Policies of Government of Odisha Facilitation for promotion of Micro, Small & Medium Enterprises Director of Industries, Odisha, Micro, Small & Medium Enterprises Department Definition of Micro, Small & Medium Enterprises The definition of Micro, Small & Medium Enterprises is laid down by Government of India in Micro, Small & Medium Enterprises Development Act, 2006 Categories Manufacturing (Investment in Plant & Machinery) Services (Investment in Equipments) Micro Does not exceed ₹25 lakh Does not exceed ₹10 lakh Small More than ₹25 lakh but does not More than ₹10lakh but does not exceed ₹5 crore exceed ₹2 crore Medium More than ₹5 crore but does not More than ₹2 crore but does exceed ₹10 crore not exceed ₹5 crore POLICY PROVISIONS Easing of doing business involves • Appropriate policy framework • Transparency in implementation • Definite timeline for disposal Policy Frameworks Sl 1. 2. 3. 4. 5. 6. 7. Notifications / Policies Odisha Industries (Facilitation) Amendment Rules, 2015 Industrial Policy Resolution, 2015 Odisha Food Processing Policy, 2013 Micro, Small & Medium Enterprises Development Policy, 2009 Odisha Procurement Preference Policy For Micro & Small Enterprises, 2015 Odisha Youth Innovation Fund Scheme Cluster Approach Odisha Industries (Facilitation) Amendment Rules, 2015 Initiatives for implementation Online Udyami Aadhar acknowledgement replacing the earlier Entrepreneurs memorandum Strengthening of Odisha Industries (Facilitation) Rules through amendment in 2015 Coverage of services under Odisha Right to Public Service Act, 2012 Initiatives for online administration of selected incentives under Industrial Policy Resolution, 2007 & MSME Development Policy, 2009 District Level Facilitation Cell, involving representatives from Industries, made operational in Regional / District Industries Centres to guide & mentor entrepreneurs. 54 activities notified as Green Category by Forest & Environment Department for fast track clearance. Central Inspection Framework to rationalize inspection of industries Labour reforms Feature of District Level Facilitation Cell Constituted vide Industries Department Notification No. 4086 dated 23.06.2015 under the Chairmanship of General Manager, RIC / DIC with representatives from line departments & Industries Associations. Cell focuses on actualization of investment through one-stop facilitation process. Major function of the Cell include guidance & mentoring of investors; assessment the project, land and utility requirements; assistance in filing Combined Application Form & following-up on approvals from respective line Departments beyond the powers delegated to the members . Process Flow under OIFR, 2015 Investor having no land Investor having less than 25% of required land Investor having 25% or more of required land CAF Schedule I for assessment of land & utility Through DLNA DLFC CAF Schedule IA for Clearance through DLNA for recommendation Recommendation for availability of land Decision in DSWCA DLNA Concerned Authority Decision of Concerned Authority communicated to proponent 42 Clearances included within maximum 60 days. Timeline for Consent / Approval (OIFR, 2015) Sl. Department No. Energy 1. 2. Disposal of Application Time Limit (Working Days) DISCOMs Time taken from request for connection to release of connection where infrastructure is available Time taken from request for connection to release of connection where infrastructure is not available 15 30 Environment & Forests 3. Consent to establish a. ‘A’ Category after obtaining environmental clearance 60 b. ‘B’ Category after obtaining environmental clearance 45 c. ‘C’ Category 30 4. Permission under Hazardous Management) Rules Consent to Operate 5. Waste (Handling & 30 a. ‘A’ Category after obtaining environmental clearance 60 b. ‘B’ Category after obtaining environmental clearance 45 c. ‘C’ Category 30 Timeline for consent & approval Sl. Department No. Labour & ESI Disposal of Application Time Limit (Working Days) Directorate of Factories and Boilers 6. Approval of Factory Plan for Non-Hazardous factories 30 7. Approval of Factory Plan for Hazardous factories 60 8. 90 9. Approval of Factory Plan for Major Accident Hazard (MAH) factories Registration and Licensing of Factories 10. Renewal/Amendment/Transfer of factory license 30 11. Issue of duplicate license 30 12. 15 13. Inspection of Boilers & issue of provisional orders to operate boilers Approval of repair order of Boilers 14. Steam pipeline drawing approval 30 15. Registration of Boilers 30 16. Endorsement of Certificates of Boiler Operation Engineers, Boiler Attendants and Welders issued by other States Revalidation of Welders’ certificates 15 17. 60 15 15 Sl. No.Department Labour & ESI 18. Disposal of Application Timeline for consent & approval Time Limit (Working Days) Labour Commissioner Registration under Odisha Shop and Commercial Establishment Act,1956 Renewal of Registration under Odisha Shop and Commercial Establishment Act,1956 Contract Labour(R & A)Act,1970 i)Registration (one time) ii)Licence iii)Renewal (annual) Industrial Employment Standing Order Act, 1946 19. 20. 21. Housing & Urban Development 15 15 15 45 UDA/Municipalities 22. Building Plan Approval 60 23. 