Special Incentives and facilities to Mega Projects under III Policy 2012 'Samadhan Divas' started by State Level Udyog Bandhu every First & Third Thursday Help Line implemented for resolution of issues of entrepreneurs, businessmen and investors of ...... Formats for Mega Projects Draft Property Management (Industrial Land) Rules & Regulations, 2014 To encourage mega projects in the state INDUSTRIAL ASSETS AVAILABLE FOR SALE Entry Strategies for Foreign Investors NRI Cell at Udyog Bandhu Vacant Land with Govt. Deptt. Restructuring of State, Division & District level Committies of Udyog Bandhu Strengthening of Udyog Bandhu Golden Card Scheme

Q.No.

Question

Click Here for Ans.

 

1

Why IS Uttar Pradesh THE BEST SUITED STATE FOR SETTING UP PROJECT?

 

2

 How to set up an Industry in U.P.?

 

3

Availability of Land

 

4

Policies & Incentives

 

5

Investment Incentives ( Subject to reservation policy )

 

6

WHO IS A NON RESIDENT INDIAN (NRI)?

 

7

WHO IS A PERSON OF INDIAN ORIGIN (PIO)?

 

8

WHAT ARE THE FACILITIES AVAILABLE TO THE NRIs?

 

9

BANK ACCOUNTS

 

10

RUPEE ACCOUNTS

 

11

ORDINARY NON-RESIDENT RUPEE ACCOUNTS (NRO ACCOUNTS)

 

12

FOREIGN CURRENCY ACCOUNTS

 

13

GENERAL PERMISSIONS

 

14

DIRECT INVESTMENT OPPORTUNITIES

 

15

FUNCTIONS OF UDYOG BANDHU

 

16

SECTORS IN WHICH INVESTMENT IS ADVISED

 

17

WHERE TO GET ALL THE INFORMATION

 

 

 

 

 

Why is Uttar Pradesh the best suited state for setting up project?

 

 

 

Because:

Uttar Pradesh is the rainbow land where the multi-hued Indian culture has blossomed from times immemorial. Its area of 2,36,286 sq kms. lies between latitude 24 deg to 31 deg and longitude 77° to 84° East. Area wise, it is the fourth largest State of India, half the area of France, three times of Portugal, four times of Ireland, seven times of Switzerland, ten times of Belgium and a little bigger than England.

U.P., a land of unlimited potential, has a lot to offer to investors. State’s focus has been to create facilitative administrative systems, reduce lead-time in setting up of industries, remove bureaucratic interventions and provide internationally competitive infrastructure.

One of the major exercises undertaken recently is to synchronise the prevailing policy framework to provide a conducive working environment to the industries in U.P.

Ø  The State has largest population in the country and ranks 14th in per capita income.

Ø  UP is the second biggest State economy in the country with a market share of 10.7 per cent share in the national GDP.

Ø  Accounts for 6 per cent of country's export.

Ø  It shares its international borders with Nepal and is bounded by nine States of Uttarakhand, Himachal Pradesh, Haryana, Delhi, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkahand and Bihar.

Ø  It is the largest producer of wheat, pulses, sugarcane, tobacco, potato and milk in the country. The State has the highest yield in the country of tobacco and pulses. The State is India's sugar bowl, accounts for 28.03 per cent of country's sugar production.

Ø  Textile industry is one of the promising and potential sectors of the State.

Ø  Largest producer of electronic goods and is the fourth-largest exporter of software products from the country.

Ø  The State has attracted some of the largest MNCs to set up their facilities such as Coca Cola, Pepsi, Glaxo, Honda and Piaggio.

Ø   The State has become a hub of corporate R&D with many domestic players and MNCs establishing their facilities.

 Other Advantages

Ø  Large, inexpensive and disciplined labour force available.

Ø  Vibrant investment Climate.

Ø  Basic inputs like land and water available in abundance.

Ø  Excellent connectivity to all parts of the country.

