State Level Best Practices for
Investment Promotion
 At present, 10 state-level best
practices are being studied by
DIPP
 These best practices will be
carefully documented for
nationwide replication
 Sources used for identifying
these practices include:
 NIUA Study (2008)
 World Bank ‘Doing
Business’ report (2009)
 Surveys by CII
 Presentations made by
states
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Breakup of 10 Best Practices
Construction Permits
Property Registration
Paying Taxes
State-level Single Windows
Planned Industrial Development
Identified Best Practices
Land Acquisition Package,
Haryana
Standardization of
Property Documents,
Rajasthan
SIR Ordinance,
Gujarat
Water & Sewerage connection and
Occupancy Permit, Greater Noida
E Stamping, New Delhi
Single Window System for
Industries, Orissa
GIS System, Bhubaneshwar
Development Authority
Registering, filing & payment of
state V.A.T and CARD, Andhra
Pradesh
List of Best Practices
Procedure
Best Practices
Key Feature
‘GIS System’ of BDA
(Orissa)
Comprehensive development
plan for the town was
integrated with Remote
Sensing maps to prepare upto-date land use map
2. Water & Sewerage
Connection
Greater NOIDA (UP)
Provision of water connection
with all civil works is done
before giving possession to
allottee
3. Occupancy Permit
‘Architect on Record’ of
Greater NOIDA (UP)
Approvals given on certification
by Registered Architects
4. Registration, Filling and
Payment of State V.A.T
Andhra Pradesh
Simplicity in Registration,
electronic filing of return &
payment of taxes
5. Encumbrance & Title
Verification
CARD of Andhra
Pradesh
Search of Title, Property
Registration & Valuation are
done electronically
1. Issue of Construction
Permits by Area
Development Authority.
List of Best Practices
Procedure
6. E-Stamping
7. Standardization of
Property Documents
8. Land Acquisition
Package
9. Single Window System
for Industries
10. SIR Ordinance
Best Practice
Key Feature
Delhi
Secured electronic payment of
stamp duty
Rajasthan
Ease of preparing property
documents due to
standardization of property
documents
Haryana
The land owners will be paid
annuity for 33 years over &
above the usual land
compensation
Orissa
Submission of composite
application and single nodal
point of contact
Gujarat
To facilitate development of
economic hubs as per global
standards
Best Practices Relating to
Construction Permits
Geographic Information
System (GIS) - BDA
• GIS was developed by BDA for capturing,
managing & analyzing geographical
information such as types of land, census
tracts, sites, roads, buildings etc.
• Comprehensive development plan for the
town was integrated with Remote Sensing
maps to prepare up-to-date land use map
• Digitalization of BDA Development plans
using GIS system first implemented in
1999 and subsequently updated
constantly
Geographic Information System
(GIS) - BDA
Key Benefits to Public
• It is fastest to obtain land use permission (1 day) in
Bhubaneshwar

In India on an average it takes 16 days to obtain land use
permission

In Bhubaneshwar, it used to take 50 days to obtain land use
permission
Key Benefits to Government
• Helps State Revenue Authority to know the up to date
status of land utilization
• Effective development control and reduction in
unauthorized constructions
GIS System - Bhubaneshwar
Development Authority
Legal & Administrative Changes
 The Orissa Development Authorities Act, 1982 was revised to give legal status to the GIS
system
 Land use information cell was established to provide information related to land use and
building byelaws to the public
 Proper training was provided to staff to use new computerized system
Technology
 Maps were digitalized using ARCINFO and ARC VIEW software
Financial Implications
 Project was funded by BDA internal funds
 Recovery of cost planned through user fees (i.e. 100 Rs/ User)
Water & Sewerage Connection GNIDA
Key Features
•
Provision of water & sewerage connection with all civil works are done before giving possession to
allottee.
•
Design / Specification / Modules for water & sewer connections institutionalised
according to land-use
and plot sizes
•
•
GNIDA using this practice since 1998-99
Layout for sectors along with detailing of Water & Sewer connections to individual plots are pre planned
Key Benefits to Public
•
It is fastest to obtain water and
sewerage
connections (7days) in Greater NOIDA

