Rules  for Grant of Capital Investment Subsidy- 2003   

 

1.       1.1     Short Title:  These rules shall be called the “Rules for Grant of Capital Investment Subsidy- 2003”. 

1.2     Applicability :- These rules shall be applicable to Small Scale Industrial (SSI) units which commence production between 1st April, 2003 and 31st March, 2007 after completion of new project or after completion of expansion / modernization / diversification as the case may be.  

2.       Eligibility & Quantum of Assistance

2.1  Eligible Units:

Following categories of units shall be eligible for Capital Investment Subsidy under these rules :

i)                 In respect of units located in industrially backward areas, all new Small Scale Industrial (SSI) units and all new or existing SSI units taking up substantial expansion / modernisation / diversification.

ii)               In respect of units located in other areas, new SSI units in approved clusters, priority sectors and ancillary sector and all new or existing SSI units in approved clusters, priority sectors and ancillary sector undertaking substantial expansion/ modernisation/ diversification.

 

2.2  Quantum of Subsidy: 

The eligible industrial units as defined in Rule 2.1 above shall be entitled to capital investment subsidy as follows:

i)        Capital investment subsidy @ 15% of the fixed capital investment subject to the limit of Rs 10 lakh, if the unit is located in areas falling within KBK region;   and,

ii)        Capital investment subsidy @ 10% of the fixed capital investment subject to limit of Rs 10 lakh in other cases.

 

2.3     Capital Investment Subsidy sanctioned under these rules will be disbursed to industrial units after their satisfactory working for 3 years i.e. a period of 36 months, from the date of production as recorded in Permanent Registration Certificate for the new project or the date determined by the General Manager, DIC for expansion / modernization / diversification project as date of completion of such project. 

2.4           Notwithstanding anything contained in these rules, industrial units/activities made ineligible for incentives as per Para - 3 of Schedule of IPR-2001 shall not be eligible for subsidy under these rules.

2.5           The subsidy under these rules shall be admissible only on the quantum of additional fixed capital investment essential for expansion/modernization/ diversification of the unit in case of new or existing units taking up substantial expansion, modernization or diversification.  

3.       Terms, Expressions & Definitions 

3.1           Terms and expressions used in these rules but not specifically defined herein, shall have the same meaning as in IPR-2001. 

3.2     Satisfactory Working of a unit means  that-

a)       The borrower account of the unit has not remained overdue at the time of sanction or disbursement for Principal and/or interest; and,

b)       The unit has not gone out of production for a period exceeding six months at a time for any reasons other than labour trouble or such other reason as may be considered reasonably beyond the control of the entrepreneur by the sanctioning authority

3.3      New Industrial Unit means an industrial unit which has commenced production between 1st April 2003 and 31st March, 2007 (inclusive of both dates).

3.4      Fixed Capital Investment means, investment in land and building, plant and machinery and other equipment of permanent nature in case of new SSI units and additional investment in such items essential for expansion/modernization / diversification of the SSI unit in case of units taking up substantial expansion / Modernization / diversification.

3.5           Substantial expansion / modernization / diversification (E/M/D) means  investment in fixed assets resulting in increase in the installed capacity of its existing products(expansion) or creation of production capacity of items not being now manufactured by the unit, without reducing the installed capacity of existing items(diversification) or technological upgradation of the production process of the unit(modernization),

 

Provided that such investment should have been made under a separate Project Report approved by a registered Financial Institution/Bank and the production after completion of E/M/D has commenced between 1st April, 2003 and 31st March, 2007 (inclusive of both dates).

Provided further that the investment in plant and machinery of such project is at least 33% of the gross (undepreciated) value of fixed assets of plant and machinery of the unit as on date of commencement of investment in E/M/D project

3.6     Industrially backward areas means areas listed as backward areas in Para 14.4 of the Industrial Policy 2001

3.7     Approved Cluster means a group/ cluster of industrial units having similar type of  products and/ or production process, located within  a specific geographical area designated for the cluster for the specified products/processes  as may be approved as a cluster and  notified as such by the Government in Industries Department.

3.8     Ancillary Unit means an ancillary SSI unit registered as such by the Central Public Sector Undertakings of Government of India and such other mother plants as may be decided by the government

3.9     KBK region means  the areas included in the revenue districts of Kalahandi, Bolangir, Koraput, Nuapada, Sonepur, Malkanagiri, Rayagada and Nawarangpur

 

3.10  “State Level Committee”, “Sub-Committee” and “District Level Committee” mean the committees constituted under Clause 4(1), Clause 4(2) and Clause 4(3) of these rules respectively

 

4.       Constitution and Powers of State Level Committee (SLC) / District Level Committee (DLC) 

4.1     State Level Committee  :- State Level Committee shall be the competent authority to sanction subsidy claims of units with investment in plant and machinery of more than Rs 5 lakh. The  State Level Committee shall comprise following  members:  

1.