Ø  Port facility at doorstep through 7 inland freight stations and 1 cargo complex.

Ø  Good quality power supply to industry.

Ø  Land at competitive rates.

Ø  Special facilitation to foreign and NRI investors.

Ø  Integrated townships of Noida and Greater Noida adjacent to New Delhi, with fully developed infrastructure, including recreational facilities .

Ø  Monitoring of Single table clearance system.

Ø  Well-developed special purpose modern industrial areas like software technology parks, Bio -tech. parks, electronic city, toy city, plastic city, integrated agro park, leather park, chemical complex and textile city.

Ø  Large number of bank branches in the state including major foreign banks.

Ø  A good number of Engineering Colleges, Technical Institutes, Research Institutes, Medical Colleges.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

How to set up an Industry in U.P.?

 

 

 

 

PROCEDURE FOR STARTING A SMALL SCALE INDUSTRY

For starting a Small Scale Industry, entrepreneurs have to first apply to the General Manager, District Industries Centre, depending on the location of the unit for SSI Registration, in the prescribed form. The form can also be filled through Single Table System.

Single Table System

1.    In order to facilitate, simplify/rationalize and to provide congenial industrial environment for establishment of industries in State, it is necessary that entrepreneurs and investors are provided with all the pertinent approvals/NOCs/registration/license etc under ‘one roof’ rapidly and without any delay. To achieve this objective of providing SINGLE TABLE SYSTEM, State government has issued a GO no. 1839/77-6-98 dated December 14, 1998  (Click to view the G. O.) & thereafter GO no. 2140, dated August 14, 2006 (Click to view the G. O.) It has also been provisioned under these directions that an entrepreneur/investor/industrial unit can submit application to the General Manager of the concerned District Industries Centre from every Monday to Thursday and it will be duty/responsibility of the related department to ensure time bound approval/action on such applications. This system has not been entirely successful.

2.     In this age/era of liberalisation, globalization and fierce competition, entrepreneurs invest  in those States, where they get comparatively better facilities. Under such circumstances, if approvals from State government to industrial units are delayed, then it will most certainly affect the investment adversely. So it is incumbent on the administration that acting positively all the NOCs/approvals are provided in a time bound manner.

3.     In the light of the above specified factors, undersigned has been directed to facilitate proper activation of “Web-based Single Table System” software developed on the basis of information technology by ‘Udyog Bandhu’ to implement the ordered system more effectively. This web-based “SINGLE TABLE SYSTEM” will be beneficial/useful in the following ways:

v  For the timely issuance of sanctions/ approvals /NOCs /registration /license and certificates by the departments concerned with setting up of industry, SINGLE TABLE SYSTEM will be available at website and could be examined and processed irrespective of location of officials or the entrepreneur. 

v  Under this system, entrepreneur/ investor will be able to apply via internet for getting the required approval/NOC and will be able to know the status of their application as well. In the first phase, an entrepreneur will have to fill the form online and submit its printout duly signed with General Manager, District Industries Centre office. 

v  Nodal officer issuing approval/NOC at district level as well as his/her superior officers, such as, Head of department, Principal Secretary, Secretary etc shall also be able to monitor the progress and analyze the status of concerned application online related to their departments respectively.

 

 General Guidelines Regarding Requirements For Setting Up New Industrial Units in Uttar Pradesh.

Uttar Pradesh, the largest State of India in terms of Human Resources, extends facilitative environment for the entrepreneurs for setting up industries. Its efforts have been, acknowledged by a host of prestigious national as well as multinational industrial giants, who have chosen to locate their projects in the State.

However, in the interest of planned growth, certain registrations/ approvals/ NOCs/ Licenses etc. are required for setting up an industrial unit in the Uttar Pradesh. While some of these registrations/approvals/NOC/Licenses happen to be common requirements for all types of industries, some are needed for some specific industries. Some approvals are required prior to the setting up of the project, while certain other requirements are needed to be complied before commencement of production.

