Frequently Asked QuestionsPackage Scheme of IncentivesDIC schemesClusterELPSpecial Economic ZoneBT / ITExportsIndustrial Entreprenuers’ Memorandum

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Package Scheme of Incentives

Which is the current Package Scheme of Incentives?1.

Normally any Package Scheme of Incentives is valid for a period of 5 years. The current scheme is valid from 01.04.2007 to 31.03.2012 and is calledthe Package Scheme of Incentives, 2007 (PSI-2007).

Which activities are eligible under the present scheme?1.

Please refer to para 1(1.1) of PSI-2007 for list of eligible activities.New and Existing Manufacturing Enterprises that have taken at least one effective step on or after 01.04.2007, are eligible under PSI-2007.

What are Effective Steps?1.

Effective possession of land (registered sale / lease deed with physical and legal possession), constitution formation, and procurement of IndustrialEntrepreneur’s Memorandum (IEM) or filing of memorandum under MSMEI Act with the concerned District Industries Center (DIC), constitute the effective stepsunder PSI-2007.

Where should application be filed?1.

For eligible micro and small manufacturing enterprises, DIC of the district in which the manufacturing facility is located or proposed to be set-up. 1.For eligible medium manufacturing enterprises, the implementing agency is the concerned Regional office of the Directorate of Industries. 2.All large and mega eligible units will apply to the Directorate of Industries, Mumbai. The contact details of the implementing agency are provided in thedetails available at “Organizational setup” on the Home page.

3.

What is the procedure for availing benefits under PSI-2007?1.

Application in ‘prescribed form’ (Form-I for New Unit and Form-IV for Expansion/diversification) together with documents establishing completion of Effective stepsand a detailed project report (list of specific documents to be enclosed) is provided with the application form should be submitted, to the concerned ImplementingAgency. Upon start of commercial production, documents establishing commencement of production, and creation of assets should be submitted (list providedwith the application form) to the Implementing Agency. Upon satisfying itself about the eligibility of unit, the implementing agency shall issue Eligibility Certificate(EC) specifying the quantum of admissible incentives and other relevant details.

Based on the EC, the Sales Tax Department shall issued and Identification Certificate (IC) for the purpose of case of reconciliation of taxes paid. Subsequent to issue of EC, annual claims sanction of Industrial Promotion Subsidy (IPS), Octroi duty refund, Royalty refund, Reimbursement of EPF &ESI (low HDI districts and zero-VAT units only), and Interest subsidy whichever applicable shall be filed with the Implementing agency. The procedure for filing ofsuch claims is provided on this web-site.

What is “Operative Period”?1.

The period for which an Eligibility Certificate holder requires to fulfil all the terms and conditions of the EC and agreements executes with the ImplementingAgency, is called the “Operative Period”. The operative period in force at present is as under;.

Micro & Small Enterprises - 5 yearsMedium/ Large Enterprises - 7 yearsLarge Enterprises - 10 years

Please go through the Government Resolution No.PSI-2108/CR-35/Ind-8, dated 21st May, 2008 issued by the Department of Industries, Government ofMaharashtra to obtain complete details on this issue.

What are “Procedural Rules” under PSI-2007?1.

The Procedural Rules 1980 provide details of procedural aspects under PSI-2007. Although Procedural Rules 1980 are in force today, a number of sectionshave been modified while some are no more relevant to the present scheme. In case of any doubt or classification, please contact the Implementing Agency.

Which special benefits are available to eligible enterprises in Low HDI districts?1.

In addition to regular incentives available to all eligible units, New units setting up facilities in notified low HDI districts (. Gadchiroli, Yavatmal, Jalna, Nandurbar, Washim, Dhule, Nanded, Osmanabad, Buldhana, Chandrapur), and employing at least 75% local persons as defined in the Employment of Local Persons Policy,will be offered 75% reimbursement of expenditure on account of contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF)Scheme for a period of 5 years.Top

DIC schemes

Q. 1 -Is there any financial assistance schemes for educated unemployed youth for setting up their business/venture ?Ans -Yes. There are numerous schemes implemented by various State Government Departments/Corporations such as Social Justice Department, MahatmaPhule Scheduled Caste Development Corporation, Vasantrao Naik VJ/NT Development Corporation, etc. Besides these departments, the Directorate ofIndustries through its District Industries Centres at District Level and Joint Director of Industries, Mumbai Metropoliton Region at Mumbai, implements PrimeMinister’s Employment Generation Programme (PMEGP), Seed Money Scheme and District Industries Centre Loan Scheme for unemployed youth. Q. 2 -Kindly explain the brief features of financial assistance schemes implemented by Directorate of Industries ?Ans -There are mainly three schemes viz. PMEGP, Seed Money Scheme and District Industries Loan Scheme implemented by Directorate of Industries forunemployed youth. The brief features of these schemes are described below :-A) PMEGP• Coverage :-Industry projects upto Rs. 25 lakhs investment and service/business projects upto Rs. 10 lacs investment are eligible under the scheme. Project cost will includefixed capital (excluding land cost)plus working capital.• Extent of assistance :-90% loan for general group and 95% for special group will be available from public sector banks, Regional rural banks, IDBI. In urban areas, 15% margin moneysubsidy for general group and 25% for special group will be available through KVIC. In rural areas, the margin money subsidy will be 25% to 35% respectively. Special group include SC/ST/OBC/minority/woman/ex-servicemen/physically handicapped.