Secretary to Government of Orissa,

Industries Department,

Chairman

2.

Managing Director, OSFC

Member

3.

Director of Handicrafts & Cottage Industries, Orissa, Bhubaneswar.

Member

4.

Secretary to Govt. of Orissa, Finance Department or his nominee

Member

5.

Managing Director, Orissa Industrial Infrastructure Development Corporation.

Member

6.

Managing Director, OSIC

Member

7.

Director of Industries, Orissa.

Member Secretary

 

4.2     Sub-Committee of SLC 

The State Level Committee may authorise a sub-committee with the following members to exercise all or any of the powers & functions of the State Level Committee. The decisions of the sub-committee may be placed before the next meeting of the SLC for ratification. The sub-Committee may either dispose the cases brought before it or refer the case to the State Level Committee with its recommendations for appropriate decision.

Members of the Sub Committee

i)

Director of Industries, Orissa

-

Chairman & Convenor

ii)

Managing Director, OSFC

-

Member

iii)

Managing Director, IPICOL

-

Member

iv)

Managing Director, OSIC Ltd.

-

Member

4.3     District Level Committee

          District Level Committee shall be the competent authority to sanction subsidy claims of units with investment in plant and machinery of upto Rs 5 lakh. The  District Level Committee shall comprise following members:

 

1

General Manager, DIC.

 

Chairman-cum-Convenor

2.

Branch Manager, OSFC

 

Member

3.

Regional Manager, OSFC or his representative.

 

Member

4.

Manager (SS)/Asst. Manager (Project), DIC dealing with the subject.

 

Member

5.

Representative of MD, IDCO

 

Member

 

 

 

 

Commercial Tax Officer may be invited to attend the meeting of the committee.

 

In case of any doubt or difficulties matter will be referred to sub-committee of SLC / SLC with specific recommendation of DLC for final decision.

 

4.4     Meetings of the Committee

The State Level Committee shall meet at least once, and if necessary more than once, in a quarter and the District Level Committee will meet once in a month or as often as necessary.  

4.5     a)       The State Level Committee & DLC shall go into merits of each case to decide whether the industrial unit qualifies for grant of capital investment subsidy and will determine the quantum of subsidy admissible to the industrial unit as per rules.

b)       Proceedings of each meeting shall be recorded by the Convener & approved by the chairman.

c)       The State Level Committee shall discharge all other functions as may be necessary and subservient to the sanction and disbursement of subsidy under this scheme and shall monitor the implementation of this scheme.  

5.       Approval of the Project

Industrial units will be eligible to get capital investment subsidy only if their projects are appraised and/or approved by the appropriate agencies. Industrial units setup without financial assistance from Financial Institutions/Bank(s) will be required to get their projects approved by the DlC / OSEDC / OFDC / Department of Tourism etc. as the case may be, depending on the nature of investment in fixed assets.  

6.       Assessment of Fixed Assets

6.1     Land  

The actual price paid for land including development charges to the extent needed for the purpose of the industrial use as assessed by Tahasildar under the appropriate rules of the Revenue Dept. will be taken into account for the purpose of assessment of capital investment subsidy. If the land is ancestral or its title is represented by sale deed or other title deeds which are old, the market value as assessed by Tahasildar under the appropriate rules of the Revenue Department will be taken in to account. In other cases, the value of the land as embodied in the sale deed will be the cost of land for the purpose of assessment. Where the land is held on lease from authorities other than government or IDCO, the same will not be considered for assessment as fixed asset.

6.2     Building

For valuation of the building, the year of construction, the type of construction and the specification of the building, and the valuation approved by OSFC for different type of construction will be taken into consideration. The valuation of civil construction like factory building, godown, office, R&D Lab, Testing Lab, Store, overhead tank, compound wall, Gate, Barbed wire, fencing & well will be made as per the proforma prescribed in Annexure-A(I). If the land is leasehold through a registered deed for a period of more than 30 years, the value of civil constructions will be considered for assessment of fixed assets for the purpose of CIS. However, rented or licensed and / or hired building will not be eligible for the assessment of CIS. In case of IDCO shed, value of shed will be taken into account. 