30 24. Issuance of Occupancy Certificate (Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs Trade License 25. Water Connection 45 26. Conversion of Land Use under master plan 60 15 Sl. No.Department Finance Disposal of Application Timeline for consent & approval Time Limit (Working Days) Commercial Taxes 27. Registration under VAT Act 3 28. Registration under CST Act 3 29. Registration for Profession Tax 3 30. Sanction of incentives under IPR 2015 30 Industries IDCO 33. Decision on Land Allotment within IDCO Estates outside BMC Area Allotment Letter after receipt of recommendation letter from Single Window Authority Execution of Lease Agreement subject to compliance of T & C of allotment Issue of Possession Certificate 34. Decision on Land Allotment within IDCO Estates within BMC Area Allotment Letter after receipt of recommendation from HLCC 30 35. Execution of Lease Agreement subject to compliance of T & C 15 36. Issue of Possession Certificate 15 31. 32. 30 15 15 Sl. No.Department Disposal of Application Timeline for consent & approval Time Limit (Working Days) MSME 37. Approval of EM-I* 1 38. Approval of EM-II* 2 39. Sanction of Interest Subsidy, Capital Investment Subsidy and VAT Reimbursement Directorate of Fire 30 No Objection Certificate 30 Conversion of land use in all other areas (except ULBs) 60 License under Drug and Cosmetics Act 30 Home 40. Revenue & Disaster Department 41. Health & Family Welfare 42. • Entrepreneur Memorandum has been discontinued by Ministry of MSME, Government of India from 18.09.2015 • On-line filing of application through e-biz portal has been enabled from 14.2.2016 by logging in to https://www.ebiz.gov.in/. INDUSTRIAL POLICY RESOLUTION, 2015 IPR-20015 contd.. Effective Date- 24. 08.2015. Eligibility- Units made 1st. Fixed Capital Investment after the Effective Date (24.08.2015) and commence Production within 3 years for MSME and 5 years for Large Industries of 1st. F C I Existing Units taking up Expansion / Modernization / Diversification Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2015 (Negative list) shall not be eligible for fiscal incentives under this policy IPR-20015 contd.. 1) “Pioneer Units” mean the first five industrial units of each Priority Sector which commence fixed capital investment and go in to production during the operative period of this IPR. 2) “Priority Sector” means–Industrial units fall within following categories: Sl. Category a. Agro and Food Processing Ancillary and Downstream Automobiles and Auto-components Manufacturing in Aviation and Maintenance Repair &Overhaul (MRO) Bio-technology Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight as base raw material b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. r. s. t. u. Gem stone cutting and polishing Handicraft, Handloom, Coir and Leather products Information technology, IT enabled service and ESDM units Petroleum, Chemicals & Petro-chemicals Pharmaceuticals Plastics and Polymers Sea food Processing Shipbuilding and construction of other floating vessels/ Ship repair Textile including Technical Textile & Apparel Tourism and Hospitality (All the units/activities specified in Para 6.11 of Odisha Tourism Policy -2013 are eligible units) Any industry other than mineral extraction and mineral based, which exports more than 50% of its total turnover, duly certified by the Director, E P & M Migrated industrial units treated as new industrial units under Priority sector Rehabilitated sick industrial unit treated at par with new industrial unit under Priority sector Industrial unit seized under the S F C Act 1951/ S A R F A E S I Act, 2002 and thereafter sold to a new entrepreneur on a sale of asset basis and treated as new industrial unit for the purpose of this IPR Non-mineral based new industrial units located in industrially Backward districts with minimum investment of five crore rupees in plant & machinery IPR-20015 contd.. IPR-20015 contd. 3. Category of Districts for Administration of Incentives Category Districts A All other districts other than Category B B Industrially Backward Districts- Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj. IPR-20015 contd.. IPR-20015 contd. 4. Land at Concessional Rate Zone A B Location Concessional Industrial Land Rate (Rs. Lakhs / Acre) Urban areas under the jurisdiction of Bhubaneswar Municipal Rs. 125 Lakhs/ Acre Corporation area. Urban areas under the jurisdiction of Development Authorities Cuttack, Rourkelaof Cuttack, Rourkela, Berhampur, Sambalpur, Paradeep, Puri, Angul and Jharsuguda Berhampur, Sambalpur, Paradeep, Puri, Angul, Jharsuguda– Municipal / NAC area C D E F Rs.60 Lakhs / Acre Rs. 30 Lakhs / Acre Other than Municipal / NAC Area Revenue Sub-Divisions of Bhubaneswar (except BMC area), Rs. 15 Lakhs / Acre Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur. Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Rs.10 Lakhs / Acre Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur, Keonjhar, Talcher Rs. 6 Lakhs / Acre. Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Jeypur, Koraput, Rayagada, Sundargarh Revenue Sub-Divisions – Anandpur, Athamalik, Baliguda, Bamanghati, Bhanjanagar, Bhawanipatna, Birmaharajpur, Bonai, Boudh, Deogarh, Dharmagarh, Gunupur, Hindol, Kamakshyanagar, Kaptipada, Kandhamala, Kendrapada, Kuchinda, Malkangiri, Nabrangpur, Nayagarh, Nilagiri, Nuapada, Padampur, Pallahara, Panchpir, Paralakhemundi, Patnagarh, Rairakhol, Sonepur, Titilgarh Rs. 6 Lakhs / Acre Rs. 2 Lakhs / Acre Rs. 3 Lakhs / Acre Rs. 1 Lakh / acre Rs. 4 Lakhs / Acre Ground Rent will be paid @ 1% of the land value 10% of the land for large projects limiting to 300 Acre shall be earmarked for ancillary & downstream industrial park IPR-20015 contd.. 