For getting NOC and consent from U.P. Pollution Control Board, the list of industries and its categories may be accessed at www.uppcb.com

For the sake of convenience, an illustrative list of the main requirements, are enumerated as follows:

Requirements Common To All Types of Industries

A. Prior to setting up the unit

1.         Registration with Industries Department:

Entrepreneurs Memorandum Form - 1 with District Industries Center, for Micro, Small & Medium Scale Industries. Presently units having investment upto Rs. 25 Lacs in Plant & Machinery are termed as Micro, Rs. 25 Lacs to Rs. 5 Crores as Small and Rs. 5.00 crores to Rs. 10 crores as Medium. However, this is an optional requirement, though the entrepreneurs are advised to submit Form - 1 in DIC and obtain the acknowledgement along with Entrepreneur Memorandum Number, since it gives them an identification and sometimes it is also required by some departments.

Land allotment from Industrial Development Authority/or shed Allotment from District Industries Center.

If land is private, land-use conversion declaration from District Authorities and permission under Section 143 of UP Zamindari Abolition and Land Reforms Act 1950. (For Details click here)

NOC from Pollution Control Board under the provision of Water (Prevention of Pollution) Act 1974, Air (Prevention of Pollution) Act 1981,Environment (protection) Act 1986.

Ø  In case of 220 category of non-pollution SSI industries (For Details click here) which are Presently exempted by UP Pollution Control Board from obtaining NOC, the SSI registration granted by District Industries Center itself is Sufficient and no separate application for NOC is needed.

Ø  Building Map approval from concerned Development Authority/Designated Authority of notified area.

Ø  Fire Department NOC.

Ø  Provisional Trade Tax Registrations under section 8-B of U.P. Trade Tax Act 1948. This Registration is optional. It is however, beneficial to intending manufacturer who want to purchase plant, machinery, raw  material, fuel, lubricants, consumables, packing materials etc. within the State of U.P. at a concessional rate, as allowable for use in the manufacture or packing of goods for sale. It also make them eligible to obtain Import Permit (Form “31”), for import of goods from outside the State.

Ø  Registration under Central Sales Tax Act Registration is compulsory, only when the unit proposes to make sales in course of Inter-State Trade and enables the unit to get the benefit of Form "C” for purchase from outside the State, at concessional rate of tax, as allowable.

 

B. Before commencement of Production

1.            Consent from Pollution Control Board under Water (Prevention of Pollution) Act 1974, Air (Prevention of Pollution) Act 1981, and Environment (Protection) Act 1986.

2.            Clearance from Fire Department.

3.            Permanent Trade Tax Registration under U. P. Trade Tax Act 1948.

4.            Registration under Central Sales Tax Act 1956

Registration is compulsory, only when the unit proposes to mark sales in course of Inter-State Trade and enables the unit to get the benefit of Form `C’ for purchase from outside the State at concessional rate of tax as allowable.

 

C. After Commencement of Production /Activity

1.       Registration with Industries Department.

2.       Entrepreneurs Memorandum Form II with District Industries Center for Micro, Small and Medium Scale Industries.

Additional Requirements Depending Upon Specific Nature of Industry (IEM/LOI)

 

A. Prior to setting-up the unit

Industrial Entrepreneur’s Memorandum has to be filed with the Secretariat for Industrial Approvals (SIA), Ministry of Industries, Government of India for all Heavy industries and those not requiring Industrial License. (Presently 9 category of industries, are required to obtain industrial license from Ministry of Industry, Government of India from time to time).

 

(For Details click here)

 Letter of Intent to be filed with Ministry of Industries, Government of India, as by 9 category of industries presently notified by Government of India, as well as those, not covered under the provisions for exemptions, from Industrial Licensing. however, this is subject to change, from time to time.

(For Details click here)

 Sanction of power for Construction / light & fan, as well as for production, if power is required.