6.3     Plant & Machinery

a)              The value of plant & machinery as erected at factory site will be taken into account which will include the cost of productive equipment such as tools, jigs, dies, mould etc. Reasonable amount spent towards  transport charges, loading, unloading charges, insurance premium etc., paid on such assets will also be taken into account. In case of imported machinery, import duty, shipping charges, custom clearance charges and sales tax paid there on will also be taken into consideration.

 

b)              The amount invested on goods carriers to the extent they are actually utilized for transport of raw materials and marketing of the finished products will be taken into account.

 

6.4     Electrification & Installation

a)              The cost involved in electrification, wiring, installation of cables, bus bar, electrical panels (not mounted on individual machines), circuit breakers etc. which are necessarily to be used for providing electrical power to the plant & machinery will be taken into account.

b)              The cost involved in installation & erection of plant & machinery, R&D equipments/Lab equipments/Pollution control equipments, generation set (not less than 10 K.W.) transformer of adequate capacity installed as per regulation of Orissa Electricity Regulatory Commission/GRIDCO will be taken into account for assessment of fixed assets.

 

6.5     Other Fixed Assets (Misc.)

In calculating the value of other fixed assets, the amount invested on the following items will be taken into account, namely;

 

a)              R & D equipment  & Lab equipment

b)              Pollution Control equipment (certified by Orissa State Pollution Control  Board)

c)               Energy conservation equipment (certified by GRIDCO)

d)              Non-conventional Energy equipment  (certified by OREDA)

e)              Generator set not less than 10 K.W. , transformer and captive power plant (certified/approved by GRIDCO/OERC)

f)                Fire Fighting equipment/sensors for safety measures

 

The detailed valuation of plant & machinery, electrification & installation and other miscellaneous fixed assets shall be made as per the proforma prescribed at annexure-A(2). 

          The valuation of fixed assets will be supported with a certificate that the assets acquired by the industrial unit are new, the cost has been duly paid for, the assets are  required in process of operation & are found to be working from the competent authority prescribed in these rules for valuation at clause-6.7. Any portion for which subsidy has been availed under any other scheme will not be entitled for CIS.

6.6     Valuation of second-hand machinery

Subsidy under these rules shall not be permissible for investment in second hand plant and machinery and projects primarily based on second hand machinery shall not be eligible for subsidy under this Scheme. 

7.       Procedure of claiming subsidy

 

7.1           Eligible Industrial units shall submit application in the form prescribed at annexure-B(1) for claiming subsidy towards fixed capital investment along with the documents in duplicate as prescribed in check list as annexure-B(2).

7.2           Industrial units assisted by OSFC will submit their application directly to the Managing Director, OSFC / Branch Manager, OSFC as the case may be.

7.3           Industrial units which have availed of term loan sanctioned by commercial Banks or have utilised their own finance for establishment of the unit will submit their application to the DIC concerned.

7.4           Application for claiming subsidy should be submitted after investment in the fixed assets is complete and within maximum time limit of six months from the date of starting commercial production. If any unit does not apply within stipulated time the unit will not be eligible for the subsidy.

7.5           DIC/OSFC after assessment of value of total fixed capital investment should forward the application of the industrial units to OSFC within 21 days from the date of receipt of application from the promoter along with their recommendation in the form prescribed at annexure-B(3).

7.6           Application received from forwarding agencies like DIC/OSFC will be checked by OSFC, which will certify the veracity of the facts concerning the subsidy claims, and transmit the subsidy application with the supporting documents alongwith their recommendation report and a note in the form prescribed at annexure-B(3) & (4) to the Member.

7.7           The Members Secretary of SLC/ Chairman of DLC on receipt of application will scrutinise the same and place before the SLC/DLC within a period of 15 days from the date of receipt of recommendation from OSFC.

 

8.       Sanction & Disbursement of Subsidy

 

8.1           Capital investment subsidy can be sanctioned after an industrial unit starts commercial production and declaring that the unit has completed the project in all respect. But subsidy amount will only be released after the unit completes 3 years of satisfactory working from the date of production as recorded in Permanent Registration Certificate.

8.2           After sanction of the capital investment subsidy by the State Level Committee / DLC individual applications claiming subsidy will be returned to OSFC who will communicate the sanction as per annexure-C(1) to the concerned Industrial unit. The industrial unit on receipt of sanction order shall be required to execute agreement with the OSFC as per annexure – C(2) within next 15 days. The subsidy will be disbursed through the financing Agency from which the unit has availed term loan/financial assistance. In case of self financed units the subsidy amount can be disbursed directly to the unit.

