FAQ

Q 1) What is MSME INDUSTRY?

Ans. In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise aredefined in terms of investment in Plant & Machinery.

(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

MANUFACTURING SECTOR
Enterprises	Investment in plant & machinery
Micro Enterprises	Does not exceed twenty five lakh rupees
Small Enterprises	More than twenty five lakh rupees but does not exceed five crore rupees
Medium Enterprises	More than five crore rupees but does not exceed ten crore rupees
SERVICE SECTOR
Enterprises	Investment in equipments
Micro Enterprises	Does not exceed ten lakh rupees:
Small Enterprises	More than ten lakh rupees but does not exceed two crore rupees
Medium Enterprises	More than two crore rupees but does not exceed five core rupees

Q 2) What is Large Scale Industry?

An industrial unit which is not classified as Micro, Small, Medium and Mega Enterprises shall be classified as large scale industry

What is Mega Projects? 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

Except the above mentioned sector-wise classification, projects in other sectors with investment above Rs 250 crore will come under Mega project classification. Mega investors under above mentioned categories will be required to develop ancillary industries for spares / consumables for their respective mega units. The investment for their ancillary units will be in addition to the investment shown above.

Q 3) What is Fixed Capital?

The ‘Fixed capital investment’ means an investment made in land, building, plant and machinery as well as productive assets of permanent nature such as tools, jigs, fixtures, dies, crane, electrification except DG Set and pollution control equipment.

Q 4) What is new industrial unit?

“New Industrial Unit” means an industrial unit in which commercial production has commenced within five years from 01.04.2011 and Date of Production Certificate (DOP) has been issued under clause 35 of JIP- 2012

A Power Plant generating power from renewable sources, with commercial operation after the effective date of implementation of JIP- 2012, shall be deemed to be a new industrial unit and will be entitled to all the incentives under JIP-2012. These plants will not be liable to pay 50% electricity duty for a period of 10 years.

Q 5) What is “Existing Industrial Unit”?

The unit considered to be an existing industrial unit which is in commercial production on or before 31.03.2011.

Q 6) What is Expansion / Modernisation?

“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.

Q 7) What is Diversification?

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.

ii. Diversification must result in production of at least one additional product. If the unit discontinues with the existing production, the increase in turnover will not be considered.

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.

What incentives do Department of Industries, Jharkhand provide?
Comprehensive Project Investment Subsidy (CPIS)
Stamp duty and Registration fee
Quality Certification
Patent Registration
Subsidy / Incentive on VAT
Incentive for Industrial Parks, Private Industrial Area / Estate
Incentive for Cluster Development
Incentive for textiles and apparels
Incentive for agro-food processing cluster
Incentive for captive power plant
Incentive for IT / ITES
Where to apply for incentives and concessions?
How do I apply for incentives and concessions?
Comprehensive Project Investment Subsidy (CPIS)

For New Unit

Application in Form – 1 has to be submitted with all the enclosures to respective MD, IADA’s /GM, DIC along with the prescribed documents:Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit, will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application. For Expansion/Modernization/Diversification of industrial units.

Application in Form – 1 along with Form-A has to be submitted with all the enclosures to respective MD, IADA’s /GM, DIC along with the prescribed documents for claiming benefit in respective of incremental production/diversified product resulting out of Expansion/ Modernization/Diversification.Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit,will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application.Claims under CPIS for 2nd to 5th year can be made using Form-1.9 only.Only one time subsidy under CPIS category will be provided to the industries. The subsidy payment will be spread over a period of 5 years time @ 20% of payable amount of subsidy payment in each year.
Stamp duty and Registration fee
- Application in Form – 1 along with Form-B has to be submitted with all the enclosures to respective MD, IADA’s /GM, DIC along with the prescribed documents:
- Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit, will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application.
Quality Certification
- Application in Form -1 along with Form-C has to be submitted with all the enclosures to respective MD, IADA’s/GM, DIC along with the prescribed documents.
- Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit, will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application.
Patent Registration
- Application in Form -1 along with Form-D has to be submitted with all the enclosures to respective MD, IADA’s/GM, DIC along with the prescribed documents.
- Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit, will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application.
Subsidy / Incentive on VAT
- Request for issue of VAT Pass Book is to be made by the unit to respective MD, IADA’s /GM, DIC.
- Within seven days of the request of the unit MD, IADA’s /GM, DIC will issue a Pass Book to the applicant unit for certification of the tax payment by respective Circles of Commercial Taxes Department.
- Application in Form-1 along with Form-E has to be submitted with all the enclosures to respective MD, IADA’s/GM, DIC along with the prescribed documents.
- Respective MD, IADA’s /GM, DIC will scrutinize the application, received by them as per check list and, after site inspection of the unit, will forward the same to Directorate of Industry, Jharkhand, Ranchi within 3 weeks of receipt of application.

