Section 30

Amendment status not verified — confirm the current text below against the official source.

MVA 12.22.2 All the benefits of Anchor units shall be available to the new Mega /Ultra Mega project unit. However, in respect of "variable power tariff" and "Net SGST reimbursement" the following special incentives will be available in place of the respective incentives available under this Policy. Incentive\Category Mega Project Ultra Mega Project 1 Variable Power Tariff at Rs. 5.50 per KVAh Special power tariff* will be available for 4 years from the date of release of permanent power connection. Special power tariff* will be available for 5 years from the date of release of permanent power connection. *In case, the State Utility provides variable power tariff lower than Rs. 5.50 per KVAh, the lower variable power tariff will be applicable to the unit. 83 2 Net SGST reimbursement 100% of net SGST for 17 years with a cap of 200% of FCI. 100% of net SGST for 20 years from the date of commercial Production with a cap of 200% of FCI. 12.22.3. The following conditions shall be applicable for incentives to new Ultra Mega and Mega Projects: (i) Date of Production (DoP) should be attained within 3 years (Mega Project) / 4 years (Ultra Mega Project) from date of submission of complete CAF. However, in special cases, for reasons to be recorded in writing, delay in attaining the date of production maximum up to 6 months may be condoned with the approval of Chairman of Punjab Industrial & Business Development Board The aforesaid special package of incentive shall be applicable to the new units who will file Common Application Form (CAF) on Invest Punjab Business First Portal from the effective date of this Policy. 12.23. Negative List of Industries No financial incentives under this policy shall be available for following industries: (i) Manufacturing/packing of all alcoholic products shall be treated in the negative list, except standalone units that are manufacturing alcoholic products not included in Division no. 11 - “Manufacture of Beverages” of NIC Code 2008, provided only those standalone Bio-ethanol units will become eligible for incentive which shall install paddy straw fuel based boilers; however, quantum of incentives would be reduced to 50% in case such industries install boilers based upon fuel other than paddy straw. (ii) Manufacturing of Tobacco products including Cigars, Cigarettes and Gutka (iii) Brick/ Tile Kilns except Fly Ash based bricks/tiles and other concrete products manufactured by Machinery/Equipment other than Kiln. (iv) Vanaspati Ghee Mills (v) Rice Shellers (vi) For Border districts and Kandi Area, only (i), (ii), (iii) above and Rice Shellers except Basmati Shellers shall be treated as negative list of industry. Further, for Border Zone within 30 kms of international border, only (ii) above shall be treated as negative list of industry. 12.24. Sun Set Clause and Transition from IBDP 2017 12.24.1. No New Application under IBDP 2017 or any Earlier Policy No new application will be entertained under IBDP 2017 or any other previous industrial policy after the notification of this policy. 84 12.24.2. Migration of Units from IBDP 2017 12.24.2.1. Units which have submitted CAF before date of uploading draft IBDP 2022 i.e. 10-09- 2022 on Invest Punjab Business First Portal but have not availed any benefit of IBDP 2017 and have not come into commercial production before the effective date of this policy, shall be eligible to avail the incentive of IBDP 2017 provided the units comes into commercial Production/commercial Production of at least 1st Phase in case of phase wise investment, within Five years from the date of submission of CAF at IPBFP. In case units fails to comes into commercial Production within 5 years than the benefits/partial incentives already availed, if any, by such units under IBDP 2017 will be refunded along with simple interest @12% per annum to the State within 90 days from the demand notice issued by competent authority. 12.24.2.2. Unit which have filed CAF at IPBFP under IBDP 2017 and have not gone into commercial Production by 16.10.2022 shall have option to Migrate to this Policy provided they exercise their option online at IBPFP within 90 days from the effective date of this policy, provided they are otherwise eligible under this policy and the units comes into commercial Production within Five years from the date of submission of CAF at IPBFP. The benefits/partial incentives already availed, if any, by such units under IBDP 2017 will be refunded along with simple interest @12% per annum to the State within 90 days from the acceptance of their option by the State. 