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Industrial Policy to promote investment for bangaru Telangana
Highlights
Telangana State’s Industrial Policy lays out the framework on how industrial activity will be promoted in the State. Each policy statement will be followed up by Government Orders that will convert the framework into action. The process of expeditious clearance of applications and the incentives the State provides to the MSME sector are the foundation actions for the Industrial Policy.
Telangana State’s Industrial Policy lays out the framework on how industrial activity will be promoted in the State. Each policy statement will be followed up by Government Orders that will convert the framework into action. The process of expeditious clearance of applications and the incentives the State provides to the MSME sector are the foundation actions for the Industrial Policy.
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The TS-IPASS (Telangana State Industrial Project Approval and Self-certification System), which goes well beyond conventional single window systems, will be the anchor to the Industrial Policy of Telangana State.
To help the MSME sector, the T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) and T-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) Incentive Policies are being released along with the Industrial Policy.
In this direction, Telangana State has created Land Bank, to provide land and other incentives to the entrepreneurs/firms, who invest in the State.
Industrial Land Bank
• An extent of 150,000 acres of Government land has been transferred and is now vested with Telangana State Industrial Investment Corporation (TSIIC).
• This land is ready to be occupied for industrial purposes.
• This will help save crucial time for industries and is an investment friendly initiative.
• In addition, TSIIC also has 150 ready to occupy Industrial Parks.
• Some of the industrial parks will also permit multi-sectoral activities and general manufacturing units.
• Infrastructure Development
• The development of industrial and related infrastructure developed by the Telangana State Industrial Infrastructure Corporation (TSIIC).
• The financial base of the TSIIC will be strengthened and it will be made to function as an effective organization.
• An extent of 150,000 acres in the State identified as fit for industrial use has been transferred to the TSIIC.
• This land asset base will be leveraged to raise finances from the market so that the TSIIC can become independent of Government over a period of time as far as budgetary support is concerned.
• The TSIIC will develop all required infrastructure for the sector specific parks like approach roads, water supply, industrial power, and common effluent treatment facilities.
• TSIIC will raise market loans with Government guarantee and also get initial minimal budgetary support for the creation of the infrastructure in these new industrial parks.
• It will be ensured that at the time of allotment to industries, all infrastructural facilities are available in the industrial park, and the investor can begin the construction of his unit right from the first day.
Connectivity
• Approach roads of suitable dimensions, in accord with the nature of industrial activity likely to happen within the park, will be developed to provide connectivity to the nearest national/state highway, railway station and airport. Based on requirement, provision of a railway siding will also be considered.
Industrial Water
• To support industrialization, the Government of Telangana has earmarked 10% of water from all existing and new irrigation sources for industrial use.
• Water pipelines will be laid as a part of infrastructure creation for each industrial park by TSIIC.
• The TSIIC will coordinate with the appropriate department that is responsible for the creation of the Telangana Water Grid so that industrial water for local MSMEs is made available through the Grid.
Industrial Power
• Telangana recognizes that quality power and uninterrupted power supply are keys to the growth of the industrial sector.
• The State is self-sufficient so far as availability of 24 X 7 power for industries is concerned.
• Uninterrupted power supply will be arranged for each industrial park.
• Telangana State encourages usage of non-conventional energy for industrial purposes.
• Both the user industry and the non-conventional energy suppliers will be provided appropriate incentives to encourage investments in non-conventional energy projects, especially solar power.
• A dedicated Solar Policy is already in place.
Common effluent treatment Plant (CETP)
• Every industrial park will be provided with a common effluent treatment plant, depending on the nature of effluents expected from the specified industrial activity.
• State encourages development of CETP through a Joint Venture / PPP model, since it is possible to operate and maintain a CETP on commercial lines.
Internal Infrastructure
• On similar lines, the entire internal infrastructure within an industrial park, comprising of internal roads, water distribution lines, drains, waste disposal facilities, etc., will be developed by the TSIIC before the lands are allotted to the respective industrial units.
Statutory Clearances For This Industrial Parks
• TSIIC obtain all basic statutory clearances for these Industrial Parks from the appropriate authorities like Land Conversion, Land Use, Layout Approval and Environmental Clearance from Ministry of Environment & Forests, Government of India, so that the industrial units need not obtain individual clearances.
Land allotment Process
• Details of all land parcels that form part of the industrial land bank of the State have been made available on the website of TSIIC and the Department of Industries and Commerce.
• All required information like distance of the Industrial Park from the nearest highway/railway station/airport/town, size of individual plots, photographs of the lands, Google maps, etc. will be displayed.
• Three empowered bodies will manage the land allotment process in a transparent and objective manner.
• The State Industrial Promotion Committee (SIPC) headed by the Chief Secretary and including Special Chief Secretaries/Principal Secretaries/Secretaries from related linear departments will finalize land allotment for Mega Projects.
• A State Level Allotment Committee (SLAC) headed by Managing Director, TSIIC will clear allotments for other Large Projects.
• All cases of Micro and SME applicants will be handled by the District Industrial Promotion Committee (DIPC) headed by the respective District Collector. The Joint Collector will be the Vice-Chairman of the DIPC.
• The process of application has been simplified and made web-enabled.
• All documents required for making application are available on the website.
• An Online Application System will be followed, including the facility to upload all documents online.
• Facility will be available to the applicant to seek any clarification online.