NOC from District Magistrate, for storage of Diesel for the units which store diesel for their D.G. Sets/Furnace etc.

NOC from Drug Controller, for setting Drugs & Pharmaceuticals and Cosmetics products manufacturing units, covered under Drugs & Cosmetics Act 1940.

NOC from Director Ayurvedic & Unani medicines, for setting up Ayurvedic/ Unani medicines manufacturing units.

NOC from Forest Department, for setting up wood based units.

Allotment Assurance from UP Excise Department for setting up Alcohol based units for ensuring the availability of Alcohol.

Registration under Shop and Commercial Establishment; Act 1962 for the units having employees posted in their offices, not covered under the Factories Act,1948.

 

B. Before commencement of production

 

1.      Industrial License from Ministry of Industry, Government of India. Presently 9 category of Industries, are required to obtain industrial License from Ministry of Industry as well as those not covered under the provisions for exemptions from Industrial Licensing. Government of India. However, this is subject to changes by Government of India time to time. (For Details click here)

 

2.     Factory License under the Factories Act 1948, in case of factories where manufacturing process is carried on with the aid of power, if the number of workers employed is ten or more, and without aid of power, if the number of workers employed is twenty or more.

3.     Clearance from Director, Electrical Safety, under Indian Electricity Rules 1956,if power connection/D.G. set is installed.

4.     Drug License under Drugs & Cosmetics Act 1940,for Drugs and Pharmaceuticals and Cosmetics products manufacturing units covered under Drugs & Cosmetics Act.

5.      Excise License under UP State Excise Act for Distilleries & Breweries, covered under the said Act.

6.    License from Food Commissioner, for units manufacturing food items covered under UP Scheduled Commodities Dealer (Licensing and Restriction Hoarding Order) 1989.

7.     License under Milk and Milk Product order for milk based industries.

8.  Filling Industrial Entrepreneur Memorandum (Part-B) with SIA for Heavy Industries and those not requiring Industrial License. (presently 9 categories of industries, are required to obtain industrial license from Ministry of Industry, Government of India. However, this categorization is subject to changes from time to time) (For Details click here)

 

 The Application Forms of various departments are available on this website as soon as you enter into it using your Unit Id and password in the form of:-

Set - 'A’ (containing application form for clearances before setting up the unit) and

Set- `B’ (containing application form for clearances before and after commencement of production).

In order to facilities the decision on the application of entrepreneurs in a centralized manner, SINGLE TABLE SYSTEM exists in the State vide GO no. 1839/77-6-98 dated 14th December 1998. However this system has been modified vide GO No. 2140/77-6-2006/06 dated 14th August 2006.

 The entrepreneurs can submit duly filled-in Form at DIC and are informed of the decision within a time-bound manner by District Industries Center itself through the Single Table System website.

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Availability of Land

 

 

Entrepreneurs can obtain land directly or from following authorities of the State Govt.:-

1-                 NOIDA (www.noidaauthorityonline.com)

2-                 Greater NOIDA (www.greaternoida.com)

3-                 GIDA

4-                 BIDA

5-                 LIDA

6-                 SIDA (www.sidajaunpur.com)

7-                 UPSIDC (www.upsidc.com)

 Forms and availability of land can be viewed on their website. 

 

 

 

 

 

 

 

 

 

 

 

Policies & Incentives.

 

 

 

(a) Industrial and Service Sector Investment Policy 2004

Industrial and service sector investment policy aimed at creating comprehensive reforms and restructuring of the economy is creating new opportunities and opening new avenues for investment in the state.