12.24.2.3. Units which have submitted CAF on Invest Punjab Business First Portal between the date of uploading draft IBDP 2022 on the IPBFP i.e. 10.9.2022 and issuance of final effective date of IBDP 2022, but have not availed any benefit of IBDP 2017 and have not come into commercial production before the effective date of this policy, shall have option to avail the incentive of IBDP 2017 by submitting this option online within 90 days of effective date of this Policy at IPBFP, provided following effective steps have been taken by the unit before the effective date of this Policy: - (a) Complete Land for the Project has been purchased/taken on lease after making Full Payment of the land price/lease rent and (b) Unit has obtained any one statutory licenses where ever applicable and (c) 10% of the expenditure w.r.t. land Building and Machinery has been paid and in case land is already owned by the company then 5% of the expenditure on Building and Machinery has been paid by way of applicable bank/cash transaction/letter of credit dully certified by Charted Accountant. (d) The Unit should commence commercial Production within 5 years from the date of submission of CAF. (e) The aforesaid clause (a) to (c) shall not be applicable in the cases where Punjab Bureau of Investment Promotion has signed MOU with the Industry before the effective date. 85 12.25. Exclusions in the exemption from Electricity Duty and Stamp Duty 12.25.1. Electricity duty is the duty levied and paid to the State Government on the electricity supplied by PSPCL or any licensee or electricity trader or generating company to a consumer, as the State Government may notify from time to time, with the proviso that any contributions made out of the Electricity Duty levied, such as those deposited in the social security fund, Infrastructure Development Fund etc., shall not be exempted. 12.25.2. Exemption/ reimbursement from Stamp Duty shall be available for payment of Stamp Duty as levied under Schedule 1-A of Indian Stamp Act. However, any other charges such as registration fee, infrastructure development cess, social security fee/cess etc. levied under Schedule 1-B and Schedule 1-C of the Act shall not be exempted. 12.26. Net SGST Formula The Net SGST Formula for the purpose of Fiscal Incentives under the policy shall be as per Annexure A. 12.27. Overlapping period of incentives 12.27.1 Under previous industrial policies with regard to Industrial & Business Development Policy-2022 In cases involving overlapping period of incentives under previous industrial policies with regard to Industrial & Business Development Policy, 2022, a one-time option shall be given to the industry to choose all the incentive under any one of the Industrial Policies to be adopted for the overlapping period. Provided, the industry opting for incentives under the policy shall have to forego all the incentive availed/to be availed under the policy which it had chosen to forego. This one-time option shall be submitted by the unit while submitting the application for fiscal incentives under Industrial & Business Development Policy, 2017 or previous policies. The option once accepted by the competent authority shall be final and no further option shall be provided to switchover the policies. 12.27.2 Period of incentives within same policy In Expansion with or without Modernization/Diversification cases involving overlapping period of incentives within this policy, the unutilized amount of FCI towards the fiscal incentives already sanctioned to the unit in the earlier expansion under this policy shall be carried forward to the FCI of instant expansion under this policy. 12.28. Special fiscal incentives to existing industries to switch over to Paddy Straw fuel based boilers 86 The existing industries (which are not eligible for incentives as Expansion Category as per clause 12.2 under this policy), and which are not in the negative list under clause 12.23, switching over to paddy straw fuel based boilers, shall be eligible for the following incentives: (i) Reimbursement of 100% net SGST for 7 years, with a cap of 75% of total investment for installation of paddy straw fuel based boiler. (ii) 100% exemption/reimbursement from stamp duty on purchase or lease of land and building to be exclusively used for storage of paddy straw. 12.29. IT Policy To boost the IT/ITES sector the state shall formulate a separate IT/ITES/Semiconductor Policy. 