• Eligibility :1.Any individual, above 18 years of age1.For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, thebeneficiaries should have at least VIII standard pass educational qualification.

2.

Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.3.Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible forassistance under PMEGP.

4.

Institutions registered under Societies Registration Act,1860;5.Production Co-operative Societies, and Charitable Trusts.6.Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availedGovernment Subsidy under any other scheme of Government of India or State Government are not eligible.

7.

Implementing Agencies :-1.

In urban areas, the scheme will be implemented through DIC, while in rural areas through KVIC/KVIB/DIC all three agencies.

B) Seed Money Scheme (SMS)

The objective of the scheme is to encourage unemployed person to take up self-employment ventures through industry, service and business, by providingsoft loans to meet part of the margin money to avail institutional finance.

1.

Eligibility :2.

Local unemployed person or group of persons fulfilling:

(1) Age Group: 18 to 50 years1.(2) Qualification: Std. VII pass2.(3) Domiciled in the state of Maharashtra for the last 15 years.3.

Scope –1.Project cost upto Rs. 25 lakhs for industry, service and business activity.2.Seed Money assistance at 15 per cent of the project cost approved by financial institutions is offered. In case of projects costing up to Rs. 10 lakhs, thequantum of assistance ranges upto 15 per cent for General category and 20% for SC/ST and OBC/NT/VT/Handicapped upto 20 per cent.

3.

Seed Money component up to 3.75 lakhs maximum.4.Bank loan 75% of the project cost.5.The rate of interest on seed money is 6% and if the borrower pays the repayment of installment regularly and within scheduled time, then the borrower willget rebate of 3% in interest. So he has to pay only 3% interest.

6.

If the installment is not repaid in time, it will attract 1% penal interest.7.The repayment of loan starts after three years in four yearly installments for industry cases. In other cases repayment starts after six months of loanavailment.

8.

C) DISTRICT INDUSTRIES CENTRE LOAN SCHEME :

The objective of the scheme is to provide financial assistance in the form of margin/seed money for the promotion of tiny industries in semi-urban and ruralareas with a view to generate employment opportunities including self employment.

1.

Margin money assistance is admissible only to those units whose investment in plant & machinery does not exceed Rs. 2 lacs. 2.All towns and rural areas having population of less than 1 lac are covered under the Scheme. 3.The extent of assistance is 20 % of the total investment or Rs. 40000/- whichever is less in case of entrepreneur belonging to general category and incase of entrepreneur belonging to scheduled caste & scheduled tribe, assistance upto 30 % of total fixed capital investment or upto maximum of Rs.60000/- which ever is less is provided.

4.

All units falling within the purview of the Small Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are coveredunder the Scheme.

5.

The State Government’s rate of interest on this loan is 4 % and repayment is to be done within 7 years.6. This scheme is particularly useful for rural artisans.7.

Q. 3 -Which are the Implementing Agencies for the financial assistance schemes such as PMEGP, Seed Money Scheme & DIC Loan Scheme?Ans. -At districtlevel, these schemes are implemented by General Manager, District Industries Centre of respective district (PMEGP scheme is also implemented by KVIB &KVIC in rural areas). In Mumbai, PMEGP & Seed Money Scheme (excluding DIC loan scheme) isimplemented by Joint Director of Industries, MumbaiMetropoliton Region, Mumbai.Q. 4 -Is there any collateral security to be given to Implementing Agencies ? Ans. So far as DIC/ Joint Director of Industries, Mumbai Metropoliton Region,Mumbai is concerned, no collateral security is insisted. However, in case of Seed Money Scheme and District Industries Centre Loan Scheme, second charge isto be created on the assets created.

Q.5 -Is there any scheme for the first generation entrepreneurs to get entrepreneurial training from Directorate of Industries ?Ans. -Yes. There is one schemecalled Entrepreneurship Development and Training Programme which is implemented by Directorate of Industries through recognized Training Institutions such asMITCON Consultancy Services Ltd. and Maharashtra Centre for Entrepreneurship Development (MCED). Under this scheme, the aspects such as theEntrepreneurship Development and Technical Training are covered.

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Cluster

S.N. QuestionExplanation

1. What it is the definition of Cluster? A group of enterprises located within an identifiable and as far as practicable,contiguous area, producing same/similar product/ services.

2. What are the features of the cluster? Clusters have common challenges and opportunities1.Similar level of technology and structures2.Similarity or complementarity in the methods of production, quality controland testing, energy consumption, pollution control etc.

3.

3. Pl. Explain the scheme. Govt. of India, Ministry of MSME has announced the scheme for Micro andSmall enterprises for enhancing their productivity and competitiveness as wellas capacity building. The name of scheme is Micro and Small Enterprises-Cluster Development Programme.- MSE-CDP

4 Who implement the ClusterDevelopment Programme?

Cluster projects are implemented by Special Purpose Vehicles (SPV)consisting of the actual/ likely cluster beneficiaries/ enterprises organised inany legally recognition, like co-operative society, registered society, trust,company etc.

