| 2.
Industrial Policy 1997
2.1
Objectives
- To Promote sustainable
industrialisation in the Union Territory of Pondicherry.
- To gainfully utilize the
human resource of the Territory and maximize employment.
- To improve the standard
of living and quality of life of the people of the Union
territory.
- To conserve the
environment of Pondicherry for sustained and rapid industrial
growth.
- To participate in the
globalisation of the economy with greater exports and imaginative
imports.
- To take advantage of the
special features of Pondicherry including its-heritage and
culture.
- To ensure balanced
industrial development in all the regions of the Union
territory.
3.
Strategy
3.1 Thrust
Areas
- Agro Processing
including Marine Products.
- Electronics and Software
Development.
- Leather Products and
Footwears.
- Light Engineering
including Auto Components.
- Textiles including
Garments.
3.2 Human
Resources
Labour - intensive
enterprises will be given priority. Industries which employ local
man - power at various levels will receive encouragement.
Vocational courses in
schools, polytechnics and professional institutions will be
sensitised to meet the manpower requirement of the industries.
Industry - Education integration will be promoted.
3.3 Standard of
Living
Industries providing
high-wage compensations and generating multiplier benefits will be
welcomed and nurtured. Industries will be motivated to employ local
manpower as far as possible.
Employment of child labour
even in non-hazardous industries an occupation will be
deprecated.
A Consultative Forum will
be constituted for regular dialogue between industrialists,
environmentalists, consumers, labour and others for better
understanding and smooth development of industries.
3.4
Environment
Environment - friendly
industries will be given priority. Common effluent treatment systems
will encouraged. Industrial Estates would be modernised with
infrastructure for re-cycling of- wastes and efficient treatment of
effluents.
Investment by private
sector for community treatment and disposal of effluents will
receive encouragement.
3.5
Exports
During 1989-90, export was
to an, extent of Rs.35 crores which increased to Rs.240 crores
during 1995-96.
Export oriented units will
be given incentives and will be supported - An 'Export Promotion
Cell' will be organised in the Industries Department. Pondicherry
port will be modernised.
Steps will be taken to set
up Export Processing Zone [EPZ] in the Union Territory.
3.6 Special Features of
Pondicherry
The Potentials of
traditional connections with France, French speaking countries and
the erstwhile French colonies will be strengthened. Historical
linkages, cultural and linguistic similarities will be exploited for
promotion of foreign trade and collaboration in investment and
technology transfer.
3.7 Industrial
Development
The Government of
Pondicherry have categorised Pondicherry and Yanam regions as
'Industrially Backward – B’, whereas Karaikal and Mahe regions have
been given the status of 'Industrially Backward –A’.
A Growth Center. and
Software Technology Park will be developed in Karaikal, Growth
Centers in Pondicherry and Yanam will also be developed.
4. Speedy
Clearances
Licensing and clearing
procedures have been simplified. Single Window Clearance of
proposals in a time-bound fashion, is adopted.
Pollution Control Committee
has representation of non-officials. Inspection required under the
various provisions of the law, will be streamlined through a
mechanism of "Common Inspection System" to avoid repetitive
visits.
An Information and Public
Relations Office will be established in the Industries
Department.
5. Peaceful Work
Environment
Labour relation in the
Union territory is good. The cost of labour is reasonable. Good
industrial relation is the order of the day. The Labour Department
provides conciliatory and mediatory mechanism for resolution of
industrial disputes. Tripartite and bi-partite consultative and
deliberative forums would be activated for attaining industrial
peace.
6.
Infrastructure
6.1 General
:
The Union Territory of
Pondicherry is endowed with good infrastructure for industries of
various kinds and dimensions.
6.2 Industrial
Estates
Six Industrial Estates are
presently in existence and additional industrial estates are being
planned. An Electronic Industrial Estate at Thirubuvanai,
Pondicherry is getting ready for allotment. A Modern Growth Center-
cum- Industrial Estate at Polagam in Karaikal is being .finalised.
Growth Centers in Pondicherry and Yanam regions are also being
planned. A Coir Development Industrial Estate and Growth Center will
be established in Ariyankuppam. Further, it is proposed to set up a
Software Technology Park in Pondicherry.
Government will take
necessary steps to further develop the infrastructure facilities in
the existing Industrial Estates and provide better facilities in new
estates and growth centers.
