Comparison of Facilities & Concessions to Industries in Rajasthan, Gujarat and Maharashtra

Sl. No.	States	Rajasthan	Gujarat	Maharashtra
	Year of declaration of Policy	1998	2000	2001
	F a c i l i t i e s
1.	State/Central Capital Investment Subsidy	Capital Investment Subsidy for Cold Storage: Capital Investment Subsidy for Construction / Expansion / Modernisation of Cold Storages and Storages for horticulture produce is given by National Horticulture Board to the extent of 25% of the project cost subject to a maximum of Rs. 50 lacs. The promoters contribution should be minimum 25% of the project cost and Term Loans are provided by Banks through NABARD. DG Set Subsidy: DG set subsidy will be given to those SSI units whose investment in P&M does not exceed Rs. 60 lacs @ 25 per cent of the purchase value of the DG Set subject to a maximum of Rs.2.50 lacs up to 31^st March, 2003.		State Capital Investment Subsidy New small scale industries (including information technology and bio technology units) in different parts of the State from 20 to 40% in taluka / areas C, D, D+ and No Industry Districts. The Monetary Ceilings in the districts mentioned are from 10 to 35 lacs. The subsidy will be disbursed in equal annual installments over 5 years. Existing SSI and small scale I.T. and B.T. units will be eligible for 75% of the subsidy admissible as above for expansion, diversification or modernisation involving additional investment to the extent of 25% or more. A budgetory provision of at least Rs.200 crores will be made each year from 2001-02 onwards to meet past commitments and the incentives under the new Scheme. Additional resources will also be raised through bonds linked with sales tax repayments under past Schemes.
2.	Sales Tax Incentives		Sales Tax Incentives to existing industrial units for diversification / modernisation: The State will consider extending sales-tax benefits to the existing eligible industrial units enjoying incentives approved in earlier schemes, for new products because of diversification or modernisation in their existing plant.	Exemption from Sales Tax for Khadi & Village Industries: 24 khadi and village industries are exempt from sales tax upto Rs. 20 lakhs per annum. Considering the potential of this sector fo remployment generation and rural industrialization, sales Tax will also be waived in respect of 72 remaining industries. This concession would be available to khadi and village industry units registered with and assisted by the Maharashtra State Khadi and Village Industries Board. Sales Tax on IT Products: Up to 31^st March, 2006, the Sales Tax rates on I.T. products would be maintained at the level of the minimum floor rates, whichever applicable. No turn over tax, additional Sales Tax, surcharge or any other additional levy related to Sales tax shall be applied to I.T. products.
3.	Incentives to Thrust sectors		The State Government will encourage development of specific industrial sectors like agro and food processing industries, mineral based industries, electronics and information technology, engineering ancillary industries, textile including garments, gems and jewellery, pharmaceuticals and petrochemical downstream and plastic processing industries. Assistance will be provided for creating necessary infrastructure facilities as well as research and development activities.
4.	Export Oriented Units	All those industries which are exporting 50% of their production would be granted: - Public utility status under section 2(n) of the Industrial Disputes Act, 1947. - While the Export Promotion Industrial Park at Jaipur is operational, a new EPIP is proposed at Bhiwadi. - New Inland Container Depots (ICDs) are being opened at Bhilwara and Sriganganagar. - 100% EOUs the investment of which is more than Rs. 10.00 crores are 100% exempted from power cuts. - Units set up in EPIP / Export Zone / I.T. Park are exempted from power cuts.	Export Promotion: The State will encourage export of products manufactured by industrial units in the State. Setting up of Export park, 100% EOUs, Inspection agencies for export products etc. will be encouraged. Air Cargo Complex at Ahmedabad will be strengthened and new such Complexes will be opened. Setting up of Common Facilities Centre of World Trade Centres will be encouraged.