5 What are the main steps in clusterdevelopment?

The main steps are : 1) Selection of Cluster 2) Selection of CDE 3) TrustBuilding 4) Diagnostic study 5) Preparation of action plan 6) Approval of budgetand leveraging of funds from various institutions. 7) Implementation of actionplan 8) Monitoring and evaluation 9) Handing over and exit 10) Selfmanagement phase.

6 What are objectives of ClusterDevelop Programme ?

To conduct the soft activities and hard activities under soft and hardinterventions for following objectives :

To enhance the productivity and competitiveness of micro and smallenterprises.

1.

To facilitate economies of scale in terms of deployment of resources.2.To built capacity of MSEs through formation of SHG, Mutual creditguarantee funds, BDS development etc.

3.

7 Which are the main activities incluster Programme?

In cluster Programme there are following two main activities

Soft activity : This includes interventions for soft activities viz capacitybuilding, market development activities, management development andtechnology up gradation .

1.

Hard Activity : This includes intervention for hard activities viz.Establishment of common facility center (CFCs) etc.

2.

8 Who will make available land forcluster projects?

Cluster developing agencies, Special Purpose Vehicle (SPV) has to arrangesuitable and viable land for cluster project by their own.

9 Are there any priority for specialcategories?

Cluster should have suitable presence of (1) Women entrepreneur (2)Entrepreneur belongs to SC/ ST/ OBC/ Minorities etc. (3) Micro enterprises.

10 What are the special benefit for micro& Village enterprises?

Clusters of micro and village enterprises have the provision of enhancingfinancial support by 10%

11 What is the time duration forcompletion of cluster project?

As per existing guidelines project duration for cluster is 3 years.

12 What is the role of CDE in clusterscheme ?

CDE- cluster Development Executive plays very important role in theproject. He is the officer from the Govt. agencies and one of the member ofSPV. He conceptualizes the overall developmental strategy of the cluster,co-ordinates the activities and initiates implementation.

13 Specify the financial support from GOIunder MSE-CDP scheme in thecluster.

Contribution of Ministry of MSME (Govt. of India) will not exceed 80% of thetotal project cost. Subject to a ceiling of Rs. 10 crores per project including Rs.10 lakh for soft activities under soft interventions.

14 Is there any contribution frombeneficiaries in cluster scheme ?

Scheme expects at least 10% contribution from stake holders/ beneficiaries ofthe cluster projects.

15 What will be the ultimate result due tocluster projects?

Increased income, investment, capacity utilization, cost deduction,community empowerment, energy conservation, pollution control.

1.

Infrastructure creation and linkage through govt. scheme.2.Enhance collective economic efficiency3.Developing culture of co-operation and team work4.Strengthened local governance strength.5.Creation of competitive market.6.

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Local Employment Branch

Related Local Employment BranchQ-1. What is the definition of local Person?Ans. The person who is residing in Maharashtra since from last 15 years is called as local person. Q-2. For proving 15 years Domicile what documents are required ? For establishing 15 years domicile any one of the following documents are required.

Domicile Certificate issued by Competent Revenue Authority.1.Caste Certificate issued by Competent Authority.2.Documents such as Property Tax returns.3.School Living Certificate or any others documents establishing 15 years domicile.4.

Q-3. What is the policy about Employment of Locals Persons in industries ?Ans: As per existing policy, every industrial enterprise (micro, small, medium, large & mega industrial enterprise) has to provide minimum 50% employment insupervisory category and 80% in other category including supervisory category to locals persons.

Q-4. If any G.R./ Notification / Ordinance is issued in this connection ?Ans: Yes, the State Government in Industries, Energy & Labour Department has recently issued a revised G.R. dated 17.11.2008 in connection with providingemployment to all micro, small, medium, large & mega industrial enterprises.

Q.5. Which department of State Government maintains the data or control / monitoring the employment of local persons?Ans: Under Directorate of Industries, the District Industries Centres / Joint Director of Industries, Mumbai Metropolitan Region maintain the data and monitoringthe local employment.

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Special Economic Zone

Frequently Asked Questions on - Special Economic Zone?Q. What is a Special Economic Zone?

Special Economic Zone (SEZ) is a specifically delineated duty free enclave with all required infrastructure provided under single administrative umbrellaprimarily meant for locating industries which manufacture and export goods and services . These enclaves shall be deemed to be foreign territory for thepurposes of trade operations and duties and tariffs.

Q. Who can set up SEZs?

Under section 3, a Special Economic Zone can be established either by Central Government ,State Government or its agencies, private/public/jointsector or any person for manufacture of goods or rendering services or for both or as a free trade and warehousing zone .

Q. Can Foreign Companies set up SEZs?

Yes

Q. What is the process involved in establishment of an SEZ?

A Developer /An Entrepreneur who is willing to start SEZ needs to locate the area with the minimum land requirement as per SEZ -2006 Rule 5(2) i.e.Minimum (10 Hectares)for IT/ITES SEZ, Minimum (40 hectares) for Free Trade & Warehousing Zone and for Multi Services (100 hectares ) & for Multiproduct (1000 hectares)After identifying the area an applicant needs to be submitted in Form A to the State Government (Rule 3) indicating name and address of the applicant,status of the promoter along with a project report covering the following particularsLocation of the proposed Zone with details of existing infrastructure and that proposed to be established;Its area, distance from the nearest sea port / airport / rail / road head etc.

