STATE
POLICIES

Concessions and Facilities to Industries RIICO
The Industrial Catalyst
Rajasthan State Industrial Development & Investment Corporation Limited

    Rajasthan

    Land, water, power, housing, educational institutions, hospitals, media-centres, shopping plazas, recreation, tourism, nature/wildlife parks and a congenial climate for a quantum growth. In fact Rajasthan has now become an ideal destination for industrialisation.

    More than 16,500 industries are in production within the Industrial Areas developed by RIICO in Rajasthan.

    They include some prominent projects set up with active financial and technical backing of the multi-national companies like:

    • Samcor Glass Ltd. (Corning, US and Samsung, Korea)
    • Ericsson Telecom (LM Ericsson, Sweden)
    • Indian Shaving Products (Gillette, UK)
    • Bausch & Lomb (Bausch & Lomb, USA)
    • Climate Control Ltd. (Ford Motor Co., USA)
    • Sicpa Ltd. (Sicpa s.a., Switzerland)
    • MICO Bosch
    • Cooper Automobile Products (I) Ltd., (Champion, USA)

    Total infrastructure support is provided to industrial projects in Rajasthan by way of developing Industrial Areas and Townships, a programme in which Departments of the Government of Rajasthan are participating. RIICO has accorded priority to development of Social and Industrial Infrastructure in and around the industrial areas, and has developed 279 Industrial Areas so far.

    Apart from infrastructure development RIICO also provides financial assistance – term loans, working capital loans and direct equity support to industry in Rajasthan. Other agencies involved in industrialisation in the State are-Rajasthan Financial Corporation which provides term loan assistance to tiny, small and medium sector projects, and Bureau of Investment Promotion which provides escort services to the entrepreneurs and is the State’s single window agency in addition to the Directorate of Industries.

    INDUSTRIAL POLICY ‘98

    The fourth Industrial policy of the State has made Rajasthan the most favoured destination for industries. The policy has envisaged an attractive package of incentives to industries, which inter alia included sales tax exemption/ deferment, interest subsidy, octroi exemption, DG subsidy, subsidy for agro based units, incentive for quality certification, reduction in stamp duty, special scheme including interest subsidy and exemption from entertainment tax for amusement parks/cinemas/hotels, simplification of land conversion and exemption of land and building tax.

    However, the sales tax exemption/deferment scheme, 1998 has been discontinued from 1st May, 2000 under uniform sales tax scheme in all States, introduced by Government of India.

    Special Package for Auto Units

    The Auto units having investment of at least Rs.10 crores and which provide regular employment to at least 200 persons are:

    • Granted public utility status under Section 2(n) of the Industrial Disputes Act.

    • Land at nominal rate can be considered by RIICO for grassroot car project.

    A customised package will also be considered for premier units with a minimum investment of Rs.150 crores and regular employment of 500 persons.

    INTEREST SUBSIDY

    The Capital Investment Subsidy Scheme has been replaced by an Interest Subsidy Scheme. Under this scheme an Interest Subsidy would be provided @ 2 percent on the documented rate of interest till last date of repayment as per original repayment schedule fixed by the financial institution. This Interest Subsidy will be available to industrial units having investment in plant & machineries up to Rs.60 lakhs. The scheme will remain operative till March 2003. The industrial units regular in making repayment to the financial institutions/banks will be eligible for obtaining this incentive.

    INTEREST SUBSIDY UNDER THFS SCHEME OF GOI

    Under technology upgradation fund scheme of GOI for textile, jute, cotton ginning & pressing industries, there is reimbursement of five percentage points on the interest charged by lending agency on a project of technology upgradation in conformity with the technology bench marking and other norms under the scheme. This scheme is operational w.e.f. 1.04.1999 for 5 years.

    CAPITAL INVESTMENT SUBSIDY FOR COLD STORAGES

    Capital Investment Subsidy for Construction/Expansion/Modernisation of Cold Storages and Storages for horticulture produce is given by National Horticulture Board to the extent of 25% of the project cost subject to a maximum of Rs.50 lacs. The promoter’s contribution should be minimum 25% of the project cost and Term Loans are provided by Banks through NABARD. An entrepreneur can avail either this or the other subsidy being given by Rajasthan State Agriculture Marketing Board.