5.	Interest Subsidy	Under this scheme an Interest Subsidy would be provided @ 2 per cent on the documented rate of interest till last date of repayment as per original repayment schedule fixed by the financial institution. This interest subsidy will be available to industrial units having investment in plant & machineries upto Rs. 60 lakhs. The scheme will remain operative till March, 2003. The industrial units regular in making repayment to the financial institutions / banks will be eligible for obtaining this incentive. An interest subsidy will be given on loan sanctioned by RIICO/RFC to approved Heritage Hotel Projects at all places in Rajasthan. Interest subsidy of 5% will be given on loans sanctioned to approved 1, 2, and 3 star hotel projects in special areas (e.g. Jaisalmer, Jodhpur, Bikaner, Barmer). In other areas / places, the interest subsidy of 3% will be given.	Interest Subsidy to SSI @ 5% for five years up to a maximum of Rs.25.00 lacs to all industrial units. Existing units carrying out expansion, diversification, will be offered interest subsidy @ of 3% per annum up to a maximum of Rs.15.00 lacs. Alternatively self financed new units will be offered subsidy @ 10% of fixed capital investment up to a maximum of Rs.10.00 lacs. Interest Subsidy to educated Unemployed in Service Sector: The service sector industries will be encouraged as part of industrial activities. An elaborate list will be published covering activities like technical consultancy, port-related activities, IT related activities, tourism activities and similar other activities. Assistance will be provided by way of interest subsidy at the rate of 5% for first 3 years upto a maximum limit of Rs. 5 lacs to educated unemployed youth for establishing service industry.	New textile, hosiery and knitwear small scale industries setting up in different parts of the State will also be eligible for Interest Subsidy on the interest actually paid to the financial institution/ bank on the term loan for creation fixed capital assets, equal to the interest payable at 5% per annum in the taluka/ area C,C,D+ and No Industry districts monetary ceiling ranging from Rs.10 to 35 lacs for the maximum period ranging from 4 to 7 years. The monetary ceiling will be applicable for the complete period of eligibility.
6.	Income Tax incentive given by Central Govt.	New Industries Exempted from Income Tax in 12 Backward districts of Rajasthan: As per decision taken by the Central Government, new industries in 12 backward districts of Rajasthan have been exempted from income tax. These 12 districts are among the 123 such backward districts in the country. Among these 12 districts, five are in category A and seven in category B (see the list below). New Industries in category "A" will get cent per cent exemption for the first five assessment years; and for the next five assessment years, 25 per cent exemption. It will be 30 per cent in the case of companies. While the new industries in Category "B" districts will get a cent per cent exemption for three assessment years; and for the next five assessment years 25 per cent exemption; but 30 per cent in case of companies: Category “A” : Jalore, Barmer, Jaisalmer, Churu and Banswara Category “B” : Dungarpur, Dholpur, Sawaimadhopur, Tonk, Nagaur, Jhalawar and Sikar.
7.	Octroi/Entry Tax	Total Octroi Exemption: Octroi has been abolished in the State from 1 August, 1998.		Octroi Refund: The scheme of refund of octroi provided under the Package Scheme of Incentives, 1993 will be included in the new scheme up to 31.3.2006 on the same pattern. Where account based cess or other levy is charged instead of or in lieu of octroi, such charge will also be eligible for refund as in the case of octroi.
8.	Power concessions	Exemption from Power Cut: - New Industrial units having connected load not more than 300 KVA are exempted from power cut to the extent feasible. - 100% EOUs the investment of which is more than Rs. 10.00 crores are 100% exempted from power cuts. - Units set up in EPIP / Export Zone / I.T. Park are exempted from power cuts.		Exemption from Electricity Duty: New Industries established in C,D,D+ and No Industry districts will be exempted from electricity duty for five years. In other parts of the State 100% EOUs I.T. and B.T. units and industries setting up in Special Economic Zone (SEZs), and Electronic Hardware Technology Parks will be exempted from payment of Electricity Duty for a period of 10 years.
9.	Captive Power			Captive Power Generation: Captive power generation is permitted for industries throughout the State in respect of IT units, and in the case of co-generation, hydro-electric power and non-conventional energy. Other types of captive power generation are at p4esent permitted in respect of new industries in D and D+ areas and No Industry District will also be permitted to set up captive power plants. Public bodies or joint ventures promoted by them can establish Independent Power Producers for the dedicated provision of power to IT and BT Parks and Special Economic Zones promoted by them.