Financial details, including investment proposed mode of financing and viability of the project.Details of foreign equity and repatriation of dividends etc., if anyWhether the Zone will allow only certain specific industries or will be a multi-product Zone.The State Government while recommending the proposal shall commit to provide the facilities and incentives such as exemption from state and local levies,exemption from electricity duty, Single Window Clearance under the state laws , etc. as provided in sub-rule (5) of Rule 5 of the SEZ Rules 2006 .The State Government has to forward the proposal with its recommendations within 45 days from the date of receipt of such proposal from the developerto the Board of Approval (BoA) addressed to Director(SEZ)/Deputy Secretary, Department of Commerce, Udyog Bhavan, New Delhi.The Developer also has the option to submit the proposal in Form A directly to the Board of Approval via Director(SEZ)/Deputy Secretary, Department ofCommerce, Udyog Bhavan, New Delhi., in such cases the applicant (Developer/Entrepreneur) shall have to obtain the concurrence of the StateGovernment within 6 months from the date of such approval.After approval by the Board , the Department of Commerce issues Letter of Approval (LoA) to the applicant (Developer/Entrepreneur) for establishment ofSEZ (Rule 6).After receipt of the Letter of Approval (LoA) and on submission of details of the land with proof of ownership /leasehold rights of the land, possessioncertificate and non encumbrance certificate duly certified by the district revenue authorities and on inspection by the jurisdictional DC, Department ofCommerce, shall notify the area as an SEZ (Rule 7 and 8).The applicant is required to submit details of the authorized operations proposed to be undertaken in the SEZ so as to obtain authorization for the samefrom the Board of Approval (BoA).Exemptions of duties and taxes are extended only for the authorized operations.Procurement of goods for development of SEZ (for developer only) for authorized operations shall be approved by the Approval Committee at the ZoneLevel on the basis which goods can be procured without payment of customs duty and excise duty by the developer.

Q. What is a processing and non-processing area?

A processing area is that area of an SEZ where units can be located for manufacture of goods or rendering of services .Atleast 50% of the areashall be earmarked for developing the processing.The non-processing area is the area which is intended to provide support facilities to the SEZ processing area activities and may includecommercial and social amenities/infrastructure.

Q. Who can be a Co-developer?

The infrastructure facilities of the SEZ’s are normally to be developed by the developer. The developer if desires , that certain facilities or portion of theSEZ to be developed by another person , then the developer can ask the person to file an application with Board of Approval to be considered as aCo-developer . For this the consent of the developer is must. There has to be MoU between Developer and Co-developer and the copy of the same has tobe submitted to BoA along with the application of the Co-developer.

Q. What are the facilities Incentive/ Facilities to SEZ Developer?

100% FDI allowed for:

(a) Townships with residential, educational and recreational facilities on a case to case basis,(b) franchise for basic telephone service in SEZ.

Income Tax benefit under ( 80 IA ) to developers for any block of 10 years in 15 yearsDuty free import/domestic procurement of goods for development, operation and maintenance of SEZs.Exemption from Service Tax /CST.Income of infrastructure capital fund/co. from investment in SEZ exempt from Income TaxInvestment made by individuals etc in a SEZ co also eligible for exemption u/s 88 of IT ActDeveloper permitted to transfer infrastructure facility for operation and maintenance.Generation, transmission and distribution of power in SEZs allowedFull freedom in allocation of space and built up area to approved SEZ units on commercial basis.Authorized to provide and maintain service like water, electricity, security, restaurants and recreation centers on commercial lines.

Q. How to set up a unit in SEZ?

For setting up a manufacturing, trading or service units in SEZ, 3 copies of project proposal in the format prescribed at Appendix 14-IA of the Handbook ofProcedures, Vol.1 to be submitted to the Development Commissioner of the SEZ.

Q. How many units can be allowed in a SEZ?

There is no restriction on the number of units in the SEZ Act. The space availability depends on the floor space index (FSI) available on that area andDevelopers capacity to construct.

Q. What is the approval mechanism for the units?

All approvals to be given by the Unit Approval Committee headed by the Development Commissioner. Clearance from the Department of Policy andPromotion/Board of Approvals, wherever required will be obtained by the Development Commissioner, before the Letter of Intent is issued.

Q. What are the incentive/facilities available for SEZ units?

Following incentive/ facilities to SEZ enterprises:

Customs and Excise:

SEZ units may import or procure from the domestic sources, duty free, all their requirements of capital goods, raw materials, consumables, spares, packingmaterials, office equipment, DG sets etc. for implementation of their project in the Zone without any licence or specific approval.Duty free import/domestic procurement of goods for setting up of SEZ units.Goods imported/procured locally duty free could be utilized over the approval period of 5 years.Domestic sales by SEZ units will now be exempt from SAD.Domestic sale of finished products, by-products on payment of applicable Custom duty.Domestic sale rejects and waste and scrap on payment of applicable Custom duty on the transaction value.

Income tax

Physical export benefit100% IT exemption (10A) for first 5 years and 50% for 2 years thereafter.Reinvestment allowance to the extend of 50% of ploughed back profitsCarry forward of losses

Foreign Direct Investment:

100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ units except arms and ammunition, explosive,atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobaccosubstitutes.No cap on foreign investments for SSI reserved items.

