1. Short
Title:
This scheme may be called The West Bengal IT Incentive Scheme,
2001 (hereinafter referred to as the IT 2001 Scheme) for IT/IT
Enabled Services Projects of large, medium and small-scale units
(hereinafter referred to as IT Units) to be setup in the State.
2. Commencement
and Duration:
Unless specifically mentioned against the respective items of
incentives sanctioned under the IT 2001 Scheme, it shall come
into effect on and from the 1st day of November, 2001 in the whole
of West Bengal and shall remain valid for a period of five years
ending on the 31st October, 2006.
Explanation: IT industries under WBIS 2000 Scheme
will be administered under that scheme till 31st December 2004.
It may be registered under IT 2001 Scheme, thereafter provided
it does not get more benefit that the maximum benefit permissible
under IT 2001 Scheme, after adding incentives enjoyed under WBIS
2000 Scheme.
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3. Definitions:
In the IT 2001 Scheme, unless the context otherwise requires,
i). "IT" Includes IT and Telecommunication.
ii). IT Industry includes IT hardware and software Industries;
IT hardware Industry includes purely assembled units only where
no factory operation in involved; IT software Industry means IT
software, IT services and IT enabled services, where no factory
operation in involved.
iii). "ITES" means Information Technology Enabled services.
Services that come under ITES are as follows :-
- i). Back Office Operation
- ii). Call Centre
- iii). Content Development / Animation
- iv). Data Processing
- v). Engineering and Design
- vi). Geographic Information System Services
- vii). Insurance Claim Processing
- viii). Legal Database
- ix). Medical Transcription
- x). Payroll
- xi). Remote Maintenance
- xii). Revenue Accounting
- xiii). Support Centres
- xiv). Website Services
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iv). "State Government" means the Government of West
Bengal and "Central Government" means the Government
of India;
v). "W.B.E.I.D.C" means West Bengal Electronics Industry
Development Corporation;
vi). "W.B.I.D.C" means the West Bengal Industry Development
Corporation Limited;
vii). "State Financial Institutions" means the W.B.I.D.C
and the W.B.F.C.;
viii)."Authorised Agent" means W.B.E.I.D.C./ W.B.I.D.C.,
as agent specially authorised by the State Government for operation
of IT 2001 Scheme. For units in the Small Scale Sector, District
Industries Centre will be the Authority to scrutinise, verify
and recommend the case to the District Level Committee constituted
by the Cottage & Small Scale Industries Department for the
purpose;
ix). "Unit" means any IT project in large and medium
scale having approval in the form of letter of intent, Industrial
license or registration Certificate, as the case may be, under
the Industries (Development and Regulation) Act, 1951 (65 of 1951)
or an acknowledgement in the form of Secretariat for Industrial
Assistance reference number from Central Government or registration
under Software Technology Park Scheme of the Central Government;
x). "Large/Medium/Small scale unit" means a unit as
defined by the Government of India from time to time;
xi). "New Unit" means an IT unit in the large/medium/small
scale sector which is established and commissioned by the entrepreneur
in West Bengal for the first time on or after the 1st November,
2001 and is registered with the Directorate on Industries. It
includes Cottage and Small Scale Units registered under District
Industries Sector or Directorate of Cottage and Small Scale Industries;
xii). "Existing IT Unit" means an unit in the large/medium/small
scale sector which exists in West Bengal and was functioning before
it started commercial production in its expanded portion on or
after the 1st November, 2001;
xiii)."Mega Unit" means an eligible IT unit set up
on or after the 1st November, 2001 with Investment exceeding Rs.
250 crore;
xiv). “Approved Project" means the IT project of a
unit for which registration certificate and eligibility certificate
have been issued under the IT 2001 Scheme;
xv). "Approved Location" means the location of the
approved project registered with the concerned authority of the
Central Government/the State Government;
xvi). "Approved Industrial Complex" means any industrial
complex set up in the public or private sector in the State approved
by the State or Central Government;
xvii). "Eligible IT Unit" means an IT Unit in the large/medium
sector having registration certificate issued by the Director
of Industries and eligibility certificate by the WBIDC/WBEIDC.
For small scale sector, the unit should have registration certificate
from Directorate of Cottage & Small Scale Industries;
xviii). "Expansion of Existing Unit" means expansion
for the same item(s) of production/expansion of services within
existing approved capacity or for expansion for enlarged approved
capacity or for manufacture of a new item with an approved capacity;
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Explanation – I
Such Project should be covered by appropriate approval under
the industries (Development & Regulation) Act, 1951 or a Secretariat
for Industrial Assistance reference number.