10.	Incentives to NRI/ FDI Investment	Foreign Direct and NRI Investments will continue to be welcomed in high technology areas and infrastructure. Provision of following special incentives have been made in Industrial Policy, 1998: 1. Priority in allotment of residential houses in new schemes to NRIs by Rajasthan Housing Board, Jaipur Development Authority and Urban Improvement Trusts, in case they set up industrial projects in the State. 2. Priority for land allotment in industrial areas. 3. For every FDI/NRI project, a Nodal Officer in Bureau of Industrial Promotion is made responsible to ensure speedy approvals and provide escort service.	Foreign Direct Investment (FDI) The State Government will introduce specific programmes to promote Foreign Direct Investment (FDI) including NRI investment.
11.	Sp. Incentive for Large/ Mega/ Projects/ Pioneer Projects.	A rebate of 10% in case of allotment of plots measuring 10,000 sqm. shall be given. If allotment of plot made is more than 10,000 sqm, then, additional rebate of 0.5% per 1,000 sqm shall be given. Maximum rebate shall be 25% if the allottee opts for a plot of 40,000 sqm or above. If the allottee of the plot measuring 40,000 sqm or more envisages an investment of Rs. 50 crores or more, then, additional rebate of 10% over and above 25% mentioned above, shall be given. For setting up Power Projects the limit of investment mentioned above would be Rs. 25 crores instead of Rs. 50 crores.
12.	Stamp Duty	1. Stamp duty of 1% on customs bond has been reduced from a maximum of Rs.25,000 to a maximum of Rs.1,000. Stamp Duty on transfer of partnership rights has also been reduced and rationalised. 2. Sale and transfer of sick units / assets of taken over units by RIICO/ RFC would continue to be exempted from stamp duty.		Stamp Duty on Corporate Restructuring: The stamp duty for demerger of companies as defined under section 2( 19-AA) of Income Tax Act 1961 will be made applicable on lines of the stamp duty structure applicable for amalgamation of companies under every order made by the High Court under section 394 of the Companies Act, 1956. Waiver of Stamp Duty and Registration Fees: At present, IT units in public IT parks are exempted from Stamp Duty and deregistration fees upto 31^st March, 2006. Now all the new industrial units ( including IT and BT units) and expansions, will be exempted from payment of Stamp Duty and deregistration fees up to 31^st March, 2006 in C,D and D+ areas and No Industry Districts. However, 50% of the Stamp Duty and Registration fees will be waived for IT units set up in other IT Parks in talukas / areas in the State in "A" and "B" Categories.
13.	Land and Building Tax	Industries with investment upto Rs.25 lacs in land and building would be exempted from Land & Building Tax. For a project located in any of the RIICO’s Industrial Areas, the value of land would be determined on the basis of the rates fixed by RIICO from time to time. In the budget for the year 2001-2001 for new industrial units exemption in building tax has been increased for the investment of Rs. 20.00 lacs to 25.00 lacs and similarly old industrial units the limit of exemption has been increased for the investment of Rs. 5.00 lacs to 10.00 lacs. It is also proposed that those new industrial land units established upto 31.3.2003 would be fully exempted from land and building tax for a period of 5 years. The sick units, taken up for revival would be exempted from the Land and Building tax during the period of sickness. This tax will be charged only once in a year, irrespective of more than one transfer.
14.	Incentives for Sick units	The sick units, taken up for revival would be exempted from the Land and Building tax during the period of sickness. This tax will be charged only once in a year, irrespective of more than one transfer.	Rehabilitation of Sick Industrial Units : The State Government has introduced Gujarat Board for Industrial Finance and Reconstruction (GBIFR) in 1988 to rehabilitate potentially viable small scale industrial units. The State Govt. has liberalised the existing provisions in order to make the scheme more effective and provide timely assistance for rehabilitation of viable small scale units. Assistance for medium and large units will be considered in consultation with financial institutions to prevent them becoming sick.	Sick SSI units: Issues relating to the rehabilitation of sick SSI units are reviewed in the State level Inter Institutional Committee and Sub Committee of Reserve bank of indfia and in the District Level Committee which have been set up as an adjunct of the Zilla Udyog Mitra. Sick SSI units taken up for nursing by the banks and financial institutions are at present eligible for reschedulement of arrears of Government and electricity dues to be repaid in 36 monthly installments at 13% interest. The interest rate on the rescheduled arrears will now be reduced to 10%, in all except "A" areas of the State. The repayment of such arrears would be allowed in 60 monthly installments.