In India on an average it takes 16
days to obtain permanent water &
sewerage connection
Key Benefits to Government
•
Pre-possession of connections avoids repetitive
road cutting at later stages
Architect on Record – Greater
NOIDA (GNIDA)
Key Features
 GNIDA empowers the architects registered with the Council of Architecture (COA) for
sanction/ approval of Building Plans/ Occupancy Certificate on individual residential plots
allotted by the authority
 GNIDA using this practice since 2003
 Acknowledgement of application along with checklist to the authority deemed as
of Occupancy / Completion Certificate
Key Benefits to Government
Key Benefits to Public
•
Immediate grant of occupancy permit
approval facilitated by third party
certification
receipt
•
•
No separate staff to be engaged for
granting occupancy permit
Also no payment are required to be paid to
architect by GNIDA
Best Practices Relating to
Paying Taxes
Registration, Filing & Payment of
State VAT in AP
Key Features
•
•
•
•
Registration certificates are issued through VATis, an online software application
e-Registration application software has been developed and will be launched shortly. This
will help dealers to apply for V.A.T registration online ( Internet)
Dealers can file the return through internet and e-seva centers
Dealers can view the details of returns and the payments filed by them through the
internet using ‘Dealer ledger’ application facility
Key Benefits to Dealers
•
•
•
Registration certificate is issued within 24
hours in case of non risk dealers
Dealers are not required to pay fee and
security deposit at the time of registration
Simplicity due to electronic payment and
filing
Key Benefits to Government
•
•
There was a 20.21% growth in tax revenues
after implementation of this system.
Cost of tax collection came down significantly
Registration, Filing & Payment of
State VAT in AP
Legislative and Administrative changes
•
•
The Andhra Pradesh Value Added Tax (V.A.T) Act, 2005 came into force on 1 April 2005
The V.A.T Act in Andhra Pradesh is administered by the Commercial taxes department
(department to collect VAT and other taxes)
•
Training was provided to tax officials prior to implementation of V.A.T
Technology
•
Custom build software was developed to handle registration, filing & to accept payment of
V.A.T
Best Practices Relating to
Property Registration
Computer Aided Registration of
Deeds (CARD) - AP
Key Features
 CARD is a simplified and decentralized digital property registration system through 200
Sub- Registrars’ offices (SRO) of Andhra Pradesh
 This system simplifies and expedites the registration process, provides certificates for
non encumbrance and assists in market valuation of properties
 In 1997 CARD system was introduced in two SRO
 In 1998 CARD system was extended to about 432 SRO
 CARD was adjudged one of the ten finalists in the International Innovation awards 2000
Computer Aided Registration of
Deeds (CARD) - AP
Key Benefits to Public
• Approximately 1 day is required to register property under CARD system

Earlier it used to take approx 17 days to register property
Key Benefits to Government
19.75
•
9.76
•
3.32
% Growth (in net revenue)
1997-98
1998-99
1999-00
AP Land Registration Revenue, 1997-2000
Land revenue growth of 19.75% was
recorded in the year preceding when
CARD system was introduced
Within Six months of the launch of the
CARD project, about 80% of all land
registration transactions were carried
out electronically
Computer Aided Registration of
Deeds (CARD) - AP
Legal & Administrative Changes
 The Registration Act, 1908 (Central Act), in its application to the state of AP, was amended to facilitate
for the following:
• The process of registration of any category of documents may be completed and copying
done with the help of electronic devices like computers, scanners and CDs and copies
preserved and retrieved when required.
• Copies of documents registered and stored electronically, retrieved, printed and certified by
the sub-registrar shall be received as evidence
• The software to be used for registration shall be prescribed by the Inspector General.
 SROs were divided into 3 categories based on the number of documents registered and the revenue
derived from each office.
 One to three weeks training was organized for different categories of officers ( cost 9% of total project
cost )
Technology
 A 386 server operating with 14 terminals was set up at a cost of about $31,000 (Rs 13.3 lakh)
Financial Implications
 Initially USD US$3 million (Rs.13 crore) were spent.
E Stamping - Delhi
Key Features
 E Stamping is computer based stamping of documents where record keeping agency
maintains the database electronically instead of physical stamping of documents which
could be forged or duplicated
 Have special Security features such as optical watermark, 2D Barcode and microprint
(superfine printing of important details invisible to naked eyes)
 Delhi government introduced E-stamping since 1st Apr 2008
 Prevented circulation of Fake Stamp papers in market
E Stamping - Delhi
Key Benefits to Public
No fear of fake paper or forgery. The
certificate generated is
tamper proof
 Certificate generated has a Unique Identification Number
Key Benefits to Government
 Curbs the revenue loss in future due to fake or forged stamp
papers
 Saving on the cost of printing and handling of Stamp papers
 The new system generate the audit trail, MIS reports, verify
certificate
Standardization of Property
Documents -Rajasthan
Key Features
•
Bureau of Investment Promotion of Rajasthan introduced 34 types of standardized
property registration documents
•
•
This practice was implemented under Sarathi project which was initiated in 2003
Time for entire process of registration was brought down from 72 hours to 25 minutes
Key Benefits to Public
 Ease of preparing property documents due to standardization of property
documents
 Enables self preparation of property registration documents
Best Practices for State Level
Single Windows
Single Window Clearance Orissa
Key Features
 18 out of 20 major approvals / clearances are provided
through single nodal point by using a Combined Application
form (CAF)
 Provision for deemed approval by department/ authority, in
case the approval is not granted within the time limit specified
by GoO under Orissa Industrial (Facilitation) Rules
Single Window Clearance Orissa
Key Benefits to Government
Key Benefits to Private Firms
•
•
Time Bound Clearances – Faster
clearances

Concerned
authority
process
the
application and communicate its decision
to the nodal agency within the time limit
specified (not to exceed 30 days from set
time limit)
•
Higher industrial growth will contribute to
overall economic growth
High rate of Orissa’s Economic growth
through industrialization