Filling Industrial Entrepreneur Memorandum (Part-B) with SIA for Heavy Industries and those not requiring Industrial License. (presently 9 categories of industries, are required to obtain industrial license from Ministry of Industry, Government of India. However, this categorization is subject to changes from time to time) (For Details click here)

The policy provides special incentives on infrastructure in addition to exemption from various tax and duties to the investors. The policy maintains a single window policy for speedy and hassle free procedures. A 100 per cent exemption on stamp duties for IT, ITeS, food processing sector and some of the service sector; rebate on stamp duty, land on priority, interest free loan under industrial investment promotion scheme, uninterrupted power supply 50-100 per cent exemption from stamp duty on purchase of land have helped to create ideal environment for investment. The incentives are subject to Reservation Policy of State Govt. (For Details click here)

Full text of the policy

(b) Information Technology Policy 2004

Objectives of the Policy

Ø  Bringing IT to masses

Ø  Accelerate the use of information technology in schools, colleges and educational institutions

Ø  Spurring the Domestic demand for software, hardware and services

Ø  Making Software, Electronics/IT Hardware and ITS/ITES Sectors globally competitive and thereby increasing export earnings

Ø  Facilitating the industry for addressing global markets

Ø  Facilitate formation of value additions for growth of the industry

Ø  Help businesses to realize full potential in creating wealth.

The strategy is to achieve economic growth through development of nationally and globally competitive industry by facilitation and providing confidence, dedication, purpose and a fertile ground in which investments would flourish.

Full text of the policy

(c) Biotech Policy 2004

The state Uttar Pradesh aspires to utilize the modern tools of biotechnology and attain prosperity for farmers, generate employment in rural areas, food for all, good health and clean environment. The mission of the policy is to develop knowledge-based economy, assure benefit of biotechnology to all section of the State and promote entrepreneurship in biotechnology-based industries.

  Objectives of the Policy

Ø  Establish pre-eminent position of the State in the field of biotechnology.

Ø  Create awareness about the entrepreneurial and job opportunities in the field of biotechnology.

Ø  Attract biotechnology based industrial investment.

Ø  Develop and conserve bio-resource for sustainable commercial use.

Ø  Harness existing R&D capabilities for industrial/ commercial developments in the State and to promote corporate funding and developing such knowledge.

Ø  Develop adequate institutional and related infrastructure for development, acquisition and dissemination of biotechnology through out the State.

Ø  Promote research and development and to establish centers of excellence in frontier area of biotechnology.

Full text of the policy

(d) Policy for Food Processing Industry 2004-09

Uttar Pradesh is one of the largest producers of farm commodities in the country and the largest producer of vegetables, wheat, maize, sugarcane, potato and milk. Some of the most delicious varieties of fruits are grown in the state. Thus there is an immense inherent potential in this sector. The state also has diverse agro climate conditions, which are conducive for a variety of crops round the year.

Despite the inherent potential, it has so far been untapped. Large quantities of vegetables and fruits are wasted as only around 2% of the production is commercially processed. Though considerable success has been achieved in evolving appropriate pre harvest practices, the issue relating to post harvest management, which includes grading, sorting, packaging, processing, transportation and marketing, are still not adequately addressed. It is believed that agriculture in the state can turn into a lucrative venture, if there is a proper linkage from end to end among various components of agri-business, i.e. from the stage of sowing to final sale and consumption, which can develop synergy and dynamic efficiency in the system.

Objectives of the Policy

 

Ø  The policy aims at achieving the following objectives:

Ø  Better returns to the farmer for his produce

Ø  Encourage investment and employment generation in the sector

Ø  Promote value addition and quality consciousness

Ø  Minimize wastage of agriculture and horticulture produce

Ø  Provision of appropriate linkages between the agricultural and industrial sectors

Ø  Provide a 'market' focus to the entire range of activities involved in food processing.

The strategy would center around identification of potential areas for value addition, keeping in view both the international and domestic market demand and addressing issues relating to the entire value chain, right farm to the palate, for achieving the objectives outlined in the policy. Apart from evolving new and more effective instruments for overcoming the constraints in this sector & for promoting food processing, emphasis will be on:

Ø  "Convergence" of all fiscal and financial incentives provided by Central and State Government agencies;

Ø  "Partnership" between the farmer, private sector processors, Central and State Government; and

Ø  "Focus" on such issues, which are critical to the growth of this sector.