15.	Marketing Support/ Price Preference		Market Promotion: Market promotion activities like Buyer Seller Meets, Trade Fair etc. will be encouraged. Common purchase policy will be introduced for purchase of items manufactured by small scale units of the State. A booklet incorporating items required by State Government Corporations/ Boards and large companies will be published for the benefit of small scale industries.
16.	Incentives for ISO/Quality certification	Incentive for ISO-9000 Certification The small scale and ancillary units will get an incentive on ISO-9000 certification as per the scheme introduced by the Government of India. This scheme provides for re-imbursement of charges for acquiring ISO-9000 (or its equivalent) certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in such case. The scheme will remain in operation upto 31^st March, 2002. Incentive Scheme for Quality certification: The SSI as well as Large & Medium Industry will get an incentive worth Rs.10,000 & 21,000 respectively for obtaining ISI & ISO-9000/ BIS 14000 registration certificate. This scheme will remain effective upto 31^st March, 2002.	Assistance will be provided to industrial units obtaining quality certification from approved institutions, research laboratories, @ 50% of the expenditure up to a maximum of Rs. 2.00 lacs.
17.	Land Conversion	Land Conversion Simplified: Entrepreneurs have been facing difficulties in security conversion of land from agricultural to industrial. To resolve this problem, provision has been made for automatic conversion of land in rural areas upto 5 hectares. If nothing has been heard within 30 days of filing the application complete in all respects from Authority competent for land conversion the land shall be deemed to have been converted and concerned G.M., DIC, shall issue a certificate to this effect. Accordingly Tehsildar/ Gram Panchayats shall make necessary entries in the land record within 7 days.		Establishment of IT/BT units on textile mill lands in greater Mumbai: While granting permission for the sale of textile mill lands in greater Mumbai, the lands becoming available to the Maharashtra housing and Area Development Authority (MHADA) for residential use would also be permitted to be used for the development of IT and BT industries by MHADS itself or by MIDC.
18.	Special Incentives for Automobile Industry	Special Package for Auto Units: The auto units having investment of at least of Rs. 10 crores and which provide regular employment to at least 200 persons are: - Granted public utility status under Section 2 (a) of the Industrial Disputes Act. - Land at concessional rate can be considered by RIICO for grass root car project. A customised package will also be considered for premier units with a minimum investment of Rs. 150 crores and regular employment of 500 persons.		-
19.	Special Incentives for Selected Areas		Cluster Approach: The State Govt. intends to strengthen the industrial clusters at different locations with involvement of Industries Associations of the area and R & D Institutions. Assistance will be provided for establishing common facilities covering quality improvement, technology upgradation, market promotion and technical skill. Financial assistance up to Rs. 5 crores will be considered per cluster.
20.	Special Incentives for Selected Indusries	Hospitals and Nursing Homes The setting up of hospitals/nursing homes will get a fillip up since allotment of them in industrial areas would be done as follows : 1) In slow moving and dormant industrial areas allotment would be done at industrial rates. 2) In normal areas at 1.5 times of industrial rates, and 3) In saturated areas the allotment would be done by open auction. Conversion of industrial plots would also be permitted for setting up of nursing homes and hospitals on payment of conversion charges as following : 1) Slow and dormant areas - no charges 2) Normal industrial areas - 0.5 time 3) Saturated areas – one time of industrial rates. 2. Special scheme for Hotels/ Amusement Parks/ Cinemas: 5 year - 100% exemption from entertainment tax for amusement parks, water parks, etc. established till 31.3.2002. New Cinema Halls established upto 31^st March, 2002 exempted from entertainment tax for 5 years.		I.T. Industry: Twice the admissible Floor Space Index (FSI) is allowed for certain types of I.T. units setting up in IT Parks promoted by public bodies. Such units are also permitted in No Development Zones of cities up to FSI of 0.2. Such IT units will now be permitted to establish in No Development Zones with an enhanced FSI of 1.0. Film Industry: The film industry has an important position in the economic and social life of Maharashtra and Mumbai is the entertainment capital of the country. The Central Government has accorded industry status to the film sector. Keeping in view the potential for further development and employment generation in this sector, Minister (Industries) will have deliberations with representatives of the film industry for possible asistance from the State Govt. Non Conventional Energy: In order to give in impetus to the development of non-conventional energy, such projects will be eligible for benefits under the new package scheme of incentives.