6.3 Power
A gas based power plant is
being established at Karaikal.
Government would promote
private participation in power generation sector. Captive power
generation by individual units and group of industries will be
promoted.
6.4 Water
The policy of the
Government is to promote less water-intensive industries. Being a
coastal area, borewells are not allowed within six kms. from high
tide line. Hence, desalination and recycling techniques of waste
water would be encouraged.
6.5
Telecommunication
Direct dialing facilities,
Telex and Telefax facilities are well developed. Efforts will be
made in coordination with concerned, authorities to improve this
facility further.
6.6
Transport
Roads
Pondicherry is linked
properly with National Highways and State Highways. Newly formed
East Coast Highway adds new possibilities.
Railheads
Territory is having
railheads at Pondicherry and Mahe. Conversion of meter-gauge into
broad-gauge is in the offing. Efforts will be made to link Yanam
with Kakinada and Karaikal with Nagapattinam.
Air
Medium sized airport is
available. Further development will be attempted.
6.7 Port
Pondicherry is very close
to several major ports like Chennai, Nagapattinam, Tuticorin,
Kakinada, Visagapattinam and Cochin. Pondicherry port will be
modernised with container handling facilities and storing
infrastructure.
6.8 Financial
Infrastructure
Large number of branches of
various Nationalised and Commercial banks are functioning in
different parts of Pondicherry.
State Finance Corporation
is rendering yeoman service for promotion of small and medium scale
enterprises. Term loan is sanctioned by PIPDIO (State Financial
Corporation) under IDBI/SIDBI refinance scheme up to Rs.150.00 lakhs
for projects whose cost is below Rs.500.00 lakhs. Branches of
national financial institutions like SIDBI/NABARD also exist in this
Union Territory.
6.9 Private
Sector
Private participation will
be encouraged in the development of all the categories of
infrastructure described above.
7. Incentives and
Concessions
7.1 Sales
Tax
(a) Pondicherry and
Yanam regions.
- Both Central Sales Tax
and Pondicherry General Sales Tax are exempted for sale of
finished products for a period of five years from the date of
starting production for all the industries except new oil
mills.
- Additional exemption for
4 years from sales tax beyond 5 year is allowed in case of
expansion by more than 50% of investment of plant and
machinery.
- For small scale
industrial units alone, 1% confessional rate of Central Sales Tax
is charged for a period of fourteen year after completion of the
first five years referred to in para (i) above.
(b) Karaikal and Mahe
Regions.
- Both Central Sales Tax
and Pondicherry General Sales Tax are exempted for sale of
finished products for a period of ten years from the date of
starting production for all the industries except new oil
mills.
- For small scale
industrial units alone, 1% concessional rate of Central Sales Tax
is charged for a period of nine years after completion of the
first ten years referred to in pare (i) above.
7.2 Power
Subsidy
(a) Pondicherry and
Yanam regions.
Small scale industries
consuming Low Tension Power alone are eligible for Power Subsidy for
a period of five years, from the date of starting production,
subject to a limit of Rs.1.00 lakh per month.
33 1/3% for
the first three years;
20. for the
fourth years;
10% for the
fifth year.;
Note: The above scheme
of power Subsidy stands withdrawn from
6-7-1998.
(b) Karaikal and Mahe
regions.
All the Low Tension and
High Tension industries are eligible for power subsidy for a period
of five years from the date of starting production, subject to a
limit of Rs.1.00 lakh per month.
33 1/3% for
the first three years;
20% for the
fourth year;
10% for the
fifth year.;
7.3 Income - Tax
Holiday
Income-Tax holiday for five
years is permitted for the new industrial undertakings set up in
this Union Territory which start regular production on or after
1-4-1993 as announced by the Government of India.
Note: The scheme has
since been extended by two more years i.e. upto
31-03-2002.
7.4
100 % Export Oriented units
are totally exempted from Income Tax, Excise Duty and Sales Tax.7.5
Sales tax concessions of 1% on electricity consumption charges is
allowed for units which export atleast 10% of their product in a
year.
7.6
Employment Subsidy to small
scale industries at the following rates:Rs.100 permonth/person
subject to maximum subsidy of Rs.12,000 per annum per unit.