 

9.               Reimbursement of Capital Investment Subsidy

9.1        The State Govt. in Industries Department will provide funds to the disbursing Agency every year. The disbursing agency (OSFC) will maintain regular accounts for each case & shall be accountable to the Audit and the State Govt. The disbursing agency will forward a list of disbursement by the 5th of every month to the Industries Department/Director of Industries & concerned DIC.

 

9.2     Audit:-The accounts maintained by the disbursing agency shall be submitted to the Govt. of Orissa within 4 months from the last date of financial year. The AG, Orissa on receipt of such reports will cause audit of the accounts.

 

10.     Recovery of Capital Investment Subsidy

In the following events or circumstances as the Capital Investment Subsidy received by an Industrial unit shall be recoverable from it under the provision of OPDR Act as arrears of land revenue, unless refunded within a period of one month from the date of an order issued to this effect by the Director of Industries/GM, DIC.

 

i)                 Where an industrial unit in the opinion of the State Level Committee has availed of the CIS by misrepresentation, fraud or by furnishing false & misleading information or by suppressing any relevant information.

ii)               Where the subsidy amount becomes recoverable in terms of the stipulation contained in clause-1(VI) (a to i) of the agreement- annexure-C(2) or the beneficiary units violate any other condition of the rules and agreement.

 

10.           Review of performance of Industries

 

This sanctioning authority i.e The Director of Industries or General Manager, D.I.C as the case may be shall conduct quarterly review on the performance of the Industries, which have availed capital investment subsidy to satisfy that there has been no violation of the condition as prescribed under the rules, or in the agreement by the units availing the subsidy.  

12.     Where any doubt arises regarding implementation of these rules, the same shall be referred to Government of Orissa in the Industries Department whose decision shall be final and binding on all the parties.

Annexure – A (1)

(See Rule 6.2)

2

PROFORMA FOR VALUATION OF CIVIL CONSTRUCTION WORK

 

1.

a)

Name of the Unit

:

 

 

b)

Name of the Proprietor / Managing Partner /  Managing Director

:

 

 

 

 

 

 

2.

New or E/M/D

:

 

 

 

 

 

3.

Period of Construction

(i) Year of Starting

:

 

 

 

 

(ii) Year of Completion

:

 

 

 

 

 

 

4.

Date of Valuation

:

 

 

 

 

 

 

5.

A - Actual Investment

(Specification and Dimension – L x B x H of Wall)

 

a)

Factory

:

 

 

b)

Godown

:

 

 

c)

Office

:

 

 

d)

R & D Lab / Testing Lab

:

 

 

e)

Store

 

 

 

f)

Well ( Bore well / Open well)

(dia x depth)

:

 

 

g)

Overhead Tank

:

 

 

h)

Compound Wall / Gate / Barbed

(Running Length & Height)

:

 

 

i)

Wire Fencing (Running Length)

:

 

 

 

 

 

 

 

B - Type of Construction

 

 

 

Sl

Items

Wall (Brick or stone in cement, lime or tile mud mortar)

Roof

 (RCC / CI / AC)

Truss

(Steel  / Wooden)

 

a)

Factory

 

 

 

 

b)

Godown

 

 

 

 

c)

Office

 

 

 

 

d)

R & D Lab / Testing Lab

 

 

 

 

e)

Store

 

 

 

 

f)

Well

 

 

 

 

g)

Overhead Tank (GI / RCC / Brick)

 

 

 

 

h)

Compound Wall / Gate / Barbed

 

 

 

 

i)

Wire Fencing (Running Length)

 

 

 

 

 

 

 

 

 

 

6.

A – Description of Building Constructed

 

 

 

 

Sl.

Item

Plinth

( L x B)

Plinth area rate of complete building in Rs./sq.ft as per approved norms of OSFC / Work Department.

Valuation

(Rs.)

 

a)

Factory

 

 

 

 

b)

Godown

 

 

 

 

c)

Office

 

 

 

 

d)

R & D Lab / Testing Lab

 

 

 

 

e)

Store

 

 

 

 

f)

Well

 

 

 

 

g)

Overhead Tank (GI / RCC / Brick)

 

 

 

 

h)

Compound Wall / Gate / Barbed

 

 

 

 

i)

Wire Fencing (Running Length)

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

B – Type of Pillars (If this is a framed structure or open type building – indicate whether pillars are with RCC / Brick / Wood / Steel)

:

 

 

 

 

 

 

 

 

 

C – Value of Electrification

 

Rs.