21.	Incentives for purchase of testing equipment/ pollution control	Pollution: The Pollution Control Board has reviewed the existing list of Small Scale Industries which are exempted from the requirement of securing NOCs/ consents. The list has now been enlarged to include 150, instead of earlier 115 industries. Details of such industries are available with RIICO.	Environment Protection Pollution control and environment protection has been accorded priority. A scheme has been introduced for assistance in the form of cash subsidy to Common Effluent Treatment Plant, disposal of treated effluents, development of sites for solid waste disposal, clean production centre, etc. at the rate 25% of the investment made. A new scheme of interest subsidy is introduced for providing assistance of industrial units undertaking environment protection measures. Procedures for environment clearances will be simplified.
22.	Incentives for R&D		Assistance for Patent registration: A facilitation Cell will be opened to assist entrepreneurs for Patent and Intellectual Property Right (IPR) provisions. The industries as well as R & D institutions will be encouraged for filling patent on their research. Assistance will be provided at the rate of 50% of expenses in this regard up to a maximum of Rs. 5 lakhs. Technology Upgradation: The State Government has accorded high priority for upgradation of technology and modernisation by industrial units. The Research & Development Institutions set up in the State will be strengthen3d and will be encouraged for taking technology upgradation programme in specific industrial clusters. Encouragement will be given toget accreditation with International Quality Testing Agencies in order to make them internationally reputed. Innovations from small enterprises and individuals will be encouraged. The institutions set up in this regard will be supported. The Technology Cell (TBIIP) set up in INDEXTb with the help of UNIDO will be strengthened. Training Institutes in Hi-tech areas The State will promote training institutions in international repute to be set up by large industrial houses in the areas like Information Technology, biotechnology, marine engineering etc.	Promotion of education and Research Institutions: Educational and research institutions of international or national standard, including world-class business education institutions, would be provided land in industrial areas/ estates at nominal or concessional rates.
23.	Special incentives in Backward areas		Infrastructure assistance to Medium & Large Industries: A scheme will be introduced to provide assistance to meet partly the cost of infrastructure like land, power connection, water facilities, environment protection, construction of approach roads, etc. to medium and large industrial projects coming up in the state in rural areas. The assistance will be considered at the rate of 25% of the infrastructure cost up to a maximum of Rs. 100 lakhs. The financial assistance will be enhanced upto Rs. 250 lakhs in case of linkage facilities extending to rural areas. The medium and large industries will also be offered incentives for obtaining quality certification. Backward Area development : The State Government intends to introduce new strategy for backward area development . Detailed studies will be carried out on each of the identified industrially backward talukas. A specific industrial development programme will be planned. Besides, industrial units coming up in identified backward talukas will get additional incentives at the rate of 25% under all the schemes.
24.	Incentives in Growth Centres	Package for Inventives for Projects set up at Growth Centres: There are five growth centres: Abu Road, Dholpur, Khara (Bikaner), Hamirgarh(Bhilwara) and Jhlawar The following package of incentives has been evolved for units being set up in these industrial areas: 1. Interest rebate on land allotment: The present rate of interest for allotment of land on deferred payment basis is 15% p.a. A rebate of 3% in rete of interest for timely payment of instalments of development charges is allowed. The effective rate of interest for timely payments would then be 12% p.a. for these projects. 2. Production Incentives: Production incentive to units located in the growth centre, Abu Road, Dholpur, Jhalawar, Hamigrarh (Bhilwara) and Khara (Bikaner) (except for the plots allotted on reduced rate of Rs. 75 per sqm. On or after 19.7.2000 will be given @ 20%, 15% and 10% in the rate of development charges for coming into commercial production; within a period of 12 months, 18 months and 24 months respectively from the date of allotment. 3. Additional charges for plots facing Highway: There are additional charges for plots facing Highway in all industrial areas. There will be an exemption in payment of these additional charges in growth centres.