7.7
In order to motivate
industrialists and entrepreneurs to, install Pollution control
equipments in their industries, it is proposed to adopt the
following pattern of assistance:
(a) Rate of Incentive for
Small scale industries
50% of the cost of
pollution control machineries and equipments wit ceiling of Rs.5.00
Lakhs per unit.
(b) Rate of Incentive for
Medium and Large scale industries:
25% of the cost of
pollution control machineries and equipments with ceiling of Rs.5.00
lakhs per unit.
8.
ZONING OF INDUSTRIAL AREAS
Realising the limitations
imposed by the restricted land area, zoning of industrial areas has
been undertaken.
To check random and
sporadic disbursement of industries, to earmark exclusive zones for
systematic growth of industrial unit, to protect agricultural
operations and to safeguard peace of residential area, it has become
necessary to designate specific zones as "Industrial
Areas".
9. Technology and
Quality Control
Subsidy to the tune of 25%
of the cost of testing equipments up to a maximum of Rs.20,000 per
unit will be given to small scale industries. Industries will be
encouraged to earmark funds for Research and development. Industries
with ISO Certificates will be duly recognised
9.1 Pondicherry
Productivity Council
The institution of
Pondicherry Productivity Council would be further strengthened to
play the vital role of moderator between the Capital and the labour
for optimization of productivity.
10. Industrial
Sickness
A committee under the
Chairmanship of the Secretary (Industries) has been constituted with
the representatives of concerned banks and various authorities to
facilitate deliberations on revival and rehabilitation of sick
Industries.
11. Special
Assistance
11.1 Investment
Subsidy
The SC/ST entrepreneurs are
eligible for an investment subsidy on fixed capital to the tune of
25% of the investment, subject to a maximum of Rs.25.00
lakhs.
11.2 Interest
Subsidy
For the loans obtained for
setting up of an industry by SC\ST entrepreneurs, an interest
subsidy of 5.5% is granted for a period of five years, subject to a
maximum of Rs.20,000 per unit every year.
11.3 Rent
Subsidy
Rent subsidy at the
following sliding percentage for a period of five years is granted
to the SC\ST entrepreneurs, who start industry in rented sheds owned
by PIPDIC or Industries Department.
| (i) |
For the first
two years |
50% of the
rent, |
| (ii) |
For the third
year |
40% of the rent
& |
| (iii) |
For the fourth
and fifth year |
30% of the
rent. |
11.4
10% of the plots and sheds
will be reserved for the SC\ST entrepreneurs for setting up
industrial units in the proposed industrial Estates.
11.5
22.5% reservation is
extended under Prime Minister’s Rozgaryojana (PMRY) SC\ST
entrepreneurs.
12. Women
Entrepreneurs
12.1
To encourage women
entrepreneurs, 10% of the plots and sheds will be reserved for women
entrepreneurs in the estates to be developed by the Industrial
Department or PIPDIC.
12.2
Potential women
entrepreneurs will be trained through Entrepreneurship Development
Programmes.
12.3
To encourage the women
entrepreneurs supply of raw material and making of their produce
will be supported through institutions.
13. Public Sector
Policy
13.2
Conscious shift of the
Government from direct participation to that of catalyst and a
facilitator is envisaged in the policy.
13.3
Boards of Public Sector
Companies would be made more professional and given greater
powers.
13.4
There will be greater
thrust on performance and management would be granted greater
autonomy and will be held directly accountable.
14. Co-Operative
Movement
14.1
Industry promoted under
co-operative movement will receive encouragement.
15. Khadi And Village
Industries
Pondicherry Khadi and
Village Industries Board will be further activated to play an
important role in promoting these industries to generate more
employment in rural areas.
15.2 1
Women, handicapped persons
and old people would be given higher priority in taking up Khadi and
Village Industries. Women Organisations like Maathar Sangams will be
encouraged to work for Khadi and Village industries.
16. Small And Tiny
Enterprises
Administration would
further simplify the procedure to promote the smal1 and tiny
enterprises.
Hence all industry-related
service and business enterprises are recognised as Small Scale
Industries and their investment ceilings will correspond to those of
Tiny Enterprises.
17. NRIs And Foreign
Investment
To facilitate Non-Resident
Indians and foreign investors, the Bureau of Industrial Promotion
(Government of India) has been designated as Nodal authority for
foreign and NRI investments. The Union Territory Administration will
similarly constitute a state level committee to promote foreign
investment in Pondicherry.