Banking / Insurance/External Commercial Borrowings

Setting up Off-shore Banking Units allowed in SEZs. OBU's allowed 100% Income Tax exemption on profit for 3 years and 50 % for next two years.External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions.Freedom to bring in export proceeds without any time limit.Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment from it.Commodity hedging permitted.Exemption from interest rate surcharge on import finance.SEZ units allowed to 'write-off' unrealized export bills.

Central Sales Tax Act:

Exemption to sales made from Domestic Tariff Area to SEZ units.Income Tax Act:

Service Tax:

Exemption from Service Tax to SEZ units

Environment:

SEZs permitted to have non-polluting industries in IT and facilities like golf courses, desalination plants, hotels and non-polluting service industries in theCoastal Regulation Zone areaExemption from public hearing under Environment Impact Assessment Notification

Companies Act:

Enhanced limit of Rs. 2.4 crores per annum allowed for managerial remunerationAgreement to opening of Regional office of Registrar of Companies in SEZs.Exemption from requirement of domicile in India for 12 months prior to appointment as Director.

Drugs and Cosmetics:

Exemption from port restriction under Drugs & Cosmetics Rules.

Sub-Contracting/Contract Farming

SEZ units may sub-contract part of production or production process through units in the Domestic Tariff Area or through other EOU/SEZ unitsSEZ units may also sub-contract part of their production process abroad.Agriculture/Horticulture processing SEZ units allowed to provide inputs and equipments to contract farmers in DTA to promote production of goods as perthe requirement of importing countries.

Q. Whether SEZs have been exempted from Labour laws?

Normal Labour Laws are applicable to SEZs, which are enforced by the respective state Governments. The states Government have been requested tosimplify the procedures/returns and for introduction of a single window clearance mechanism by delegating appropriate powers to DevelopmentCommissioners of SEZs.

Q. What are the facilities for Domestic suppliers to Special Economic Zone?

Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export. DTA supplier would be entitled to:Drawback/DEPBCST ExemptionExemption from State LeviesDischarge of EP if any on the suppliersIncome Tax benefits as applicable to physical export under section 80 HHC of the Income Tax Act.

Q. Who monitor the functioning of the units in SEZ?

Performance of the SEZ units monitored by a Unit Approval Committee consisting of Development Commissioner, Custom and representative of StateGovt. on annual basis.

Q. Are SEZ's controlled by Government?

In all SEZ’s, the statutory functions are controlled by the Government. Government also controls the operation and maintenance function in the 7 CentralGovernment controlled SEZs. In rest of the operation and maintenance are privatized.

Q. What are the special features if we come to the zone?The units would be entitled for a package of Incentives and a simplified operating environment

Q. What about the Licenses for Imports?No License is required for imports, including second hand machineries.

Q. What is the practical role of Development Commissioner?Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced by the units / developer.

Q. Routine examination of goods by customs in the EOU is common.Will the same practice continue at the SEZ?

Customs examination is to the bear minimum. SEZ units function on self certification basis.

Q. Will it be possible to supply to other units in SEZ?

YES. Inter Unit Sales are permitted as per the Policy. Buyer procuring from another unit pays in Foreign Exchange.

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BT / IT

Q-1) What is the definition of Biotechnology enterprise / unit ? Ans : 'Bio-Technology (BT) Unit' means a unit engaged in Research and Development and/ormanufacture of products which use or are derived by using (a) living systems, (b) enzymes, (c) Bio-catalysts derived therefrom, in any of the following fields:

Genetic Engineering/ Gene Engineering1.Cell Engineering/ Cell Culture2.Bio process engineering3.Protein Engineering4.Tissue Engineering5.Microbiology6.Bio-chemistry7.Bio-Informatics - ( Assembly of data from genomic analysis into accessible form) 8.Genomics - ( The molecular characterization of all species)9.Bio-Transformation - ( The introduction of one or more genes conferring potentially useful traits into plants, livestock fish and tree species)10.Molecular breeding- ( The identification and evaluation of desirable traits in breeding programs by the use of marker assisted selection for plants, trees,animals and fish )

11.

Embryo Manipulations12.Pharmacogenomics13.Proteomics14.Allo-transplantation15.Xeno Transplantation16.Bio Chips.17.Gene Therapy18.Bio- instrumentation 19.Regeneration technology20.Biological Drugs.21.

Q-2) What is the eligibility criteria for BT Park ?Ans: The BT Park should have minimum land area of 2 acres or 20000 Sq.ft. of Built Up Area (BUA). Q-3) What is the procedure for getting LOI /Registration as BT unit ? Ans : A – For getting LOI as BT unit, one has to apply in prescribed application form along with following documents to Competent Authority.a) Affidavit ( Annexure-V )b) Certificate from designated Certifying Agency (Annexure -VI)c) Locational clearance from DI/JDI,MMR/MIDC/Local Authority, as thecase may be.B- Existing BT Units (those which have started their BT activities / production)should apply for BT Registration with the following documents to CompetentAuthority.

(a) Application for Registration in the prescribed form (Annexure-IV).1.(b) Affidavit ( Annexure-V )2.