5.Exemption of premium on conversion of Ag. Land for Industrial Use New Industrial units and existing industrial units taking up E / M / D, new Industrial units and existing industrial units in Priority Sector taking up Expansion / Modernization / Diversification (E / M /D) Category Quantum Time Frame Micro & Small Sector 100 % up to 5 Acres Medium Sector 75 % up to 25 Acres Large Sector 50 % up to 500 Acres Priority Sector 100% up to 100 Acres & 50% for balance area Shall apply within the period of implementation ie 3 years for New MSMEs & 5 years for New Large Industries 6. Stamp Duty Exemption No stamp duty for land allotted by the Govt to IDCO or Govt / IDCO to Private Industrial Estate Developers Transfer of land / shed by Govt, IDCO & Private Industrial Estate Developers to new industrial units and existing industrial units acquiring fresh land for E / M / D Category Micro & Small Sector Medium Sector Large Sector Priority Sector Quantum @ 75 % of Stamp duty @ 50 % of Stamp duty @ 25 % of Stamp duty @ 100% of Stamp duty Time Frame Shall apply at the time execution of required deed of Transferred to a new owner / management under the provisions of the SFC Act, 1951 or under SARFAESI Act 2002 or on the recommendation of the SLIIC. Units under proprietary /partnership firms to be converted to companies for rehabilitation on the recommendation of the SLIIC. Where reconstruction and amalgamation of Companies is sanctioned by the Court under Section 394 of the Companies Act ( Subject to conditions enunciated in IPR) Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Indl Units in favour of Banks or Financial Institutions shall be allowed 100% exemption from stamp duty. IPR-20015 contd.. 7. Interest Subsidy New MSME and non MSME Priority sector units @ 5% per annum on term loan for Five years / Seven years for Industrially Backward districts from the date of commencement of production Guarantee fee charged under CGTMSE will be reimbursed to Micro & Small Enterprises Category Quantum Micro Enterprises Small Enterprises Medium Enterprises Non-MSME Priority Sector Units Rs. 10 Lakhs Rs. 20 Lakhs Rs. 40 Lakhs Rs. 1 crore . Time Frame Shall apply within six months from end of each financial year 8. Energy Exemption of electricity duty for 5 years Category New MSMEs New units in Priority Sector Contract Demand Contract demand up to 500 KVA Contract demand up to 5 MVA New & existing industrial units setting up Captive Power Plant with non-conventional sources & bio-fuel as Green Energy Subsidy Time Frame Shall apply within 1 year from the date of Production Shall apply within 1 year from the date of Commissioning Seasonal Units such as food processing, sugar, salt and cotton ginning & pressing unit shall be allowed for temporary surrender of a part of their contract demand as per norms of OERC. One-time reimbursement of cost of Energy Audits Category Micro Enterprises Small Enterprises Medium Enterprises Quantum Rs. 1 Lakh Rs. 2 Lakhs Rs. 3 Lakhs Time Frame Shall apply within 1 year from the date implementation of Audit IPR-20015 contd.. 9. VAT Reimbursement Sl. Category Quantum Period Maximum i) New MSMEs 75% of VAT paid Five (5) years Seven (7) years ii) Time Frame Limited to 100% of Shall apply within cost of Plant & M/c six months from Limited to 200% of the end of each Financial Year cost of Plant & M/c New Industrial units 100% of VAT paid in Priority Sector iii) Existing MSME taking 75% of VAT paid on Five (5) Limited to 100% of up E / M / D increased production years additional cost of plant & M/c for E/M/D iv) Existing industrial 100% of VAT paid on Seven (7) Limited to 200% of units in Priority sector increased production years additional cost of Plant taking up E / M / D &M/c acquired for taking up E/M/ D v) New Pioneer Units 100% of VAT paid Nine (9) Limited to 200% of under each Priority years cost of Plant & M/c Sector vi) Anchor Tenant in each 100% of VAT paid Nine (9) Limited to 200% of industrial park years cost of Plant & M/c NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced 10. Entertainment Tax Category Quantum i. New Multiplex Cinema Hall of at least 3 screens with 100% of ET minimum capital investment of Rs.3.00 crores paid ii. Existing cinema hall is upgraded to a multiplex and 100% ET paid modernised with minimum investment of Rs. 1 crore Time Frame For years For years 5 Shall apply within 1 year from the date of 5 Production NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced IPR-20015 contd.. 11. Entry Tax Reimbursement Sl. Item i) Plant & New MSMEs and 100% of Entry Tax paid on Machinery Priority Sector acquisition of plant & M/c Existing industrial 100% of Entry Tax on units in MSMEs & paid Priority Sector units additional acquisition of taking up E/M/D plant & M/c New MSMEs and 100% Raw of Entry Materials Priority Sector units Tax paid Existing industrial 100% of Entry Tax units in MSMEs & paid on Priority Sector units additional raw taking up E/ M/ D materials New Pioneer Units 100% of Entry Tax under each Priority paid Sector ii) Category Quantum Period Maximum One time ─ One time ─ Time Frame Shall apply within 1 year from the date of Production Five years Five years 100% of cost of Shall apply within six Plant & M/c from 100% of cost of months additional Plant and the end of each financial year machinery Seven years 100% of cost plant & M/c of NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced IPR-20015 contd.. 