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APPENDIX - 1
HUMAN RESOURCE ROLE - ASSESSMENT SURVEY
The attached survey explores different roles that the HR function may play within
your business. Considering the HR professionals in your business entity (for
example, corporate HR if you are at corporate, business unit HR if you are in a
business), please-rate the current quality of each of the following HR activities-
using a five-point scale (1 is low; 5 is high).
Current Quality
(1 – 5)
HR helps the organization ...
1. accomplish business goals
2. improve operating efficiency
3. take care of employees' personal needs
4. adapt to change
HR participates in ...
5. the process of defining business strategies
6. delivering HR processes
7. Improving employee commitment
8. shaping culture change for renewal and transformation
HR makes sure that...
9. HR strategies are aligned with business strategy
10. HR processes are efficiently administered
11. HR policies and programs respond to the personal needs of employees
12. HR processes and programs increase the organization's ability to change
HR effectiveness is measured by its ability to ...
13. help make strategy happen
14. efficiently deliver HR processes
15. help employees meet personal needs
16. help an organization anticipate and adapt to future issues
DR is seen as ...
17. a business partner
18. an administrative expert
19. a champion for employees
20. a change agent
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DR spend time on ...
21. strategic issues
22. operational issues
23. listening and responding to employees
24. supporting new behaviors for keeping the firm competitive
HR is an active participant in ...
25. business planning
26. designing and delivering HR processes
27. listening and responding to employees
28. organization renewal, change, or transformation
HR works to ...
29. align HR strategies and business strategy
30. monitor administrative processes
31. offer assistance to help employees meet family and personal needs
32. reshape behavior for organizational change
HR develops processes and programs to ...
33. link HR strategies to accomplish business strategy
34. efficiently process documents and transactions
35. take care of employee personal needs
36. help the organization transform itself
HR's credibility comes from. . .
37. helping to fulfill strategic goals
38. increasing productivity
39. helping employees meet their personal needs
40. making change happen
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APPENDIX - 2
HUMAN RESOURCE ROLE - ASSESSMENT SURVEY
QUESTIONNAIRE
1. Name of the Respondent
2. Designation
3. Department
4. Organization
The attached survey explores different roles that the HR function may play within
your business. Considering the HR professionals in your business entity (for
example, corporate HR if you are at corporate, business unit HR if you are in a
business), please-rate the current quality of each of the following HR activities-
using a five-point scale (1 is low; 5 is high).
Current Quality
(1 – 5)
HR helps the organization ...
1. accomplish business goals
2. improve operating efficiency
3. take care of employees' personal needs
4. adapt to change
HR participates in ...
5. the process of defining business strategies
6. delivering HR processes
7. Improving employee commitment
8. shaping culture change for renewal and transformation
HR makes sure that...
9. HR strategies are aligned with business strategy
10. HR processes are efficiently administered
11. HR policies and programs respond to the personal needs of employees
12. HR processes and programs increase the organization's ability to change
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HR effectiveness is measured by its ability to ...
13. help make strategy happen
14. efficiently deliver HR processes
15. help employees meet personal needs
16. help an organization anticipate and adapt to future issues
DR is seen as ...
17. a business partner
18. an administrative expert
19. a champion for employees
20. a change agent
DR spend time on ...
21. strategic issues
22. operational issues
23. listening and responding to employees
24. supporting new behaviors for keeping the firm competitive
HR is an active participant in ...
25. business planning
26. designing and delivering HR processes
27. listening and responding to employees
28. organization renewal, change, or transformation
HR works to ...
29. align HR strategies and business strategy
30. monitor administrative processes
31. offer assistance to help employees meet family and personal needs
32. reshape behavior for organizational change
HR develops processes and programs to ...
33. link HR strategies to accomplish business strategy
34. efficiently process documents and transactions
35. take care of employee personal needs
36. help the organization transform itself
HR's credibility comes from. . .
37. helping to fulfill strategic goals
38. increasing productivity
39. helping employees meet their personal needs
40. making change happen
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APPENDIX– 3
TEST OF NORMALITY
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Sum Strategic
Partner 500 100.0% 0 .0% 500 100.0%
Descriptives
Sum Strategic Partner
Statistic
Std.
Error
Mean 30.88 .421
95% Confidence
Interval for Mean
Lower Bound 30.06
Upper Bound 31.71
5% Trimmed Mean 31.12
Median 31.00
Variance 88.624
Std. Deviation 9.414
Minimum 0
Maximum 50
Range 50
Interquartile Range 12
Skewness -.355 .109
Kurtosis .204 .218
Tests of Normality
Kolmogorov-Smirnov(a) Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Sum Strategic
Partner .046 500 .013 .986 500 .000
a Lilliefors Significance Correction
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Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Sum Administrative
Expert 500 100.0% 0 .0% 500 100.0%
Descriptives
Sum Administrative Expert Statistic Std. Error
Mean 31.33 .339
95% Confidence
Interval for Mean
Lower Bound 30.66
Upper Bound 31.99
5% Trimmed Mean 31.49
Median 31.00
Variance 57.580
Std. Deviation 7.588
Minimum 0
Maximum 49
Range 49
Interquartile Range 11
Skewness -.554 .109
Kurtosis 1.801 .218
Tests of Normality
Kolmogorov-Smirnov(a) Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Sum Administrative
Expert .055 500 .001 .966 500 .000
a Lilliefors Significance Correction
Scale Statistics
Mean Variance Std. Deviation N of Items
246.52 1797.777 42.400 5
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Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Sum
Employee
Champion
500 100.0% 0 .0% 500 100.0%
Descriptives
sum Employee Champion Statistic Std. Error
Mean 31.22 .373
95% Confidence
Interval for Mean
Lower Bound 30.49
Upper Bound 31.95
5% Trimmed Mean 31.33
Median 31.00
Variance 69.552
Std. Deviation 8.340
Minimum 0
Maximum 50
Range 50
Interquartile Range 9
Skewness -.301 .109
Kurtosis 1.446 .218
Tests of Normality
Kolmogorov-Smirnov(a) Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
sum
Employee
Champion
.070 500 .000 .969 500 .000
a Lilliefors Significance Correction
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APPENDIX – 4
RELIABILITY OF THE INSTRUMENT
Reliability
Warnings
The covariance matrix is calculated and used in the analysis.
Case Processing Summary
N %
Cases Valid 500 100.0
Excluded(a) 0 .0
Total 500 100.0
a List wise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha Based on
Standardized Items N of Items
.855 .861 4
Inter-Item Correlation Matrix
Sum Strategic
Partner
Sum
Administrative
Expert
Sum
Employee
Champion
Sum
Change
Agent
Sum Strategic Partner 1.000 .753 .437 .511
Sum Administrative
Expert .753 1.000 .679 .645
Sum Employee
Champion .437 .679 1.000 .616
Sum Change Agent .511 .645 .616 1.000
The covariance matrix is calculated and used in the analysis.
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Summary Item Statistics
Mean Min. Max. Range Max/ Min Variance
N of
Items
Item Means 30.815 29.826 31.328 1.502 1.050 .471 4
Item Variances 69.652 57.580 88.624 31.044 1.539 183.968 4
Inter-Item
Correlations .607 .437 .753 .316 1.722 .012 4
The covariance matrix is calculated and used in the analysis.
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item
Deleted
Corrected
Item-Total
Correlation
Squared
Multiple
Correlation
Cronbach's
Alpha if Item
Deleted
Sum Strategic
Partner 92.38 434.860 .643 .582 .845
Sum Administrative
Expert 91.93 447.374 .844 .733 .759
Sum Employee
Champion 92.04 470.486 .652 .530 .833
Sum Change Agent 93.43 477.905 .679 .480 .823
Scale Statistics
Mean Variance
Std.
Deviation N of Items
123.26 776.008 27.857 4
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APPENDIX – 5
IT and ITES Policy, 2003
GOVERNMENT OF MAHARASHTRA
Industries, Energy & Labour Department,
Government Resolution No.ITP-2003/CR-3311/IND-7,
Mantralaya, Mumbai – 400 032.
Dated :- 12.07.2003
1. Context:
Government of Maharashtra has been supporting development of industry and
business through a series of far-reaching policy initiatives. The Information
Technology industry has been an important thrust area and has been receiving
government support. During the last five years, the Government focussed on
HRD, IT related infrastructure, fiscal incentives to IT units, IT in Governance and
Institutional Framework for the IT sector. These initiatives have enabled the IT
industry in the State to establish an initial lead and a firm foundation for a
quantum leap has been laid. Exports of software and ITES from the State
presently account for about 20% share of the country’s exports. These exports
have registered an annual growth of more than 30% during the last four years.
The whole State has been connected through an Optical Fibre Cable Network
and a statewide network of competent training institutions has been established
for building a pool of world-class IT professionals for providing strength and
support to the IT industry in the State.
At this stage of growth of the IT industry in the State, new areas warranting
State’s policy support have surfaced. The State Government has identified and
appreciated these emerging needs, requiring State support for facilitating growth
of the diversified streams of the IT industry in the near future. Through a
consultative process involving prominent stakeholders of the IT industry, the
Government has firmed up areas for further State support. Such a focussed
support to different segments of the IT industry is to be implemented under the IT
& ITES Policy, 2003.