12.30 Upper ceiling of Quantum of Total Fiscal Incentives The maximum ceiling of quantum of Total Fiscal Incentive for all incentive schemes relevant to respective category of units will be as under: - i) Anchor category including Mega/Ultra Mega: - Up to 200% of eligible FCI ii) Large category: - Up to 100% of FCI iii) MSMEs and Start up: - Up to 100 % of FCI iv) Large/MSMEs in Thrust sector: - Up to 125% of FCI v) Early Bird units in New Industrial Parks:- Up to 125% of FCI vi) First two units in Border Zone in each sector of manufacturing and service: - 40% additional FCI in respective category as above at s.no I to V. vii) For incentive to existing MSMEs which are not linked to New investment /expansion (refer to clause 1.3.3. of this Policy)- up to 100% of existing original FCI after depreciation as on the date of submission of CAF after the effective date. viii) For Incentive to SICK MSME/Large Units: - up to 100% of FCI for MSMEs and upto 100% of FCI for large units of existing original FCI after depreciation as on the date of submission of CAF after the effective date. An online Pass book shall be maintained to keep track of the incentives disbursed and disbursement/sanction of the Incentives shall be stopped once the units exhausts above said FCI or eligibility period whichever is earlier and Unique ID of this Pass book shall be the PAN of the company availing incentives. 12.31 Incentive to Farm stays/Homestays and Tented accommodation/camping units 87 The incentive available to Farm stays/Homestays and Tented accommodation/camping units as per clause 5.1.11 shall be available to first 100 units coming into commercial production after the effective date of this policy. 88 Chapter 13 - Fixed Capital Investment (FCI) for the purposes of Fiscal Incentives 13.1. Fixed Capital Investment (FCI) Fixed Capital Investment (FCI) for grant of fiscal incentives under the Policy means investment on the following: (i) Land, (ii) Building, (iii) Plant, Machinery &Equipment The eligible costs and the manner of assessment has been described below. 13.2. Original Fixed Capital Investment Investments made on fixed capital assets prior to Expansion will be treated as Original Fixed Capital Investment. While computing this Original Fixed Capital Investment, neither depreciation nor revaluation will be taken into account. Fixed Capital Investment include cost of land, building, plant, machinery and equipment as per the approved project cost. 13.3. Land Actual cost of land required for the setting up of new units or expansion/ diversification of the existing unit will be considered towards FCI subject to the following: (i) The cost of site levelling, clearance, laying of roads, etc. will not be considered for FCI. (ii) The cost of land on lease will not be considered for FCI. (iii) Stamp duty and Transfer duty component will not be considered for FCI. (iv) Optimum Land Area required for the project appraised by concerned Financial Institutions or State Agency, as the case may be. (v) In case of land allotted on 99 years lease basis by the state agencies, the allotment price of the land shall be considered as part of FCI. (vi) For the purpose of incentive, the land cost shall be restricted up to 10% of the Fixed Capital Investment both for New and expansion cases. 13.4. Building 13.4.1. In case of new building 89 The value of construction of factory building will be limited to the approved project cost. Value of leased building will not be taken into account. The items of civil works which are permitted for computation towards eligible cost are: i. Main Factory Shed ii. Raw Material and finished products go down iii. Office room and Lab room iv. Cooling water ponds v. Boiler shed and generator room vi. Effluent treatment ponds, etc. vii. Overhead Tank, bore-wells, and pump house and sump viii. Fencing and Gate ix. Architect fee and supervision charges x. R&D laboratory/Center xi. Compound wall xii. Canteen xiii. Workers’ rest room xiv. Time Office xv. Cycle / Vehicle Stand xvi. Security Shed and xvii. Toilet room and sanitary fittings xviii. Workers’ hostel constructed in the same factory premises xix. Unit’s own retail outlet on the same factory premises The total value of items at (xi) to (xix) and similar items shall not exceed 10% of the total value of civil works. Total value of the civil works means items (i) to (x) only within the approved project cost. 13.4.2 In case of land and building purchased from existing industry 90 In case of land and building purchased from existing Industry which has availed incentives, granted by State Government, the land and building cost will not be considered as part of FCI otherwise the cost of land (limited to 10% of the FCI) and depreciated value of building will be considered for FCI. Any new assets created with fresh investment will also be considered for FCI. The depreciated value of building and quality & life of the building will have to be certified by a Civil Engineer. 