    New Industries Exempted from Income Tax in 12 Backward Districts of Rajasthan.

    As per a decision taken by the Central Government, new industries in 12 backward districts of Rajasthan have been exempted from income tax. These 12 districts are among the 123 such backward districts in the country.

    Among these 12 districts, five are in Category A and seven in Category B (see the list below). New Industries in Category "A" will get cent per cent exemption for the first five assessment years; and for the next five assessment years, 25 per cent exemption. It will be 30 per cent in the case of companies.

    While the new industries in Category "B" districts will get a cent per cent exemption for three assessment years; and for the next five assessment years 25 per cent exemption; but 30 per cent in case of companies.

    Sl. No

    Category : A

    Sl.No

    Category : B

    1.

    Jalore

    1.

    Dungarpur

    2.

    Barmer

    2.

    Dholpur

    3.

    Jaisalmer

    3.

    Sawaimadhopur

    4.

    Churu

    4.

    Tonk

    5.

    Banswara

    5.

    Nagaur

     

     

    6.

    Jhalawar

     

     

    7.

    Sikar

    PACKAGE ON INCENTIVES FOR PROJECTS SET UP AT GROWTH CENTRES:

    There are 5 growth centres:

    1.

    Abu Road

    2.

    Dholpur

    3.

    Khara (Bikaner)

    4.

    Hamirgarh (Bhilwara)

    5.

    Jhalawar

    The following package of incentives has been evolved for units being set up in these industrial areas:

    1. Interest rebate on land allotment: The present rate of interest of allotment of land on deferred payment basis is 15% p.a. A rebate of 3% in rate of interest for timely payment of installments of development charges is allowed. The effective rate of interest for timely payments would then be 12% p.a. for these projects.

    2. Production Incentive: Production incentive to units located in the growth centres Abu Road, Dholpur, Jhalawar, Hamirgarh (Bhilwara) and Khara (Bikaner) (Except for the plots allotted on reduced rate of Rs.75 p.sq.m. on or after 19.7.2000) will be given @ 20%, 15% and 10% in the rate of development charges for coming into commercial production; within a period of 12 months, 18 months and 24 months respectively from the date of allotment.

    3. Promoters’ Contribution:Whilst financing projects in growth centre areas, depending upon the risk perception, the promoters’ contribution may be kept at a minimum of 35% as compared to 40% in other areas provided the other parameters of the project are within the normal acceptable range.

    4. Increase in Moratorium Period: The moratorium period on payment of principal amount may be increased from one and a half years to two years for the projects in growth centre area.

    5. Equity Participation: For projects having total cost of Rs.5.00 crores and above, RIICO may consider equity participation of 10% limited to Rs.1.00 crore, depending upon the merit of the project. In case of projects going for public issue, equity participation may be considered on non buy-back basis without insisting for collateral security. However, if the project does not envisage any public issue, equity may be considered with collateral security and its buyback may be considered on current interest.

    DG SET SUBSIDY

    DG Set subsidy will be given to those SSI Units whose investment in P&M does not exceed Rs.60 lacs @ 25 per cent of the purchase value of the DG Set subject to a maximum of Rs.2.50 lacs upto 31st March, 2003.

    INCENTIVE SCHEME FOR QUALITY CERTIFICATION

    The SSI as well as Large & Medium Industry will get an incentive worth Rs.10,000 & 21,000 respectively for obtaining ISI & ISO-9000/BIS 14000 registration certificate. This scheme will remain effective upto 31st March, 2002.

    INCENTIVE FOR ISO-9000 CERTIFICATION

    The small scale and ancillary units will get an incentive on ISO-9000 certification as per the scheme introduced by the Government of India. This scheme provides for reimbursement of charges for acquiring ISO-9000 (or its equivalent) certification to the extent of 75% of the cost subject to a maximum of Rs.75,000/- in such case. The scheme will remain in operation upto 31st March, 2002.