12. Employment Cost Subsidy New and existing units undertaking E/M/D employing skilled and semi-skilled workers of domicile of Odisha as regular employees shall be reimbursement expenditure on contribution for ESI and EPF Sl. i. ii. iii. iv. Category of Enterprise Category of Employee Quantum Period Time Frame Shall apply within Six months from the end of each Financial Year Micro Enterprises & Small Male workers Enterprises Female workers 75% 5 years 100% 5 years Medium Enterprises 50% 3 years 100% 100% 3 years 3 years 100% 5 years Male workers Female workers Priority Sector Skilled and semi-skilled workers of domicile of Odisha –displaced for the establishment of the said Indl unit as regular employees New and existing Industrial Persons with Disabilities units undertaking E/M/D in MSME and Priority Sector NB: For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2 years 13. Patent Registration New Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification Quantum Time Frame @ 100% of the registration cost up to maximum of Rs.10 Shall apply within 1 year from the date Lakhs. obtaining Patent Registration 14. Quality Certification IPR-20015 contd.. New and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification Quantum Time Frame For quality certification & its renewal for next consecutive two Shall apply within 1 year from the date years i.e. for a period of 3 years @ 100% of the quality obtaining Quality certification / its renewal certification charges up to a total maximum limit of Rs.3 Lakhs. 15. Assistance for Technical Know-how New Industrial units in Micro, Small & Medium Enterprises and Priority sector Type Quantum Time Frame Indigenous technology 100% of cost of technical know- how up to Rs.1 Lakh Shall apply within 1 year from Imported technology. 100% of cost of technical know- how up to Rs.5 Lakhs the date of starting Production 16. Entrepreneurship Development Subsidy Budding entrepreneurs to undergo Management Development Training in reputed national level institutions Quantum 75% of course fee limited to Rs.50,000 per course Time Frame Shall apply within 30 days Management Development of completion of 17. Environmental Protection Infrastructure Subsidy MSME adopting Zero Effluent or Waste Water Discharge (ZLD) Quantum Time Frame Rs.20 Lakhs or 20% of capital cost of setting - up Effluent Shall apply within 1 year of operationalization Treatment Plant (ETP) whichever is less. of Pollution Control Equipment 18. Capital Grant to Support Quality Infrastructure Category IPR-20015 contd.. Quantum • To industrial parks / cluster parks promoted by private sector Quality infrastructure in the form of a capital Grant of 50% of the or industry association or user units in a cluster format. infrastructure cost with a ceiling of Rs.10 crore per park or cluster. • In the case of up-gradation of the existing parks / clusters for Quality infrastructure in the form of a capital grant of 50% of a similar support provided the park / estate / cluster is user- total cost with a ceiling of Rs.5 crore provided the park / estate / managed. cluster is user- managed. 19. Anchor Tenant Subsidy Lead investment by a reputed investor to promote and facilitate further investment in the designated industrial Park / Estate (first tenant industry) Quantum Time Frame 25% subsidy on cost of land Shall apply within Six months of VAT Reimbursement for additional 2 years subject to the overall limit approval under Single Window 20. Marketing Syndication OSIC / NSIC will act as Syndicate Leader for marketing of the products and services of Micro & Small Enterprises & collect service charges not exceeding 1% of sale value OSIC/ NSIC shall act as a consortium leader for Micro & Small Enterprises and organize raw material supply at reasonable rate. 21. Marketing Assistance to Industries Association Marketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion in International Trade Fairs abroad Quantum Time Frame @ 50% of total rent subject to a maximum of Rs.10 Shall apply at least 1 month before participating in the Lakhs Trade Fair IPR-20015 contd.. 22. Film Industry Sl. a) b) c) d) Category Incentive All feature films produced fully or partly in Exempted from Entertainment Tax. Odisha Producers of films who utilize the facilities of Incentives in shape of subsidy subject to the ceiling Kalinga Studio Limited, Film & Television limit and terms and conditions as may be laid down Institute of Odisha and Kalinga Prasad Colour by OFDC Processing Laboratory Soft loan assistance at a nominal rate of interest subject to maximum ceiling limit and on conditions as may be decided by OFDC to producers of films in the State. Multiplexes/ Cinema Halls shall be eligible to get allotment of government/ IDCO land at concessional industrial rate. 23. Employment Rating based Incentive (Priority Sector) Sl. Type a) Power b) c) d) Incentive Time Frame Reimbursement in Power Tariff per unit for a period of 5 years Shall apply within six months from the end of each Financial Year Training The training subsidy shall be reimbursed only once for each trainee Shall apply within six months from Subsidy