13.5. Plant and Machinery Following Costs will be taken towards the cost of plant and machinery subject to the conditions specified below: 13.5.1. In case of General Unit Value of plant, machinery and equipment installed and the value of tools (other than consumables) Jigs, Dies, Moulds, pollution equipment, lab equipment etc. necessary for production of approved line of activities will be taken into account. Leased plant and equipment is not eligible for incentives. The value of Solar Equipment installed in the unit for domestic and commercial production within the project cost will be taken into account as eligible Fixed Capital Investment. 13.5.2. In case of Tourism Unit The cost of Plant & Machinery or equipment and others to a Tourism Sector Enterprise shall be allowed on the purchase of items given below: i. Air-conditioning. A.C. plants, fans & exhaust fans, coolers ii. Electrical installations/electronic fittings. iii. Filtration plant for swimming pool iv. Water softening Plant v. Fume extraction and ventilation plant vi. Non-CFC equipment for refrigeration & air-conditions and other eco- friendly measures and initiatives. vii. Cold storage equipment viii. Bakery equipment ix. Kitchen equipment, cooking range, dish washer, working table x. Telephone equipment & exchange/PBX xi. House-keeping machines and Equipments 91 xii. Hot water boilers, solar heaters and solar plants/geysers/ cold & hot running water machines. xiii. Furniture, interior & fittings xiv. Lifts & elevators xv. Spa and fitness equipment xvi. Metal detectors (door frame or hand held) xvii. CCTV, screens, projectors and other equipment for conference hall(fixed) O.G. Sets, goods carrier. xviii. Lighting equipment xix. X-ray machines xx. Under belly scanners to screen vehicles xxi. Smoke detectors xxii. Safe keeping/in room safe xxiii. Minibar/fridge xxiv. TVs xxv. Fire-fighting equipment (fixed) xxvi. Dry-cleaning/laundry related equipment xxvii. Tea/coffee making machines, equipments etc. xxviii. Tents for camping xxix. Tubewells along with pumping set Iines within the campus xxx. Pollution control machines for air, water, light and sound/STP. xxxi. Adventure and water parks, water sports equipment. For adventure and leisure sports, amusement/entertainment parks, cable car ropeways, the entire cost of items and components (excluding land) essential for commissioning the project. xxxii. Crockery and Cutlery Note: 92 (i) Goods mentioned above shall be allowed one time for initial set up. (ii) The goods mentioned at Sr. No. xxii to xxv and telephone equipment shall be allowed one set per room. (iii) For Tourism Projects in PPP (Public Private Partnership) executed under Punjab Infrastructure (Development and Regulations) Act-2002 or similar Central Government Laws/Regulations, the Investment made only by the private partners in Land, Building and Plant & machinery will be counted as FCI. 13.5.3. Second Hand Machinery i. In case of indigenous second-hand machinery purchased by the unit, such value should not exceed 25% of the total value of plant and machinery. The value of indigenous second-hand machinery will not be computed towards eligible Fixed Capital Investment for fiscal incentives. ii. To decide the percentage of second hand machinery, market value as certified by chartered engineer will be taken into account, subject to such machinery having a minimum of further six (6) years life for MSEs and twelve (12) years for Medium Enterprise and Large Industries certified by a Licensed Engineer/ Chartered Accountant. iii. However, in case of imported machinery, value of 100% imported second hand plant, machinery and equipment will be considered as new indigenous machinery, if it is imported directly by the unit. 13.5.3.1. Freight and installation charges on New/Second hand Imported machinery In case of imported machinery, value of plant and machinery will include custom duty and insurance paid, freight charges from the port of arrival till destination and installation charges in addition to the CIF value of such plant & machinery provided that the freight and installation of charges would be limited to 10% of the basic price. 