    SINGLE WINDOW CLEARANCES

    The State Government having amended the ‘Rules of Business’ has created three empowered committees to provide all desired clearances in one go. Single application form has been designed for availing the clearances. The empowered committees shall be as follows:

    1. Board of Infrastructure Development & Investment has been constituted under the Chairmanship of Chief Minister of the State to provide all clearances and permissions to the projects proposing investment of more than Rs.25 crores.

    2. State Level Empowered Committee has been formed under the chairmanship of Chief Secretary, Govt. of Rajasthan to provide clearances and approvals in cases where proposed investment is below Rs.25 cores but more than Rs.3 crores.

    3. Under the chairmanship of Collector, Distt. Empowered Committee has been constituted to deal with the cases where investment is below Rs.3 crores.

    While the nodal agency for the first two committees is Bureau of Investment Promotion (BIP) for the third it is the District Industries Centre (DIC).

    LAND CONVERSION SIMPLIFIED

    Entrepreneurs have been facing difficulties in securing conversion of land from agricultural to industrial. To resolve this problem, provision has been made for automatic conversion of land in rural areas upto 5 hectares. If nothing has been heard within 30 days of filing the application complete in all respects from Authority competent for land conversion, the land shall be deemed to have been converted and concerned GM, D.I.C. shall issue a certificate to this effect. Accordingly Tehsildar/Gram Panchayats shall make necessary entries in the land record within 7 days.

    LAND AND BUILDING TAX

    Industries with investment upto Rs.25 lacs in Land and Building would be exempted from land and Building Tax. In the budget for the year 2000-2001 for new industrial units exemption in building tax has been increased for the investment of Rs.20.00 lacs to 25.00 lacs and similarly old industrial units the limit of exemption has been increased for the investment of Rs.5.00 lacs to 10.00 lacs. It is also proposed that those new industrial land units established upto 31.3.2003 would be fully exempted from land and building tax for a period of 5 years. For a project located in any of the RIICO’s Industrial Areas, the value of land would be determined on the basis of the rates fixed by RIICO from time to time.

    The sick units, taken up for revival, would be exempted from this tax during the period of sickness. This tax will be charged only once in a year, irrespective of more than one transfer.

    STAMP DUTY

    Stamp Duty of 1% on customs bond has been reduced from a maximum of Rs.25,000 to a maximum of Rs.1,000. Stamp Duty on transfer of partnership rights has also been reduced and rationalised.

    Sale and transfer of sick units/assets of taken over units by RIICO/RFC would continue to be exempt from stamp duty.

    Item

    Concession

    Custom Bond

    Reduced to 0.1% from 1% of the Bond amount subject to a minimum of Rs. 100 and a maximum of Rs.1000.

    Security Bond of Mortgage Deed

    Reduced from 0.5% to 0.1%

    Registration of document

    Fee of 1% subject to a maximum ceiling of Rs.25000.

    TOTAL OCTROI EXEMPTION

    Octroi has been abolished in the State from 1 August, 1998.

    EXPORT ORIENTED UNITS

    All those industries which are exporting 50% of their production would be granted.

    • Public utility status under section 2(n) of the Industrial Disputes Act, 1947.

    While the Export Promotion Industrial Park at Jaipur is operational, a new EPIP is proposed at Bhiwadi. Inland Container Depots are operational at Jaipur, Jodhpur, Bhilwara and Bhiwadi.

    FOREIGN DIRECT & NRI INVESTMENTS

    Foreign Direct and NRI Investments will continue to be welcomed in high-technology areas and infrastructure. Provision of following special incentives have been made in Industrial Policy, 1998:

    1. Priority in allotment of residential houses in new schemes to NRIs by Rajasthan Housing Board, Jaipur Development Authority and Urban Improvement Trusts, in case they set up industrial projects in the State.

    2. Priority for land allotment in industrial areas.

    3. Fore every FDI/NRI project, a Nodal Officer in Bureau of Investment Promotion to ensure speedy approvals and provide escort service.