(c) Locational clearance from Directorate of Industries / MIDC Local1.Authority as the case may be.2.(d) C.A's certificate regarding turnover of Bio-Tech products / activities3.exceeding 75 % of total turnover (Annexure-VII)4.

(e) BT Letter of Intent ( if obtained )3.(f) Certificate from designated Certifying Agency4.

( Annexure-VIII for existing BT unit ).1) What is the procedure for getting LOI /Registration as BT Park ?Ans : For getting LOI/ Registration as BT Park, one has to apply in prescribed applicationform along with following documents to Competent Authority.1. Developer company constitution documents.A. For Private Limited Company

Certificate of incorporation with memorandum & Article of Association.1. Board resolution for development of BT Park2. Letter of Authority for application (Authorized signatory) 3.

B. For Public Ltd. Company

Certificate of incorporation with memorandum & Article of Association.1. Board resolution for development of BT Park2. Letter of Authority for application.3.

C. For partnership Firm

Copy of partnership deed1. Copy of firm registration2.

Letter of authority for application3.

D. Cooperative Society

Registration under Society Act.1. Letter of authority for application2.

E. Charitable Trust.

Registration under Public Charitable Trust Act.1. Letter of authority for application2.

2. Land documents A. For own Land

Copies of 7/12 abstract of Land1. Copy of index2. Copy of Property Card3. ULC /BTAL Permission if applicable4.

B. For lease/Development Agreement land

Copy of Agreement executed with the Landlord1. Power of authority to leases2. Copy of Land possession letter3. ULC Permission if applicable4.

Copy of Challan of fee deposited in Govt. treasury for Rs. 5000/1.Copy of Zone confirmation certificate issued by appropriate authority2.Building Plan approval copy with letter of approval3.Copy of Building construction commencement certificate issued by appropriate authority4.

7. MPCB consent for establishment of BT Park1.Permission for CETP1.Solid Hazardous waste disposal agreement approval2.

8. Copy of receipt of application submitted to (Whichever is applicable)2.Ministry of Environment and Forests (MoEF)1. Genetic Engineering Approval Committee (GEAC).2. Indian Council of Medical Research (ICMR)3. Maharashtra Pollution Control Board (MPCB)4. Drugs and Cosmetics Act, Ministry of Health and Family Welfare5. Atomic Energy Regulatory Board (AERB)] Govt. of India6. CPCSEA (Committee on Prevention of Cruelty and Supervision of Experiments on Animals)7.

9. Water supply arrangement made3.Proof of Water supply arrangement for BT Park1.Provision of common supply for distilled water / chilling plant requirement of laboratories likely to be established in BT Park.2.

10. Motive Power4.Agreement made for dedicated substation for required motive power1.Separate feeder for dedicated substation2.Standby arrangement for not less than 30% of total power requirement.3.

Affidavit in prescribed form provided with application form.5.12. Agreement made for utilities1.

Chilling plant1.Steam generation2.Storage facility ( Raw material and finished product)3.

Building plan approval from Department of Industrial Safety and Health.6.

2) Who is Competent Authority to grant LOI / Registration to BT unit / BTpark? Ans : For Greater Mumbai, the Competent Authority is Joint Director of Industries, Mumbai Metropolitan Region and for rest of the Districts, the CompetentAuthority is General Manager, District Industries Centre of respective District.For BT Parks located within Mumbai Metropolitan Region, the Competent Authority is Development Commissioner (Inds.), Directorate of Industries, Mumbai. ForBT Parks located out side Mumbai Metropolitan Region, the Competent Authority is the General Manager, District Industries Centre of respective District.3) What are the Benefits of obtaining LOI / Registration as BT unit ?Ans : Once the BT unit gets LOI / Registration, it is entitled to get various incentives such as Industrial Promotion subsidy, Stamp duty exemption and Electricityduty exemption, etc. under Package Scheme of Incentives. 4) What are the Benefits of obtaining LOI / Registration as BT Park ?Ans : Once the BT Park gets LOI / Registration, it is entitled to get double floor spaceindex from respective Planning Authority, upon payment of 25 % premium of thepresent day market value of the land under reference as indicated in the ReadyReckoner.5) Which are the Designated Agencies who can certify as BT unit ? Ans : Following is the List of Designated Certifying Agencies :

1Head of Biotech Department, Bhabha Atomic Research Centre, Tel : Fax : 5505002/5563128 5505151

2 Trombay, Mumbai 400 085 Head of Biotech Department, IndianInstitute of Technology, Powai , Mumbai 400 076

Tel. : 5722545 Fax:5723480(G)/5723546(P)

3 Head of Biotech Department, Tata Institute of FundamentalResearch, Dr. Homi Bhabha Rd.,

Tel : 2172971 Fax 2152110/81

Nevy Nagar, Colaba, Mumbai 400 005.

4 5 Head of Biotech Department, University Department of ChemicalTechnology, Nathalal Parikh Marg, Opp. Khalsa College, Matunga(East), Mumbai 400 019. Head of Biotech Department, CancerResearch Institute,

Tel : 4145616 Fax : 4145614 Tel :4136304/4184579

Tata Memorial Centre,

Mumbai 400 012.

