West Bengal Incentive Scheme 2020 for Approved Industrial Park
GOVERNMENT OF WEST BENGAL
Department of Micro, Small and Medium Enterprises and Textiles
Silpa Sadan (7th & 8th Floor)
4, Abanindranath Tagore Sarani, Kolkata-700 016
No. 1890/MSMET-18099/7/2020 Date: 16/09/2020
The West Bengal Incentive Scheme 2014 for Approved Industrial Park (commonly referred to as SAIP) for Micro, Small and Medium Enterprises expired on 23/9/2019. Now, the Governor has been pleased to approve extension of this Scheme in the State with certain alterations and modifications for another period of 5 (five) years for creation of more industrial parks by private developers on their own land with required infrastructure with state government assistance in the form of fiscal and non-fiscal incentives in order to catalyze and promote growth of micro, small and medium enterprises with advanced technology and environmental compliances resulting in more employment opportunities.
1. Title of the Scheme
The Scheme will be called West Bengal Incentive Scheme 2020 for Approved Industrial Park for Micro, Small and Medium Enterprises (MSMEs) (hereinafter referred to as SAIP Scheme, 2020).
2. Objectives of the Scheme
The objective of the Scheme is to provide state support in the form of fiscal and nonfiscal incentives in order to encourage private sector to set up industrial parks on their own land with quality infrastructure so as to catalyze and promote growth of MSME units in the state, boost employment generation, and lead to technology advancement and improved environmental compliance.
The Scheme will come into force on and from the date of notification in the whole of West Bengal and shall remain in force up to 5 years, if not withdrawn/ amended by a notification in the official gazette to that effect.
In the Scheme, unless the context otherwise requires:
(i) Department: Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal.
(ii) Approved Industrial Park: Industrial Park for MSMEs approved by “State Level Empowered Committee” (SLEC) under the Scheme and subsequently notified by the State Government in the Department of Micro, Small & Medium Enterprises and Textiles, Government of West Bengal.
(iii) WBSIDCL: West Bengal Small Industries Development Corporation Ltd., which is authorized by the Department to act as the nodal organization for operation of the Scheme
(iv) SPV: Special Purpose Vehicle, which will procure or is in legal possession of the land for the AIP and will be responsible for designing, development, financing, construction, management, operation and maintenance of the AIP. SPV must be a registered entity under the Companies Act
(v) Basic and Essential Common Infrastructure Facilities: Includes the facilities of land development, land filling, boundary walls, internal roads and street lighting, storm water drainage, sewerage system, STP & WTP (if applicable), water distribution network, electrical main distribution network, telecommunication network, common fire-fighting infrastructure, solid waste disposal, landscaping, guardhouse, gate, and misc. civil structures in the AIP and such other facilities as are required for common use for industrial activities which have been identified and approved by the SLEC.
(vi) Form: Forms appended to the Scheme.
(vii) Micro Unit/Enterprise: A unit/ enterprise classified as such in MSMED Act, 2006 as amended from time to time.
(viii) Small Unit/Enterprise: A unit/ enterprise classified as such in MSMED Act, 2006 as amended from time to time.
(ix) Medium Unit/Enterprise: A unit/ enterprise classified as such in MSMED Act, 2006 as amended from time to time.
(x) State Government: The Government of West Bengal.
(xi) Unit/Enterprise: Unit/Enterprise means any unit/enterprise in the micro, small and medium sector including industrial cooperatives and industrial self- help groups, which has filed Entrepreneurs Memorandum (EM) and has been allotted an EM Number.
(xii) Approved Project: “Approved Industrial Park” (AIP).
(xiii) Commencement of Approved Industrial Park: Commencement of Approved Industrial Park means the date of operation of the AIP, which denotes the date when all the approved Basic and Essential Common Infrastructural Facilities have been constructed/ installed and minimum 30% of the total area for lease has been allotted to MSMEs.
(xiv) Private Sector: Any Industry Association/ Industrial and Corporate House or Institution registered under Societies Act or Partnership Act or the Companies Act and/or consortium thereof.
5. Applicability of the Scheme
The SAIP, 2020 shall be applicable to all Approved Industrial Parks commencing after the approval of SLEC, subject to the fulfillment of terms and conditions specified under the Scheme.
6. Criteria and features of the Approved Industrial Park
I. The Approved Industrial Park shall be established by private sector at own land, which will be required to form a Special Purpose Vehicle (SPV) registered under Companies Act. SPV may be formed by any Industries Association or any enterprise registered under Societies Act, Partnership Act (LLP) or the Companies Act or their consortium.
II. The responsibility of designing, development, financing, construction, management, operation and maintenance of the AIP shall be with the SPV.
III. The SPV shall procure or shall be in legal possession of the land for the AIP.
IV. Procurement of land shall be in harmony with the existing provisions of the policies of the State Government.
V. SPV shall be responsible to develop the master plan/ layout plan of the AIP adhering to the Urban Planning/ Town & Country Planning rules and shall have to obtain the master plan / layout plan approval from WBSIDCL with respect to adherence of rules (FAR, Land use, Area Statement, Open Space, Fire Safety, Waste water Management, Water Conservation, Drainage, Sewerage, Solid Waste Disposal, Utility shifting, Power, water, telecommunication, road connectivity and network, etc.) including conformation of specification of infrastructure facilities/ utilities and quality standard. The SPV shall also be responsible for compliance of other statutory norms (Consent to Establish for the Park based on the activities of the proposed Units envisaged, Mutation, Conversion, Exemption of 14Y of WBLR/ UC Acts, if applicable, etc.) as relevant from concerned State Government Departments/ Govt. of India/ Authorities. All the compliances approvals/ licenses shall have to be obtained before construction of the Park.
VI. The minimum land area required for development of an AIP will be 20 acres.
VII. Each AIP shall plan and provide land plot/ shed / buildings/ installations for a minimum 20 number of MSME Units.
VIII. For AIPs above 60 acres of land, beyond the minimum allocation of 20 number of MSME, the AIP shall be allowed setting up of ancillary logistic facilities like warehouse/cold storage, godown etc. These amenities should be made available on rental/lease basis. Other amenities like Bank, ATM, Primary Health Centre, Creche shall also be allowed within the park. No Commercial activity other than amenities specified above is allowed within the area of Industrial Park.
IX. The SPV shall construct/ install the mandatory Basic and Essential Common Infrastructural Facilities in the AIP, which would include facilities of land development, land filling, boundary walls, internal roads and street lighting, storm water drainage, sewerage system, STP & WTP (if applicable), water distribution network, electrical main distribution network, telecommunication network, common fire-fighting infrastructure, solid waste disposal, landscaping, guardhouse, gate, and misc. civil structures and such other facilities as are for common use for industrial activities which have been identified and approved by SLEC.
X. The SPV shall create and maintain an open space of a minimum 10% of total area or as required by the building rules and the guidelines of Ministry of Environment and Forest, Government of India (whichever is higher)
XI. Schemes for utility shifting/ excessive land filling/ water drainage in the AIP shall not be considered for incentives by the department.
XII. Minimum 60% of the total allottable land/built space in the AIP shall be allotted for industrial activities. The remaining land/built space shall be utilized for Basic and Essential Common Infrastructure Facilities and greenery, while maximum 5% land/built space can be earmarked for hostel/ housing/guest house facilities meant for the occupants of the AIP and outsiders.
XIII. The SPV shall have to report to WBSIDCL about start of construction of the AIP within 3 months of receiving all statutory clearances for the pre-construction phase. The SPV also must initiate the process of applying for statutory clearances within 30 days of in-principle approval of the AIP under the Scheme.
XIV. SPVs who do not commence construction within 3 months of receiving all statutory clearances pertaining to the pre-construction phase, shall be subjected to cancellation of application and shall not be applicable for any incentive.
XV. The construction/ installation of the Basic and Essential Common Infrastructure Facilities and allotment of minimum 80% of the total land/built space for lease to MSMEs and fulfillment of other compliances under this Scheme shall have to be completed within 2 years from the date of approval of the AIP. In case of delay, beyond the control of the SPV, approval for extension for a maximum period of 6 months shall have to be obtained from SLEC before expiry of the specified 2 years. In case the SPV defaults, the approval given to an AIP shall stand withdrawn on completion of specified 2 years or after the extended time.
XVI. The SPV shall manage and maintain the AIP for a minimum period of five years from the date of completion of construction/ installation of the Basic and Essential Common Infrastructure Facilities and/or allotment of minimum 80% of the land for lease to MSMEs. Any change in shareholding pattern in the SPV till the completion of 5 years maintenance period of the AIP will require approval from SLEC. In case of default, the SPV is liable to refund the disbursed/ reimbursed incentive amount to the State Government.
XVII. The SPV shall allot the plot/ shed / buildings/ installations of the AIP on lease to MSMEs through open advertisement in newspapers declaring rates of plot of land/ shed / buildings/ installations. In case applications for more than the available plot of land/ shed / buildings/ installations are received then allotment shall be made through lottery.
XVIII. The SLEC may impose conditions for better utilization of the Approved Industrial Park, which shall be final and binding on the SPV/ AIP.
XIX. The SPV shall submit periodic progress report to WBSIDCL in prescribed format and intimate the allotment details of land plot/ shed / buildings/ installations in the AIP at regular interval.
XX. WBSIDCL shall be the nodal organization authorized for operation of the Scheme.
7. Assistance from State Government
I. WBSIDCL shall invite and receive proposals from Private Sector for setting up industrial parks under the Scheme and scrutinize, verify and recommend the eligible proposals to the SLEC for approval and subsequently process incentive claim and disburse the sanctioned amount of incentives to the SPV of the AIP.
II. WBSIDCL shall inspect and monitor the progress of development of the AIP periodically. The SPV shall take into consideration any recommendation from WBSIDCL related to the development of the AIP, which it feels as necessary for fulfilling compliances of development of the AIP under this Scheme. The SPV shall also have to inform and obtain necessary consent from WBSIDCL before installing the CETP with respect to selection of accredited vendor, chosen technology and cost estimate.
III. WBSIDCL shall provide facilitation service in obtaining all statutory clearances/ licenses within the law. However, WBSIDCL shall not have any direct role in the processing of applications for statutory clearances / licenses, which shall be processed and decided by the respective Departments/ agencies. The exemption under 14Y of WBLR Act and Urban Ceiling Act for holding land in excess of the prescribed ceiling shall be considered by the concerned Departments under the existing rules and policies of the State Government.
IV. The MSME&T Department shall consider setting up a Project Management Unit (PMU) at WBSIDCL for the scrutiny and vetting of the project proposals and for onward recommendation. The scope of work for the PMU shall include:
For in – principle approval:
- Scrutiny of the project proposals submitted at the in-principle stage (Need for the project, Proposed components, nature of Industries, location).
- Jointly assessing the land and utility requirements for the project along with District Administration.
- Providing any other need-based support as desired by the WBSIDCL.
- Assisting the SPVs, if required, for obtaining the statutory approvals for the park.
For final approval:
- Scrutiny of the project proposals, DPR submitted at the final approval stage.
- Reviewing financial closure of the project by the SPV.
- Monitoring of the projects with regards to physical and financial progress, disbursement of grant funds. utilization of funds, etc.
- Providing any other need-based support as desired by the SLEC.
- Assisting the SLEC/project SPVs, if required, in arranging for external infrastructure services to the park.
8. Fiscal incentives and concessions for Approved Industrial Park
An Approved Industrial Park will be entitled to State incentives as follows:
A. Incentive for Basic and Essential Common Infrastructure Facilities
I. One time back-ended incentive for development of Basic and Essential Common Infrastructure Facilities based on land area in the following manner:
|1.||20 acres to 39 acres||Rs. 2 crore|
|2.||40 acres to 59 acres||Rs. 4 crore|
|3.||60 acres to 79 acres||Rs. 6 crore|
|4.||80 acres to 99 acres||Rs. 8 crore|
|5.||100 acres and above||Rs. 10 crore|
II. While calculating this incentive the land area in acre will be taken as least whole number.
III. Of the capital incentive allocated/ approved for a project, up to 20% of the allocation shall be towards specific Plant & Equipment required in the Common Facility Centre. The SLEC may make any relaxation in this regard based on the nature of the component and its utility.
B. Incentive for Common Effluent Treatment Plant (CETP)
I. An Approved Industrial Park shall be entitled to incentive as reimbursement for installation of CETP, wherever applicable, based on land area of AIP @ Rs. 5 lakh per acre. While calculating incentive for CETP, the land area in acre will be taken as least whole number.
II. For availing this incentive, the SPV shall have to obtain prior approval justifying the feasibility and requirement for the CETP in the AIP. The SPV shall also have to inform and obtain necessary consent from WBSIDCL before installing the CETP with respect to the accredited vendor, selected technology and cost estimate.
C. Reimbursement of Stamp Duty
An Approved Industrial Park shall be entitled to reimbursement of stamp duty paid by the SPV for registration of land documents within the State relating to purchase of land for development up of the AIP.
D. Incentives shall be provided on reimbursement basis after physical verification of the Basic and Essential Common Infrastructure Facilities constructed in the AIP and fulfillment of other compliances under this Scheme and stipulated conditions as recommended by WBSIDCL and approved by SLEC. The inspection shall be undertaken by WBSIDCL or through an accredited Third-Party Inspection agency.
E. The fiscal and non-fiscal incentives and concessions shall be available to the SPV only and reimbursement shall be made only for the expenditure that has been incurred by it.
F. The SPV availing of incentives under the Scheme shall be eligible to avail incentives under any other scheme of the State Government/ Government of India except for the same item and excluding the cluster infrastructure development assistance as available in MSME Policy of the State Government. Individual Units coming up in the AIP shall be eligible to avail incentives under various schemes of the State Government/ Central Government as per their eligibility.
9. Non-fiscal Incentives for Approved Industrial Parks
A. Setting up a Power Sub Station
Government shall strive to facilitate the Private Industrial Park in provision of quality power. Power substation catering to the AIP, for which the requirement is justified and approved, shall be set up by the concerned State Government agency free of cost. Suitable land for setting up the substation shall be provided by the SPV without cost.
B. Construction of Approach Road
Approach Road (Two-lane Road up to a maximum length of 1.5 km from the nearest major road) catering to the AIP, for which the requirement is justified and approved based on factors including distance of the proposed park from existing major road, shall be set up by the concerned State Government agency free of cost.
10. Submission of application and approval for setting up of Approved Industrial Park
I. WBSIDCL shall invite applications from Private Sector for setting up of industrial parks from time to time indicating pre-determined selection criteria as per this Scheme as well as prescribing other conditions.
II. The Private Sector/ SPV shall apply in Form – I to WBSIDCL along with requisite papers/ documents justifying the feasibility of the industrial park and proposed expenditure for developing the AIP.
III. In-Principle Approval:
The in-principle approval to the project shall be accorded by WBSIDCL based on the feasibility report submitted by the SPV covering details regarding the:
a. Need for the proposed park
b. Broad components and activities
c. Nature of the products/services proposed in the park
d. Location and land details including land identification and availability of land with the SPV
- WBSIDCL will scrutinize, verify and accord eligible applications in principle approval based on parameters such as location of the project, promoter’s background. financial strength, sector/s which are to be attracted in the Industrial Park, project viability and their readiness for implementation.
- The in-principle approval shall be valid for a period of 12 months from the date of approval. The SPV shall comply with the terms and conditions laid out by the WBSIDCL within the timeframe for final approval. The WBSIDCL at its discretion may extend the time frame based on the merits of the proposal on a case to case basis.
- In Principle approval (or rejection) shall be accorded within a time frame of 180 days from receipt of proposal.
- WBSIDCL shall consider each application on a case-to-case basis subject to fulfillment of predetermined selection criteria as per this Scheme and may prescribe other terms and conditions and accord approval.