Explanation – II
In case of expansion of an existing IT unit, the fixed capital
investment made or to be made on approved project shall increase
the total value of the fixed capital investment of the unit but
not less than 25% of the net value of fixed asset of land, building
and plant and machinery including computer hardware and computer
software as on 1st November, 2001 or Rs 50 lakhs, whichever is
less.
xix) "Expanded Portion" means the portion expanded
with additional capacity on or after the 1st November, 2001 with
approval of the State Government for the manufacture of goods
in West Bengal either in its existing location or in a different
area;
xx) "D.I.C" means District Industries Centre.
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Explanation:
The "fixed capital investment" shall be calculated
as follows:
a) Land: actual price or premium paid for the land free hold
or lease hold as deemed necessary for the approved project at
the approved location by the authorized agent.
b) Building: the actual expenditure incurred for construction
of the office building, factory sheds etc as necessary for the
approved project at the location but not residential quarters.
c) Plant & Machinery: fixed capital investment in plant &
machinery shall be calculated as below:
The cost of plant, and machinery as erected at the approved location,
including the cost of productive equipment such as jigs, dies,
moulds, computer hardware, computer software etc and items pertaining
to pollution abatement measures but excluding the cost of any
second hand plant and machinery computer hardware, computer software
etc as also plant and machinery purchased and installed under
hire purchase agreement.
In the case of plant and machinery taken on lease, the leasing
fees/charge shall be taken into account, provided that on the
expiry of the leasing contract, the said plant and machinery,
computer hardware, computer software become the property of the
IT unit.
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Explanation – I:
Advances paid to suppliers of plant and machinery for the approved
project of the eligible IT unit on or after 1st November 2000
may be taken into account in calculating the total fixed capital
investment.
4. Applicability
of the IT 2001 – Scheme:
The IT 2001 Scheme shall generally be applicable to all large,
medium and small scale project unit to be set up and also to expansion
projects of existing unit on or after 1st November, 2001. The
units may be in the private sector, co-operative sector, joint
sector as also companies/undertakings owned or managed by the
State Government.
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5. Eligibility
Criteria For IT Incentives under the 2001 Scheme:
5.1 Any IT project in the large and medium sector to which this
scheme applies shall be eligible for securing an eligibility certificate
provided;
a) the project is covered by a detailed feasibility report/project
report prepared for the purpose
b) the project has been approved and sanctioned by the Central
Financial Institutions or the Commercial Banks or the State
Financial Institutions, as the case may be. In the case of projects
with arrangement of finance from own resources, issue of eligibility
certificate shall be considered provided the WBIDC/ WBEIDC Ltd
is satisfied about the arrangement of such finance.
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6. Classification
of development areas and backward areas:
6.1 For the purpose of determination of types and quantum of
incentive available under the Scheme for the approved projects,
according to their location, the State shall be classified in
the following groups:
Group A – Calcutta Municipal Corporation
Group B – Howrah, Hooghly, North 24 Parganas, South 24
Parganas excluding the area under jurisdiction of the Calcutta
Municipal Corporation, Burdwan, Nadia and Midnapore districts.
Group C – Murshidabad, Birbhum, Purulia, Bankura, Malda,
Coochbehar, North Dinajpur, South Dinajpur, Jalpaiguri and Darjeeling
districts.
7. State
Capital Investment Subsidy:
7.1 An eligible IT unit located in a group ‘A & B’
area and set up in the State on or after 1st November 2001, will
be entitled to State Capital Investment Subsidy @ 15% of the Fixed
Capital Investment subject to a limit of Rs. 150.00 lakhs.
7.2 An eligible IT unit located in Group C area and set up in
the State on or after the 1st November 2001, will be entitled
to State Capital Investment Subsidy @ 25% of the Fixed Capital
Investment subject to a limit of Rs. 250.00 lakhs.
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8. Interest
Subsidy:
8.1 An eligible new IT unit for its approved project will be
entitled to Interest Subsidy on the annual interest liability
on the loan borrowed from a Commercial Bank/Financial Institution/NBFC
approved by Reserve Bank of India, for implementation of the approved
project, at the rate given below –
Group A 50% of the annual liability on the
loan borrowed for an approved project subject to a ceiling of
Rs. 100.00 lakhs per year for 5 years.
Group B 60% of annual interest liability on
the loan borrowed for an approved project subject to a ceiling
of Rs. 120.00 lakhs per year for 7 years.
Group C 60% of annual interest liability on
the loan borrowed for an approved project subject to a ceiling
of Rs. 120.00 lakhs per year for 9 years.
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9. The Interest subsidy will
be payable annually subject to submission of a statement/certificate
by the lending Banks/Financial Institution/NBFC so as that the
IT unit has paid the due interest to the institutions on the due
dates.