    POLLUTION

    Rajasthan Board for Prevention & Control for pollution has reviewed the existing list of Small Scale industries which are exempted from the requirement of securing NOCs/Consents. The list has now been enlarged to include 150, instead of earlier 115 industries. Details of such industries are available with RIICO.

    HUMAN RESOURCE DEVELOPMENT

    The State Government will encourage setting up of Technology Institutes/Engineering Colleges for specific trades/sectors by established business houses, trusts and individuals having sound track record of promoting and operating such institutes. RIICO will allot land at concessional rates for such Institutes at its Khara Growth Centre (Bikaner) and Matsya industrial area (Alwar) as per procedure prescribed in this regard. Depending on availability, land for Technology Institutes may be allotted in other Industrial Areas also.

    Industrial Training Institutes (ITIs) dedicated to the needs of local industry at selected places will be encouraged. For this purpose, RIICO will provide land and building on lease basis to private companies/individuals/trusts.

    HOSPITALS AND NURSING HOMES

    The setting up of hospitals/nursing homes will get a fillip since allotment of land in industrial areas would be done as follows:

    (1) In slow moving and dormant industrial areas allotment would be done at industrial rates.

    (2) In normal areas at 1.5 times of industrial rates, and

    (3) In saturated areas the allotment would be done by open auction.

    Conversion of industrial plots would also be permitted for setting up of nursing homes and hospitals on payment of conversion charges as following:

    1. Slow moving and dormant areas- no charges.

    2. Normal industrial areas-0.5 time of industrial rates.

    3. Saturated areas- one time of industrial rates.

    SPECIAL PURPOSE INDUSTRIAL COMPLEXES

    Special Industrial Complexes are being developed in the State by RIICO to meet the requirements of specific industries, particularly of thrust sectors, at the locations in the box.

    Sl. No.

    Sector

    Location

    1.

    Gems & Jewellery

    EPIP, Jaipur

    2.

    Hosiery

    Chopanki, Bhiwadi

    3.

    Auto Ancillary

    Ghatal (Bhiwadi) & Sitapura, (Jaipur)

    4.

    Ceramics

    Khara, (Bikaner)

    5.

    Software Technology

    EPIP, (Jaipur)

    6.

    Electronics & Telecomm.

    Kukas, (Jaipur)

    7.

    Textiles

    Bhilwara,Sanganer, Sitapura, Pali, Jodhpur, Balotra

    8.

    Agro Industries

    IGNP Area

    9.

    Leather

    Manpur-Macheri

    10.

    Wool Industries

    Beawar, Bikaner

    11.

    Handicrafts

    Shilpgram, (Jodhpur and Jaisalmer)

    12.

    Dimensional Stone

    Kishangarh, Udaipur, Chittorgarh

    ELECTRONICS COMPLEX, KUKAS

    An Electronics Complex encompassing Electronics Hardware Technology Park has been developed by RIICO at Kukas, jaipur where following facilities are being extended:

    1. Assured supply of quality power

    2. Reliable telecommunication facilities including data, voice and video

    3. Custom clearance facility for export-imports (from EHTP office), and

    4. Social infrastructure including housing, Engineering College, School, Recreational facilities, Shopping Complex, Bank, Post Office, Hospital. (under development.)

    SPECIAL LAND PACKAGE FOR IT INDUSTRIES

    RIICO is extending a special land package to IT units as per the details given below:

    1. Major IT software companies (Annual turnover more than Rs.100 crores from software activities)

    2. Land allotment at 40% of prevailing industrial rate in IT Park and other specially designated IT zones provided the unit makes a minimum fixed investment of Rs.10 crores on the land allotted within a period of 4 years from the date of allotments.

    3. Major IT hardware companies (Annual turnover more than Rs.200 crores from IT hardware activities)

    4. Land allotment at 40% of prevailing industrial rate in EPIP, Electronics Zone at Industrial Area, Kukas and Sitapura, Electronic Zone, Kota or any other specially designated zones provided the unit makes a minimum fixed investment of Rs.50 crores on the land allotted within a period of 5 years from the date of allotment.