either for training of newly recruited trainee or for skill up-gradation. the end of each Financial Year Land for Workers Hostels Subsidy for Plant and Machinery To units in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel, Pharmaceuticals and Plastics sectors as follows: Classification Max Capital Subsidy A1 / B1 10% of investment in Plant & M/c with a max. of Rs. 10.0 Cr A2 / B2 10% of investment in Plant & M/c with a max. of Rs. 20.0 Cr A3 / B3 10% of investment in Plant & M/c with a max. of Rs. 50.0 Cr Pioneer Units in each Priority Sector shall be eligible for extension of period of incentives for an additional two years over and above the period specified, provided the unit has been in continuous production during the normal period of incentive IPR-20015 contd.. Activities not eligible for fiscal incentives as per IPR 2015 but eligible for investment facilitation, allotment of land under normal rules at benchmark value/ market rate and recommendations to the financial institutions for term loan and working capital and to the Power Distribution Companies. Sl. 01 Name of Activity Sl Name of Activity Hullers and Rice mills with investment in plant and machinery of less than Rs.25 Lakhs for industrially backward districts and less than one crore rupees for other areas Flour mills including manufacture of besan, pulse mills and chuda mills except investment in plant & machinery of more than Rs.25 Lakhs for industrially backward districts and less than Rs. 1 Crore for other areas (excluding Roller Flour Mills) Processing of spices with investment in plant and machinery with less than Rs.10 Lakhs for industrially backward districts and less than two crore rupees for other areas Units without Spice-mark or Agmark 20 Units for physical mixing of fertilizers. 21 Brick-making units (except units making refractory bricks and those making bricks from flyash, red mud and similar industrial waste not less than 25% as base material). 22 Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than Rs. 20 Lakhs 23 Saw mill, sawing of timber. 24 Carpentry, joinery and wooden furniture making except when part of a wood based cluster of at least 20 units 25 Drilling rigs, Bore-wells and Tube-wells 06 07 Confectionary with investment in plant and machinery with less than Rs.10 Lakhs for industrially backward districts and less than two crore rupees for other areas. Oil Mills with expellers including oil processing, filtering, de-colouring, colouring, refining of edible oils and hydro-generation there-of except investment in plant & machinery of Rs.10 Lakhs in Indl. backwards areas. Preparation of sweets and savouries etc. Bread-making (excluding mechanised bakery) 26 27 08 09 Mixture, Bhujia and Chanachur preparation units Manufacture of Ice candy 28 29 10 11 12 13 Manufacture and processing of betel nuts Hatcheries, Piggeries, Rabbit or Broiler farming Standalone Sponge Iron plants Iron and Steel Processors, such as cutting of sheets, bars, angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop hammer units etc. with low value addition Cracker-making units Tyre retreading units with investment in plant and machinery of less than Rs.20 Lakhs Stone crushing units. 30 31 32 33 Units for mixing or blending / packaging of tea Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units Units for bottling of medicines Bookbinding / Rubber stamp making / Making notebooks, exercise notebooks and envelopes. Distilled water units Tailoring (other than readymade garment manufacturing units) Repacking / stitching / printing of woven sacks out of woven fabrics Pre- processing of oil seeds- decorticating, expelling, crushing, parching, and frying 02 03 a. 03.b. 04 05 14 15 16 34 35 36 Aerated water and soft drink units Bottling units or any activity in respect of IMFL or liquor of any kind Size reducing / size separating units / Grinding / mixing units with investment in plant & machinery of less than ten crore rupees except manufacturing of Cement with clinker Polythene less than 40 micron in thickness / recycling of Plastic materials 17 Coal / Coke screening, coal washing, Coal/ Coke Briquetting. 37 Thermal power plants 18 Production of firewood and charcoal 38 Repackaging units 19 Painting and spray-painting units with investment in plant and machinery of 39 Rs.20 lakhs Note:less Listthan of Industrial units indicated above may be modified by the Government from time to time ODISHA FOOD PROCESSING POLICY, 2013 OFPP, 2013 Eligible items Activity Item includes Agro and Marine processing Grading Grinding Cutting/ cubing/dicing Sorting Packing Waxing Drying Irradiation any value add activity Remarks Dehydrated packing, vacuum packing, nitrogen sachet packing, tetra packing, canning, bottling Spray drying dehydration Agricultural, horticulture and forest produce Projects in hi-tech and bio-technology based agriculture Food Processing Agro Infrastructure providers Quality assurance providers Research and Human Resource Development Processing of ready-to-eat or ready-to-cook food and manufacturing of additives Preservatives Colors and fragrant Manufactures for food products. Warehouse Cold storage Transportation food items Processing machinery producers Food testing laboratory Reefer vans/ containers Certification agencies Research & Development Product & Crop Development Institutes Human Resource Development Courses in