10. Waiver
of Electricity Duty:
An eligible IT unit for its approved project will be entitled
to waiver of electricity duty on the electricity consumed for
its production/operation activity for a period of 5 years from
the date of commercial production/operation.
11. Employment
Generation Subsidy:
11.1 An eligible IT unit in the large and medium sector will
be entitled to reimbursement to the extent of 50% of the expenditure
incurred by it for paying its contribution towards Employees State
Insurance (ESI) and Employees Provident Fund (EPF) depending on
the location of the unit as follows:
Group ‘A & B’ area: 5 years;
Group ‘C’ area: 7 years
11.2 An eligible IT unit in the Small Scale Sector will be entitled
to reimbursement to the extent of 75% of the expenditure incurred
by it for paying its contribution towards Employees State Insurance
(ESI) and Employees Provident Fund (EPF) depending on the location
of the unit as follows:
Group ‘A & B’ area: 5 years;
Group ‘C’ area: 7 years
11.3 The reimbursement of the expenditure prescribed at the sub
para 11.1 and 11.2 above will be payable annually based on minimum
statutory limit subject to the condition that the IT unit has
paid its contribution towards ESI & EPF on due dates.
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12. Remission
of Stamp Duty & Registration Fee:
12.1 An eligible It unit (excluding IT enabled Services) irrespective
of its location will be entitled to full exemption from payment
of stamp duty and registration fee required of documents within
the State relating to purchase/acquisition of land and building
for setting up of the approved project.
12.2 Notwithstanding anything contained anywhere in the Scheme
the incentive prescribed at para 12.1 above shall be admissible
from the date of issue of the notification of this Scheme.
12.3 For IT enabled Services, requirement of land will be assessed
at the rate of 0.3 acre for every 100 jobs created. If a unit
acquires land in excess of this limit no concession in respect
of stamp duty and registration fees for excess land shall be allowed.
12.4 Industrial Complex and Centres set up with Infrastructural
facilities will be entitled to remission of 50% of Stamp Duty
and Registration Fee for the first sale in relation to such Complex
& Centres. This will be admissible from the date of issue
of the Notification by the Finance Department.
Infrastructure facilities must include the following
items:
(i) Road; (ii) Water Supply; (iii) Power; (iv) Drainage Facilities;
(v) Any other relevant items
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13. Subsidy
and quality improvement in the Small Scale Sector:
An eligible IT unit in the Small Scale Sector shall be reimbursed
50% of the expenditure upto a maximum of Rs. 5.00 lakhs for obtaining
ISI Certification/ISO 9000 for approved Institutions/ Research
Laboratories.
14. Incentives
for approved expansion project of an existing unit:
An existing IT unit for its approved expansion project will be
entitled to all the incentives mentioned above in this Scheme
subject to fulfillment of the conditions prescribed for the respective
item for a new unit.
14.1 IT industries on their relocation to approve industrial
complex, if such relocation is accompanied with modernisation,
maybe considered by the State Government to Capital Investment
Subsidy. The quantum of subsidy will be 15% of fresh investment
in plant and machinery, computer hardware, computer software subject
to maximum of Rs. 150.00 lakhs in case of large and medium scale
units and 25% of fresh investment in plant and machinery, computer
hardware, computer software in case of small scale units depending
on merit of each case.
15 Mega
Projects:
Notwithstanding anything contained any where in the Scheme the
State Government may consider granting special package of incentives
under this Scheme to a Mega Project on case by case basis, based
on pioneer nature of projects, locational aspects, state of the
art technology, scope of further related investment etc.
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16. Three
Shift Operation:
An eligible IT Unit is granted permission to remain open for
24 hours working in three shifts irrespective of the national
holidays declared under NI Act.
17. Software industries/IT
enabled services are exempted from taking "NOC" and
"Consent to Operate" from West Bengal Pollution Control
Board. If however, any of these industries uses Diesel Generator
sets, they will have to take permission for such Generator sets
as usual IT hardware industries (except purely assembled units)
and electronic industries will be examined on a case to case basis.
18. Power
to amend and/or relax/or repeal:
Notwithstanding anything contained in any of the provisions of
the 2001 – Scheme, the State Government may act anytime
–
1. make any amendment to this Scheme or repeal it, but the commitments
already made for an approved project shall not be affected by
any such amendments or repeal:
2. make any relaxation in applying the provision of this Scheme
but such relaxation shall be made on the merit of the approved
project in each case, as the State Government may consider necessary
and appropriate;
3. may issue instructions and guidelines to facilitate implementation,
to remove anomalies and to clarify interpretations of the provisions
of this Scheme.
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