 

 

(See Rule 6(4) )

 

 

 

 

D – Value of Installation & erection

 

Rs.

 

 

(See Rule 6(4) )

 

Total  - (A + C + D) Rs.

 

 

            Certified that the assets as valued above were verified during my inspection on date _______ and are actually needed for set up of the industry.

 

 

 

Signature of General Manager

 

Signature of Manager

DIC

 

 

 

DIC

 

Date

 

 

 

Date

 

 

 

N.B.    1.       For items not applicable, give ‘X’.

2.               In all cases insist for a Plan (approved plan if located in Urban area)

 

 

 

Annexure – A (2)

(See Rule 6.3 to 6.5)

(Valuation of other fixed assets may be made in this format separately)

PROFORMA FOR VALUATION OF MACHINERY, TOOLS, DIES, EO, etc.

New or E/M/D

 

Sl

 

Name with detailed specifications

Name & address of

 the approved supplier

Date of Supply

Bill No. & Date

Cost

Duty / Tax/ Ins. etc.

Have you physically visited and found in order

Total cost of the assets

(6 & 7)

Remarks

1

2

3

4

5

6

7

8

9

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            Certified that the assets as above have been verified during my inspection on date._____________ and are new. Cost has been duly paid for and found to be working in the factory premises of the unit and actually required in process of operation.

 

Required certificate from competent authority against the fixed assets (see Rule 6.5) is appended to this statement.

 

 

 

Signature of Manager

 

Signature of General Manager

DIC

 

 

 

DIC

 

Date

 

 

 

Date

 

 

 

 

 

 

 

 

 

Annexure – A(2) – See Rule 6.5

 Certificate of forwarding and recommending authority (OREDA) for installation of

Non-conventional Energy Equipment.

 

            Certified that the application of M/s. _____________________________________________________ located at ______________________ Dist _________________ has been verified and the details of installation of Non-conventional Energy Equipment is as follows :

Sl

Name of Machinery with Specification

Number

Bill No. & Date

Cost / Value (Rs.)

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

4

 

 

 

 

5

Cost of installation

 

 

 

 

Total

 

 

 

 

          Certified that the unit has been installed above mentioned Non-conventional Energy and is eligible for subsidy as other fixed assets (see Rule 6.5)

 

 

Signature of officer forwarding the

CIS application with date.

Signature of the Officer

(authorised by OREDA) with seal,

 

Date _____________

 

 

Annexure – A(2) – See Rule 6.5

 

Certificate of forwarding and recommending authority (GRIDCO) / OERC for installation of

Energy Conservation Equipment / Genset / Transformer / Captive Power Plant

 

            Certified that the application of M/s. _____________________________________________________ located at ______________________ Dist _________________ has been verified and the details of installation of Energy Conservation Equipment / Genset / Transformer / Captive Power Plant is as follows :

Sl

Name of Machinery with Specification

Number

Bill No. & Date

Cost / Value (Rs.)

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

4

Cost of installation

 

 

 

 

Total

 

 

 

 

            Certified that we have gone through the Energy Audit Report and physically verified the above Equipment installed by the unit, which are as per the recommendation of Energy Audit Report and are useful for conservation of energy. The above equipment have been installed after the rule came into force and the unit is eligible for subsidy as other fixed assets.

 

Signature of officer forwarding the

CIS application with date.

Signature of the Officer

(authorised by GRIDCO) / OERC with seal,

 

Date _____________

 

Annexure – A(2) – See Rule 6.5

 

Certificate from the State Prevention and Control of Pollution Board (SPCPB)

 

            Certified that the Machinery and Equipment specified below are actually installed in the Factory Premised on date. _____________ by M/s. ______________________________________ At/PO _______________________ as verified physically on date._______________ and are necessary for control and prevention of pollution.

 

 

Signature of Authorised Person of SPCPB

with Designation Seal and date.

 

 

 

Sl

Name of Machinery with Specification

Number

Bill No. & Date

Cost / Value (Rs.)

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

4

 

 

 

 

5

Cost of installation

 

 

 

 

Total

 

 

 

 

Certified that the unit has installed above mentioned pollution control and monitoring equipment is eligible for subsidy against other fixed assets (see Rule 6.5).