• A mechanism is put in place to realistically assess the actual requirement of land by each applicant.
• Empanelled technical experts will scrutinize the Detailed Project Report, and based on standard norms for each line of activity, will recommend the actual extent that can be allotted to the applicant.
• The recommendations of the technical experts will be used by the Committees for finalizing land allotment to the applicant.
• While making the allotment, the applicant will be required to submit a detailed implementation plan with clear milestones and timelines.
• The allottee will be held strictly accountable for the progress of his project as per the implementation plan.
• In case of any wilful default, the allotment will be cancelled and the land resumed.
• Once the allotment is finalized by the relevant committee, the applicant will be required to enter into an ‘Agreement to Sale’ with the TSIIC.
• This will allow him to raise financing by mortgaging the land for project development.
• The title over the land will be conferred through a ‘Sale Deed’ only when the project is completed and commercial production has started.
• During the construction and project development stage, the original promoter will not be permitted to dilute his equity beyond 51% in the project.
• ‘Agreement to Sale’ will be cancelled in case any wilful default as mentioned above is observed.
• Other than the outright sale method of land allotment, allotment of land on long-term lease to the SMEs will also be considered, particularly when no costs have been incurred by the TSIIC in land procurement.
Common facility centres and utility centres
• Every Industrial Park will have some number of plots earmarked for Common Facilities like Electricity Sub-stations, Police Outposts, Fire Stations, e-Seva Centres, Banks, Petrol Stations, Canteens, local shopping, etc.
• These will be allotted to concerned government agencies or private parties in an objective and transparent manner by following defined criterion.
• State encourages setting up of Utility Centres with the involvement of the Private Sector.
• These Utility Centres will provide dedicated power, water, steam, waste management facilities and other industrial inputs to designated industrial parks or a specific group of such parks.
• There will be direct and independent contracts between the Utility Centre Company and the individual industries in the designated Industrial Parks.
Land Pricing
• A Price Fixation Committee (PFC) constituted within TSIIC will determine the prices of all the land parcels in different Industrial Parks by following an objective criterion.
• The final price will be the aggregate of the prevailing land price in that area as ascertained from the Registration records, the cost incurred in land development and infrastructure creation, and a nominal administrative charge.
• The land prices will also be displayed on the website, along with other information.
• The land price will have validity for a specified time period, and will get revised periodically.
• A separate pricing mechanism will be followed for the plots earmarked for Common Facilities.
• Land for location of industry will be available on outright purchase/sale or on a lease basis.
Land Acquistion for industries
• In case none of the land parcels available in the industrial land bank of the government are found suitable and prefers a privately owned land by applicant, TSIIC to acquire it on his behalf by following the provisions of the prevailing Land Acquisition Act.
Industrial development on private lands
• Industry will be encouraged in private lands designated for industrial use in spatial planning of HMDA and other urban development authorities in Telangana.
• Private industrial park developers will be encouraged to pool their lands so that good quality infrastructure
• In case an industry has to be set up in private lands other than land which is zoned as industrial, the State will do its best to change the land use pattern.
Industrial Townships
• Specific industrial parks are being developed along with provision for mini-industrial townships.
• The townships will contain executive housing, workers housing, social infrastructure and other amenities.
• Township development in partnership with established industry groups and also other reputed real estate companies.
• Vicinity of industrial parks, land segments will be zoned as Residential, to enable the private sector to develop housing for the industrial employees.
• Separate norms and incentives for the township development will be released as a part of the State’s urban development policy.
Industrial area local authority
• Hassle-free environment is being provided for the industrial units, the concept of Industrial Area Local Authority (IALA) will be strengthened.
• All existing TSIIC Industrial Parks which do not have an IALA will adopt the IALA system.
• This will enable industries to get faster clearances required for starting of construction since the IALA will take advance clearances.
• The IALA will play an important role in monitoring the compliance of the Industry with self-certified local and national Laws and Acts.
Industrial incentives
The Telangana State Government is committed to encourage the process of industrialization by making various kinds of incentives available to entrepreneurs.
• Stamp duty reimbursement
• Land cost rebate
• Land conversion cost
• Power cost reimbursement
• Investment subsidy
• VAT reimbursement
• Interest subsidy
• Seed capital for 1st generation entrepreneur
• Training and skill development cost reimbursement
• Quality/patent support
• Clean production measures
• Reimbursement of infrastructure Development costs.
Rationalization of taxes
• A sound industrial policy has to ensure that the State’s Taxation Structure is conducive to Industrial Growth and the State’s Financial Resource Augmentation.
• Distortions in the tax structure leads to evasion of taxes and clandestine transport of industrial inputs and outputs to neighbouring states, which may have advantageous tax rates.
• To address this problem, inter-state tax rationalization on
Industrial inputs and outputs with neighbouring states like Karnataka, Maharashtra, Gujarat and Tamil Nadu will be brought out within a short span of time.
Review of all laws impacting industry
• The State review the laws and rules on its books and either remove or completely revise archaic laws that are within the competence of the Telangana State Government.
Central Government Incentives
• 100% central excise benefit for 5 (or more) years.
• 100% income tax benefit for 5 years; 30% for the next 5 years.
• Other investment subsidy benefits.
• The government will pass on these benefits to the entrepreneurs once they get notified by the Government of India.
* Stay tune on Industrial Corridors and Industrial Development in Telangana Tommorrow
G.Rajendera Kumar
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