6 Head of Biotech Department, National Centre for Cell Science,N.C.C.S.Complex, Ganeshkhind Pune 411 007.

Tel : 5690922/5690931/ 5690941/5690951/5692256/5692257

7E-mail - infonccs @ giaspnol.vsnl.net.in Head of Biotech Department,National Institute of Virology 20-A, Dr. Ambedkar Road,Post BoxNo.11,

Tel : 6127301/2/3/4 Fax : 6122669.

Pune 411001.

8 Biochemical Sciences & Plant Tel & Fax : 5893034

Molecular Biology Unit, National Chemical Laboratory, Dr. HomiBhabha Rd., Pune 411008 Maharashtra, India. E-mail pkr @evns.ncl.res.in.

9Head of Biotech Department, Haffkin Institute, Acharya Donde Marg,Parel, Mumbai 400 012.

Tel : 4150826Fax : 4161787

10Head of Biotech Department, Agharkar Research Institute AgarkarRoad, Pune 411 004. Tel : 5652970/5654831 Fax : 5651542.

11Director of Bio-Technology Deptt., Vasant Dada Sugar Institute,Manjari Budruk,Tq.Haweli, Distt. Pune 412 307

Tel: 9520 6993988/6993989 /94/95 Fax :9520 6992735

12Head of Biotech Department, National Environmental & EngineeringResearch Institute, (NEERI), Nehru Marg,Nagpur 440020. Tel: 0712 226071 Extn.205

13Head of Biotech Department, Vidyapratisthan School inBio-Technology,Vidya-Nagari, Bhigwad Road, Baramath 413133 Tel : (02112) 43714/43489 Fax: 44800

14Head of the Department of Bio-Technology, Dr. Punjabrao DeshmukhKrishi Vishwa Vidhyalaya (PKV) Krishi Nagar Akola, Maharashtra. Fax (0724) 58218/58219 58201/158091

15Bio-informatics, University of Pune, Pune 411007 Maharashtra,India.E-mail director @ bioinfo.ernet.in Tel : 5692039/5690195 Fax: 5690087

16Head of the Department of Bio-Technology Amravati University,Amravati 444602, Maharashtra Tel : 662206 to 8 Fax : 662135,660949

17Head of the Department of Bio-Technology, Konkan KrishiVidyapeeth (KKV), Dapoli, Distt. Ratnagiri, Maharashtra 415712 Fax : ( 02358) 82074

18Head of the Department of Bio-Technology, Marathwada AgriculturalUniversity (MAU) Parbhani, Distt. Parbhani, Maharashtra 431402. Fax : (02452) 235812.

19

Head of the Department of Bio-Technology, ( Tissue Culture Lab ),Mahatma Phule Krishi Vidyapeeth (MPKV), Rahuri, Distt.Ahmednagar, Maharashtra. Tel : (02426) 43252

20

Head of the Department of Bio-Technology, Director, Govt. Instituteof Science, Nipat Niranjan Nagar, Caves Road, Aurangabad 431004,Maharashtra. e-mail : institute_o1@ satyam.net.in Tel : 331586,354814 Fax : 332103.

21

Head of Biotech Department, Central Institute of FisheriesEducation,Versova, Mumbai 400 061.

22Head of Biotech Department, Institute for Research in Reproduction,Jehangir Merwanji Street, Parel, Mumbai 400 012. Tel : 4148427/4144926

23Head of the Department of Bio-Technology, University of Pune,University Road, Pune 411 007.

Tel : 5695179 Fax : 5695179

24

Head of Biotech Department, Department of Bio-Technology, RajivGandhi Bi-Technology Research Institute, LIT Campus, AmravatiRoad, Nagpur.

Tel : 560620 Fax 536223

25

Head of Biotech Department, Faculty of Agricultural Sciences,Yashwantrao Chavan Maharashtra Open University Dnyan Gangotri,Near Gangapur Dam, Nashik 422 222.

Tel : (0253) 230236 Fax : 231716

26Head of Biotech Department, Bio Informatics Centre, University ofPune, Pune - 411 007.

Tel.: 265 0087

27Head of Biotech Department, Food and Drugs Administration, Bandra(East), Mumbai-400 051.

Tel.: 6592364/65, 6591820 Fax: 6591959

28Head of Biotech Department, Medical Education and Research, St.Gorge Hospital Compound, Mumbai-400 001.

Tel.: 2620363/2620735Fax: 2620562/2652168

6) Is there any fees to be paid to Competent Authority while applying for getting LOI / Registration as BT unit / BT Park ? If yes, under which head, the feesis to be paid and where ?Ans: For granting LOI / Registration as BT unit, no fees is charged. However, for getting LOI / Registration as BT park, the applicant has to pay Rs. 5000/- asprocessing fees in the prescribed challan to RBI under following head :Head of the Account “0851 Village & Small Industries 102, Small Scale Industries Cottage & Small Industries 00851-002-6”

10) Whether the BT unit is also entitled to get Double Floor Space Index (FSI) ? Ans: Yes, provided the existing BT unit / units outside park should have minimumland area of 2 acres or 20000 Sq.ft. of Built Up Area (BUA). 11) What is the percentage of Builtup area allowed for BT purpose and support services in a BT Park ? Ans : Out of total Builtup area of BT park, minimum 90%should be used for Biotechnology purpose and maximum 10 % can be used for support services such as Cafeteria, Small Club House and Conference and VideoConferencing Hall.