For more details please refer our Incentive manual.http://jharkhandindustry.gov.in/424_2_2014.pdf

Applicability of Incentives?
Incentives under CPIS are not available for mega industries
The industries which made investment earlier and have qualified as mega industries, based on norms fixed under annexure 1 {11(iii)}, and have not availed subsidy / benefits and DoP declaration under the previous policy JIP 2001 in-spite of DoP before 01.04.2011, will be entitled to benefits under this policy.
The provisions under 20.7 will be applicable to eligible industrial unit, even if Government of India provides similar benefits. It will be in additional to incentive of Government of India.
Incentives where time frame has not been mentioned will be available for a maximum period of five years.
What is date of Production?
- - The “Date of Production” of an industrial unit shall mean the date on which the unit actually commences commercial production of the item for which the unit has been registered, in terms of clause 35.2 of JIP-2012.
  - For the Date of Production (DoP) of a Micro and Small Units/Enterprise (MSE) the certificate issued by the respective General Manager, District Industries Centre or the respective Managing Director, Industrial Area Development Authority would be valid.
  - In case of any dispute regarding the Date of Production (DoP) of Micro and Small Unit, issued by IADA’s / GM, DIC, the decision of the Director of Industries shall be final.
  - In case of Industries other than MSE, as described in ‘b & c’ above, the certificate issued by the Director of Industries would be valid.
  - In case of any dispute regarding the Date of Production (DoP) of large and medium industries, issued by Director of Industries, the decision of the Principal Secretary /Secretary, Industries shall be final.
  - Classification of Industrial Units: As defined under clause 11 of Annexure-I of JIP- 2012.
  - Classification of Backward Areas: As defined under clause 12 of Annexure-I of JIP- 2012.
  - Renewable energy: As defined and explained by Ministry of Renewable Energy, Government of India from time to time.
  - A format for Date of Production certificate by Directorate of Industries/IADAs/DICs and application to be filled up and submitted by industrial unit claiming incentives/ subsidies under JIP-2012 is given in Form-2A, 2B, 2C, 2D & 2E.

Q 8) Why invest in Jharkhand?

Mining – Mineral Based Industries – Both large scale units; with the opportunity of having captive mines; and small-scale units particularly based on Steel Plant, Ceramics, Refractories etc. have tremendous scope in the coming years.

With 40% of the country’s mineral wealth and opening up the mining sector to the private areas, the opportunities need no explanation.

Leading producer of minerals in India. During 2013-14, the value of minerals produced in Jharkhand was US$ 3.4 billion. The state had a 9.1 per cent share in the total value of minerals (excluding atomic and minor minerals) produced in India.

Jharkhand ranks second among the states, with 26 per cent of the total iron ore (hematite) reserves. During 2013-14, the state accounted for 15 per cent of the total iron ore produced in India.

Jharkhand is the only state in India to produce cooking coal, uranium and pyrite. The state is also a leading producer of coal, mica, kyanite and copper.

Foundry Industries – A host of Iron and Steel Plants like Bokaro Steel Plant, Tata Iron & Steel Company, IISCO Durgapur, Rourkela Steel Plant, a highly developed Refractory Industry and a ready market in the form of Automobile majors in and around Jharkhand along with India’s only institute of foundry and forge technology, make this area, one of the best places to have the foundry.
General Engineering Industries – A battery of steel and coal majors, innumerable big projects, both in Public and Private Sector and availability of trained and educated manpower, offer major attraction for downstream engineering industries like Machine Shops, Fabrication Shop, castings, etc.Jharkhand is home to one of the largest steel plants in India and accounts for 17.6 per cent of the steel production in the country.
Horticulture:

Jharkhand cultivates wide variety of fruits & vegetables, both for domestic consumption and export. Nearly 76000 ha of fruits 315000 ha of vegetables were under cultivation during 2013-14
The state has about 20 lakhs tonnes of high quality surplus of vegetables suitable for processing or export
3rd largest producer of Pea in India with 359.25 thousand tonnes of production and 8.94% of share in India. Tomato is also produced in large quantity
Climate conducive for round the year cultivation of high value crops viz. Cauliflower, Broccoli, Lettuce etc.
895.4 thousand MT of fruits produced in the state, primarily mango, Guava, Jackfruit and Litchi in abundant quality
Fruits, vegetables and field corps and largely organically produced

Floriculture :

It is one of the emerging areas in which the state is taking great leaps.
Produces some of the best varieties of Cut flowers (Rose, Gerbera, Carnation &Maryord)
Loose flower and Bulbous flower are being planted in open and in protected conditions.
Hitech floriculture cum production center has been started at a cost of Rs. 320 lakhs.
Under the PPP mode 4 PRC’s are in the process of production.
Scope for setting up of plants based on Aromatic & Medicinal plants.
Ranchi is famous for it’s large variety of roses and especially for it’s rare pink variety.