13.5.4. Expenditure on Technical Consultancy / Feasibility study including turn-key charges Such expenditure will be considered towards the Fixed Capital Investment, provided they are part of the approved project cost, capitalized and certified by a C.A/ Financial Institution/ Commercial Bank, but limited to 10% of the total cost of plant machinery and equipment installed. 13.5.5. Value of self-fabricated machinery by the new unit The value of self-fabricated machinery will have to be certified by a Chartered Engineer or Engineer of the term lending institution concerned for computing the eligible Fixed Capital Investment. 13.5.6. Installation of paddy straw fuel-based boiler 93 (i) For new units in the following categories of industries, the expenditure incurred on installation of boiler will count towards FCI only if it is a paddy straw fuel-based boiler: a. Sugar Mills, b. Pulp and Paper Manufacturing Industries, c. Any industry having boiler installation with steam generating capacity more than 25 TPH. Those units will be treated as new units which are yet to obtain CTE w.e.f. 26.08.2021 from Punjab Pollution Control Board. (ii) Same conditions will be applicable on the existing units of these categories going in for expansion in accordance with clause 12.2 of Chapter – 12 of this policy. (iii) PPCB shall certify the completion/commissioning of paddy straw based Boiler. (iv) The use of paddy straw in the boiler shall be monitored by PPCB and in case of failing to comply with the guidelines of PPCB, future disbursement of above fiscal incentive will be stopped. 13.5.7. Items Not to be included towards Fixed Capital Investment i. Working capital, raw material, stores and all consumables including spare tools, etc. ii. Value of the Motor Vehicles except specialized vehicles like Refrigerated vans, Fire fighting vehicles, Ambulances and other Industry specific vehicles including commercial vehicles owned by the units for transportation of its staff & workers. iii. Pre-operative expenses, Taxes which are availed as Input Credit Taxes, advances, and expenditure not capitalized in the books of accounts and not certified/audited by CA supported by payment of bills wherever necessary. iv. Investment which has been in excess of the approved project cost and is not covered by the approved project would not be considered towards Fixed Capital Investment. However, if such investment is financed and justified by the financial institution, it may be considered towards Fixed Capital Investment. Submission of revised approved Project report shall be allowed before the units attains commercial Production. v. In case of expansion, the fixed capital Investment made by the unit on Building and machinery 6 month prior to filing of CAF on IPBFP. 94 13.6. Fixed Capital Investment in Phased Manner / or after the commencement of Commercial Production i. For units with FCI up to Rs.100 Cr For units with FCI up to Rs.100 Cr, duly incorporated in the DPR, the investment made after the first date of production and up to one year, shall be considered for the incentives of eligible unit. Only one additional eligibility certificate will be allowed after first date of production. ii. For Units with FCI above Rs.100 Cr and up to Rs.500 Cr For Units with FCI above Rs.100 Cr. and up to Rs.500 Cr, duly incorporated in the DPR, the investment made after the first date of production and up to three years, shall be considered for the incentives of eligible unit. Only two additional eligibility certificate may be allowed after first date of production. iii. For Units with FCI above Rs. 500 Cr For Units with FCI above Rs.500 Cr, duly incorporated in the DPR, the investment made after the first date of production and up to five years, shall be considered for the incentives of eligible unit. Only five additional eligibility certificate may be allowed after first date of production. iv. Any additional investment made after the period specified above shall be considered as expansion and the relevant guidelines shall apply. v. The eligibility period of seeking reimbursement of SGST against investment made in a particular phase will commence from the date of commencement of commercial production of the phase. 