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FAQ Exports

Sr. No. Question Explanation

1.

What are schemes for Export Promotion ofGovt. of Maharashtra ?

1) Participation in Industrial Exhibition and Trade Fair.2) Export Award Scheme for Best Exporters in the state.3) 50% Ground Rent Subsidy to Small Scale Industries forparticipation in international trade fairs/ exhibitions.

2. What is the objective of the scheme ? The objective of this scheme is to promote and encourage exportsendeavor by way of giving them opportunities to participate inNational and International Trade Exhibition and also to enable themsecure lasting market avenues and also to provide opportunities toSmall Scale entrepreneurs.

3. Specify the incentives given to S.S.I. Unitsunder the Export Scheme

1. The best exporters from different category / fields are awardedevery year to motivate Export oriented units in the State. 2. 50% of Ground rent subsidy is given to SSI units who participatein the international exhibitions held by approved organizations.

4. Role of Directorate of Industries in promotingExport of Maharashtra state.

Director of Industries facilitates to export drives / efforts and alsomotivate entrepreneurs to participate in international exhibitions.

5. Is there any prescribed format and requiredrelated documents for obtaining 50% Groundrent subsidy to SSI.

List of required documents is as follows :

Application form in Prescribed proforma duly filled in allrespect.

1.

Certificate from Organiser for participation in International Fair.2.Recommendation from Concerned EPC’s/ approvedorganisations.

3.

A copy of SSI Registration.4.An Affidavit in prescribed Proforma5.C. A.’s Certificate.6.Original Space Rent Receipt of payment made to organisers .7.

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Industrial Entreprenuers’ Memorandum

S.N. QuestionExplanation

1. What is IEM? Industrial Entrepreneurs Memorandum (IEM) is a application for acknowledgment of unit.

2. What is the eligibility for gettingIEM?

The large scale industry having investment more than Rs. 10 crores inmanufacturing sector and more thane Rs. 5 crores in service sector are primarilywhich is out side the purview of the licensing provisions and for the items (s) notexclusively reserved for manufacture by SSI sector have to file an application forIndustrial Entrepreneurs Memorandum means IEM.

2. In which case the IEM/ LOI isrequired ?

The promoter can filed IEM in following categories;1.To set up a new industrial undertaking,2. To effect substantial expansion of the industrial undertaking,3. To manufactur a new article4. To carry on business of existing SSI units after graduating into large scaleindustry.

3. What is the procedure for filling ofIEM?

The promoters has to make an application to Govt. of India in prescribed formatalongwith Demand Draft of Rs. 1000/- in the name of Secretariat for IndustrialAssistance (SIA), New Delhi in six copies. The prescribed format is available onDirectorate of Industries website: www.maharashtra.gov.in

4. What will be the further stepsafter filling IEM?

After filling IEM to Govt. of India. Govt. of India gives acknowledgment receipt to theapplicant and inform to Directorate of Industries. After receipt of acknowledgment,applicant can take further initiative step to set up the unit.

5. What is the role of Directorate ofIndustries?

Secretariat for Industrial Assistance (SIA), New Delhi circulates office memorandumenclosing one copy of application for the necessary comments from Directorate ofIndustries. The Directorate of Industries offers the comments to the GOI in respectof location after getting appropriate documents/ certificate from the promoters. Those industrial promoters have obtained IEM and gone into commercial productionor implemented the project has to submit PART B with Govt. of India or Directorateof Industries in seven copies for the record.

6. What is IL/ who can eligible forIL?

For setting up industrial units under IDR Act Industrial Development (Regulation) Act1951 of Govt. of India it is necessary to obtain Industrial license or Letter of Intent.(1)Activities reserved for public sector (2) Activities includes in Annex-II (3) Activity reserve for SSI

7. Which activities are reservedunder public sector?

Arms and ammunition and allied items defence equipment defence aircraft andwarships.

1.

Atomic energy.2.The substances in the schedule to the Notification of the Government of Indiain the Department of Atomic Energy No. S.O. 212(F), dated 15th March 1995.

3.

Railway Transport.4.

Which activities are covered inAnnex II ?

Distillation and brewing of alcoholic drinks.1.Cigars and Cigarettes of Tobacco and manufactured Tobacco Substitutes.2.Electronic Aerospace and all types of Defense Equipment.3.Industrial Explosives including Detonating fuses, Safety fuses, Gun powder,Nitrocellulose and Matches.

4.

Hazardous Chemicals.5.Drugs and Pharmaceuticals ( according to modified Drugs Policy issued in1994 as amended in 1999).

6.

8. What is the procedure for filling ofIL?

The promoters has to make an application to Govt. of India in prescribed formatalongwith Demand Draft of Rs. 2500/- in the name of Secretariat for IndustrialAssistance (SIA), New Delhi in the six copies. The prescribed format is availableon Directorate of Industries website: www.maharashtra.gov.in

9. What will be the further stepsafter filling IL?

Applications received for IL to GOI are put up before Licensing Committee for further approval of License after seeking necessary confirmation from State Govt.

10. What is the role of Directorate ofIndustries?

Necessary guidance/ co-ordination and reports to GOI.

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