Food Processing, Agro Management Illustrative list of eligible items: Sl OFPP, 2013 7. Items /Activities Fruit and Vegetable Processing, including grading / packing; Food grain milling / processing, using modern technology and equipment; Dairy products (including milk processing and milk based products); Processing of Poultry, eggs, meat and meat products; Fish Processing including shrimps; Bread, oilseed meals (edible), breakfast foods (such as cornflakes, oats and muesli), biscuits, confectionery (including cocoa processing and chocolate), oil expellers and refining, malt extracts, protein isolates, high protein foods, weaning food, extruded / other ready to eat food products and all other processed foods (excluding non-packed food items served in Hotels and Restaurants of all categories); Fruit based ready to serve beverages; 8. Produce of animal husbandry 9. Spices and condiments 1. 2. 3. 4. 5. 6. 10. Tissue culture laboratories, green houses, green house nurseries & seed production standards, mushroom laboratories; Illustrative list of eligible items (Continued) Sl. 11. 12. 13. 14. 15. 16 17 18. 19. OFPP, 2013 Items /Activities Floriculture; Cold Storage Enterprises; Refrigerated transport vehicles / containers (excluding second hand refurbished vehicles / container); Enterprises manufacturing food- grade packaging materials for food processing industry; Enterprises engaged in packaging, canning and bottling of processed foods; Enterprises manufacturing additives, preservatives, colours and fragrant for the processed food industry; Bio-technology and bio-informatics industries; Commodity grading and packaging industry; 20. Processing of plantation crops including tea and coffee, forest produce such as herbal, medicinal and aromatic plants, coconut based products and Arecanut / Arecanut based products; Sugar industry (excluding molassess / alcohol) 21 Cattle/ Poultry/ Prawn Feed/ Fish Feed* (*Ref: Notification no. 4365/MSME / Dt. 11.06.2015) List of ineligible items Sl OFPP, 2013 Items /Activities 1 Rice huller and seller 2 Flour mill of less than 50 TPD capacity 3 Masala making without cold process grinding 4 Bread/ Confectionery except mechanization 5 Preparation of sweet meat and salted snacks except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015) 6 Production of ice block 7 De-mineralized water and distilled water manufacturing units 8 Processing of betel nuts 9 Tea blending units 10 Units connected with raw-tobacco and gul related products Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). 11 Mixture, Bhujia and Chanachur preparation units except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015) 12 Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). Incentives Effective Date OFPP, 2013 If commenced FCI prior to 15.3.13, it must commence production during 15.3.13 to 14.3.15 If commenced FCI after 15.3.15, it must commence production within two years from date of 1st FCI. Sl. Incentive 1. Rebate on Land Quantum 25% of price of IDCO Land in Normal Area. Additional 25% for KBK & potential food clusters. Project Cost (Rs. in Cr.) 1 to 50 Above 50 to 100 Above 100 2. 3. Capital Investment Subsidy (CIS) Electricity Duty Exemption Time Frame New units Within 6 months from date of Commercial Production Existing E/D Within 6 months from date of Expansion or, Diversification Max. land to be available Ac. 5.00 Ac. 10.00 Ac.30.00 New, Expansion & Diversification cases and Top-up cases General Category 25% of project cost (excluding cost of land); Max. Rs.2.00 cr. Women, SC & ST and units in KBK 33% of project cost (excluding cost of land); Max. Rs.3.00 cr. New Enterprises Maximum 10 years from Date of Production Exiting Enterprises Maximum 10 years from date of commencement of policy. -do- -do- Incentives contd. Sl. Incentive 4. Interest Subsidy 5. 6. OFPP, 2013 Time Frame Quantum New and Top-up cases 5% p.a on working capital loan availed from public sector banks / OSFC for 1st five years from Date of Production; Max. Rs.5.00 lakhs per annum Within 6 months from the end of each financial year. Quality Certification for new and Top-up cases. Reimbursement upto 50% of cost of certification like HACCP, GMP, ISO 9000, Agmark, FPO, GLP, TQM.; Ceiling – Rs.2.00 Lakhs Within 6 months from date of obtaining certification or, 6 months from date of notification whichever is later Entry Tax Exemption On new and 2nd hand Plant & Machinery & Balancing equipment. 100% Within one month of entry of P & M and balancing Equipment On raw materials, incidental goods & packaging materials 100% for a period of 5 years from Date of Production. Within one month of entry of raw materials, incidental goods and packaging materials OFPP, 2013 Incentives contd. Sl Incentive Quantum 7. Mega Food Capital Subsidy @ Maximum – Rs. 15.00 crores As per scoring Park, Sea 20% of project or, equity participation by pattern. CIS will be Food Park front ended to be cost to SPV GoO released in 4 phases as per progress. Cost preparation DPR of of Eligibility Criteria Time Frame After preparation of DPR and before making any physical progress on the ground. In case of MFP already approved by MoFPI, GoI, the applicant Rs. 5.00 lakhs for Mega Food In-Principle approval shall apply along with a of In-Principle Park. If project report is of MoFPI, GoI is copy approval letter of GoI prepared for carbon credit – required. 