95 Chapter 14 - General Eligibility Conditions for Availing Fiscal Incentives & Penalty 14.1. General Conditions for Sanction of Fiscal Incentives Following general conditions shall apply in all cases of grant of fiscal incentives to eligible units apart from other specific eligibility criteria, terms and conditions stated for a particular scheme elsewhere in this Policy or guidelines made under this Policy. i. The unit must be registered with the Department of Industries online. ii. The MSME should have obtained Udyam Registrarion. iii. The Large units should have filed IEM with DPIIT, Government of India. iv. The Unit shall not be manufacturing item placed in the negative list as notified under the Policy and amended from time to time. v. Composite Units set up for manufacture/ service of an eligible item along with an ineligible item are not eligible for incentives except when the proportion of ineligible items in the total production is less than 10% in value of the total turnover during each financial year as per annual return as mentioned in 14.1 (viii). vi. All the entrepreneurs should have Permanent Account Number (PAN) and should regularly file the Income Tax Returns. vii. The unit should be in regular production at the time of disbursement of incentive except those incentives which are in pre-production stage such as Stamp Duty. viii. Unit shall submit annual return in the prescribed format during the production/ incentive period by 30th June of next year. ix. MSME units should file information at www.msmedatabank.gov.in every year. x. All eligible Units set up on rented premises should furnish a registered lease deed for a period equal to more than the period of incentives. xi. MSME units shall register themselves under the ZED scheme of GOI and achieve maturity level at least up to Bronze category within 3 years from the date of production/expansion production. In case of failing to achieve Bronze Category level certification, future disbursement of fiscal incentives including exemption of electricity Duty, Mandi Fees, Property tax, SGST Incentive etc will be stopped, however no recovery shall be made in respect of incentive already availed under the Policy. xii. For availing benefits of schemes under Sr. No. 6, 9, 10, 11, 12,14, 15, 16, 17,20, 22 and 23 under Clause 12.8, the Unit must have bronze level ZED certification. 96 xiii. In case of benefits under S No 13 Clause 12.8 reimbursement will be done only after the Unit is assessed for bronze level ZED certification. 14.2. Conditions for Changes in the Unit After Sanction of Fiscal Incentives A unit, which has been granted fiscal incentives, will require the approval of the Competent Authority in case of any of the following changes. A revised eligibility certificate will be issued after approval. i. Change of constitution/ management/ name or style of unit The unit shall take prior approval of the State Level Committee by applying on the portal and Certificate of incorporation from Registrar of Companies (ROC)/Registrar of Firms as the case may be. ii. Lease/Sell-out cases of unit The unit shall take prior approval of the State Level Committee before lease out/ sell-out to another management within incentive period by applying on the portal. iii. Change of Location of unit The Change of location shall be allowed only in special circumstances with the approval of State Level Committee. Shifting of Unit outside the State is not allowed. iv. Merger/ Amalgamation of Units The approval of the State Level Committee will be required for any merger/amalgamation of units. The application shall be submitted online along with necessary legal orders and other documents. v. Change of line of activity/inclusion of additional line of activities The approval of the State Level Committee will be required If a Unit starts manufacturing new eligible items without any additional machinery or equipment, with the same plant & machinery, or if units wants to change activity after obtaining Pre production incentive of exemption from stamp duty/ CLU EDC. After Approval such items shall be allowed for availing reimbursement of SGST or other incentives being availed under this policy with intimation on the portal in the prescribed manner. (vI) The units availing benefit of Electricity Duty exemption may continue to avail the benefit even if there is increase in the connected load during the Eligibility Period. 97 14.3. Penal Action In case, it is found at any stage that a unit has claimed any fiscal incentive on the basis of wrong facts then the applicant shall besides refunding the amount of incentive from the date of disbursement with compound rate of interest @ 12% per annum and facing legal action, will be debarred from grant of any incentive/assistance from the State Government. 