Jharkhand Industrial Infrastructure
Development Corporation Ltd.
(A Govt. of Jharkhand Undertaking)
(A Govt. of Jharkhand Undertaking)
Jharkhand offers excellent rail and road connectivity to the rest of India. Eastern Dedicated Freight Corridor passes through the state and connects it with West Bengal, Bihar, Uttar Pradesh, Delhi, Haryana and Punjab. Jharkhand is also well-served by an excellent network of National Highways connecting it to the hinterland and major metropolitan markets of India. The combined population of Jharkhand with its four adjoining states is about 247.5 million, which is nearly 25% of the country’s population, making it very advantageous from a market access perspective.
Jharkhand is endowed with a wide variety of natural resources and is one of the most attractive destinations for setting up mineral-based units because of its vast mineral reserves and an industrious workforce. Around 30% of Jharkhand’s geographical area is covered with highly bio-diverse forests, thus affording ample opportunities for the development of Minor Forest Produce-based industries and AYUSH centric units. Also, its agro-climatic conditions are suitable for the development of a wide variety of agro and allied industries.
Jharkhand is becoming the vanguard of industrialisation among the Indian States. The government of Jharkhand is keenly working on skill development and improving exports from the State. Decentralised employment augmentation through the promotion of labour-intensive industries such as Mining and Minerals, Agriculture and Processed Food etc. is one of the key prongs identified by the Government of Jharkhand. The government of Jharkhand is encouraging investments in mineral exploration, Steel, Plastics, Chemicals, Electrical, Cement, Metallurgy and Automobile components, Light Engineering and Textiles amongst others.
Know more : Jharkhand Industrial and Investment Promotion Policy 2021
Know more: Check your Incentives
The classification of the MSMEs have been done by the Union Government of India. As per the revised classification that came into effect on 1 July 2020, the criteria for the manufacturing and services oriented enterprises are as follows:
Large Scale Industry: An industrial unit which has investment above medium scale industry as specified by Government of India but investment lower than mega project as defined in this policy shall be considered as largescale industry.
Sectorwise Mega Project classification will be as below :
| Sl. No. | Sector | Minimum Investment | Direct employment generation |
| 1. | Manufacturing | Rs 250 crore | 300 |
| 2. | (a) Automobiles | Rs 300 crore | 500 |
| (b) Auto components | Rs 50 crore | 100 | |
| 3. | Steel, Aluminium and other mineral based industries except cement | Rs 1000 crore | 300 |
| 4. | Ancillary & Down-stream industries | Rs 50 crore | 50 |
| 5. | Agro-processing / food processing, bio-technology/ pharmaceuticals | Rs 50 crore | 100 |
| 6. | Textile / reeling/spinning/ weaving / garmenting projects / apparel | Rs 25 crore | 500 |
| 7 | Information Technology (IT-ITEs industries) | Rs 50 crore | 1000 |
| 8 | Cement | Rs 300 crore | 100 |
“New Industrial Unit” means an industrial unit in which commercial production has commenced within five years from 01.04.2021 or Date of Production Certificate (DOP).
A Power Plant generating power from renewable sources, with commercial operation after the effective date of implementation of JIP Policy 2021, shall be deemed to be a new industrial unit and will be entitled to all the incentives under JIP 2021. These plants will not be liable to pay 50% electricity duty for a period of 10 years.
The unit considered to be an existing industrial unit which is in commercial production on or before 31.03.2011.
“Expansion / Modernization of an existing unit would mean additional fixed capital investment to the extent of 50% or more of the nondepreciated value of fixed capital investment just before taking up this expansion / modernization in this unit leading to at least 70% of additional production of the capacity along with 70% of the total created capacity after expansion.
Illustration
Expansion / Modernisation: If non-depreciated fixed capital investment in a unit before Expansion / Modernization is Rs. 100.00 cr. and its yearly capacity of production is 1000T and if the unit invests Rs. 50.00 cr. or more as fixed capital investment and the capacity after Expansion / Modernization is raised by additional 700T i.e. total capacity after Expansion/Modernization is 1700T and minimum production achieved from the unit after Expansion/Modernization is 1190T (i.e. 70% of total capacity of 1700T) then a unit is considered to have under gone Expansion / Modernization.
Diversification of an existing unit would mean additional fixed capital investment to the extent of 50% or more of the non-depreciated value of fixed capital investment just before taking up this diversification in this unit leading to increase in turnover by 50%, over the highest turnover achieved during past three years immediately before taking up this diversification.
Note: The eligible unit claiming benefits under expansion/modernization/ diversification shall be required to maintain separate record of production for such expansion/ modernization/diversification. In case, maintaining a separate record is not possible by such units the benefit to such eligible units shall be available in the ration of installed capacity.
Illustration
If non-depreciated fixed capital investment in a unit before diversification is Rs. 100.00 cr. and its Highest Turnover achieved during last three years before taking up diversification is Rs. 20.00 lakh and if the unit invests Rs. 50.00 cr. or more as Fixed Capital investment for diversification and Turnover achieved after diversification is minimum Rs. 30.00 lakh (i.e. 50% more than earlier turnover) and atleast one additional product is added to product mix then unit is considered to have been diversified. If the unit discontinues with the existing production, the increase in Turnover will not be a consideration for declaring the diversification of the unit.
Enriching Jharkhand through vibrant and sustainable Industrial growth. Facilitating investor for the continuous and speedy industrial growth through optimum utilization of resources without effecting natural ecosystem.