    5. General IT software units.

    6. To General IT software units having allotted land upto 5 acres in IT Park, Jaipur and other specially designated IT zones a 40% upfront discount on prevailing industrial rate is allowed. The unit will get additional discount of 10% if it commences commercial production within three years from date of allotment of land.

    7. General IT hardware units.

    8. General IT hardware units will be extended 25% rebated on land upto 5 acres in any industrial area for setting up projects within 3 yeas from date of allotment of land.

    9. Advanced IT Institutes

    10. Land upto 5 acres for Advanced IT Institutes, offering MCA/BE or equivalent courses may be allotted in IT Park, Jaipur and other specially designated zones at 50% of prevailing industrial rate. The institutes shall commence operation within 3 years of allotment of land and small make minimum fixed investment of Rs.5 crores within 5 years.

    11. General Computer Training Institutes

    Land may be allotted to general IT institutes in any RIICO industrial areas at the prevailing industrial rate.

    Note: The above concessions are subject to the payment of full development charges made within 60 days of allotment of land otherwise the concessions shall be lowered by 5% points. Also no other rebates/incentives shall be applicable to these IT projects.

    INFORMATION TECHNOLOGY PARK, SITAPURA

    A large Information Technology Park has been promoted at EPIP, Sitapura, Jaipur, in which built-up space and developed plots at reasonable prices would be made available. Production Incentive of 50% of land cost is being provided to entrepreneurs whose units go into commercial production within two years of land allotment in this park.

    An Earth Station has been set up in the Park to provide state of art high speed data communication facility.

    For enhancing availability of computer professionals two advanced Computing Institutes are under active implementation in the I.T. Park.

    Computer software is being considered as an industry for the purpose of all incentives and concessions. Software units are being considered as industrial consumers and electricity tariff is levied accordingly. This industry is exempted from the provisions of pollution control laws.

    AGRO-INDUSTRIAL COMPLEXES

    In order to promote Integrated agro-industrial complexes, the State Government has announced a policy under which wasteland upto 500 hectares can be allotted. In special cases, wasteland even upto 1000 hectares can be considered for allotment. The allotments under the scheme will be made after a techno-economic appraisal of the project.

    C-DOS

    A Centre for Development of Stones (C-Dos) has been set up by the State Government and RIICO with the active association of industry. It will sere as a centre for training, research, technological dissemination and other activities to support the growth of dimensional stone industry on a sustainable basis. Annual buyer-seller meets/stone fairs will be organsed in collaboration with Industry Associations and interested foreign collaborators. RIICO, for setting up of this Centre, has provided land in Sitapura Industrial Area near the EPIP.

    EXHIBITION COMPLEX

    An International Exhibition Complex cum Convention Centre is proposed to be set up at Sitapura, Jaipur. This would be a joint venture project between RIICO and private sector. The State Government would consider a special package of concessions for the establishment of this prestigious complex. However, exemption from entertainment tax on the entertainment entries in the complex shall be exempted for a period of 15 years.

    POWER

    Exemption From Power Cut

    • New industrial units having connected load not more than 300 KVA, are exempted from power cut to the extent feasible.

    • 100% EOUs the investment of which is more than Rs.10 crores are 100% exempted from power cuts.

    • Units set up in EPIP/Export Zone/IT Park are exempted from power cuts.

    NO MINIMUM CHARGES FROM NEW INDUSTRIAL CONSUMERS

    Small scale and medium scale units with power load up to 150 are exempted from payment of minimum charges for a period of one year from the date of power connection and will be required to pay only for the actual consumption.

    Large industrial consumers are allowed to pay the actual consumption charges for a period of six months from the date of release of connection and for next six months the consumer is allowed relaxation in minimum charges to the extent of 50%. The consumer shall be required to pay the actual consumption charges of 50% of minimum charges whichever is higher.

    Captive power plants will be freely permitted. Rural feeders will be converted into industrial feeders in a phased manner. Disconnected sick units after revival by the same promoter will pay only 1/3rd of minimum charges of actual consumption whichever is higher for the period of sickness as certified by RIICO/RFC.