2. Objective:
The main objective of the IT and ITES Policy, 2003 is to make Maharashtra the
most favoured destination for investments in the IT and ITES industry. This is
intended to be achieved by directing the State support at opening up large scale
opportunities of employment and self employment, facilitating growth of skilled
and globally employable man-power, unprecedented spurt in exports, creating
hassle-free and industry-friendly, 24 x 7 x 365 working environment, associating
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urban local Governments as responsive key stakeholders in promoting business
and enterprise in the IT industry, and providing a legal framework for data
protection and consumer privacy.
3. Resolution:
The Government of Maharashtra is pleased to announce its Information
Technology and Information Technology Enabled Services Policy, 2003 as
detailed below. This Policy has come into force from 4th June, 2003 and will
remain in force for a period of five years.
4. Extra ordinary features of the Policy:
For achieving the objective of the Policy, the State Government commits itself to
the following:
4.1 Institutional framework for policy implementation:
An Empowered Committee headed by the Chief Secretary to guide and
supervise implementation of the IT and ITES Policy, 2003 and take appropriate
decisions.
4.2 Unique Info Infrastructure:
(a) Promotion of public IT Parks.
(b) Promotion of private IT Parks.
(c) Cost effective and fully reliable telecom connectivity to the IT &
ITES units all over the State.
(d) Excellent road connectivity from main Highways to IT Parks
(e) Permission to developers of IT Parks to invest funds to construct
connecting roads from highways to IT Parks
(f) Leveraging the unique advantage of low cost overseas connectivity.
(g) Ensuring reliable and quality power supply round the clock in IT
Parks by permitting unlimited back up power, Captive Power
Generation and status as Independent Power Producers.
(h) Levying of power charges on IT and ITES units at industrial rates
and notifying IT and ITES units as a separate category of
consumers through MERC.
(i) Exemption of IT & ITES units from statutory power cuts in power
supply.
4.3 Developing a pool of skilled globally employable manpower:
(a) Ensuring ready availability of skilled manpower certified by
Maharashtra Knowledge Corporation and other training institutions /
companies.
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(b) Designing specific courses for English speaking, appropriate accent
and communication skills and conducting training by School
Education and Higher & Technical Education Departments.
(b) Making available infrastructural facilities of schools of Municipal
Councils, Municipal Corporations and Zilla Parishads to IT and
ITES Companies for conducting training programmes in ITES
related subjects and English language skills.
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4.4 Industry-friendly and supportive environment:
(a) Creating a progressive and supportive environment for 24 x 7 x 365
days working.
(b) Relaxations under Shops & Establishments Act for working hours,
work shifts and employment of women.
(c) Applicability of all relaxations under the Industrial Disputes Act and
Contract Labour Act to all IT and ITES units in the State on par with
Special Economic Zones.
(d) Notifying IT & ITES units as continuous process units.
(e) Issuing special passes to vehicles transporting women workers of
IT and ITES units during night times.
(f) Declaring IT and ITES units as public utility services and essential
services.
(g) Exemption of IT & ITES units from clearances of Maharashtra
Pollution Control Board.
(h) Suitably amending various labour laws for facilitating submission of
reports/returns in electronic formats.
(i) Permission to IT and ITES units for self-certification of reports and
returns.
(j) Constitution of a Committee under the Chairmanship of President,
NASSCOM for drafting a Data Protection and Consumer Privacy
Act.
4.5 Fiscal Incentives:
(a) 100% exemption in Stamp Duty to all IT & ITES units in public IT
Parks.
(b) 75% exemption in Stamp Duty to all IT & ITES units in private IT
Parks.
(c) 100% exemption in Stamp Duty to all IT and ITES units in ‘C’, ‘D’,
‘D+’ and No Industry District areas as per Package Scheme of
Incentives, 2001.
(d) 90% exemption in Stamp Duty payment for mergers, de-mergers
and reconstruction of IT & ITES units all over the State.
(e) Stamp Duty exemption also to non-IT entities such as leasing and
financial institutions acquiring space/premises in private and public
IT Parks for subsequent leasing to IT and ITES units.
(f) Exemption in Stamp Duty to assignment leases under Section 60
and leave and licences under Section 36-A of the Bombay Stamp
Act, 1958.
(g) Charging of Sales Tax at minimum floor rate of 4% on all IT
products and non-IT products essential for IT and IT Enabled
Services Units as approved by the Empowered Committee.
(h) Simplification of procedure pertaining to ‘F’ form and ‘C’ form.
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4.6: Support to IT and ITES Units by Urban Local Bodies:
(a) Issuing Government directions to all Municipal Corporations for
exempting imported capital goods and raw materials of IT and ITES
units from levy of Octroi or Tax on entry of goods.
(b) Issuing Government directions to all Municipal Corporations and
Municipal Councils for levying property tax on all establishments /
properties / buildings / premises of IT and ITES units on par with
residential premises.
(c) Grant of 100% additional Floor Space Index to all IT and ITES units
in public IT Parks.
(d) Grant of 100% additional Floor Space Index to all IT and ITES units
in private IT Parks of specified sizes by paying certain premium.
(e) Issuing of permission to erect towers and antennae as part of
building plan approval.
(f) Issuing of Government directions to all Municipal Corporations and
Municipal Councils for single window interface for all clearances /
approvals / licences required by IT and ITES units.
4.7: Rewarding outstanding performance of IT and ITES units:
(a) Celebrating 20th August every year as the Information Technology
Day of the State.
(b) Presentation of State awards for outstanding performance to IT &
ITES units on the Information Technology Day every year.
5. Definitions:
In the context of the Policy, the Information Technology industry consists of IT
Software, IT Hardware, IT Services and IT Enabled Services as defined below:
IT Taskforce of Government of India has defined IT Software as follows:
(a) IT Software:
IT Software is defined as any representation of instruction, data, sound or image,
including source code and object code, recorded in a machine readable form and
capable of being manipulated or providing interactivity to a user, with the means
of a computer.
(b) IT Hardware:
IT Hardware covers approximately 150 IT products notified by Directorate of
Industries (APPENDIX I).
(c) IT Services and IT Enabled Services:
These include various IT Services and are defined by the IT Task force of the
Government of India as follows:
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"IT Service including IT Enabled Service is defined as any unit that provides
services, that result from the use of any IT Software over a Computer System for
realizing any value addition".
The Directorate of Industries has prepared and published an illustrative list of
such IT Enabled Services (Appendix II) which is updated from time to time.
6. Institutional framework for policy implementation:
6.1 Empowered Committee:
To guide and supervise implementation of this Policy, an Empowered Committee
is hereby constituted. This Empowered Committee shall be competent to
periodically review the list of products and services falling under IT and IT
Enabled Services and amend such lists from time to time as required. This
Committee will also be competent for fixing norms, terms and conditions of
eligibility (including amount of premium to be charged) of private IT Parks for
availing additional 100% FSI.
6.2: The Empowered Committee will have the following composition:
1) Chief Secretary - Chairman
2) Principal Secretary (Finance) - Member
3) Principal Secretary (Industry) - Member
4) Principal Secretary-I - Member
(Urban Development)
5) Secretary-II (Urban Development) - Member
6) Secretary - Member
(Information Technology)
7) Municipal Commissioner - Members
(Mumbai, Thane and Pune
Municipal Corporations)
8) Development Commissioner - Member-Secretary
(Industries)
6.3: The Empowered Committee, if necessary, will consult with or invite
representatives of institutions like NASSCOM, STPI, Private IT Parks and
others for its meetings.
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7. Unique Info Infrastructure:
7.1 Since faster growth of IT & ITES units can take place in urban areas, the
government will provide incentives to promote setting up of public IT parks
by government infrastructure agencies and private IT parks by private
investors/developers in the state.
These parks will have excellent infrastructural facilities for 24 x 7 x 365
working environment
7.2 All district headquarters and most of the taluka headquarters in the State
have already been connected through optical fiber cable network. The
Government shall endeavour to provide cost effective and reliable telecom
connectivity throughout the State. IT and ITES units in the State will be
able to leverage the unique advantage of low cost overseas connectivity
available in the State.
7.3 For easy access and rapid movement of goods and persons in the IT
parks, they will be connected to the main highways through high quality
road network. To supplement investments by the State Government and
Urban Local Bodies, developers of private IT parks will be permitted to
invest funds in establishing such high quality road connectivity from the
highways. Such roads will be transferred to the developers by the Urban
Local Bodies and recovery of the investments of the developers would be
adjusted against the property tax payable to the Local Bodies in future.
The State Government will issue necessary directions to the Urban Local
Bodies for this purpose.
7.4 For reliable and quality power supply round the clock, Private IT parks
and Public IT parks will have freedom of unlimited back up power,
permission for captive power generation and status as ‘Independent
Power Producers’.
7.5 IT and ITES units shall be declared as continuous process units and shall
be exempted from statutory power cuts to enable them to perform on
24x7x365 basis.
7.6 IT and ITES Units will be entitled for supply of power at industrial rates
under the MERC tariff orders. These units will be categorised as a
separate group of consumers through the MERC.
8. Developing a pool of globally employable manpower:
8.1 For ensuring ready availability of skilled and competent manpower
for the IT and ITES industry, which would be employable all over
the World, the Government will facilitate development of such a
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pool of man power. School Education and Higher & Technical
Education departments will impart training in English languages
skills (English speaking, appropriate accent and communication
skills) to the youth in the State.
