be as below:

Sectors

Minimum Investment

(Rs in Crore)

Direct employment

Generation

Manufacturing

250

300

Steel, Aluminium, coal to poly generation

industries and other mineral based industries

except cement

1000

300

Cement

300

100

Ancillary and downstream industries

100

200

Agro/ Food processing, Pharmaceuticals

100

600

Textile/ reeling/ spinning/ weaving/ garmenting

projects/ Apparel

100

1000

Note:

Except above mentioned sector wise classifications, the projects in other sectors with investment limit

above Rs 250 crore shall come under mega project classification.

d) Ultra-Mega Projects: An industrial unit which has both, minimum investment and

direct employment generation three times of the limit fixed above for mega project shall

be considered as ultra-mega project.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

4. Industrial Unit/Industrial concern: 'Industrial unit / concern' means any unit / concern

engaged or to be engaged in manufacturing / processing / servicing industry under the

following categories:

a) Industries listed under the First Schedule of the Industries (Development and

Regulation) Act 1951 as amended from time to time

b) Industries falling within the purview of the following Boards / Agencies:

i. Small Industries Board

ii. Coir Board

iii. Silk Board

iv. All India Handloom and Handicrafts Board

v. Khadi and Village Industries Commission

vi. Any other agency constituted by the Government of India or Government of

Jharkhand for industrial development

5. Existing Industrial Unit: "Existing Industrial Unit" means an industrial unit which is in

commercial production on or before 31.03.2021.

6. New Industrial Unit: "New Industrial Unit" means an industrial unit in which commercial

production has commenced within five years from 01.04.2021. Expansion/ modernization/

diversification unit as defined in 8, 9 and 10 of this annexure shall be considered as new

industrial unit for the purpose of this policy and shall be eligible for all incentives like any

other new industrial unit.

7. Sick Unit: "Sick unit" means an industrial unit declared sick by the erstwhile Board for

Industrial and Financial Reconstruction under the Sick Industries Companies (Special

Provision) Act, 1985 (now NCLT) or by the State Apex Committee for SSI headed by the

Director of Industries or the High Level Empowered Committee headed by the Chief

Secretary for large and medium sector.

8. Expansion: Expansion means an existing unit which makes additional capital investment and

fulfils the following conditions:

a) For MSME Units, it shall be 33% or above additional investment in Plant and

Machinery of the already made investment in Plant and Machinery. For large units, it

shall be 33% or above on depreciated book value or fixed capital investments of Rs.

16.5 crore, whichever is higher. For Mega and Ultra-Mega project, it shall be 33% or

above on depreciated book value or 33% or above of fixed capital investments of the

minimum capital investment limit fixed in this policy, whichever is higher

b) An increase of at least 33% of the installed capacity

9. Modernisation: Modernisation means an existing unit which makes additional capital

investment and fulfils the following conditions:

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

a) For MSME Units, it shall be 33% or above additional investment in Plant and

Machinery of the already made investment in Plant and Machinery. For large units, it

shall be 33% or above on depreciated book value or fixed capital investments of Rs.

16.5crore, whichever is higher. For Mega and Ultra-Mega project, it shall be 33% or

above on depreciated book value or 33% or above of fixed capital investments of the

minimum capital investment limit fixed in this policy, whichever is higher

b) At least 20% improvement in the installed capacity

c) An improvement of either energy saving of at least 30% or reduction of pollution level

of at least 30% or latest technology in that sector as certified by the reputed institutions

recognized by the Government

10. Diversification: Diversification means an existing unit which makes additional capital

investment and fulfils the following conditions:

a) For MSME Units, it shall be 33% or above additional investment in Plant and

Machinery of the already made investment in Plant and Machinery. For large units, it

shall be 33% or above on depreciated book value or fixed capital investments of Rs.

16.5 crore, whichever is higher. For Mega and Ultra-Mega project, it shall be 33% or

above on depreciated book value or 33% or above of fixed capital investments of the

minimum capital investment limit fixed in this policy, whichever is higher

b) Production of at least one new product after diversification

Note Point:

1. The installed capacity as mentioned in the DoP certificate of existing project(s) undertaking

expansion/modernisation/diversification or installed capacity just before taking up this

expansion/modernisation/diversification whichever is higher shall be treated as the installed

capacity for calculating expansion/modernisation/diversification.