Full text of the policy

 

(e) Power Policy 2003-09

Power to all is an integral and primary component of the developmental program of the State. To address this key developmental challenge Government of Uttar Pradesh formulated a Power Policy to attract private sector investment into power generation, transmission and distribution with a view to ensuring electricity supply to all villages in the state.

Ø  Provide cost efficient good quality electricity to all categories of consumers for economic development and social uplift of the state.

Ø  Make the energy sector commercially viable so that it ceases to be burden on the state budget; and

Ø  Protect the interest of the consumers

Ø  With the above objectives in perspective, the Government of Uttar Pradesh agreed on the following key aspects of the power sector Reform programme.

Ø  Restructuring of Uttar Pradesh State Electricity Board (UPSEB) into autonomous and separately accountable entities.

Ø  Creation of an independent Regulatory Body to protect consumers as well as long-term financial health of the power sector.

Ø  Ultimate transfers of ownership of assets to public corporate entities over a phased time scale

Ø  Rationalization of tariff.

Full text of the policy

 (f) Policy for Promotion of Private Investment in the Development of Hi-Tech Townships in Uttar Pradesh

Ø  Produce competitive hi-tech marketable estates with an attractive environment for high quality living, work and recreation.

Ø  Encourage high technology and knowledge based industries, tourism and

Ø  Provide facilities for business organisations engaged in modern technologies.

Ø  Facilitate and create an enabling environment for attracting maximum private investment in housing and infrastructure development.

Ø  Support and enable private investment in other sectors of the state economy.

Full text of the policy

 

(g)  U.P. SEZ POLICY - 2007

NEW UPSEZ POLICY-2007 (PART-A : SIMPLIFICATION OF FINANCIAL EXEMPTION/ ASSISTANCE, PROCEDURES)

NEW UPSEZ POLICY-2007 (PART-B : PROVISION REGARDING SELECTION OF DEVELOPERS, AVAILABILITY OF LAND & LAND USE IN MASTER PLAN ETC.)

Special Economic Zones (SEZs) are exclusively demarcated duty free enclaves, deemed to be foreign territory for the purposes of trade operations along with various duties and tariffs applicable otherwise.

Uttar Pradesh holds the distinction of being the first state in the country to enact a clearly defined SEZ policy.

There is no compulsory land acquisition for SEZs unless the GoI policy provides for the same.

Transparency in selection of developers.

 Compeitive bidding has replaced the earlier procedure of first come-first serve basis.

 SEZs can be set up by any private / public / joint sector or State Government or its agencies. Foreign investors can also participate in setting up of SEZs

Full text of the policy (A)

Full text of the policy (B)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

  

 

 

 

Investment Incentives ( Subject to reservation policy )

 

 

 

The Government of Uttar Pradesh provides high standard, plentiful infrastructure facilities, enabling conducive policy framework and an investor friendly environment for ensuring higher industrial growth in the state. The state recognizes its role in nurturing economic activity and entrepreneurship and places high priority on providing outstanding infrastructure to the industry

(a)  Incentives under the industrial and service sector investment policy - 2004: 

Financial Assistance: Infrastructure Projects

Ø  Industrial Estates for IT/BT units are eligible for 50 per cent of investment.

Ø  Other industrial estates are eligible for 20 per cent of investment

Ø  Call centre hubs having covered area of not less than 10,000 m2 are eligible for 50 per cent of investment

Ø  Convention halls, multimedia centres, exhibition grounds and business trade centres will also be entitled to certain incentives on the fulfillment of certain prerequisites.