8.2. Private Training Institutions, and IT and ITES companies shall be
offered infrastructural facilities in schools of the Municipal
Corporations, Municipal Councils and Zilla Parishads on a lease
basis, during non-working hours of schools, for conducting training
in IT, ITES related skills as well as English language skills.
9. Industry friendly and Supporting environment:
9.1 The State Government will endeavour to provide industry friendly
and supportive working environment for the IT and ITES units in the
State. To enable IT and ITES units to work efficiently on 24x7x365
basis, provisions under the Shops and Establishments Act have
been relaxed for working hours, work shifts and employment of
women.
9.2. All relaxations under the Industrial Disputes Act and Contract
Labour Act approved for units in Special Economic Zones shall be
made applicable to all IT and ITES units in the State.
9.3 Reports/Returns in electronic formats will be accepted as per
provisions of IT Act 2000. To enable IT and ITES units to submit
reports and returns in electronic formats, necessary amendments in
the following Labour laws shall be made.
� Employees State Insurance Act
� Factories Act
� Payment of Wages Act
� Minimum Wages Act
� Contract Labour Act
� Shops and Establishments Act
� Workmen's Compensation Act
9.4. IT and ITES units shall be allowed to file self-certified
reports/returns to concerned Officers of Labour Department.
9.5 ITES shall be declared as Public Utility Services under the
Industrial Disputes Act and as Essential Services (for more than six
months) under the provisions of Maharashtra Essential Services
Maintenance Act 1999 by necessary amendments in these laws.
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9.6 Since IT and ITES units do not cause any pollution, they shall be
exempted from the requirement of NOC from MPCB. In case
exceptional situations arise in future, a negative list of such
exceptional cases shall be notified.
9.7 20th August every year will be celebrated as the Maharashtra
Information Technology Day. State awards for outstanding
performance to IT and ITES units will be presented on this day.
9.8 Relaxation with respect to labelling of items/products of IT and
ITES units Under the Weights & Measures Act will be permitted and
working procedure will be simplified in consultation with
Government of India.
9.9 Since IT and ITES units work on 24 x 7 x 365 basis (round the
clock throughout the year) and they employ women workers, a
special group shall be appointed in the police department. Vehicles
of IT and ITES units transporting women workers during night hours
will be issued special passes/permission.
9.10 Data Protection:
To prepare draft of a Data Protection and Consumer Privacy Act, a
committee shall be formed under the Chairmanship of President,
NASSCOM. Such an Act will be enacted thereafter.
10. Fiscal Incentives:
IT and ITES units in the State shall be entitled for the following fiscal
incentives.
10.1 Stamp Duty Exemption:
(a) 100% Stamp Duty Exemption to all registered Information
Technology and IT Enabled Services units in C, D, D+ and No
Industry District areas classified under Package Scheme of
Incentives – 2001 in the State.
(b) 100% stamp duty exemption to all IT & ITES units in Public IT parks
in A & B areas notified as per package scheme of incentives 2001.
(c) 75% stamp duty exemption to all IT and ITES units in private IT
parks in A and B areas notified as per package scheme of
incentives 2001.
(d) 90% of Stamp Duty exemption on merger, demerger and re
construction of IT and ITES units all over the State.
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(e) 90% Stamp duty exemption to Assignment Leases of IT and ITES
units under Section 60 and leave & licences of IT & ITES under
Section 36 A of the Bombay Stamp Act 1958.
(f) If non-IT entities such as leasing and/or financial institutions like
HDFC lease space owned by them in Private/Public IT Parks to IT
and ITES units, such entities shall be held eligible for Stamp Duty
exemption as per (b) and (c) above.
10.2 Sales Tax:
(a) Sales Tax on sale of IT products has been reduced to a
minimum floor rate of 4% as notified by Finance Department,
vide Notification dated 11th August 2000. Under this
Notification, certain IT products and essential non-IT
products required for IT Enabled Services are not included.
The Empowered Committee shall finalize a list of such
products/items and sales tax on all products in such a list
shall be charged at the minimum floor rate of 4%.
(b) When an IT/ ITES unit effects a transfer of assets related to
IT and IT Enabled Services from one branch to another,
filling up of ‘F’ form is compulsory. The Government will
attempt to get this requirement deleted with consent of the
Government of India and also to simplify the working
procedure in this regard.
(c) Submission of 'C-Form' is compulsory for units in the State
while buying products from other States, failing which 10%
sales tax is levied on the transactions. Banks, IT and ITES
firms are not in a position to submit C-Form and hence they
are required to pay higher rate of sales tax. The Government
will attempt to get this procedure simplified, with the consent
of the Government of India.
(d) Presently, 14% Contract Tax is being charged on annual
maintenance agreements for IT products. Since proportion of
spare parts required for maintenance of such products is
very small, a maximum of 5% works contract tax on annual
maintenance agreements of IT and ITES units shall be
charged in the State.
11. Support to IT and ITES units by Urban Local Bodies:
Rapid Growth of the IT and ITES industry in urban areas will benefit Urban Local
Bodies in many ways. Therefore, the Government will endeavour to associate the
Urban Local Bodies as partners with its efforts to support the IT and ITES units.
In partnership with the ULBs, the following support will be made available to IT
and ITES.
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11.1 Octroi / Entry Tax:
(a) To make IT and ITES units in Maharashtra competitive with similar
units in other States, directions shall be issued to all the Municipal
Corporations in the State for exemption in Octroi / Entry Tax to
such units, on all capital goods and raw materials purchased by
them. Such an exemption to IT and ITES units will also be granted
by Municipal Corporations from any other alternative tax, if levied in
place of Octroi.
(b) Capital goods and raw materials imported within the municipal
limits by IT and ITES units were exempted from Octroi by the BMC
upto May, 2002. This exemption will be restored by the BMC for the
IT and ITES units.
(c) To attract and promote the IT and ITES units in Mumbai and other
urban areas, the Government shall issue directions to all Municipal
Corporations and Municipal Councils to levy property tax on all
establishments / properties / buildings / premises of IT and ITES
units on par with residential areas in their respective municipal
limits.
(d) 100% additional FSI shall be made available to all IT and ITES
units in Public IT Parks in the State.
(e) 100% additional FSI shall also be made available to all registered
IT and ITES units located in Private IT Parks, approved by
Directorate of Industries in the State. However, to avail of this
additional 100% FSI, the private IT parks will have to comply with
certain norms and terms. The Empowered Committee referred in
Para-6 shall fix such necessary norms and terms, including the
premium to be charged from the parks for eligibility of the parks for
this. The Empowered Committee shall review such norms and
terms of eligibility on a regular basis for ensuring proper utilization
of the additional FSI.
(f) Permission for erecting towers & antennae up to the height
prescribed by the Civil Aviation Department shall be granted by the
concerned Municipal bodies at the time and as part of approval of
the building plan itself.
(g) The Brihan-Mumbai Municipal Corporation (BMC) and MIDC shall
expeditiously complete improvement work of approach roads
leading to SEEPZ and Marol MIDC area from the Mumbai Airport.
(h) To support rapid growth of the IT and ITES industry, roads
connecting the IT Parks to main highways have to be of very high
quality. Therefore, the roads connecting Private/Public IT Parks to
the main highways shall be transferred to the developers of Private
and/ or Public IT parks for development by investing their own
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funds. To facilitate the developers to recover such an investment,
future property tax accruals to the Municipal Corporation/Council on
new properties in the IT parks would be adjusted against such
investments. The Government shall issue necessary directions to
all Municipal Corporations and Municipal Councils in this regard.
(i) Various permissions, approvals and registrations to IT and ITES
units required from the Municipal Corporations need to be issued
expeditiously. To facilitate this, the Government shall issue
directions to all the Municipal Corporations to implement a single
window interface for expeditious processing of such permissions,
approvals and registrations.
12. All Concerned Departments of the Government should expeditiously issue
necessary Orders/Notifications as per the above mentioned Government
decisions.
By order and in the name of the Governor of Maharashtra.
( V.S. Dhumal )
Principal Secretary (Industries)
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No.DI/IT/Emp.Com/Product/2005/A-7801
Directorate of Industries,
New Administrative Building,
Opp. Mantralaya, Mumbai – 400 032.
Date: - 08th April, 2005
Amendment
Sub: - Registration of IT Units -- Amendment to Annexure 'A' Primary Products
(IT Hardware).
Ref.: - 1) Empower Committee Minutes dated 25-05-2005.
According to the decisions of the Empowered Committee constituted under the IT
& ITES Policy, 2003, the following items are included as the Primary IT Products
in APPENDIX-I appended to the above referred circular.
1) Electronic Private Automatic Branch Exchange. (EPABX)
2) Digital Image Recorders (HSN No. 9010).
3) Adapters, Jacks & Plugs, Relays, Switches, Terminals & terminal blocks,
Sockets, Heat Sinks, Bases and Folders useful for electronics equipments
only (HSN No. 8335).
4) Video Conferencing Equipments.
5) Mobile Handsets (GPRS & CDMA) (HSN No. 8413).