50% of consultancy charges with a cap of Rs. 20.00 lakhs Max -200% of Fixed Capital New and Existing Within 6 months from Investment enterprise in the the end of each financial park shall be eligible year VAT reimbursement 100% for 10 years For Industrial • CIS: 25% with ceiling of As per other units As per other units set up units set up in Rs.2.00 cr. for General set up outside Mega outside Mega Food Park Mega Food Parks entrepreneurs in non-KBK Food Park & Sea Food park area; and @33% with a ceiling of Rs. 3.00 cr. for SC, ST, Women & for KBK districts. • Exemption of Entry Tax on P&M and balancing items • Exemption of Entry Tax on raw materials for 5 years from DOP MSME DEVELOPMENT POLICY, 2009 MSMED POLICY-2009 Contd. Effective Date- 17.02.2009. Eligibility- New MSME Units made 1st Fixed Capital Investment after the Effective Date & Commenced Production within 2 years of 1st. F C I MSME Development Policy 2009 shall be read in conjunction with IPR-2007. Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2007 shall not be eligible for fiscal incentives under this policy Activities not eligible for incentives as per IPR 2007 Sl. 01 Name of Activity Sl 27 23 Rice0 1hu Hullers and Rice mills with investment in plant and machinery of less than two crore rupees. Flour mills including manufacture of besan, pulse mills and chuda mills excluding Roller Flour Mill with investment in plant and machinery of less than one crore rupees. Making of spices with investment in plant and machinery of less than two crore rupees and without Spice-mark or Agmark and brand name, pampad excluding pampad manufactured by Cooperative Societies. Confectionary (excluding mechanized confectionary). Preparation of sweets and numkeens, etc. Bread-making (excluding mechanised bakery). Mixture, Bhujia and Chanachur preparation units. Manufacture of Ice candy and Ice fruits. Manufacture and processing of betel nuts. Hatcheries, Piggeries, Rabbit or Broiler farming. "Iron and Steel Processors" including cutting of sheets, bars, angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop hammer units etc. Cracker-making units. Tyre retreading units with investment in plant and machinery of less than ten lakh rupees. Stone crushing units. Coal / Coke screening units. Coal / Coke Briquetting. Production of firewood and charcoal. Painting and spray-painting units with investment in plant and machinery of less than ten lakh rupees. Units for physical mixing of fertilizers. Brick-making units (except units making refractory bricks and those making bricks from flyash, red mud and similar industrial waste). Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than ten lakh rupees Oil mills including oil processing, filtering, colouring, decolouring, refining, hydrogenation, scenting etc except Oil refining with / without solvent extraction facility. Saw mill, sawing of timber. 24 Carpentry, joinery and wooden furniture making. 50 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 MSMED POLICY-2009 Contd. Name of Activity 28 Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units. Units for bottling of medicines. 29 Bookbinding. 30 31 32 33 34 35 36 37 Rubber stamp making. Making notebooks, exercise notebooks and envelopes. Printing press. Photo copying. Stenciling units. Processing of Stencil paper. Distilled water units. Distillery Units. 38 39 Tailoring (other than readymade garment manufacturing units). Repacking and stitching of woven sacks out of woven fabrics. 40 41 42 43 44 Laundry / Dry cleaning. Photographic studios and laboratories. Clinical/Pathological laboratories. Beauty parlours. Video parlours. 45 46 Guest Houses / Restaurants. Goods and passenger carriers. 47 Decorticating, expelling, crushing, parching, and frying of oil seeds. 48 Fruit Juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). 49 Distillery, Bottling units or any activity in respect of IMFL or liquor of any kind. Size reducing, size separating units. MSMED POLICY-2009 Contd. Fiscal Incentives Incentives Eligibility Capital Investment Subsidy (CIS) VAT Reimbursement as in IPR-2007 Rate / period Time line for filing Application MSMEs (others) 10% of FCI up to Rs. 8 lakh MSMEs of SC / ST/ Women, Technical Degree / Diploma holder entrepreneurs MSEs set up by Women entrepreneurs 12% of FCI up to Rs.10 lakhs Within Six months of Commencement of Production Additional period of 2 years Within six months from the end of each financial year ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015 ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015 EFFECTIVE DATE- 10.06.2015 Eligibility- Micro & Small Enterprises except MSEs declared ineligible under the extant & new policies of the State Mandatory Procurement from MSES - minimum twenty per cent (20%) of the annual value goods or services of the requirement Special provision for Procurement form M S ES owned by SC, ST, Physically Challenged, Women and Tech (Deg/Dip)- 4% out of 20% State Govt Depts, Heads of Dept, Boards, Corporations, Development Authorities and Improvement Trusts, Municipalities, N A Cs, Co-operative Bodies and Institutions aided by State Govt and Companies where Govt share is 50% or more, CPSUs, MoU signed projects in the State, Power Generation & Distribution Companies, Union Govt / State Govt aided projects / externally aided projects funded by donor etc shall procure. ODISHA YOUTH