    CAPTIVE POWER PLANT POLICY

    This policy has been framed to create an institutional mechanism for providing easy and automatic entry for industry to meet its requirement of energy by setting up its own generating station. The highlights of the policy are:

    1. This shall remain applicable till 31st March, 2004.

    2. The captive power plant is a generating unit with aggregate capacity not exceeding 166 MW.

    3. Captive Power Plants using RRVPN’s Grid System for wheeling of power/energy will have to bear wheeling charges and T&D losses equivalent to 12.5% of the energy supplied for wheeling to the Captive Power Consumers at 132 KV (and above) and 17.5% of the energy supplied for wheeling to the Captive Power Consumers at 33 KV.

    4. The Policy does not envisage regular sale of surplus energy to the RRVPN’s. However, any inadvertent net flow of power/energy to RRVPN’s at a frequency less than 50.5 Hz shall be paid at a rate of 60% of RRVPN’s HT large industrial tariff during July to Oct. and 65% during Nov. to June. For this purpose the Captive Power Plant will maintain a daily log of hourly generation and frequency, a copy from Captive Power Plant to consumers outside the State will not be permitted.

    SPECIAL SCHEME FOR HOTELS/AMUSEMENT PARKS/CINEMAS

    An interest subsidy of 5%will be given on loan sanctioned by RIICO/RFC to approved Heritage Hotel Projects at all places in Rajasthan.

    Interest subsidy of 5% will be given on loans sanctioned by RIICO/RFC to approved 1, 2 and 3 star hotel projects in special areas (e.g. Jaisalmer, Jodhpur, Bikaner, Barmer). In other areas/places, the interest subsidy of 3% will be given.

    5-year-100% exemption from entertainment tax for amusement parks, water parks etc.

    New Cinema Halls exempted from entertainment tax for 5 years.

    HOW TO GET LAND

    Allotment for land is done by Regional Office on the same day when approached by the entrepreneur. Some notional formalities are as follows:

    1. Get in touch with RIICO’s Regional Office or Head Office at Jaipur or Delhi Office and have the land allotment application form costing Rs.100 only (Rs.150 in case of EPIP, Jaipur)

    2. Fill in the land application from legibly giving all possible details required therein.

    3. Deposit the security money at the rate of 1% of the prevailing rate of development charges, for whatever by your land requirement subject to minimum amount of Rs.2500.

    4. Attach a draft for 25% of the development charges calculated on the basis of the rate announced for the industrial area and the size of plot required. The entrepreneur would be required to make payment of the rest 75% of the development charges within 60 days of the allotment of plot.

    LAND ON INSTALMENTS

    A facility has been provided to the entrepreneurs to make 25% payment of the development charges with the application and the rest 75% in a period of 5 years in 19 equal quarterly installments with 15% interest per annum.

    REBATE ON LAND

    RIICO offers following concessions and facilities for land requirements/allotment at its various industrial areas:

    1. Land allotment to Scheduled Castes and scheduled Tribes at 50% subsidized rate of allotment upto a maximum of 2,000 sq. mts. Of allotment in an industrial area.

    2. 20% rebate in land rates for setting up an Electronics Industry upto a maximum of 4,000 sq. mts. of allotment.

    3. 15% rebate in land rates to physically handicapped and disabled persons desirous of setting up their industry upto a maximum of 2,000 sq. mts. of allotment in an industrial area.

    4. 25% rebate in land rates to ex-servicemen and 2% reservation in allotment for ex-servicemen, up to 2,000 sq. mts.

    5. 10% rebate in land to women entrepreneurs, up to 2,000 sq. mts.

    6. A rebate of 10% in land rates in case of allotment of plots measuring 10,000 sqm. Shall be given. If area is more than 10,000 sqm. then, additional rebate of 0.5% per 1,000 sqm. shall be given. Maximum rebate shall be 25% if the allottee opts for a plot of 40,000 sqm. or above. If the allottee of the plot measuring 40,000 sqm. or more envisages an investment of Rs. 50 crores or more, then, additional rebate of 10% over and above 25% shall be given.

    For setting up Power Projects the limit of investment mentioned above would be Rs.25 crores instead of Rs.50 crores.

