Industrial Park Scheme, 1999 - S. O. 1201(E) - Income Tax

MINISTRY OF COMMERCE AND INDUSTRY (Department of Industrial Policy and Promotion) NOTIFICATION New Delhi, the 1st December, 1999 S. O.1201 (E).- In exercise of the powers conferred by clause (iii) of sub-section (4) of section 80 IA of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby frames the following scheme for industrial parks, namely:- 1. Short title and commencement .- (1) This scheme may be called Industrial Park Scheme, 1999. (2) It shall come into force on the date of its publication in the Official Gazette. 2. Definitions .- In this Scheme, unless the context otherwise requires. - (a) Act means Income Tax Act, 1961 (43 of 1961); (b) allocable area means, - (i) in the case of an industrial park referred to in sub-paragraph (b) of paragraph 4, the net floor area available for allocation but excluding the built up space used for providing common facilities; (ii) in any other case, the net area available for allocation for industrial, commercial or residential purpose but excluding the areas used for providing common facilities; (c) common facilities includes the facilities of air conditioning, roads (including approach roads), water supply and sewerage, common effluent treatment facility, telecom network, generation and distribution of power used by two or more industrial units in an industrial park; (d) empowered committee means a committee constituted under paragraph 7; (e) form means a form appended to this Scheme; (f) infrastructure development includes, roads (including approach roads), water supply and sewerage, common effluent treatment facility, telecom network, generation and distribution of power, air conditioning and such other facilities as are used for common purpose of the units therein; (g) paragraph means paragraph of this Scheme; (h) undertaking means any undertaking which is engaged in the business of developing, developing and operating or maintaining and operating an industrial park notified by the Central Government in accordance with this scheme. (i) unit means any separate and distinct entity for the purpose of one or more state or central tax laws. 3. Period of operation of the scheme.- This scheme shall be in operation for the period beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2002 as specified in clause (iii) of sub-section (4) of section 80-IA of the Act. 4. Objectives of the industrial park.- Any project, being an industrial park, shall aim at setting up of - (a) an Industrial Model Town for development of industrial infrastructure for carrying out integrated manufacturing activities including research and development by providing plots or sheds and common facilities within its precincts; or (b) an industrial park for development of infrastructural facilities or built-up space with common facilities in any area allotted or earmarked for the purposes of software development, gems and jewellery, electronics hardware; or (c) a Growth Centre under the Growth Centre Scheme of the Government of India: Provided that the scheme referred in this clause is implemented by an undertaking and the Growth Centre is distinctly developed as a separate profit centre. 5. Automatic approval- (1) An undertaking shall make an application in the Form-IPS-1 along with an affidavit certifying the details given in such application for obtaining approval for setting up an industrial park. (2) An application under sub-paragraph (1) shall be made to the Entrepreneurial Assistance Unit of the Secretariat for Industrial Assistance, Department of Industrial Policy and Promotion in the Ministry of Industry, Udyog Bhawan, New Delhi-110011. (3) The Secretariat for Industrial Assistance referred to in sub-paragraph (2) shall, upon receipt of application, give acknowledgement for receipt of such applications along with, registration number allotted by such Secretariat. (4) Every application under sub-paragraph (1) shall be accompanied by a fee of five thousand rupees payable by a demand draft drawn in favour of Pay and Accounts Officer, Department of Industrial Development payable at State Bank of India, Nirman Bhawan Branch, New Delhi-110011. (5) All applications made under sub-paragraph (1) and eligible for Automatic approval in accordance with paragraph 6 shall be disposed of within fifteen days of making of such application and the decision for such approval shall be communicated to the applicant immediately on disposal of such application. (6) In case any application is not found eligible for Automatic approval in accordance with paragraph 6, the decision regarding the same shall be immediately communicated to the applicant. 6. Criteria for automatic approval .- An undertaking which seeks approval under paragraph 5, shall fulfil the following conditions, namely:- (a) The minimum area required to be developed for an Industrial Model Town shall be 1000 acres: Provided that minimum area for specified industrial park referred to in clause (b) and (c) of paragraph 4 may vary depending upon their activities; (b) The project referred to in clauses (a) and (b) of paragraph 4 shall have provision for the location of minimum number of industrial units as follows:- Table Type of industrial park Minimum Number of units to be provided in the industrial model town/industrial park (1) (2) (i) Industrial Model Town referred to in clause(a) of paragraph 4. 50 units (ii) industrial park referred to in clause (b) of paragraph 4. 30 units; (c) The minimum percentage of the area to be allocated for industrial use shall not be less than sixty six percent of the total allocable area. Explanation .- For the purpose of this clause, the Industrial use shall include any activity defined in the National Industrial Classification 1987 Code issued by Central Statistical Organisation, Department of Statistics, Ministry of Planning and Programme Implementation, except the following:- Section 0 Section 8 excluding Group 892, 893, 894, 895 Section 1 Section 9 Section 5 Section X Section 7 Section XI; excluding Division 75 (d) The percentage of land to be earmarked for commercial use shall not be more than ten per cent, of the allocable area; (e) In case of an Industrial Model Town and Industrial Park, the minimum investment or infrastructure development shall not be less than 50% of the total project cost. In the case of an Industrial Park which provides built up space for industrial use, the minimum expenditure on infrastructure development including cost of construction of industrial space, shall not be less than 60% of the total project cost; (f) No single unit referred to in column (2) of the Table given in the sub-paragraph (b) of paragraph 6 shall occupy more than fifty per cent, of the allocable industrial area of an industrial model town or industrial park; (g) Every undertaking being an industrial park shall obtain approval for Foreign Direct Investment or non resident Indian investment from the Foreign Investment Promotion Board or Reserve Bank of India, or any authority specified under any law for the time being in force as the case may be. 7 Non Automatic Approval- (1) All applications not eligible for Automatic approval under paragraph 6 shall require the approval of the Empowered Committee, constituted by the Central Government and all such applications shall be placed before the Empowered Committee within fifteen days of receipt of applications. (2) The Empowered Committee shall consist of the following, namely:- (a) Secretary, Department, of Industrial Policy and Promotion, Government of India Chairman; (b) Chairman, Central Board of Direct Taxes, Government of India, or his representative Member; (c) Secretary, Ministry of Urban Affairs and Employment, Government of India, or his representative Member; (d) A representative of the State Government to which the project relates Member, (e) Joint Secretary, Ministry of Industry, Government of India Member Secretary: Provided that the Empowered Committee may co-opt other Secretaries to the Government of India and officials of financial institutions, banks and professional experts from Industry and Commerce as Co-opted members of the Committee and such co-opted members, however, shall not have any voting right. (3) The Empowered Committee shall consider each application on a case to case basis, subject to its complying with the statutory requirements as prescribed by the Ministry of Finance under the Income Tax Act, 1961, and other applicable statutory rules/obligations. The Committee will consider each case on its merit and grant approval subject to such other conditions as may be deemed fit by it. However, in all cases of rejection of proposals, the applicants shall be afforded an opportunity of being heard by the Committee and the orders shall be passed and communicated within twelve weeks. The Committee may also periodically review implementation of the approved proposals. (4) The Empowered Committee will hold meetings whenever necessary. All Industrial Model Town/Industrial Park proposals received shall be placed before the Committee within 15 days of receipt. The Committee, as far as possible, would ensure that the Government decision on each proposal is communicated to the applicant within six weeks. The Committee will adopt its own mode and working procedure, keeping in view the requirement of each proposal. 8. Withdrawal of approval.- The Central Government may withdraw the approval given to an undertaking under this Scheme when such undertaking fails to comply with any of the conditions of grant of approval. Provided that before withdrawal of approval, the undertaking being industrial park, shall be given an opportunity of being heard. 9. General conditions .- (1) The undertaking applying for approval shall undertake to continue to operate the Industrial Model Town or Industrial Park or Growth Centre during the period in which the benefits under the Act are to be availed: Provided further that in a case where an undertaking develops an industrial park on or after the 1st day April, 1999 and transfers the operation and maintenance of such industrial park to another undertaking (ie the transferee undertaking), the deduction under the provisions of the Act, shall be allowed for the remaining period to the transferee undertaking, in the manner as if the operation and maintenance were not so transferred to the transferee undertaking. (2) In the event of such transfer, the transferor and transferee shall jointly intimate to the Entrepreneurial Assistance Unit of the Secretariat for Industrial Assistance, Department of Industrial Policy and Promotion, Udyog Bhawan, New Delhi-11 along with a copy of the agreement executed between the transferor and transferee undertaking for the aforesaid transfer. Secretariat for Industrial Assistance shall on receipt of each such intimation issue a communication to the applicants of having taken the intimation on record. (3) Every undertaking which has been granted approval shall furnish to the Central Government on 1st January and 1st July of every year a report in the form Number IPS-II. [F. No. 10(8)/97-ID(Vol. II)] ASHOK KUMAR, Jt. Secy.