Ø  Laboratories for quality control and Research and Development for products of small-scale industries are eligible for 50 per cent of investment Stamp Duty and Registration Charges on Land

Ø  100 percent exemption from payment of stamp duty on:

 

v  New small-scale units in 29 districts of Poorvanchal and 7 districts of  Bundelkhand.

v  Infrastructure projects.

v  IT/BT and food processing units and call centers.

v  Service sector projects such as multi facility hospitals with specified facilities and having at least 100 beds; super specialty hospitals with specified facilities among others. Facility of registration of all industrial projects at concessional rate of Rs. 2 per thousand (Max. Rs. 5000/-)

  (b) Fiscal Incentives- Service Sector

Certain Service sector projects will also be eligible for:

Ø  Exemption from acquisition charges if land for the project is acquired by the Government.

Ø  Exemption from entry tax on plant and machinery used for the establishment of project.

Ø  Exemption from development charges and malaba charges levied by the development authority/local authority.

Ø  Exemption from house-tax, water and sewage tax and all other taxes/charges levied by the development authority/local authority for five years from the date of establishment.

(c) Investment Incentives under the information technology policy (2004)

Ø  Preferential Allotment of Land: Preferential allotment of land will be made for IT industry by NOIDA/Greater NOIDA, UPSIDC/Development Authorities in the state.

Ø  Exemption of Stamp Duty and Registration Fee: I.T units and call centres shall be given 100% exemption from payment of Stamp Duty and Registration fees.

Ø  Uninterrupted Power: Continuous and uninterrupted power supply for IT industries. Exemption from power cuts without limit.

Ø  Captive Power Generation: Encouragement to captive power generation in IT locations. I.T Units with 5 KVA power requirement can be set up anywhere irrespective of master plan or land use classifications.

Ø  Incentives to Mega Investment Units: Information Technology and electronic units set up in the state with an investment of 50 crores or more shall be classified as Mega Investment Units. The mega investment units will be entitled to a plethora of incentives including allotment of land on priority basis, interest free loans for a period of 10 years up to the amount of sales/trade tax liability repayable after 7 years

Ø  Venture Capital Fund: venture capital fund will be created for IT sector.

Ø  Power Tariff: IT units in information technology parks and STPs will be charged the same power tariff as the SSI.

Ø  Exemption from Pollution Control Provisions.

 

(d) Investment incentives under the biotech policy (2004)

Ø  Single window facility and constitution of biotechnology development board.

Ø  Relaxation of taxes on Biotechnology based products.

Ø  Relaxation on land for establishment of biotechnological units.

Ø  Biotechnological units shall be exempted for entry tax for fifteen years, on Capital goods including captive generation sets.

Ø  Uninterrupted power supply.

Ø  Relaxation in stamp duty and registration fee.

Ø  Relaxation in zonal regulations.

Ø  Projects where an investment of 50 crores or more will be made either in expansion of existing units or in setting up a new unit, also such units which employ more than 250 people will be declared as mega projects.

Ø  Establishment of Biotech parks at NOIDA and Lucknow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHO IS A NON RESIDENT INDIAN (NRI)?

 

 

 

Non Resident Indian (NRI) means a person who has gone out of India or who stays outside India, in either case for or on taking up employment outside India, or for carrying on outside India a business or vocation outside India, or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period. Simply, it means a person resident outside India who is a citizen of India or is a Person of Indian Origin.

 

 

 

 

 

 

WHO IS A PERSON OF INDIAN ORIGIN (PIO)?

 

 

 

For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India, Person of Indian Origin means any person:

a) who at any time, held an Indian passport; or

b) he/she or either of his/her parents or any of his /her grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955(57 of 1955)

or

c) the person is a spouse of an Indian citizen or a person referred to in clause (a) or (b) above.

 

2. For investments in immovable properties;

Person of Indian Origin means an individual (not being a citizen of Pakistan or

Bangladesh or Afghanistan or Bhutan or Sri Lanka or Nepal or China or Iran):

a) who at any time, held an Indian passport or

b) who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHAT ARE THE FACILITIES AVAILABLE TO THE NRIS?