The economic growth rate is up from 4
% in the 1990s to about 8.5 % over the
past five years
Single Window Clearance Orissa
Legal & Administrative Changes
 Orissa Industries Facilitation Act (OIFA) 2004 was introduced to facilitate single window industrial
clearance

Industrial promotion and Investment corporation of Orissa Ltd. (IPICOL) was designated as state level
nodal agency and high level clearance authority
 DIC was designated as District level Nodal Agency
 OIFA envisages a three-tier approval mechanism for according expeditious
projects based on the level of investment.
clearance to industrial
•
District Level Single Window Clearance Authority (for investments up to Rs. 50 crore)
•
State Level Single Window Clearance Authority (for investments more than Rs.50 crore but less
than Rs. 1,000 crore)
•
High Level Clearance Authority (for investments more than Rs. 1,000 crore)
Financial Implications
 Govt. of Orissa charge process fee within Rs.l.00 lakh to Rs.2 .00 lakh depending on
the value of the application
Single Window Clearance Orissa
Need for Single Window Clearance in Orissa
 Approximately 20 approvals are needed to set up an Industry in Orissa.
 To transform the state from a ‘lagging state’ to a rapidly developing industrial State.
Clearance
Authoritie
s
Secretarial Services
Investor
s
Consultation &
Escort Services
Project
Annual
Clearance Inspection
s
Project Appraisal
Reports
Nodal
Agency
Project
Annual
Clearance Inspection
s
Post Implementation
Facilitation
Concerned
Department
s
Source: CII telephonic discussions with Team Orissa and State Presentations
Best practices for Planned
Industrial Development
Rehabilitation & Resettlement of
Land Owners - Haryana
Rationale for This Policy
•
To facilitate private sector developers to acquire land for industrial/ commercial purpose
Key Features
 Under this the developers are liable to pay Rs.30,000/- per acre per annum with annual
increase of Rs.1,000/- per acre for a period of 33 years for the land acquired for setting up
of SEZ, technology city and park
 In case of acquisition by the State Government, the payment shall be Rs 15,000 /acre per
annum with an annual increase of Rs 500 / acre
 The allotment of Plots will be made to each co-sharer depending upon his share in the
land acquired for HUDA and HSIIDC as per scale mentioned in the entitlement
 This policy is applicable to all those lands where award of compensation was announced
on or after 5th March, 2005
Rehabilitation & Resettlement of
Land Owners - Haryana
Key Benefits to Private Developers
 State Government assists in the acquisition of land for all the joint venture projects for
development of SEZs
 The State Government also assists in acquiring left out pockets to ensure contiguity of
SEZs.
Key Benefits to Land Owners

Other source of long term sustainable income in form of fixed annuity

Provision of yearly increment

In addition to the residential plots, commercial sites, measuring 2.75 X 2.75 mtrs. will be
allotted in HUDA sectors
•
Such allotment shall be made to each co-sharer provided his share exceeds 2.5 acres, otherwise
all the co-sharers will be allotted a single site
Rehabilitation & Resettlement of
Land Owners - Haryana
Key Benefits to Government
 Facilitates land acquisition by private sector - will boost industrial infrastructure
development in Haryana
 As a result of Policy for Rehabilitation & Resettlement of land owners, many private
sector players have shown interest in the state for developing Industrial Model
Townships, Industrial Parks and Technology Cities through private initiatives as well
as in public private partnership
SIR Act 2009 - Gujarat
Why SIR Act ?
 Around 38 % of the Delhi-Mumbai
Industrial Corridor (DMIC) fall in
Gujarat
 As part of DMIC, six mega
industrial nodes (four industrial
areas and two investment
regions) have been proposed to
be set up in Gujarat
 On 6th January, 2009, the
Gujarat Government promulgated
a legal framework – The Gujarat
Special Investment Regional
Ordinance, 2009
SIR Act 2009 - Gujarat
Key Features

The Ordinance enables to establish, develop, operate and regulate the Special
Investment Regions in Gujarat

The state government is empowered to declare Investment Region or Industrial
Area and designate them as Special Investment Region (SIR) by notification

An Investment Region will be developed in an area of more than 100 sq. kms and
an Industrial area will be developed in an area of more than 50 sq. kms

The Ordinance provides for effective internal dispute settlement mechanism by
setting up a three tier system.
SIR Act 2009 - Gujarat
Key Benefits to industry/ projects
 The ordinance provides for a single
window clearance system
•
The Apex Authority- the GIDB will be the
point of contact for establishing an
economic activity, infrastructure or
amenity in the SIR
Key Benefits to Government
 It Will help government to set up world
class hubs of economic activity on the
lines of fast growing countries of the
world
Legal & Administrative Changes
 The proposed structure under SIR Ordinance will comprise of an Apex Authority

(GIDB), a Regional Development Authority (RDA) for each region, a Project

Development Agency and project specific SPVs.
 The Apex Authority and RDA will make provisions for development, operation, regulation,
management, planning and to grant permission and approval for any economic activity or
amenity to be established in the SIR