98 Chapter 15 – General Procedure and Authorities for Sanction of Fiscal Incentives/ Subsidies 15.1 General Procedure for Availing Fiscal Incentives 15.1.1 Registration on the Portal Any entrepreneur, who wants to set up a new unit or expand an existing unit or desirous of availing any regulatory clearance or fiscal incentive for his existing unit under the policy shall mandatorily register on Invest Punjab Business First portal by filing Common Application Form and other Relevant Incentive Forms including ICAF along with relevant incentive form as applicable in accordance with this Policy. 15.1.2 Progress of Project The Department through District Industries Centre/ Directorate/ PBIP will provide necessary handholding to the unit. 15.1.3 Regulatory Clearances A registered unit will be able to avail regulatory clearances through Invest Punjab Business First Portal. Regulatory clearances to MSME units with FCI up to 25 CR will be monitored by District Bureau of Industry and Investment Promotion (DBIIP) wherever DBIIP has been setup and in the rest of the districts MSME units with FCI upto 25 Cr. will be monitored by District Industries Centre/ District Level Singly Window Committee under Deputy Commissioner till the setting up of DBIIP in these districts and other units with FCI above 25 Cr. will be provided regulatory clearances by PBIP at the State level. 15.1.4 Pre-Production Incentives The registered unit may apply for pre-production fiscal incentives on Invest Punjab Business First portal and Eligibility Certificate or sanction Letter as the case may be will be provided online by Convener District Level Single Window for MSMEs and convener State Level committee for other units after approval by respective District and State level Committees. 15.1.5 Post-production incentives After commencement of commercial production, the unit can apply for post-production fiscal incentives on portal by respective departments. 15.1.6 Rejection of incomplete or deficient cases (i) In case, the deficiencies pointed out during the processing are not removed within prescribed period, the claim shall be filed by the Competent Authority. 99 (ii) The claim application so filed may be reopened with the orders of Administrative Secretary, Industries & Commerce provided request for the same is received within a period of 30 days from the date of rejection of the claim on the portal. (iii) Standard Operative Procedure for rejection of Incentive Common Application Form:- a) On receipt of Online application at IP-BFP, the objection if any shall be raised by General Manager, District Industries Centre within a period of 7 days. b) Objection shall be raised through IP-BFP only & no objection should be raised in piece mail & through email etc. c) The Online system of sending alert messages for objection shall be followed. d) After the expiry of 6 weeks period in case the objection is not resolved within a period of 6 weeks then the case shall be considered by Scrutiny Committee for rejection and the recommendation shall be made to the Competent Authority, District Level Committee/State Level Committee as the case may be with a period of 15 days after the expiry of the period of 6 weeks. e) Thereafter, the case shall be considered by Competent Authority & the decision of Competent Authority of rejection of cases shall be conveyed online to the Investor. (iv) The claim application so filed may be reopened with the orders of Administrative Secretary, Industries & Commerce provided request for the same is received within a period of 30 days from the date of rejection of the claim on the portal. 15.1.7 Report by Scrutiny Committee After completion of case i.e. CAF-I and relevant scheme form have been submitted by the entrepreneur along with supporting documents, a report shall be made by the Scrutiny Committee to the Competent Authority for ascertaining new investment & eligibility under relevant schemes, within 60 days of submission of complete documents. Ordinarily, the documentary claim including the audit report / certification / recommendations given by the empanelled CAs shall form the basis of the report of the Scrutiny Committee. However, the Committee or any of its members may, for reasons to be recorded in writing, carry out an inspection and/or seek additional information. 15.1.8 Approval by District Level Committee and State Level Committee (i) The claims of MSMEs having Fixed Captial Investment up to 25 CRORES shall be placed before the District Level Committee for sanction. The claims of other units shall be recommended to State Level Committee. (ii) After approval by the competent authority of District Level Committee/ State level Committee, Eligibility Certificate or sanction letter as the case may be shall be issued by the convener of District Level Committee or State Level Committee as the case may be. 100 (iii). The eligibility period of incentive shall start from the date of Commercial production and incentive application shall be filed on Yearly basis where ever applicable. (iv). The date of sanction of incentive application shall be reckoned from the date of meeting of DCL/SLC wherever applicable. 