IV. Final Approval:
The project shall be accorded final approval by the SLEC after complying with the following pre-requisites:
a. Land to be in possession of the SPV.
b. Submission of Detailed Project Report (DPR) comprising of:
- Need for the proposed park.
- Assessment of demand for industrial land.
- Major product/service proposed in the park – with their product/service mix and the markets to cater.
- Proposed utility and common infrastructure to be created with a Detailed Master Plan.
- Projected Cost Estimates with Means of Finance.
- Business Plan with financial analysis.
- Implementation schedule.
- Operations & Facility Management Framework post completion.
- Any other key information.
The SLEC may accord Final Approval to the park proposals on as is basis, or with suggestions / modifications.
V. Submission of Claim for Incentive and Disbursement
a. The SPV shall submit application of claim for incentives in Form – II to WBSIDCL along with requisite papers/ documents/ completion report in prescribed format after the fulfillment of all compliances under this Scheme and any other stipulated conditions imposed by SLEC.
b. On receipt of the application, WBSIDCL shall make scrutiny/ enquiry of the particulars furnished and undertake physical verification of the Basic and Essential Common Infrastructure Facilities constructed in the AIP, carried out by itself or through accredited Third-Party Inspection agency and on being satisfied shall recommend the admissible amount of incentive to the State Level Empowered Committee for sanction.
c. The Department shall release the incentive amount to WBSIDCL on receipt of recommendation of SLEC. WBSIDCL shall disburse the fund to the SPV within 7 working days of the receipt of the fund from the Department.
d. WBSIDCL shall be entitled to charge 2% of the incentive received by the SPV from the Department under this Scheme which it shall charge from the SPV as its administrative expenses.
11. Migration Clause
SPVs which had applied under SAIP 2014 but have not availed any benefit and have not commissioned the industrial park before the effective date, shall have the option to avail the benefit of this policy provided they exercise this option within 90 days of notification of this scheme.
For AIPs approved under SAIP 2014, Incentives (Fiscal) availed under the SAIP, 2014 will be adjusted from the date of notification of the new scheme. The fiscal benefits already availed by SPVs under SAIP 2014 will have to be refunded or adjusted in the new scheme along with simple interest @12% per annum to the State within 90 days from the acceptance of their option by the State.
12. Constitution of State Level Empowered Committee
The State Level Empowered Committee consisting of following members shall be constituted for selection and approval of applications for development of AIP and sanction of incentives under the Scheme:
(i) Principal Secretary to the Govt. of West Bengal, Micro, Small & Medium Enterprises & Textiles Department – Chairman
(ii) Principal Secretary to the Govt. of West Bengal, Finance Department or his representative not below the rank of Joint Secretary – Member
(iii) Principal Secretary to the Govt. of West Bengal, Department of Urban Development & Municipal Affairs or his representative not below the rank of Joint Secretary – Member
(iv) Principal Secretary to the Govt of West Bengal, Land & Land Reforms and R&RR Department & Land Reforms Commissioner or his representative not below the rank of Joint Secretary – Member
(v) Managing Director, WBIDCL – Member
(vi) Chairman & Managing Director, WBSEDCL – Member
(vii) Managing Director WBSIDCL – Member-Secretary
(viii) Member-Secretary, WBPCB – Member
(ix) Director of MSME, Govt. of West Bengal – Member
(x) Managing Director, WBFC – Member
13. Withdrawal of approval under the Scheme
The State Level Empowered Committee may withdraw the approval given to an AIP at any time if the SPV/ AIP fails to comply with any of the terms and conditions specified under this Scheme.
14. Power to amend
Notwithstanding anything contained in any of the provisions of WBIS-2019 for AIP for MSMEs, the State Government may at any time modify, vary, alter, amend or withdraw any of the provisions made herein above in the Scheme and such modifications, variations, alterations, amendments and withdrawal shall be effective from the date specified in the order so made in this behalf.
By order of the Governor,
RAJESH PANDEY, IAS
Principal Secretary to the
Government of West Bengal
No. 1890-MSMET dated 16.09.2020, SourceMicro, Small and Medium Enterprises, Incentive Scheme