-sd/-
( S. P. Mahajan )
Superintending Industries Officer (IT)
Copy submitted for information to:
1. The Secretary (Industries), I. E. & L. Department, Mantralaya, Mumbai -
400 032.
2. The Secretary (Information Technology), General Administration
Department, Mantralaya, Mumbai - 400 032.
Copy for information to:
1. The Development Commissioner, Office of Development Commissioner,
Ministry of Commerce, Santacruz Electronics Export Promotion Zone,
Andheri (E), Mumbai – 400 093.
2. The Managing Director, SICOM Limited, Nirmal, Nariman Point, Mumbai-
400 021.
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429
3. The Chief Executive Officer, MIDC, Mahakali Caves Road, Andheri (East),
Mumbai-400 093.
4. The Additional Director of Industries, Head Office, Mumbai - 400 032.
5. The Deputy Secretary to Govt., I.E. & L. Department, Mantralaya, Mumbai
- 400 032.
6. The Deputy Secretary to Govt. & Director (IT), GAD, Mantralaya, Mumbai
- 400 032.
7. The Director and Chief Executive, Software Technology Park of India,
Kubera Chambers, 3rd floor, Dr. R.P.Road, Shivaji Nager, Pune - 411 005.
8. The Director, National Center for Software Technology, Gulmohar Cross
Road No. 9, JVPD Scheme, Juhu, Mumbai - 400 049.
9. The Chairman, National Association of Software and Service Companies,
Ashok Hotel, Chankyapuri, New Delhi – 21.
10. The Chairman, Electronics & Computer Software Export Promotion
Council, Regional Committee (W), Unit No. 39, SDF-2, SEEPZ, Andheri
(East), Mumbai – 400 093.
11. The Municipal Commissioner, Bruhan-Mumbai Municipal Corporation
(Octroi Deptt), Mumbai - 400 001.
12. The Joint Director of Industries, PSI/ DIC / Planning, Head Office, Mumbai
- 400 032.
13. The Officer on Special Duty, Head Office, Mumbai - 400 032.
14. The Superintending Industries Officer (LIC/Export/IT), Head Office,
Mumbai - 400 032.
15. The Deputy Director of Industries, SSIP / CSPO / LIC /Chem /DIC Br.,
Head Office, Mumbai - 400 032.
16. The Industries Officer, SSIP/ DIC / Export / NOC / LIC / IE Branch, Head
Office, Mumbai - 400 032.
17. The Director, STPI – Mumbai / Pune / Nagpur.
18. Joint Director of Industries, Mumbai/ Nagpur/ Aurangabad/Pune/Nashik
Region Superintending Industries Officer, Konkan/Amravati Region
General Managers, District Industries Centre (All) With a request to bring
this amendment to the notice of all Local Bodies within your jurisdiction, so
as to facilitate them to extend Octroi exemption and other concessions.
19. All Associations.
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430
No.DI/IT/Emp.Com/Products/2005/A-28164
Directorate of Industries,
New Administrative Building,
Opp. Mantralaya, Mumbai – 400 032.
Tel. No. 2202 3505, Fax No. 2202 6826.
E-mail: [email protected]
Date: - 26th October, 2005
Amendment
Sub: - Registration of IT Units. Amendment to Annexure 'A' Primary Products
(IT Hardware).
Ref.: - 1) Empower Committee Decision dated 25th May, 2005.
According to the decisions of the Empowered Committee constituted under the IT
& ITES Policy, 2003, the following items are included as the Primary IT Products
in APPENDIX-I appended to the above referred circular.
Sr. No. HSN Code Description of Item
1 84.69 Word Processing Machines & Electronic Typewriters.
2 84.70 Electronics Calculators.
3 84.71 Computer Systems & Peripherals, Electronic Diaries.
4 84.73 Parts & Accessories of HSN 84.69, 84.70 & 84.71 for
items listed above.
5 85.01 DC Micro Motors / Stepper motors of an output not
exceeding 37.5 Watts.
6 85.03 Parts of HSN 85.01 for items listed above.
7 85.04 Uninterrupted Power Supplies (UPS) and their parts.
8 85.05 Permanent magnets and articles intended to become
permanent magnets (Ferrites).
9 85.17 Electrical apparatus for the Telephony or line
telegraphy, including line telephone sets with cordless
handsets and telecommunication apparatus for carries-
current line systems or for digital line systems;
videophones.
10 85.18 Microphones, Multimedia Speakers, Headphones,
Earphones & Combined Microphones / Speaker Sets &
their parts.
11 85.20 Telephone Answering Machines.
12 85.22 Parts of Telephone Answering Machines.
13 85.23 Prepared unrecorded Media for Sound Recording or
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431
Sr. No. HSN Code Description of Item
Similar Recording of other phenomena.
14 85.24 IT Software on any Media.
15 85.25 Transmission apparatus other than apparatus for radio
broadcasting or TV broadcasting, transmission
apparatus incorporating reception apparatus, digital still
image video cameras.
16 85.27 Radio communication receivers, Radio pagers.
17 85.29 (i) Aerials, Antennas and theirs parts.
(ii) Parts of Items at 85.25 and 85.27 listed above.
18 85.31 LCD Panels, LED Panels & Parts thereof.
19 85.32 Electrical Capacitors, Fixed, Variable or adjustable
(Pre-set) and parts thereof.
20 85.34 Printed Circuits.
21 85.36 Switches, Connectors & Relays for upto 5 Amps at
voltage not exceeding 250 Volts, Electronics Fuses.
22 85.40 Data / Graphic Display Tubes, other than TV pictures
tubes and parts thereof.
23 85.43 Signal Generators and parts thereof.
24 90.01 Optical Fibre and Optical Fibre Bundles and Cables.
25 90.13 Liquid Crystal Devices, Flat Panel display devices and
parts thereof.
26 90.30 Cathode ray oscilloscopes, Spectrum Anlysers, Cross-
talk meters, Gain measuring instruments, distortion
factor meters, Psophometers, Network & Logic
analyser and Signal analyser.
-sd/-
[ P. B. Satam ]
Superintending Industries Officer (IT)
for Development Commissioner (Industries)
Copy submitted for information to:
1. The Secretary (Industries), I. E. & L. Department, Mantralaya, Mumbai -
400 032.
2. The Secretary (Information Technology), General Administration
Department, Mantralaya, Mumbai - 32.
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432
Copy for information to:
1. The Development Commissioner, Office of Development Commissioner,
Ministry of Commerce, Santacruz Electronics Export Promotion Zone,
Andheri (E), Mumbai – 400 093.
2. The Managing Director, SICOM Limited, Nirmal, Nariman Point, Mumbai-
400 021.
3. The Chief Executive Officer, MIDC, Mahakali Caves Road, Andheri (East),
Mumbai-400 093.
4. The Additional Director of Industries, Head Office, Mumbai - 400 032.
5. The Deputy Secretary to Government, I.E. & L. Department, Mantralaya,
Mumbai - 400 032.
6. The Deputy Secretary to Government & Director (IT), GAD, Mantralaya,
Mumbai - 400 032.
7. The Director and Chief Executive, Software Technology Park of India,
Kubera Chambers, 3rd floor, Dr. R.P.Road, Shivaji Nager, Pune - 411
005.
8. The Director, National Center for Software Technology, Gulmohar Cross
Road No. 9, JVPD Scheme, Juhu, Mumbai - 400 049.
9. The Chairman, National Association of Software and Service Companies,
Ashok Hotel, Chankyapuri, New Delhi – 110 021.
10. The Chairman, Electronics & Computer Software Export Promotion
Council, Regional Committee (W), Unit No. 39, SDF-2, SEEPZ, Andheri
(East), Mumbai – 400 093.
11. The Municipal Commissioner, Bruhan-Mumbai Municipal Corporation
(Octroi Deptt.), Mumbai - 1.
12. The Joint Director of Industries, PSI/ DIC / Planning, Head Office, Mumbai
- 400 032.
13. The Officer on Special Duty, Head Office, Mumbai - 400 032.
14. The Superintending Industries Officer (IT), Head Office, Mumbai - 400
032.
15. The Deputy Director of Industries, SSIP / CSPO / LIC /Chem /DIC Br.,
Head Office, Mumbai -32.
16. The Industries Officer, SSIP/ DIC / Export / NOC / LIC / IE Branch, Head
Office, Mumbai - 32.
17. The Director, STPI – Mumbai / Pune / Nagpur.
18. Joint Director of Industries, Mumbai/ Nagpur/ Aurangabad/Pune/Nashik
Region Superintending Industries Officer, Konkan/Amravati Region
General Managers, District Industries Centre (All). With a request to bring
this amendment to the notice of all Local Bodies within your jurisdiction, so
as to facilitate them to extend Octroi exemption and other concessions.
19. All Associations.
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APPENDIX – 6
INDUSTRIAL, INVESTMENT & INFRASTRUCTURE POLICY OF
MAHARASHTRA 2006
Preamble
‘The Prime Minister, in his address at the CII National Conference, 2006 held on
18th April 2006 observed that last year was a good year for the Indian
manufacturing enterprise. Therefore, it was not only possible to sustain the
current economic growth rate of 8% but to realistically hope to target a rate of
10%. The Prime Minister also acknowledged the significance of the
manufacturing sector which can provide jobs that are required to absorb the vast
number of people who are unemployed at the moment, especially those who will
need to move out of agriculture. He cited the National Manufacturing
Competitiveness Council’s identification of key sectors where India can become
a global manufacturing hub and the advocacy of “cluster approach” for ensuring
economies of scales and scope in the development of key industries. He
mentioned that the boom in the SEZs will create competitive export clusters. He
also emphasized that the industrial strategy must focus on all spheres of modern
manufacturing and that an effective policy intervention in the manufacturing
sector would require better coordination between various departments of the
Government.’ The Industrial, Investment and Infrastructure Policy of Maharashtra
2006 is the State’s endeavour in the direction spelt out for the country by the
Prime Minister.
1. Industry Scenario at National Level:
Proactive government policies, opening up of various sectors for investment,
promising consumer markets and significant investment in infrastructure for
industry have all contributed to the increased pace of growth in India which is
evident in the strong fundamentals of the Indian economy. The Economic Survey
2005-06 has observed that the buoyant business expectations have successfully
lifted the investment tempo in the industrial sector which is marked by filing of
over 15,000 Industrial Entrepreneur Memorandums with proposed investment to
the tune of Rs.739,637 crore and additional employment generation potential of
2.96 million persons during the last three years (till December, 2005).
The industrial sector is projected to grow by 9% during the current financial year.
According to the Economic Survey 2005-06, the high growth in the industrial
sector that started in the second quarter of 2002-03 continued for the third
successive year, with the rate of growth of industrial sector in terms of Index of
Industrial Production at 7.8 % during April to December 2005-06 The major driver
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of this growth was the robust performance in the manufacturing and construction
sectors.
2. Maharashtra: The Preferred Industrial Investment Destination:
Maharashtra occupies a position of prominence in India. It has 10% of the
country’s geographical area (0.3 Million Sq. Kms) and 10% of country’s coast line
(720 Kms). 43% of its population lives in urban areas as against the country’s
28%. It contributes over 13 % of National GDP and its Per Capita Income is 39%
higher than the country’s Per Capita Income. Its 96.88 million people (9.4 % of
country’s population) produce over 19% of the country’s National Output.
Maharashtra has been in the forefront of economic development and is often
called the economic powerhouse of the country. With its proactive policies, the
State continues to occupy the dominant position amongst the industrially
advanced States in India.
Maharashtra has been in the forefront in sustaining industrial growth and in
creating environment conducive to industrial development. Investment-friendly
industrial policies, excellent infrastructure and a strong and productive human
resource base have made it a favoured destination for the manufacturing, export,
distribution and financial service sectors. It has achieved 7.1 % average growth
in the last decade. The State’s economy has shown increasing signs of maturity.
Its Services Sector contributes 61% and its Industry Base contributes 26% of the
GSDP. The State contributes 40% of the National Fiscal receipts. Furthermore, it
has the largest share of public funds for the development of industrial and social
infrastructure.
The State offers excellent infrastructure - road length of 246,000 kms and railway
lines of 5,987 kms. Endowed with a coastline of 720 Kms, Maharashtra has
several natural ports. The two principal ports, the Jawaharlal Nehru Port, and the
Mumbai Port are located in Mumbai and together handle the largest proportion of
the country's foreign trade. It has three international airports and domestic
airports at all major cities. Additional international airports have been planned at
Navi Mumbai and Pune. Most major international destinations are linked to
Mumbai by direct flights. Maharashtra has the highest power generating capacity
of 15,210 MW, reliable, cost effective telecom connectivity, abundant water
availability and over 250 industrial parks spread over 52,000 hectares.
The State’s well diversified and highly productive human resource with positive
work culture, excellent educational facilities, quality infrastructure thriving
partnership with enterprising entrepreneurs, backed by continuity and
consistency in Government policies on investments have made Maharashtra
“First Choice Destination” of the Domestic as well as Foreign Investors. The
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State has attracted highest FDI in Country (22%) between 1991 and March 2006
with 3893 proposals having committed investment of Rs 56628 crore.
In addition 13366 IEMs have been filed between 1991 and June 2006 for
industrial investment of Rs 3,03,749 crore. Of these, 6012 projects with capital
outlay of Rs 93294 crore are operational and have employed approximately 5.89
lakh people.
Maharashtra’s forward looking IT policy has been well received in the IT sector.
25% of the top 500 software companies in India are based in Maharashtra. 10 of
the top 20 Software and Services Exporters in India have operations in the State.
Maharashtra has 30 Public IT Parks and 177 Private IT Parks, which provide
employment to 30% of the country’s IT, professionals. Maharashtra accounts for
32% of Internet subscribers, 35% of national PC market and peripherals.
Maharashtra contributes over 20% of the total software exports from India.
Maharashtra also occupies the leading position in respect of institutional finance
with a multitude of scheduled commercial banks, co-operative banks and non-
bank financial institutions (NBFCs) and has the head quarters of the Reserve
Bank of India and almost all the Public and Private Sector Banks and Financial
Institutions. Maharashtra stands first in the country in respect of both aggregate
bank deposits and gross bank credit. Mumbai occupies a unique place, not only
in Maharashtra but the entire country as the financial and commercial capital.
Mumbai houses the two largest stock exchanges of the country and 70% of all
stock market transactions take place here. This city alone contributes over 33%
of the country’s Income Tax and accounts for over 5% of the country’s GDP. This
city of 12 million people is the financial services and entertainment capital of the
country. Globalization has brought increased business opportunities to Mumbai
from foreign companies, which want to reap the benefits of India's large talented
and highly knowledgeable workforce and to access its capital, commodity and
financial markets. This trend supports Mumbai's emergence as a Regional
Financial Hub on the global map.
The State has entered into the next phase of economic reforms, with emphasis
on structural changes in addition to fiscal incentives for the promotion of industry
and balanced regional growth. This has coincided with increasing global
competition and rapid technological changes, which pose new challenges for
industry. The Industrial, Investment, Infrastructure Policy 2006 therefore aims at
ensuring sustainable industrial growth through innovative initiatives for
development of key potential sectors and further improving the conducive
industrial climate in the State, for providing the global competitive edge to the
State’s industry.
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3. Policy Objective:
“To achieve higher and sustainable economic growth with emphasis on
balanced regional development and employment generation through
greater private and public investment in industrial and infrastructure
development.”
4. Policy Targets:
• Target Industrial Sector growth rate of 10% by 2010
• Target Service Sector growth rate of 12% by 2010 and
• Additional Employment Generation of 20 lakh by 2010
5. Policy Validity: 31st March 2011
6. Strategies:
The Policy objectives will be realized through the following strategies
a) Identification of thrust sectors
b) Building up of quality infrastructure
c) Incentivising investments for employment generation in districts low on
Human Development Index
d) Attracting mega investments both foreign and domestic
e) Commercial exploitation of local resources and local economic potential.
f) Strengthening the SME sector through promotion of quality
competitiveness, research and development and technology up gradation
g) Nurturing industrial clusters
h) Prevention of industrial sickness and revival of viable sick units
i) Smooth exit option for industries
j) Streamlining procedures, debottlenecking and creation of hassle free
industry friendly environment
k) Strengthening institutional support
7. Thrust Areas:
The State will identify key thrust areas for according greater importance to
sectors keeping in view their potential in contributing to the socio-economic
development of the State. These sectors will be provided comprehensive support
through specific policy initiatives. Following are the thrust areas, which would be
offered priority status.
a) Infrastructure Power, Roads, Rail, Communication, Connectivity, Airports,
Ports.
b) Manufacturing - Agro- based Industries, Textiles, Auto and Auto
components, Electronic products, Pharmaceuticals and Gems and
Jewellery.
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c) Services – Sunrise Technology and Service Sectors including Information
Technology, I.T. enabled services, Biotechnology, Nano technology,
(Retail, Tourism, and Entertainment. )
d) Mumbai- Pune - Nashik – Aurangabad Quadrilateral will be provided
greater infrastructure support to develop its full potential for knowledge-
based, manufacturing and agro-based industries.
e) Establishment of Gas distribution networks in major industrial areas in the
State to improve availability of cleaner and cost effective fuel.
The State, in addition to the Industrial Investment and Infrastructure
Policy, will formulate out the following policies for achieving the objectives
and facilitating investment in the thrust areas mentioned above
i) Agro Processing Policy: Enthused with the success of the Grape
Processing Policy 2001, it is proposed to bring out a
comprehensive Agro Processing Policy with focus on food
processing and preservation which besides providing adequate
technical and scientific training to the farming community will aim at
creating off farm jobs and bringing greater value addition for the
rural population.
ii) Textile Policy : Since the Handloom, Textiles, Garment and
Apparel manufacturing Industry is highly labour intensive and has
potential of providing large scale employment, especially to women,
the State will formulate a comprehensive Textile Policy aimed at
creating world class infrastructure, state of art technology and
upgradation of technical skills through proper training in this sector.
iii) Retail Policy: The organized retail sector in India is growing at
around 20%. Maharashtra with over 43% urbanization has
therefore great potential for the development of this sector. Retail
helps rural marketing; establishment of supply chains and has huge
employment potential. The State will, therefore, come out with a
comprehensive Retail Policy which will facilitate the setting up of
malls, address concerns of retailers and create conducive
environment by amending relevant Acts including labour laws.
iv) Infrastructure Development Policy / Act: Infrastructure is the
backbone of any state and its economy. The Infrastructure Policy
will aim at facilitating creation of appropriate and adequate
infrastructure through public and private sector participation and at
addressing the concerns of project participants in matters
connected with or incidental to development of infrastructure.
8. Infrastructure and Communication: The Growth Engines
� The State realizes that Infrastructure and Communication are key
drivers of industrial growth and will therefore focus on the following:
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� Evolving innovative financing systems and forward-looking public
private partnerships for funding requirements of infrastructure
projects for the construction of roads, flyovers, bridges, power
plants, airports and ports.
� Taking adequate complementary measures to gain maximum
advantage of the Central Government’s industrial and infrastructure
development schemes
� Providing 4 lane connectivity between Mumbai-Nashik, Pune-
Nashik and Mumbai–Aurangabad to provide faster and efficient
connectivity. A new Special Purpose Vehicle will be set up to
conceptualize, plan and implement the Mumbai-Pune-Nashik-
Aurangabad Quadrangle Infrastructure Development Project.
� Making Special efforts to provide faster connectivity between
distant areas like Nagpur / Nanded and Mumbai
� Establishing the Natural Gas Grid and Distribution Network in the
State.
� Developing Special Economic Zones and Designated Areas across
the State to provide hassle free environment and world class
infrastructure.
� Effective liaison with Central Government’s Infrastructure and
Communication utilities.
� Broad Band connectivity and expansion of communication network
across the whole State to ensure effective communication
infrastructure
� Power generation through aggressive Public Private Ventures,
greater recognition / incentives to energy conservation and non-
conventional energy initiatives.
� Setting up of a Committee under chairmanship of the Chief
Secretary with members from concerned Departments for
resolution of infrastructure issues concerning industries
9. Promotional and Financial Incentives:
9.1 Industrial Promotion Subsidy:
(A) New SSI/MSI/LSI (including IT/BT) units: New projects, which are
set up in these categories in different parts of the State, will be
eligible for Industrial Promotion Subsidy. The quantum of subsidy
will be linked to the Fixed Capital Investment. Payment of IPS every
year will be equal to 25% of any Relevant Tax paid by the eligible
unit to the GoM or to any of its departments or agencies The
quantum of benefit and period will be as follows:
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Taluka / Area
Classification
Ceiling as % of Fixed
Capital Investment
Number of years
SSI MSI/LSI SSI MSI/LSI
A - - - -
B 20 - 6 -
C 30 20 7 5
D 40 25 8 6
D+ 50 30 9 7
No Industry District 60 35 10 8
B) Expansion units: Existing SSI / MSI / LSI (including IT/BT) units making
additional investment to the extent of 25% or more over the Gross Fixed
Capital investment, as on the last date of the previous financial year, for
expansion, diversification or modernization, will also be eligible to get the
Industrial Promotion Subsidy equivalent to 75% of the incentives
admissible for new units. The admissible period for availing the subsidy
will be reduced by one year in the respective category and area.
Explanation:
The Zero Vat Units will be eligible for getting employment based incentive in lieu
of IPS as proposed for low HDI districts in the form of 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. However
the quantum of incentives for these units will be limited to
20%,30%,40%,50%,60% of FCI in “B”,”C”,”D”,”D+”, No Industry District
respectively whichever is lower.
9.2 Additional Incentives:
The eligible SSI units coming up in Industrial Clusters / Parks to be notified by
the State Government and in Agro- based Industries, Textiles, Auto and Auto
components, Electronic products, Pharmaceuticals and Gems and Jewellery,
Services – Information Technology, I.T. enabled services, Biotechnology sectors
in “C”,”D”,”D+” areas only will be eligible for the IPS applicable to the one step
higher incentive category under clause 9.1.
9.3 Special Incentives for Units coming up in Districts low in HDI:
The State Government will make special efforts for speedier economic
development in the 10 districts lowest in the State on the Human Development
Index as given in the annexure. It is proposed to offer the following employment
based incentives to the units coming up in these districts.
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9.3.1 New units setting up facilities in these notified districts 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. However these
benefits will be limited to 25% of FCI. The amount of reimbursement will
be paid annually based on minimum statutory limit subject to the condition
that the unit has paid its contribution towards ESI & EPF on the due dates.
The procedural modalities of giving these special incentives mentioned at
9.3.1 will be issued by the Development Commissioner (Industries).
9.4 Mega Projects:
Industrial projects with investment more than Rs.500 crores or generating
employment for more than 1000 persons in A and B areas or investment more
than 250 crores or generating employment for more than 500 persons in rest of
Maharashtra will be termed ”Mega Projects” and would be eligible for customized
package of incentives. The industrial projects coming up in the 10 low HDI
districts mentioned in the annexure with investment of more than Rs 100 crore or
generating employment for more than 250 persons would also qualify for
customized package of incentives
The quantum of incentives within the approved limit will be decided by the High
Power Committee under the chairmanship of Chief Secretary, Government of
Maharashtra. The Infrastructure Committee under the chairmanship of the Chief
Minister of Maharashtra will have the power to customize and offer special / extra
incentives for the prestigious Mega Projects on a case by case basis.
9.5 Interest Subsidy:
All new eligible units in textile, hosiery, knitwear and readymade garment sector
units in the SSI sector will receive interest subsidy. The Interest Subsidy will be
payable only on the interest actually paid to the Banks and Public Financial
Institutions on the term loan for acquisition of fixed capital assets, equal to the
interest payable at 5% per annum as stated in the table below.
Taluka / Area
Classification
Monetary ceiling
limit (Rs. In lakhs)
Maximum period
in years
A - -
B - -
C 10 4
D 20 5
D+ 25 6
No Industry District 35 7
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9.6 Exemption from Electricity Duty:
Eligible new units in C, D, and D+ areas and No-Industry District(s) will be
exempted from payment of Electricity Duty for a period of 15 years. In other parts
of the State, 100% Export Oriented Units (EOUs), Information Technology (IT)
and Bio-Technology (BT) units will also be exempted from payment of Electricity
Duty for a period of 15 years.
9.7 Waiver of Stamp Duty:
The 100% exemption from Stamp duty will be extended up to 31st March 2011 in
“C, D, D+ Talukas and No Industry Districts. However, in A and B areas, stamp
duty exemption would be available as give below:
� BT and IT units in public IT Parks : 100%
� BT and IT units in private IT Parks : 75%
� Mega Projects : 50%
9.8 Exemption of payment of Royalties / NA charges:
Units in MIDC areas / Cooperative Industrial Estates will be exempted from
payment of Non Agricultural Assessment Charges. Royalty payable on minor
minerals extracted during construction under taken in MIDC area as well as in
cooperative industrial estates will be 100% exempted.
9.9 Royalty Refund:
All eligible units, (new as well as units undertaking expansion) in Vidarbha region
will be eligible for refund of royalty paid on purchase of minerals from mine
owners within the State of Maharashtra for a period of five years from
commencement of production
9.10 Refund of Octroi / Entry Tax in lieu of Octroi:
Octroi based incentive will continue to be offered by way of refund of Octroi Duty
/ Entry Tax etc. An eligible unit, after it goes into commercial production, will be
entitled to Refund of octroi duty , or any entry tax or account based cess levied
by the municipal bodies in lieu of octroi and paid to the local authority on import
of all the items required by the Eligible Unit.
This incentive will be admissible in the form of a grant restricted to 100% of the
admissible Fixed Capital Investment of the Eligible Unit for a period of 5/7/9/12
years respectively in the B/C/D/D+ areas. In respect of No Industry District areas,
however, the period will be 15 years.
9.11 Octroi Exemption on Raw Materials:
Several manufacturing units in the Municipal Corporation limits are facing acute
problem on account of high incidence of octroi. Some units have already shifted
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while others are planning to relocate even outside the State. This migration
would result in rendering a large number of employed persons jobless. It is,
therefore, proposed to exempt 100% the octroi payable on all raw materials used
by units in Municipal Corporation areas for manufacture of products to be
exported out of the limits of the Municipal Corporations. The burden of such
exemption will have to be borne by the concerned Municipal Corporations.
9.12 Modification in Seed Money Scheme:
Under the Seed Money Scheme, the educated unemployed youths are getting
seed money assistance between 10% to 22.5% of the project cost limited to a
maximum of Rs 10 lakhs for starting self-ventures from the Directorate of
Industries as margin money. The seed money assistance carries interest @ 10%
p.a. with a rebate of 3% for prompt payment. At present penal interest @14% is
charged on delay in payment of the seed money dues. It is proposed to carry out
the following modifications in the Seed Money Scheme:
� Quantum of Seed Money Assistance: Maximum amount to be increased to
Rs 25 lakhs
� Interest rate: 6%
� Penal rate: 1%
9.13 Strengthening the SME Sector
Looking at the impressive growth which the SME sector has registered in the last
few years, especially in the field of light engineering, textiles, biotech and IT, the
State Government will give special focus on the SME sector to achieve its
objective of high growth with greater employment opportunities.
The Government will, therefore, initiate measures to address the challenges
faced by the SME sector in the areas of availability of cheap and timely finance,
technology ugradation, upgradation of skill sets of those employed in this sector
and marketing. The State will also take all necessary measures to complement
the initiatives proposed by the Central Government in its Small & Medium
Enterprises Bill, including setting up of a special institution for the SMEs. It will
also provide the following incentives to promote quality competitiveness,
research and development and technology upgradation
� 5% subsidy on capital equipment for technology upgradation limited to Rs
25 Lacs
� 50% subsidy on the expenses incurred for quality certification limited to
Rs. 1 Lakh
� 25% subsidy on cleaner production measures limited to Rs.5 Lakhs
� 50% subsidy on the expenses incurred for patent registration limited to Rs.
5 Lakh
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9.14 Mechanism for payment of Incentives:
To clear the backlog of incentives of previous schemes and to ensure timely
disbursement of the incentives under the PSI 2006, a PLA facility will be set up
by transferring Rs. 400 Crores in the first year from State’s Non Plan which will
be replenished to the extent of utilization at the beginning of each subsequent
financial year. The issue of increasing the quantum of PLA facility would be also
be considered at the appropriate time. In addition, 25% of extra premium earned
by MIDC & CIDCO from sale of lands or conversion of lease hold to free hold will
also be allowed to be used for industrial promotion.
9.15 Simplification in PSI scheme:
With the discontinuation of Sales Tax based incentives, it is proposed to simplify
the new package scheme. Commercial production would be a crucial criteria for
determining the eligibility of the unit.
9.15.1 The units seeking incentives under the PSI 2006 will be required to submit
application in the prescribed form to the implementing agency before 31st
March 2011 along with detailed project report and proof of completion of
following effective steps.
a) Effective possession of land
b) IEM / LOI/ SSI registration
c) In case of Partnership firm or Company or Cooperative Society or
Trust, the registration of the firm or Company or Society or Trust
9.15.2 The units will be required to commence production within the stipulated
period from the date of submission of such valid application. The
stipulated period for commencement of production as well as for making
the intended investment for SSI units; MSI /LSI units; and Mega Projects
will be three, four and five years respectively from the date of submission
of application. While the investment made beyond the stipulated period
will not be considered eligible, the delay in commencement of production
will entail proportionate curtailment of incentives.
9.15.3 The units will be allowed inclusion of related items freely.
9.15.4 The investment in intangible assets including pre-operative expenses,
interest capitalized, technical know-how etc will be allowed only to the
extent of 10% of the total project cost for purpose of the incentives.
9.15.5 It is proposed to amend / modify the earlier schemes of incentives
particularly the 1988 and 1993 schemes by stipulating the time frame for
commencement of commercial production and for making investment. The
units which have filed valid applications and have been found to be eligible
under PSI-1988, PSI 1993 and PSI 2001 will be given time upto 31st
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March 2007, 31st March 2008 and 31st March 2009 respectively for
starting production. The units failing to start production within the
stipulated time will not be eligible for any incentives.
10. Cluster approach for Development:
The State will adopt a new and innovative approach to cluster development,
which will greatly improve manufacturing competitiveness. This will be done
through developing appropriate infrastructure based on needs of specific
industries, provision of optimum utilities and common facilities, attracting the right
kind of talent and segregating labour intensive industries from highly automated
units. The MIDC will give special emphasis on cluster based development of its
areas by reserving some areas within the MIDC for specific industries and their
ancillaries.
The MIDC will earmark a part of the land exclusively for SSI / MSI units in and
around big industrial projects. This will facilitate healthy and positive linkage
between small and big industrial projects helping ancillarisation / graduation of
the SSI units which will help in greater development of the region. Clusters will be
developed on the basis of identified thrust areas and the available resources in
the region.
Eligible units setting up facilities in the Clusters coming up in “C”, “D”,”D+” area
will be entitled to the IPS applicable to one step higher incentive category under
clause 9.1.
11. Co-operative Industrial Estates:
The State Government has been implementing the scheme of establishing Co
operative Industrial Estates in various parts of the State by providing them
financial and other support. The units in these estates will be eligible to one FSI
as is applicable in MIDC areas.
12. Sick units: Revival and Exit
The slowdown in the global economy in the nineties had seriously impacted
several industries especially those in the Small Scale Sector. Some of these
have been able to restructure and have turned around. Many continue to
languish while some have become totally unviable. The State proposes to help in
the revival of the viable sick units and facilitate smooth exit of unviable ones.
12.1 Revival: It is proposed to help the viable SSI sick units defined by RBI by
offering reschedulement of arrears of Government dues as well as electricity
charges by granting a period of five years for repayment and offering
concessional interest rate @ 7% p.a. The sanction of this facility will be linked to
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the sanction of rehabilitation program by the concerned financial institution /
bank.
The sick MSI / LSI units registered with BIFR and where a revival package has
been approved will also be eligible for concessional interest rate of 7% p.a.
12.2 Exit: For non-viable units, it is proposed to offer smooth exit by allowing a
Special Amnesty Scheme under which these units will be allowed one time
settlement of State Government dues to be settled at the principal amount by
complete waiver of interest. For availing this facility, the entire amount of dues
less the interest and penal charges will have to be paid by 31st Mach 2008..
In addition, the sick units in MIDC areas and Co-operative Industrial Estates
opting for an exit will be permitted to dispose off their assets provided that the
land should be used either for industrial purpose or for service industries only.
Units located outside the MIDC areas / Co operative industrial Estates opting for
exit will be permitted to dispose their assets. However the land in such cases will
have to be used as per the zoning regulations of the competent Development
Authority.
13. New Industrial Townships:
The State Government will, having regard to the factors mentioned in the proviso
to clause (1) of Article 243Q of the Constitution of India, notify industrial areas
across the State as Industrial Townships with a view to provide freedom to
mobilize resources for the purpose of development of integrated infrastructure
facilities and for provision of basic urban services. For this purpose, MIDC will
involve and seek support from representative bodies of trade and industry. These
Townships will be responsible for issues concerning development, maintenance
and up gradation of infrastructure as well as provision of basic urban services to
the industries. It will perform functions of a Township Authority under section
341M of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial
Townships Act, 1965.
14. Special Economic Zones:
The Special Economic Zones are expected to play a stellar role in the growth of
exports from the country. Maharashtra with its locational advantage contributes
45% of the total exports from the country. The State has promptly responded to
the initiative of the Central Government to promote the setting up of Special
Economic Zones as engines of growth by passing the SEZ Bill. The provisions in
the Bill are aimed at providing an enabling environment and assuring the State’s
commitment for promoting SEZs. The State has been receiving steady flow of
proposals from private developers to set up SEZs. The MIDC will also set up
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Multi Product and Product Specific SEZs. The State will also encourage setting
up of SEZs in Public - Private Partnership.
The State will also notify certain MIDC areas as Designated Areas, which will be
eligible to get all the benefits of SEZs except the fiscal benefits. It will enable
MIDC to set up empowered Township Authorities fully equipped to provide world
class infrastructure through Public Private Partnership.
15. Marketing Assistance :
Gram Udyog Vasahats will be established one in every district to give boost to
the activities of Khadi and Village Industry. MIDC will allot the land for
establishment of these Vasahats on concessional rates.
Urban Haat: One Urban Haat in each Revenue Division will be established on a
pilot basis on the lines of Delhi Haat. These Haats which will be established by
MSSIDC will provide marketing and exhibition facilities to handicrafts and articles
made by the Small, Village and Khadi industries.
16. International Exhibition Centers:
The State will facilitate the setting up of world class International Exhibition
Centers at Mumbai and Pune through Public- Private Partnership. This will
address the long standing need of Industry for appropriate world class facilities to
show case the strengths of the Indian Industrial, Services and Agriculture Sector.
17. Resource mapping and Showcasing State’s potential:
The State’s shift in the economic policies as a result of the opening of the global
economy also aims at showcasing and exploiting the location specific strengths
rather than subsiding their deficiencies. Encouraged by the positive results of the
initiatives taken in this direction so far, it has been decided to create special
institutional structure supported by budgetary resources for District and Taluka
level resource mapping of Maharashtra which would include preparing and
maintaining authentic data base, conducting research for identifying
opportunities, monitoring competitiveness and policy reviews.
The Government plans to commission reputed consultants to compile the
potentiality study reports very soon. These reports will form part of the marketing
campaign of the State to showcase the potential of these areas to the investors
all over the world. In today’s competitive world it is necessary to proactively reach
to potential investors for marketing the State as “First Choice Destination”. The
Government will establish a suitable marketing agency for the State for
maintaining its website, epathway of information, publishing a magazine and
conducting Seminars / Workshops. A network of industrial information kiosks will
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be established to dispense the desired information to all investors at the touch of
a button.
18. HR Initiatives:
Maharashtra’s GDP grew at annual average rate of 7.2% during the last decade.
During 2005-06, the State’s GDP grew at 8.6% as against 8.4% in the previous
year. Manufacturing and Services Sectors were the main drivers of this growth.
The industrial production (manufacturing) in the State during 2005-06 (April to
December) has registered a growth of 9% against growth of 8.2% during the
corresponding period in the previous year. The boom in both Manufacturing and
Services Sector has created great demand for technically skilled manpower.
Although the State with over 1000 good technical educational institutions
produces around 1,69,000 skilled people every year, it is unable to meet the
growing demand of the industry. There is therefore a need to increase the
technical pool else it will hamper the growth of the industry in the State. The
growing demand of technically skilled manpower can be met through increasing
the capacities of institutions as well as by giving technical training to those with
general education background. The Industry Department in association with the
Higher and Technical Education Department and representatives of Trade,
Industry and Academic institutions will work towards meeting the specific talent /
HR requirements of the industry. If the industry has to grow at around 12% per
year, it will be necessary for the education and training system to produce at
least 25 000 to 50,000 more technically skilled people every year. In addition, the
policy envisions setting up two specific structures to help in bridging the
employability gaps that are currently evident. These are:
� Labour Market Information Cell (LMIC) : LMIC will provide the pivotal
linkage between the employers, the education and training providers, and
the prospective employees. The cell will compile, collate, and disseminate
information about trends in the labour market, nature of skills in demand,
and the nature of skill sets stock and training available. The cell will
function as a coordinating body and provide the industry and education
and training providers the support to ensure greater synergies between
the two.
� Service Training Institute (STI) : Given the rate, at which the Service
Sector is growing in India and its growth potential in the years to come,
there is paucity of adequate skills training in this area. The STI will offer
training on issues related to customer handling, communication,
interpersonal skills, and sales management. Training for the various high
end activities in the service sector like retail, finance, insurance, and KPO
will be imparted through a combination of soft skills that are essential for
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this sector as well as theoretical knowledge about sales, marketing and
customer care.
In addition, the operation of vocational training institutes will be significantly
restructured in order to enhance their quality, utility and effectiveness in the
context of the changing technologies and requirements in the labour market.
Vocational training institutes will be provided adequate autonomy to operate and
update their curriculum according to the changing industry demands and as
determined by the growth processes in their respective regions. They will be
encouraged to provide ongoing skill development of trainees keeping in mind
emerging occupations and changing nature of work as a result of technological
changes and workplace processes. The ITIs, Polytechnics and Engineering
colleges will be made more responsive and proactive, with regard to the kind of
suggestions and recommendations made by the industry. The State will facilitate
the coming together of industry and academics to develop the essential linkages
between theory and practice, through regular exchanges between all
stakeholders.
The Industry Associations will also be actively involved in this important task.
19. Labour Laws and Procedures:
The State government is fully aware of the need to provide a conducive labour
environment both in terms of availability of skilled man power and a favourable
legislative framework for facilitating investment in various sectors. The
Government therefore lays strong emphasis on labour reforms for creating a
conducive and smooth working environment. The State Government has initiated
measures and will initiate further steps to reduce the burden on industry of a
large number of regulatory inspections and for providing a hassle free business
environment.
The State has already taken steps towards providing flexibility by amending
certain provisions under the Central Acts and exempting certain State Acts for
units in SEZs as well as Designated Areas.
In addition to initiatives like the introduction of Self Certification cum Consolidated
Annual Return Scheme for various shops, establishments and factories in the
State, and amendments to Section 9(a) of the Industrial Disputes Act, 1947
exempting industries / companies from requirement of prior notice for varying
service conditions of workmen, the State shall also endeavour to meet the
specific demands of industries having huge potential for employment. The
specific proposals under consideration are:
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� Allowing employment of contract workers with a proviso that the workers
will be employed for at least 200 days in a year
� Working hours to be increased to 60 hours per week instead of the
present 48 hours
� Lay-off of workers be permitted on condition of payment of adequate
compensation
� Allowing female workers to work in night shift as well as allowing 12-hour
shifts.
� Amendments to section 25 (M), 25 (N) and 25 (O) of The Industrial
Disputes Act 1947 to provide flexibility to the units, which are exposed to
vagaries of fluctuating market demands, change in technology and intense
global competition.
� Conducting joint Inspections under applicable Acts, Rules and Orders
once a year, preparation of schedule of inspections in advance,
inspections other than normal to be permitted only on written, signed,
verifiable complaint and after obtaining authorization from Head of
Department.
� Permitting compliance certificate to be signed by authorized signatory
instead of Occupier
� Initiation of Prosecution or imposing of penalties only after sanction by
Head of Department after giving opportunity of being heard to
entrepreneur / occupier.
� Compilation and publishing of compendium of all laws, under which the
inspections are stipulated for various compliances.
� Greater participation by Industry, Associations and Government.,
� Extending the exemption of identified State Labour laws (Annexure II) as
provided in proposed Maharashtra SEZ & Designated Area Act to the
units in “D, D+ and No Industry Area”
20. Single Window Clearance
Recent surveys have indicated that it takes 89 days to start business in India.
The State realizes that it is necessary to streamline and simplify the process for
granting licenses/ permissions to reduce the transaction costs. Effective steps
will be taken towards providing Single Window Clearance to all units to cut on
average time required for establishment of units. The objective is to provide for
speedy processing of applications and issue of various clearances required for
setting up of industries at a single point. The following steps will be taken to
achieve this objective.
20.1 Setting up of Committees at various levels
� District Level committee under the chairmanship of Collector of the
District for proposals from SSI Units
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� State level Committee under the chairmanship of Development
Commissioner (Industries) for MSI / LSI units
� Mega Projects Committee under the chairmanship of Secretary
(Industries) for MEGA projects and FDI proposals
20.2 A Common Application Form (CAF) will be evolved for every applicant
seeking to set up an industry / expansion unit. The CAF will pertain to the
following clearances, which are required for setting up an industry.
1. Allotment of Land / Shed in MIDC Areas
2. Water Connection
3. Small Scale Registration
4. Consent to establish under the Pollution Control Act
5. Power Connection
6. Building Plan Approval
7. Registration under VAT
8. Approval from the Director Industrial Safety and Health
9. Any other approval that may be required under a State Act
Where the clearance(s) are not covered by the CAF, an applicant shall file
additional form or forms, as the case may be. The CAF duly filled in shall be
submitted in required number of copies along with relevant enclosures,
documents, certificates, fee receipts and attachments. A checklist shall be
appended to the CAFs, which shall be completed and signed by the applicant,
scrutinized and accepted by the authorized representative of the nodal agency
before issuing the acknowledgment.
20.3 Computer software like Udyog Setu will be prepared for processing such
applications on line. The State will endeavour to develop the necessary
computer software like Udyog Setu to accept and process applications on
line and to give e-clearance of applications.
20.4 Representatives of the concerned departments from whom the clearances
are required will be members of / invitees on the District; State and Mega
Projects Committees. The Committees will meet at regular intervals to
consider fully processed proposals and give a final decision thereon. The
final decision will be given as far as possible within 30 days of receipt of
dully filled CAFs.
It is proposed to enact a separate Act empowering these Committees to
function as Single Window agencies and give Single Point Clearance on
the pattern of FIPB, Government of India.
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21. Promotion of Foreign Direct Investment
Besides upgrading the technology levels, enhancing exports, introduction of
latest manufacturing practices, development of infrastructure and generation of
employment opportunities, trends in FDI are key indicators for determining the
attractiveness of a destination to the outside world. While the State continues to
be the leader in attracting FDI, sustained efforts will continue to be made to retain
the position.
The State Government has already set up a Separate Cell to facilitate FDI and a
High level Committee to accord fast track clearances for proposals involving FDI.
The Cell will function as single point contact for all inquiries form foreign investors
including supplying of information pertaining to permissions, procedures,
guidelines of Central Government and RBI and providing hand holding services.
22. Restructuring of Industries Department:
In order to provide effective and proactive support to the industrial development
in the State, the Industries Department needs to brace itself to face the emerging
challenges. Accordingly, organizational restructuring of the department will be
undertaken besides upgradation of skills of the staff. Computerization will be
introduced at various levels. Delivery capability of the department will be further
enhanced by introduction of sound Management Information System,
establishing data bank which will provide desired details to investors at the click
of a button. Registration of SSI units and filing of statutory returns will be made
on line.
The functioning of the Udyog Mitra will be strengthened and more effective
through statutory intervention.
23. Review and Monitoring:
The implementation of the policy decisions will be periodically reviewed at
appropriate level for necessary facilitation in view of the rapidly changing
industrial scenario.
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Annexure - I
10 Lowest Districts In Maharashtra
On THE HUMAN DEVELOPMETN INDEX
Sr. No. District
1. Gadchiroli
2. Yavatmal
3. Jalna
4. Nandurbar
5. Washim
6. Dhule
7. Nanded
8. Osmanabad
9. Buldhana
10. Chandrapur
Annexure II
1 Bombay Industrial Relations Act, 1946;
2 Maharashtra Recognition of Trade Unions and Prevention of Unfair
Labour Practices Act. 1971;
3 Bombay Labour Welfare Fund Act, 1953;
4 Bombay Shops and Establishments Act, 1948;
5 Maharashtra Workmen’s Minimum House Rent Allowances Act, 1988;
6 Maharashtra Public Services (Reservation for Scheduled Castes,
Scheduled Tribes, Denotified Tribes (Vimukta Jatis), Nomadic Tribes,
Special Backward Category and Other Backward Classes Act, 2001;
7 Maharashtra Mathdi, Hamal and Other Manual Workers (Regulation of
Employment and Welfare) Act, 1969;
8 Maharashtra Private Security Guards (Regulation of Employment and
Welfare) Act, 1981 or