    RIICO REGIONAL MANAGERS’ POWERS

    The allotment, transfer, mortgage, sub-letting and sub-division procedures have been simplified. For instance, full powers have been delegated to the RIICO’s Regional Managers for making speedy decision regarding allotment, regularisation and transfer.

    One important decision is that the building plans of industrial plot sizes upto 40,000 sq. mtr., residential plot upto 500 sq. mtr. And commercial plot upto 300 sq. mtr. Will not require any approval. Only certificate of allottee shall be sufficient for approval. For larger sizes of plots, maps shall be approved by registered architects.

    If an entrepreneur wants to convert land beyond the periphery of 1 km of RIICO Industrial Area, no NOC would be required. Peripheral development charges have also been reduced from 25 to 10 per cent.

    Vacant commercial plots in RIICO areas can now be allowed to be freely transferred on payment of 5 per cent transfer charges. Earlier, special category of allottees belonging to scheduled castes, ex-servicemen and women entrepreneurs were allotted land on concessional rates. Now they will be allowed concessional rates even for partnership and private limited companies, provided all the persons/directors belong to the same category.

    INCENTIVES TO INFRASTRUCTURE

    Infrastructure sector has received a new boost following some concrete incentives being provided to it by the government of India. They are expected to promote expansion of quality infrastructure in the country. The incentives are:

    • 5-year Tax Holiday for any enterprise which builds, maintains and operates infrastructure facilities in the area of Highways, Expressways and new Bridges, Airports, Ports, Rapid Mass Transport Systems, Irrigation, Water supply, Sanitation, and Sewerage Systems.

    • This Tax Holiday will be available to enterprises which commence operation after 1 April, 1995.

    • Dividends, interest on long term capital gains on Infrastructure funds exempted from Income Tax.

    • Under section 80-IA of the Income Tax Act, new industrial undertakings, Hotel and Shipping concerns are entitled to a deduction of 30 per cent of their income if they are companies, or 25 per cent of their income if they are non-corporate entities. This incentive is available to cooperative societies for the first 12 years and to others for the first 10 years of operation.

    Additional Facilities for Entrepreneurs

    Set-back norms for plots in industrial areas including that of the transferred areas would be reviewed to provide 70 per cent utility area in each category.

    If for some reason there is a delay in the registration of lease deed there will be no retention charges.

    All allottees of plots may complete construction and begin commercial production in allotted plots within 5 years period from the date of possession of plot or execution of lease deed, whichever is earlier.

    HOW TO GET FINANCIAL ASSISTANCE FROM RIICO

    For financial assistance, an entrepreneur should submit an application on the prescribed form along with project proposal at the Head Office of RIICO situated in Udyog Bhawan, Tilak Marg,
    Jaipur 302 005
    or at the Regional Manager’s office situated at district headquarters and other places.

    Prescribed loan application forms can be obtained from RIICO’s sale counter on payment of Rs.100. The forms can also be sent by post if a D.D. or M.O. in favour of "RIICO Ltd" is sent to Sale Counter, RIICO, Udyog Bhawan, Tilak Marg, Jaipur-302 005.

    An entrepreneur is to present his/her application along with required documents which are given in the guidelines to the application form in two copies. It needs to be ensured that complete documents/information required are furnished with the loan application itself.

    All applications for financial assistance are processed and finalised in the Head Office of RIICO at Udyog Bhawan in Jaipur.

    RATE OF INTEREST

    Rate of interest under IDBI/SIDBI refinance scheme is:

    1. for small scale sector : 15%

    2. for medium/large scale sector : 16%

    A rebate of 2% in interest rate would be provided by RIICO to all those borrowers on a quarterly basis who make repayment in due time.

    Apart from project financing and direct equity participation, schemes like lease financing, working capital loans, equipment financing and Bill Discounting are also being operated. RIICO can normally give term loans upto Rs.4 crores per project and give assistance to project of project cost upto 12 crores. Projects beyond project cost of Rs. 12 crores would also be extended financial assistance by RIICO on selective basis.

    Corporation provides term loan assistance to Industrial as well as Infrastructure and Social Infrastructure projects.