INNOVATION SCHEME ODISHA YOUTH INNOVATION SCHEME "Odisha Youth Innovation Scheme" to encourage new ideas / demonstrative product, prototypes, patents, incubated products or services / development of any enterprise based on eligible innovative idea/ products/ services Financial Assistance Sl. Category Quantum i. Any New Idea Rs. 50,000 ii. Any Demonstrative Product, Prototypes, Patents, Incubated Products or Services Rs. 1,00,000 iii. Development of any Enterprise based on eligible Rs 3,00,000 innovative idea / products / services as prize money as a part of state level felicitation OSIC Ltd. is the Nodal Agency for implementation of the scheme CLUSTER APPROACH CLUSTER APPROACH What is a Cluster ? Cluster in MSME Sector implies: Concentration of economic enterprises, Producing a typical product / service or a complementary range of products / services, Within a geographical area (spans over a few village, town, city or adjoining area) CLUSTER APPROACH Types of Cluster Sl Type of cluster Criteria 1. Industrial / Artisan MSM enterprises with hired labour & electrically driven machinery / personal skills of artisan 2. Natural / Induced Evolution naturally or induced through special policy measures 3. Small / Large Volume of business, geographical area of spread or employment generation 4. Vertical / Horizontal Mutual relationship enterprises 5. Dynamic / Underperforming Degree of vibrancy & growth in recent past 6. Export Primary market located abroad among producing Developing Cluster means …… 1. 2. 3. 4. 5. 6. 7. 8. CLUSTER APPROACH Revitalizing the Industry Association, Identifying gaps in the Cluster and effort to bridge them, Providing new market linkages Pushing cluster to export Improving quality Setting up a common facilities (common machinery centre, common lab) in the cluster to be managed by entrepreneurs themselves Design inputs into cluster Sustainability Schematic Support CLUSTER APPROACH Micro & Small Cluster Development Programme (MSE-CDP) – Government of India Office memorandum No. 1(17)/SICDP/Cluster/TM/2006 dated 10.02.2010 Of the Development Commissioner (MSME) • 70% GoI funding for Common Facility Centres (CFC) with project cost up to Rs.15 crore • Maximum 75% GoI funding for soft intervention (i.e. training, exposure visits, marketing assistance, capacity building, etc) with project cost up to Rs.25 lakh. • Eligible cost of projects for infrastructure development upto Rs.10 crore with GoI funding upto 60% Schematic Support CLUSTER APPROACH State Initiatives for Micro & Small Cluster Development Programme (SIMSECDP) Industries Department Notification No.I-SI-5/2010.IND – 14824/I dated 29.09.2010 Need based assistance for : • Awareness Campaigns & Sensitization of Stake holders & Support Institutions, • Base line Survey, • Hiring of consultants for Preparation of Project Report for Hard Component; • Initiating trust building & soft activities like holding meetings of the stake holders, • Exposure visits to replicate best practices Status of Clusters in Odisha i. ii. iii. iv. v. vi. vii. Number of Clusters identified Preliminary DSR Completed DSR completed DSR under process DSR proposal submitted to O/o DC (MSME) Soft interventions approved DPR submitted for approval of CFC (Pharmaceutical Cluster at Cuttack-Bhubaneswar and Cashew Cluster at Bramhagiri, Puri) viii. CFC Sanctioned & project under implementation (Cashew cluster at Rambha, Ganjam and *Ayurvedic Cluster at Berhampur, Ganjam) ix. CFC completed (Bargarh Rice Milling Cluster) * Assisted under AYUSH Cluster of Department of AYUSH, Government of India **** 56 50 33 5 3 10 2 2 1 Application Procedure Eligible enterprise shall file their claim in the prescribed form along with documents within time limit as per the Operational Guidelines prescribed for each incentives under each policy. Policies & Operational Guidelines available at: Sl. Policy Department Website 1 Industrial Policy Resolution, 2015 & Operational Guidelines Industries Department http://www.odisha.gov.i n/industries/index.htm Directorate of Industries http://diodisha.nic.in/ MSME Department http://www.msmeodish a.gov.in/ Directorate of Industries http://diodisha.nic.in/ 2. Food Processing Policy, 2013 & Operational Guidelines 3. Procurement Preference Policy for MSEs, 2015 4. Odisha MSMED Policy, 2009 & Operational Guidelines 5. Youth Innovation Fund Scheme Contact Details Sl. Organization Address 1 Industries Department Tel:0674-2536640/2390253 | FAX: 0674-2536819/2396299 | Email: indsec.od@nic.in | Web: http://www.odisha.gov.in/industries/ index.htm 2. MSME Department Tel:91 + 674 2391384 | FAX: 91+ 674 2394051 (FAX) | Email: secymsme.od@nic.in | Web: http://www.msmeodisha.gov.in/ 3. Directorate of Industries, Odisha Killa Maidan, Buxi Bazar, Cuttack-753001, Odisha 4. Directorate of Export Promotion & Marketing Tel: 0674-2530440 | FAX: 0674-2533268 depmodisha@gmail.com | http://depmodisha.nic.in/ 5. Invest Odisha (Industrial Promotion and Tel: 0674-254 2601 | FAX: 0674-2543766 | email: cmd@investodisha.org | http://investodisha.org/ 6. Odisha Small Industries Corporation Limited Industrial Estate, Madhupatna, Cuttack – 10 | Tel:- 0671-2342580 | FAX : 91-671-2341875 | email: osicltd@gmail.com | http://osicltd.in/ Investment Corporation of Odisha Limited – IPICOL) Tel:0671-2301892 | FAX:0671- 2301227 email: diorissa@nic.in | http://diodisha.nic.in/ | email: THANKS