2. Depreciated book value at the time of taking up this expansion/ modernisation/ diversification

shall be used for calculating depreciated book value.

11. Fixed Capital Investment: The 'Fixed Capital Investment' means an investment made in

building (not applicable for Non-MSME), plant and machinery as well as productive assets

of permanent nature such as tools, jigs, fixtures, dies, crane, electrification except DG Set

and pollution control equipment.

12. Ancillary Industrial Unit: An "Ancillary Industrial Unit" is an industrial unit in which capital

investment has been made up to the limit specified by the Government of India from time

to time.

13. Renewable energy - as defined and explained by Ministry of Renewable Energy, Government

of India, from time to time.

14. NETGST- means tax payable and paid, under sub Section 50 of CGST Act, 2017.

15. “JIADA” means Jharkhand Industrial Area Development Authority established under

Jharkhand Industrial Areas Development Authority Act 2001.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

16. “Industrial Park” means an industrial estate which is developed for establishment of

industrial units to manufacture any goods or service and having basic industrial

infrastructures like developed plot, internal roads, water distribution facilities, sewage

collection and treatment, power distribution, communication faculties and such other

facilities as may be required.

17. “Master Plan Committee” means Master Plan Committee headed by Managing Director of

JIADA, and Chief Engineer of JIIDCO as members.

18. “Private Institution” means any Industry Association, Chamber of Commerce or Federation

registered under Societies Act, Trust Act, partnership Act or Companies Act will be treated

as a private institution.

19. “Public Institution” means Industrial Area Development Authority established under

Jharkhand Industrial Areas Development Authority Act 2001, Public Sector undertakings of

Jharkhand Government, Urban Local Bodies, or Zila Parishad.

20. “Sector Specific Industrial Park” means industrial parks envisaged for specific sectors like

a) Apparel Fiber and Textile Park

b) IT Park / Software Technology Park

c) Gems and Jewellery Park

d) Bio-tech and Herbs Park

e) Chemical and Pharmaceutical Park

f) Food Park

g) Automobile Vendor-Ancillary Industries Park

h) Any other specific sectors e.g. Ceramic Park, Plastic Park, Knowledge Park, Film City,

etc.

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Annexure – II: List of Industries Ineligible for Fiscal Incentives

The following industries are ineligible for fiscal incentives under this policy. However, they are eligible

for other facilitations as provided under this policy.

1. Saw mills and wood sawing

2. Drilling Rigs, Bore Well, Tube Well Establishing Units, Concrete Mixing Plants, Road Metal

Mixer, Readymade Concrete Mixture and similar facilities mobile in nature

3. Units Connected with Cutting of Raw Tobacco and Gul Related Products and Guraku

4. Stenciling Units / Processing of Stencil Papers

5. Tailoring (Except Readymade Garment Manufacturing Units)

6. Laundry/Dry Cleaning

7. Photography, Studio Labs, Video Parlours, Videography, Cinematography, Theatres, Photo

studios, colour film laboratories, Video, Audio Cassette Recording and Watch Repairing

8. Beauty Parlours

9. Goods and passenger carriers

10. Guest Houses / Restaurants

11. Petrol Pumps

12. Narcotic Drugs, Tobacco barons / tobacco re-drying / processing, Beedi / Cigarette

Manufacturing and other tobacco based products

13. Tyre re-treading

14. Mines and Mining Activity including development of Mines etc.

15. Hard/ Soft Coke units

16. Vehicle or any consumer product show rooms, service / repairing centre or sales centre

17. Brick making units except refractory bricks making, bricks making with use of fly ash / red mud

or similar other industrial waste

18. Any petroleum product storages

19. Banned items by State Government or Government of India from time to time will also come

under this list

Note:

1. Government reserves the right to make any changes in the above negative list

2. The decision of Government whether a unit falls in the Negative list or not, shall be final and

binding

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

Annexure – III: Abbreviations

ADB

Asian Development Bank

AHD

Animal Husbandry Department

AMG

Annual Maintenance Guarantee

APEDA

Agricultural Product Export Development Authority

APMC

Agricultural Produce Marketing Committee

ASIDE

Assistance to States for Development of Export Infrastructure and Allied

Activities

BIFR

Board for Industrial and Financial Reconstruction

BOOT

Buy, Own, Operate and Transfer

BOT

Build, Operate and Transfer

BPO

Business Process Outsourcing

CFC

Common Facility Centre

CFTRI

Central Food Technology Research Institute

CGTMSE

Credit Guarantee Fund Trust For Micro And Small Enterprises

CIMAP

Central Institute of Medicinal and Aromatic Plant

CNT

Chhotanagpur Tenancy

CPIS

Comprehensive Project Investment Subsidy

CSR

Corporate Social Responsibility

CST

Central Sales Tax

DIC

District Industries Centre

DOP

Date of Production

DPR

Detailed Project Report

DVC

Damodar Valley Corporation

Entrepreneur Memorandum

EMD

Earnest Money Deposit

EPF

Employees Provident Fund

ESI

Employees Provident Fund

FAR

Floor Area Regulation

FDI

Foreign Direct Investment

GM Land

GairMazarua Land

GM, DIC

General Manager, District Industries Centre.

GOI

Government of India

GSDP

Gross State Domestic Product

GST

Goods and Service Tax

HPC

High Powered Committee

JIADA

Jharkhand Industrial Area Development Authority

ICD

Inland Container Depot

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

IEM

Industrial Entrepreneur Memorandum

IFAD

International Fund for Agricultural Development

IHRI

Indian Horticulture Research Institute

IIUS

Integrated Infrastructure Upgradation Scheme

Information Technology

ITES

Information Technology Enabled Services.

ITI

Industrial Training Institutes.

Jharcraft

Jharkhand Silk, Textile and Handicraft Development Corporation

JHARNET

Jharkhand State Information and Communication Network.

JIIDCO

Jharkhand Industrial Infrastructure Development Corporation

JINFRA

Jharkhand Infrastructural Development Corporation

JSERC

Jharkhand State Electricity Regulator Commission

JSMDC

Jharkhand State Mineral Development Corporation

JSPCB

Jharkhand State Pollution Control Board

Joint Venture

KVIB

Khadi and Village Industries Board

KWH

Kilo Watt Hour

Managing Director

MNREGA

Mahatma Gandhi National Rural Employment Guarantee Act

MOU

Memorandum of Understanding

MSE

Micro and Small Enterprises

MSME

Micro, Small and Medium Enterprises

Mega Watt

NABARD

National Agricultural Bank for Rural Development

NFBD

National Fishery Development Board

National Highway

NHM

National Horticulture Mission

NID

National Institute of Design

NIFT

National Institute of Fashion Technology

NIRD

National Institute of Rural Development

NOC

No Objection Certificate

NSDC

National Skill Development Corporation

NSTEDB

National Science and technology entrepreneurship Development Board.

OIFC

Overseas Indian Facilitation Centre

PESA

Panchayats Extension to Scheduled Area

PPP

Public Private Partnership

PSU

Public Sector Undertaking

R and D

Research and Development

R and R

Rehabilitation and Resettlement

RBI

Reserve Bank of India

State Agriculture University

Jharkhand Gazette (Extraordinary), Tuesday, 13^thJuly, 2021

SC / ST

Scheduled Caste / Scheduled Tribe

Security Deposit

SEAC

State Level Expert Appraisal Committee

SEB

State Electricity Board

SEIAA

State Level Environment Impact Assessment Authority

SEZ

Special Economic Zone

SFAC

Small Farmers Agri consortium

SHG

Self Help Group

SIDBI

Small Industrial Development Bank of India

SITP

Scheme for Integrated Textile Park

SLBC

State Level Banker's Committee

SLEC

State Level Empowered Committee

SLIIC

State Level Inter Institutional Committee

SPT

Santhal Pargana Tenancy

SPV

Special Purpose Vehicle

SSI

Small Scale Industry

STPI

Software Technology Park of India

STPs

Science and Technology Park

SWCC

Single Window Clearance Committee

TUFS

Technology Upgradation Fund Scheme

UAS

University of Agricultural Sciences

VAT

Value Added Tax

VGF

Viability Funding Gap

XLRI

Xavier Labour Relations Institute

---------

झारखड राजक य मुणालय

झारखड राजक य मुणालय, राँची वारा काशत एवं मुत

राँची वारा काशत एवं मुत,

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