Bihar Industrial Incentive Policy- 2006 has been reviewed with an objective to attract domestic and foreign investment

as well as revival and expansion of business operations of the existing industrial units by providing the right industrial ambience. Under this proposed policy, there are provisions for granting incentives such as, 100% Exemption on Stamp Duty and Registration Fees during the pre-production phase, Capital Subsidy for industrial units, inclusion of Entry- Tax in the reimbursement of 80% of VAT, incentive also to existing units for Captive Power Generation / Diesel Generating sets and subsidy on non-conventional sources of energy production, reimbursement of expenses incurred on project reports, technical know-how fees, Quality Certification, Electricity Duty etc.

The definition of the 'Industrial unit / Industrial establishment as defined in Annexure I, entry 2 means any unit / establishment engaged or to be engaged in manufacturing / processing / servicing industry under the categories specified in this Policy & the Industries which are listed under the First Schedule of the Industries (Development and Regulation) Act 1951 as amended from time to time. Which [Entry 2 c(6)] also includes Providing services relating to Information Technology, Telecommunication or electronics including satellite linkage and audio or visual cable communication.

As defined in the Policy "New Industrial Unit" means an industrial unit in which commercial production has commenced within five years from 1st July, 2011. Every new tower installed within the said period is the New Unit for the Telecommunication Infrastructure Providers

Pre Production Incetive

A.

Stamp Duty and Registration Fees

100% exemption from Stamp Duty / Registration Fees being levied on Lease/ Sale / Transfer of Industrial Land/Shed, for the first time . This will not be applicable in subsequent stages of Lease / Sale / Transfer. This incentive will be available to new units only (Every New Mobile Tower is the new unit) If, for any reason, the above incentive is not availed by the unit and the land is purchased, the above Stamp Duty and Registration Fees will be reimbursed by the department to such units at the post production stage.

Under the present policy, incentives like Project Report Incentive, Incentives on land / shed, financial assistance for acquiring Technical Know-How, Capital Subsidy etc. will be available. The upper limit for such reimbursement will be Rs. 600 lacs (Six hundred lacs). This will be excluding the subsidy on Captive Power Generation / Diesel Generating set.

Re-imbursement of 50% of the cost incurred in the project report preparation by the industrial units will be made, if the project report is prepared by the consultancy firms recognized by the Industry Department. The upper limit of reimbursement of cost of project report is raised from Rs. 2 lacs to 15 lacs if the report has been prepared for Carbon Credit and the unit gets Carbon Credit.

If any entrepreneur acquires Technical Know-how from any recognized National Level Institution or State Level Institutions to establish or to expand his industry, he/she will be reimbursed 30% (maximum Rs. 15.00 lacks) of the fees paid to the institution/organization for the technical know-how.

VAT Incentive

This facility will be available to new MSME/Large

Industries. Finance (Commercial Taxes) Department will reimburse the amount of VAT after certification/verification of the payment of VAT, for the unit in production. All new units will be entitled to avail 80% reimbursement against the admitted VAT amount deposited in the account of the Government, for a period of ten years. The ceiling for this reimbursement will be 300% of the capital Invested.

Entry Tax by new Industrial units after commencement of commercial production, will be included in the amount of 80% VAT for the purpose of reimbursement. This incentive will also be available to operational existing units and all such units will get this incentive only after the effective date of this Policy.

Presently working industrial units will get re-imbursement of 25% of the VAT/Entrytax deposited in the account of Government against admitted VAT. This re-imbursement will be valid for only five continuous years. In case of expansion by the working units, the said industrial units will also get re-imbursement benefit on VAT/Entry- tax on the expanded portion only.

100% exemption in luxury tax for seven years 100% Re-imbursement of electricity duty for seven years 100% exemption in land conversion charge

In order to revive the sick industry, a corpus fund will be created, which will be utilized for providing financial assistance in least possible time to sick small and medium industrial units for which the rehabilitation package has been approved. Any industrial unit, generating direct employment of at least 100 persons after the implementation of this industrial policy, will be paid an incentive by the State Government equivalent to the EPF amount paid by such units for new employees for a period of one year from the date of their employment

In order to avail the benefits of the Industrial Incentive Policy, one need to get itself registered and get the Certificate of Registration containing the productive capacity of the industrial undertaking and such other particulars as may be prescribed by the Industry Department, Government of Bihar. The said Certificate of Registration should be submitted to all concerned departments.

The benefits of the Industrial Incentive Policy has not been availed by any of the Companies in the Telecom Industry. But this Policy shall not only benefit Our company in existing structure but also the exemption from imposition of fees/charges under Bihar Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2010.

Thank You
- Saurabhdeo Sharma