The “Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) Act, 2014” (Act 3 of 2014)
The Telangana Government has enacted the “Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) Act, 2014” (Act No.3 of 2014) repelling the AP Industrial Single Window Clearance Act 2002 for speedy processing of applications for issue of various clearances required for setting up of industries at a single point based on the self-certificate provided by the entrepreneur and also to create investor friendly environment in the State of Telangana.
The Salient features of the TS-iPASS are:
A single simplified Common Application Form (CAF) for all department approvals
All departments connected for establishing and operation of an Enterprise brought under purview of TS-iPASS
Time Limits set for each approval varying from 1 day to a maximum of 30 days depending upon on the complexity of the approval.
Pre-Scrutiny of the applications at State Level and District Level to assist the entrepreneurs in a proper submission of applications and to avoid delay in processing the files by the departments.
Making mandatory for the Competent Authorities to seek shortfall/additional information required, if any, only once, within three days from receipt of the application.
Providing Deemed approvals, in a case of failure of according approvals by departments, within the set time limits.
Empowering the Entrepreneurs with Right to clearances under TS-iPASS, to know the reasons for delay if any in getting the clearance within time limits and penalizing the officers responsible for the delay.
Provision of automatic approval system on submission of a Self-Certification.
Providing all approvals within 15 days to Mega Projects by “TELANGANA Statewide Investment FACILITATION ( t-swift)” BOARD under the Chairmanship of the Chief Secretary to Government, to enable implementation of the project swiftly.
In the State and district under TS-iPASS up to November 2015, the followings are the proposals received with the investment made and employment provided data.
| TS-iPASS - STATE & DISTRICT LEVEL PROPOSALS STATUS REPORT | ||||
| S.No. | Item | State | District | TOTAL |
| 1 | Total Units | 224 | 789 | 1013 |
| 2 | Investment (Rs. In Crs) | 24778.02 | 1194.26 | 25972.28 |
| 3 | Employment | 61875 | 14439 | 76314 |
Large Industries:
The following is the abstract of Large-scale Industries established in the State for the years 2014-15 and 2015-16 (up to 30.11.2015)
| S.No. | Year | No of Units | Investment in Rs. Cr | Employment |
| 1. | 2014-15 | 37 | 3526.82 | 6467 |
| 2. | 2015-16 | 34 | 5510.58 | 6855 |
Industrial Infrastructure Development Fund (IIDF) Scheme:
Infrastructure like roads, power, and water will be provided at door step of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to (a) the location should be beyond 10 km from the existing Industrial Estates/IDA’s having vacant land/shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry.
As per Incentive policy T-IDEA of 2014 (Telangana State Industrial Development and Entrepreneur Advancement) [ G.O. Ms.No. 28, dt.29.11.2014], the Medium & Large scale Industries of General category entrepreneurs are eligible for the sanction of IIDF.
As per Incentive policy T-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) of 2014 [ G.O. Ms.No. 29, dt.29.11.2014], Micro and Small Enterprises set up by Scheduled Caste and Scheduled Tribe entrepreneurs, Infrastructure like roads, power, and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to:
(a) the location should be beyond 10 km from the existing Industrial Estates/IDAs having vacant land/shed for allotment and
(b) Cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry. 50% of the cost of infrastructure is raised to75% in respect of units set up by ST entrepreneurs in Scheduled areas.
NEW INDUSTRIAL POLICY
The Government of Telangana announced new Industrial Incentive Scheme T-PRIDE (Telangana State Program for Rapid Incubation of Dalit Entrepreneurs) for Scheduled Caste / Scheduled Tribe entrepreneurs vide G.O Ms.No. 29, dt.29.11.2014 extending various incentives for MSME and Large scale Industries.
• 100% reimbursement of Stamp duty and transfer duty paid by the industry on the purchase of land meant for industrial use.
• 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings and also mortgages and hypothecations
• 33 1/3 % rebate on land cost limited to Rs.10.00 Lakhs in Industrial Estates / Industrial Parks, if not availed rebate from TSIIC as per G.O Ms.No. 102 of Industries & Commerce (INF), Department, A.P, dt. 19.6.2012.
• 25% Land conversion charges for the industrial use limited to Rs.10.0 lakhs.
• Fixed power cost reimbursement @ Rs. 1.50 per Energy unit for a period of 5 years from the date of commencement of commercial production.
• Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises @ 20% of the Machinery cost, which will be deducted from the eligible investment subsidy.
• 35% investment subsidy on fixed capital Investment for Micro and Small Enterprises set up by SC and ST Entrepreneurs, with a maximum limit per unit as Rs. 75.00 Lakhs. Additional 5% investment subsidy for units set up in Scheduled Areas by ST entrepreneurs with a maximum limit per unit as Rs.75.00 Lakhs.
• Reimbursement of 100% net VAT/CST or State Goods and Services Tax (SGST) for a period of 5 years from the date of commencement of commercial production to Small and Micro Enterprises.
• Reimbursement of 75% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement of commercial production for Medium Scale Enterprises or up to the realization of 100% fixed capital investment, whichever is earlier.
• Reimbursement of 50% net VAT/CST or State Goods and Services Tax (SGST) for a period of 7 years from the date of commencement of commercial production for Large Scale Industries or up to the realization of 100% fixed capital investment, whichever is earlier.
• Interest subsidy under Pavala Vaddi Scheme on the term loan taken on the fixed capital investment by New Micro and Small Enterprises in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from the date of commencement of commercial production. This benefit is also applicable to the Service Sector units set up under this Policy.
• 50% Reimbursement of the cost involved in skill up gradation and training the local manpower limited to Rs.2000 per person.
• 50% subsidy for the expenses incurred for quality certification / patent registration limited to Rs. 3.00 Lakhs for Micro and Small Enterprises.
• 25% subsidy on specific cleaner production measures limited to Rs.5.00 Lakhs.
• For Micro and Small Enterprises set up by Scheduled Caste and Scheduled Tribe entrepreneurs, Infrastructure like roads, power, and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to:
a).the location should be beyond 10 km from the existing Industrial Estates/IDAs having vacant land/shed for allotment and (b) cost of the infrastructure limited to 15% of the eligible fixed capital investment made in the industry. 50% of the cost of infrastructure is raised to75% in respect of units set up by ST entrepreneurs in Scheduled areas.
• The line of activity of Excavator is considered as eligible exclusively in the case of Scheduled Caste and Scheduled Tribe entrepreneurs and incentive shall be extended under service activity.
• Joint venture industries of Scheduled Caste or Scheduled Tribe entrepreneurs should be owned 100% by Scheduled Caste / Scheduled Tribe entrepreneurs. Shareholding should continue for at least six (6) years from the date of production, failing which the special incentives allowed to Scheduled Caste/Scheduled Tribe entrepreneurs will be recovered. 0 COMMENTS