Fisheries, Meat and Meat Products:

6th largest fish producer in the country with over 1.00 Lakh MT production.
Fish seed production of about Rs 106.01 Crs during the last year.
55,534 Ha tanks, 1,15,000 Ha reservoirs and 14,450 Ha water bodies in form of coal pits/mines/ahars& check dams with 1,800 KM rivers available for fisheries.
Leading state in cage culture production – over 1000 cages being floated in different reservoirs.
State-of-art Hygienic Wholesale Fish Market established at Ranchi.
MatsyaMitra initiative by Jharkhand recognised as best in India by NIRD (more than 3600 MatsyaMitra).

Dairy:

Increasing milk production from 9.53 lakh MT in 2002-03 to an estimated 21.50 lakh MT during 2014-15.
For improvement of Milk Breed, establishment of 760 Dairy Animal Development Centre in collaboration with BIAF and 250 centre is under progress.
Process for establishment of Dairy Plant under PPP is in progress.
Establishing Dairy Technology Institute at Hansdiha (Dumka District).

Minor Forest Produce:

Immense scope of collection of minor forest produce as more than 30% of the land is under forest cover. Nearly 23.6 lakh ha, is under forest cover in Jharkhand equivalent to 29.61% of land area.
One of the largest minor forest producer in India.
Highest producer of Lac in India with 42% share of total production.
Huge availability of Tamarind (2,00,000 MT), Mahua (2,00,000 MT), Sal Seeds (1,00,000 MT), Chiraunji (2,000 MT), Karanj (5,000 MT) and Kusum (10,000 MT)
Wide variety of forest produce, medical plants and herbs securing the Livelihood of Tribals.

Organic Produce & Spices :

Natural heritage of organic commodities and also well known for its biodiversity.
The agro-climatic and farming situations of the state are favorable for organic farming.
Organic Ginger, Turmeric & Cashew are key crop segments which hold huge potential.
The state has 10 lakh hectares upland without chemical inputs and offers land for future organic cultivation.

Consumer Sector- Most of the consumables are being brought from outside. Tremendous opportunities exist, especially in pharmaceutical & consumer durables, to cater to the needs of around 100 million people.
Automotive Sector – The Adityapur Industrial Development Area is one of the largest auto ancillary hubs in the country. More than 600 auto ancillary industries, including auto components units, have been set up subsequently at Jamshedpur and Adityapur to cater to the needs of automobiles companies.
Robust Infrastructure-

Roads:The state has 1600 Kms National Highways and 2700 Kms State Highways. The Golden Quadrangular the Super Highway of India passes through Jharkhand.
- Railways:The total railway-route length in Jharkhand is around 2040 km.The state has extensive goods-handling facilities available at Ranchi, Bokaro, Dhanbad and Jamshedpur stations as well as ore-loading facilities at Kiriburu, Lohardaga and all Central Coalfields Ltd (CCL) coal mines.
- Airport:A domestic airport is located in the state capital, Ranchi. Direct links are available from Ranchi to prominent cities such as Delhi, Patna, Kolkata and Mumbai.Jamshedpur, Dumka, Dhanbad, Bokaro, Giridih, Deoghar, Hazaribagh, Daltonganj and Noamundi also have airstrips.
Water:
- Jharkhandhas main 8 dams namely – Panchet Dam, Maithan Dam, Tenughat Dam, Konar Dam, Tilaiya Dam, Mayurakshi Dam, Kanke Dam and Chandil Dam
- Major rivers of Jharkhand are Damodar, Subarnareka, Mayurakshi, Barakar, Koyal, Sankh, Sone, Auranga, More, Karo, Bansloi, South Koel, Kharkai, Ganga, Gumani and Batane
- Maithan has the biggest reservoir of the Damodar Valley Corporation, India’s 1st multipurpose project.
Power:
- As of November 2014, Jharkhand had a total installed power generation capacity of 2,579.9 MW, which comprised 1,324.1 MW under state utilities, 916.0 MW under the private sector and 339.8 MW under central utilities.
- Backed by large coal reserves in the state, about 91.4 per cent of the total installed power generation capacity in the state is coal based thermal power (2,358.9 MW).
- the state has total 200.9 MW of installed hydropower generation capacity and 20.1 MW from renewable sources.