15.1.9 Disbursement of sanctioned cases The disbursement shall be made on the basis of inter districts state level seniority to be maintained online. The seniority of the sanctioned cases for the purpose of disbursement of fiscal incentives shall be reckoned from the date of commercial production and not from the date of sanction and Seniority shall be freeze on monthly basis. 15.2 Scrutiny Committee 15.2.1 Apart from online processing and scrutiny of the documents, following Scrutiny Committee will verify the date of commercial production of the unit and also scrutinize the case for fixed capital investment made by the unit. (i) GM, DIC Chairman (ii) Lead District Manager Member (iii) Concerned Financial Institution Member (iv) Representative of Department of Taxation Member (v) Representative of PSPCL Member (vi) Two representatives from Industry Associations Member (vii) Representative of ULB for sites in purview of MC Member (viii) Rep. of T & C Planning for sites outside purview of MC Member (ix) Representative of Department of Labour Member (x) Dstrict Mandi Officer Member (xi) FM / PM, DIC Convener 15.2.2. The recommendations of the Scrutiny Committee will be placed before the District level or State level committee as may be the case. The Department has empanelled district wise CAs to assist the Scrutiny Committee under IBDP 2017. Same Process shall be adopted in processing of Incentive cases under this Policy. The Fees for verification of FCI shall be paid by the units as under: - 101 S No. Projects Where Building is included in FCI for Claim of Incentive Where Building is not included in FCI for Claim of Incentive 01 With FCI up to 1CR Rs 5000 + (6% service Charges & 18% GST) = Rs 6254 02 With FCI up to 10 CR Rs 40000 + (6% service Charges & 18% GST) = Rs 50,032.00 Rs 25000 + (6% service Charges & 18% GST) = Rs 30,270.00 03 With FCI above 10 CR Rs 75000 + (6% service Charges & 18% GST) = Rs 93810.00 Rs 60000 + (6% service Charges & 18% GST) = Rs 75048.00 The Administrative Secretary Industries and commerce will be competent to Increase / decrease the fees as deem fit. 15.2.3. Timelines for verification of FCI by Empaneled CA. (i) Once the case is completed & General Manager, District Industries Centre approves the case for allocation of CA, the CA will be allocated for verification of FCI by the online system through Randomisation Module at IP-BFP. (ii) The CA will be given a time of 2 days to accept the case, in case no acceptance is received from CA, then the case will be marked to next empanelled CA. (iii) As per the Term of Reference accepted by the CAs during empanelment, a time of 15 days will be given to CA to complete the verification of FCI etc. For cases involving FCI above 100 Cr. the time period to submit the report by CAs will be 30 days including holidays. (iv) The concerned General Manager will ensure that an intimation over a phone call is made through the concerned Business Facilitation Officer to the Chartered Accountant and once the case has been accepted by the Chartered Accountant another intimation should also be made through phone call to the same CA on 12th/27th, 13th/28th and 14th/29th day to remind him to complete/submit the report by 15th day / 30th day otherwise case shall be marked to next CA by the system. (v) In case any CA has certain observation or requirement of additional document, same shall be conveyed to the Investor through General Manager, District Industries Centre within a 102 period of 2 days from the date of allocation of the case to him and period of 15/30 days shall be counted from the date of receipt of required information & document. (vi) An alert message will be sent to the CA by the system on daily basis after a period of 7 days with a reminder that in case FCI report is not received within 15/30 days then the case shall be pulled back automatically and allocated to next empanelled CA along with deactivating the defaulting CA for future cases. 15.3 Competent Authority for Sanction 15.3.1 State Level Committee The State Level Committee shall be competent authority for approval and sanction of fiscal incentives to MSMEs having Fixed Captial Investment above 25 CRORES large, anchor, Mega and Ultra Mega units. The composition of state Level committee shall be as under: