Bare ActsThe Odisha Food Processing Policy - 2016

Section 10

General Provisions 10

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General Provisions 10.1 This Policy shall be effective from the date of its notification and remain in force until the applicability of IPR-2015. 10.2 New Food Processing Enterprise means any enterprise/industry where fixed capital investment has commenced on or after the effective date and which commences production within three years for MSMEs and five years for large industries from the date of starting fixed capital investment. 10.3 The existing food processing enterprises undertaking expansion / modernisation / diversification shall be eligible only after first fixed capital investment project is made after the effective date of this policy. 10.4 This Policy and other extant Policies provides certain fiscal and non-fiscal incentives. Entrepreneur can choose to avail a particular incentive according to his / her eligibility. 10.5 Incentives as envisaged in this policy shall not be applicable to an enterprise if the similar incentives are availed under any other policies of State Government or Government of India. 10.6 A new Food Processing enterprise shall be eligible for availing incentives under this policy provided it is acknowledged with Entrepreneurship Identification Number and / or Production Certificate / Industrial Entrepreneurs’ Memorandum (IEM) and commencing production / providing services within a period of three years for MSME and five years for large industries from the date of starting of first fixed capital investment. 10.7 An enterprise shall become ineligible to avail incentives if it does not file its claim within one year of commencement of production or one year from the date of notification of operational guidelines of this policy, whichever is later. 10.8 Government may consider condonation of delay (beyond the stipulated period of 3 years for MSMEs / 5 years for Large Industries) in implementation of projects due to force majeure (reasons like natural calamities) on case to case basis on recommendation of an Empowered Committee to be constituted under the Chairmanship of Principal Secretary to Government, MSME Department. 9 10.9 All Food Processing Enterprises which have commenced fixed capital investment prior to notification of this policy shall continue to be governed and assisted under OFPP-2013. 10.10 All the Food Processing Enterprises except Micro Enterprises should have been extended with bank loan to a minimum extent of 10% of their cost of Plant & Machinery for being eligible for incentives under this policy. 10.11 The list of industries not eligible for incentives is provided in Annexure II. However, the list may be amended, from time to time. 10.12 Doubts relating to interpretation of any term and / or dispute relating to the operation of any provision under this policy shall have to be referred to the Nodal Agency for clarification / resolution and the decision of MSME Department in this regard shall be final and binding on all concerned. 10.13 No right or claim for any incentive under this policy shall be deemed to have been conferred merely on the ground of provision in this policy. Implementation of various provisions covering the incentives, concessions etc. will be subject to notification of detailed guidelines / statutory notifications by MSME Department / concerned Administrative Department. Incentives shall be extended subject to availability budgetary provisions. **** 10 Annexure I Definitions & Abbreviations i. Anchor Industry means the first & lead large investor in the Mega Food Park / Sea Food Park / State Food Park, whose brand value & potential for backward and or, forward linkage shall stimulate further investment. Such Anchor Industry should have an investment in Plant & Machinery above Rs.25 Crore and provide direct employment to more than 50 local people. ii. Date of Commencement of Production means the 1st date of commencement of production as mentioned in Production Certificate to be issued by GM, RIC / DIC / D.I, Odisha. iii. Effective Date means the date of notification of this Policy. iv. Enterprise would include both MSMEs and large industries of food processing sector. MSME means an Industrial Unit / Enterprise as defined by the Government of India in MSMED Act, 2006 amended from time to time. Large industry means an industrial undertaking as per the Industries (Development & Regulation) Act, 1951 or, engaged in providing or, rendering of any service or, services. v. Expansion / Modernization /Diversification of an existing enterprise means additional investment of at least 50% of the un-depreciated book value of Plant & Machinery of the said unit made in acquisition of additional plant and machinery and technology for such expansion / modernization / diversification duly appraised and approved by DIC / RIC / NSIC / NCDC / Public Financial Institutions. In case of expansion, the additional investment as above must result in at least 50% addition in installed capacity. In case of diversification, the additional investment as above must result in production of at least one additional product in food processing. vi. First date of fixed capital investment means the first investment made by the new enterprise in Land or, Building or, Plant & Machinery or, Balancing Equipments on or after the effective date of this policy. vii. Food Processing includes transformation of raw ingredients, or food into other forms including a process of value addition to the agriculture, edible animal / fish products, marine products including sea food such as shrimp / fish and horticulture products by various methods such as grading, sorting and packaging in an effective manner, to enhance their shelf life, quality and make them more useful. It may also include processing of food at all levels, i.e; primary, secondary and tertiary. Enterprises engaged in manufacture of packaging, materials for food processing industry. Enterprises engaged in manufacture Cattle feed / Poultry feed / Prawn feed / Fish feed. viii. Government means Government of Odisha. ix. Industrially Backward Districts : Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj. x. Infrastructure include warehouse, cold storage, Primary Processing Centre / Collection Centre, transportation infrastructure including reefer vans / containers, Cold Chain, Value addition and Preservation Infrastructure for processed food and beverages. xi. Mega Food Park (MFP)/ Mega Sea Food Park /State Food Park Mega Food Park : A place where there is an integration of facilities to augment processing of various agriculture, horticulture, animal products, fishery products / sea food products either be approved under Mega Food Park Scheme (MFPS) scheme, GoI. State Food Park : An Industrial park dedicated for food processing activities and which is approved by the Govt. of Odisha with minimum land requirement of Ac.25.00. xii. MSME means Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 as amended from time to time shall be applicable. xiii. Nodal Agency means Department of MSME, Govt. of Odisha. Appendices 11 xiv. Quality assurance providers include food testing laboratory and certification agencies. xv. Research and Human Resource Development includes institutes involved in Research & Development of Product technology, packaging material for processed food and institutes involved in developing Human Resources through skill development, entrepreneurship development, running food processing and related courses. xvi. SC, ST Enterprise : A Food Processing Enterprise managed by one or, more Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs in the enterprise in which they individually / jointly have a share capital of not less than 51% as partners / Shareholders / Directors of Partnership Firm / Private Limited Company / Cooperative Societies. xvii. Women Enterprise : A Food Processing Enterprise managed by one or, more women entrepreneurs in the enterprise in which she / they individually / jointly have a share capital of not less than 51% as partners / Shareholders / Directors of Partnership Firm / Private Limited Company / Cooperative Societies. Abbreviations E/M/D : Expansion / Modernization / Diversification IDCO : Odisha Industrial Infrastructure Development Corporation IEM : Industrial Entrepreneurs Memorandum IPR : Industrial Policy Resolution, 2015 KWH : Kilo Watt Hour MFP : Mega Food Park MSME : Micro, Small & Medium Enterprise MT : Metric Tonne NCDC : National Cooperative Development Corporation NSIC : National Small Industries Corporation OSIC : Odisha Small Industries Corporation Limited. RIC / DIC : Regional Industries Centre / District Industries Centre SPV : Special Purpose Vehicle * * * * 12 Annexure II LIST OF INELIGIBLE ENTERPRISES / INDUSTRIES Enterprises ineligible for fiscal incentives specified under this Policy (Food Processing Enterprises / Industries as per negative list of IPR, 2015) 01 Hullers and Rice mills with investment in plant & machinery of less than 25 lakhs for industrially backward districts and less than Rs.1 crore for other areas. 02 Flour mills including manufacture of besan, pulse mills and chuda mills except investment in plant & machinery of less than Rs.25 lakhs for industrially backward districts and less than Rs.1 crore for other area (excluding Roller Flour Mills). 03 (a) Processing of spices with investment in plant & machinery with less than Rs.10 lakh for industrially backward districts and less than Rs.2 crore for other areas. (b) Units without Spice-mark or Ag-mark. 04 Confectionary with investment in plant & machinery with less than Rs.10 lakh for industrially backward districts and less than two crore rupees for other area 05 Oil mills with expellers including oil processing, filtering, decolouring, colouring refining of edible oils and hydrogenation thereof except investment in plant & machinery more than Rs.10 lakh in industrially backward districts. 06 Preparation of sweets and savouries except investment in plant & machinery of less than Rs.10 lakhs for industrially backward districts and less that Rs.50 lakh for other area. 07 Bread-making (excluding mechanised bakery). 08 Mixture, Bhujia and Chanachur preparation units. 09 Manufacture of Ice candy. 10 Manufacture and processing of betel nuts. 11 Hatcheries, Piggeries, Rabbit or Broiler farming. 12 Units for mixing or blending / packaging of tea. 13 Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units. 14 Pre-processing of oil seeds: decorticating, expelling, crushing, parching, and frying. 15 Aerated water and soft drink units. 16 Bottling units or any activity in respect of IMFL or liquor of any kind. 17 Re-packaging Units. Note: List of Industrial units / enterprises indicated above may be modified by the Government from time to time. * * * *

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