18. District Industries
Center
District Industries Center
plays a prominent role in promoting Small scale Industries by
getting clearances from various Departments and Authorities through
Single Window Committee. The center also organises various
entrepreneurship development programmes.
Under PMRY, educated
unemployed youths are given assistance with loan from banks to a
maximum of Rs.1,00.000 for setting up self-employment ventures with
subsidy of 15% subject to a maximum of Rs.7,500.
19. Clearance and
Approvals
19.1 Procedure for
Starting Small Scale Industry
Entrepreneurs have to first
apply to the Directorate of Industries, for provisional (SSI)
Registration. In the case of Chemical and Chemical based industries,
entrepreneurs have to first to get clearance from the Committee for
Chemical Industries through the Directorate of Industries and then
approach for provisional SSI registration after its
clearance.
19.2
All the entrepreneurs may
approach the 'Single Window Committee' for getting the said
clearance expeditiously.
The District Industries
Center will forward the complete set of applications to the
concerned Municipality \ Commune Panchayat. Municipality \ Commune
Panchayat after getting clearances from the concerned Departments \
Organisations, will issue permission for establishment of the
industrial units.
19.3
The Municipalities \
Commune Panchayats will obtain the following clearances.
- NOC on pollution angle
from the Department of Science, Technology and Environment.
- Approval of Factory
Building and Machinery lay out from the Inspectorate of
Factories.
- Site clearance from Town
and Country Planning Department.
- Permission for land use
conversion and ground water clearance from Agricultural
Department:
- Power feasibility
Certificate from Electricity Departments:
- Building plan approval
from Pondicherry Planning Authority:
- Clearance from Health
Department:
- Clearance from Fire
Service Department:
- Clearance from Revenue
Department:
- licence from Food and
Drugs Administration:
- licence from Civil
Supplies Department.
19.4
Single Window Committee,
under the Chairmanship of the Secretary to Government (industries)
is being given a new vigour with meaningful "Single Point
Deliberation", in the presence of the promoters of the industries.
First working day of every month has been earmarked for this
meeting.
19.5
After installing machinery,
entrepreneurs have to get licences from Municipality \ Commune
Panchayat, licence from Inspectorate of Factories and consent orders
from the Department of Environment for operation of the
unit.
19.6
After commencement of
regular production, the entrepreneurs have to apply for permanent
SSI Registration to the Directorate of Industries.
19.7 Procedure for
Starting Large \ Medium Scale Industries
The entrepreneurs have to
first apply \ file for industrial licence \ Industrial Entrepreneurs
Memorandum with the Secretariat for Industrial Approvals in the
Ministry of Industry, Government of India, New Delhi. After
obtaining the Industrial licence \ IEM acknowledgment, entrepreneurs
have to apply to the Directorate of Industries for Provisional No
Objection, Certificate for setting up of their unit.
19.8
After commencement of
regular production, the entrepreneurs have to approach the
Directorate of industries for getting commencement of production
Certificate for availing Sales Tax exemption and other
concessions.
19.9
Clearance and Approvals by Various Departments with Time
Limit:
20 Policy
Review
The policy for industrial
development will be closely monitored and reviewed periodically to
remain in tune with the realities of the day.
This policy will, in public
interest, encourage and welcome new industries which do not
adversely affect the people.
Schedule
Priority
Industries
- Agro-based
- Food Processing
- Fruit and Vegetables
Preservation including Mushrooms
- Horticulture and
Floriculture
- Marine Food
- Boat Building
- Feed: cattle, Poultry
and Fish Feed
- Textiles: Spinning and
Weaving
- Cotton, silk, Woollen
and synthetic Garments
- Industrial
Garments
- Ayurvedic and
Homeopathic Medicines
- Leather Goods - Shoes,
Shoe-uppers, Garments etc.
- Electrical and
Electronic products
- Computers and
Software
- Telecommunications and
Information
- Medical and Precision
Instruments
- Automobiles
- Light engineering
including Auto Components
- Industrial Plastic
Components
- Agarbathies,
Perfumeries
- Coir Industries
- Tourism Related
Industries
- Handicrafts
- Gem-cutting
- Toiletries, Soaps,
Detergents
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