 

 

 

NRIs are granted the following facilities:

1.      Maintenance of bank accounts in India.

2.      Investment in securities/shares of, and deposits with Indian firms/companies.

3.      Investments in immovable properties in India.

 

 

 

 

 

 

BANK ACCOUNTS

 

 

 

NRIs/PIOs are permitted to open bank accounts in India out of funds remitted from abroad, foreign exchange brought in from abroad or out of funds legitimately due to them in India, with Authorised Dealer.

Such accounts can be opened with banks specially authorised by the Reserve Bank in this behalf [Authorised Dealer (AD)].

There are three types of non-resident accounts:

 

 

 

 

 

 

 

RUPEE ACCOUNTS

 

 

 

NRIs and PIOs, are eligible to open NRE Accounts. These are rupee denominated accounts. Accounts can be in the form of savings, current, recurring or fixed deposit accounts. Accounts can be opened by remittance of funds in free foreign exchange.

Foreign exchange brought in legally, repatriable incomes of the account holder, etc. can be credited to the account. Joint operation with other NRIs/PIOs is permitted. Power of attorney can be granted to residents for operation of accounts for limited purposes.

The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable. Interest lying to the credit of NRE accounts is exempt from tax in the hands of the NRI.

Funds held in NRE accounts may be freely transferred to Foreign Currency Non Resident (FCNR) accounts of the same account holder. Likewise, funds held in FCNR accounts may be transferred to NRE accounts of the same account holders

 

 

 

 

 

 

 

 

 

 

 

 

 

ORDINARY NON-RESIDENT RUPEE ACCOUNTS (NRO ACCOUNTS)

 

 

 

These are Rupee denominated non-repatriable accounts and can be in the form of savings, current, recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National/PIO resident in India leaves for taking up employment, etc. outside the country, other than Nepal or Bhutan his bank account in India gets designated as NRO account.

The deposits can be used to make all legitimate payments in rupees. Interest income, from NRO accounts is taxable. Interest income, net of taxes is repatriable. Authorised Dealers may allow remittances up to US $ 1 million, per calendar year, out of balances held in NRO account for any bonafide purpose.

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN CURRENCY ACCOUNTS

 

 

 

NRIs/PIOs are permitted to open such accounts in US Dollars, Sterling Pounds, Japanese Yen and Euro. The account may be opened only in the form of term deposit for any of the three maturity periods viz; (a) one year and above but less than two years (ii) two years and above but less than three years and (iii) three years only.

Interest income is tax free in the hands of NRI until he maintains a non-resident status or a resident but not ordinarily resident status under the Indian tax laws.

FCNR(B) accounts can also be utilised for local disbursements including payment for exports from India, repatriation of funds abroad and for making investments in India, as per foreign investment guidelines.                 

 

 

 

 

 

 

 

 

 

 

 

 

GENERAL PERMISSIONS

 

 

 

Reserve Bank has granted general permission to NRIs/PIOs, for undertaking direct investments in Indian companies, under the Automatic Route, purchase of shares under Portfolio Investment Scheme, investment in companies and proprietorship/partnership concerns on non-repatriation basis and for remittances of current income. NRIs/PIOs do not have to seek specific permission for approved activities under these schemes.

The Reserve Bank of India has now further simplified financial transactions by NRIs/PIOs by granting general permissions to:

1.   To resident individuals, partnership/proprietorship concerns to avail of interest bearing rupee loans from NRIs/PIOs out of funds remitted by them from abroad or out of funds held in their bank accounts in India, on non-repatriation basis, subject to certain conditions; one of them being that the rate of interest on such loans should not exceed Bank Rate plus two percentage points.

2.  NRIs/PIOs to transfer by way of gift shares held by them in Indian companies and to transfer by way of gift immovable property held by them in India subject to compliance with other applicable rules/regulations including the provisions of Foreign Contribution Regulations Act, 1976 by the charitable trust/organisation concerned.

3.   All domestic public/private sector mutual funds for issue of Units to NRIs/PIOs on both repatriation as well as non-repa