 

 

Signature & Designation of the Officer forwarding

the application (with office seal) & Date  

Annexure – B (1)

(See Rule 7)

APPLICATION FOR SANCTION/DISBURSEMENT OF CAPITAL INVESTMENT SUBSIDY

FOR INDUSTRIAL UNIT

 

From

          M/s.___________________________

          At/PO _________________________

          Dist. ___________________________

 

To

          The Managing Director,

          Orissa State Financial Corporation

 

Sub:   Application for 10 / 15% Capital Investment Subsidy under Rule for Capital           Investment Subsidy-2003.

 

Sir,

 

          In accordance with 10 / 15% Capital Investment Subsidy scheme, application is being submitted herewith for grant of subsidy Rs. _____________ (Rupees _________________________) only on investment in fixed capital for the unit namely M/s. __________________________________ ___________

 

1.

a.

Location of the Unit

:

 

i)

At/PO

:

 

ii)

Sub-Division

:

 

iii)

District

:

 

 

 

 

 

b.

Constitution of the Unit

(Proprietorship / Partnership / Joint Stock)

:

 

 

 

c.

Registration Number with Date

:

 

 

 

d.

New or E/M/D

 

 

 

 

e.

Item of manufacture

 Installed capacity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

f.

Employment created

:

 

 

 

g.

Name of the Financer

:

 

 

 

h.

Amount of Loan applied for

:

 

 

 

i.

Amount of Loan sanctioned

:

 

 

 

j.

Date of starting investment in Fixed Assets (Land / Building / Plant & Machinery)

:

 

 

 

k.

Date of starting commercial production New or E/M/D

:

 

 

 

 

2.       Data of financial structure of the unit in respect of fixed assets acquired :

 

Sl.

Item of Fixed Assets

As per scheme approved by Financial Institution

Actual expenditure incurred.

a.

Land

 

 

b.

Building

 

 

c.

Electrical Installation & erection

 

 

d.

Plant & Machinery  including loading, unloading, transportation, duties, tax, etc.

 

 

e.

Other miscellaneous fixed assets

 

 

f.

Contingency on building and plant & machinery

 

 

 

Total

 

 

 

3.       Means of Finance

 

Internal Resources

 

OSFC / Commercial Banks

 

Other Financing Institutions

 

Total

 

 

4.       IDCO Shed

 

a.

Type / Plinth area of Shed

 

b.

Value of Shed

 

c.

Date of purchase

 

 

5.               I / we hereby agree that I / we shall forthwith repay the amount disbursed to me / us, as with interest  prescribed by Government from time to time, if the amount 10 / 15% Capital Investment Subsidy if found to have been disbursed in excess of the amount actually admissible for whatsoever reason. 

6.               It is hereby further certified that I / We have not either applied or have received any amount by way of 10 / 15 % Capital Investment Subsidy (in case of claim for additional capital investment subsidy) the earlier amount sanctioned with date may be furnished. 

7.               I / we do hereby undertake to abide by the terms and conditions as laid down under the said scheme.

8.               I / we hereby certify that the investment in fixed assets is complete and no further claim will be lodged for additional investment, if any made in future.

 9.               This is to certify that the information furnished above are true to the best of my / our knowledge.

 

Yours faithfully,

 

Date:

Signature of the Proprietor / Managing Partner /

Managing Director In full and on behalf of

Place:

M/s

 

 

 

 

Annexure – B (2)

 

CHECKLIST FOR SCRUTINY OF CAPITAL INVESTMENT SUBSIDY

 SUBSIDY PROPOSAL 

1.

Name & Address of the Unit

:

 

 

 

 

 

 

2.

Constitution of the Firm / Ownership

:

 

 

 

3.

Registration No. & Date

:

 

 

 

4.

Item of Manufacture

:

 

 

 

5.

Date of Application

:

 

 

 

6.

Date of Commercial Production

:

 

 

 

7.

Date of first investment in Fixed Assets & its mode

:

 

 

 


 

8.

Investment in Fixed Assets

New or E/M/D

 

 

 

 

 

Original

E/M/D

Total

 

a.

Land

 

 

 

 

b.

Building

 

 

 

 

c.

Plant & Machinery

 

 

 

 

d.

Installation & Erection

 

 

 

 

e.

Electrical Installation

 

 

 

 

f.

Contingencies in Building & Machinery

 

 

 

 

g.

Other Fixed Assets

 

 

 

 

(as per proforma for valuation of civil construction work & machinery tools and Dies, etc.)

 

 

 

 

9.

Whether the criteria of expansion satisfied (increase of 25% of installed capacity)

:

 

 

 

10.

Date of sanction of Term Loan with amount

:

 

(Self / Bank / OSFC )

 

 

 

 

11.

Whether the project has been approved by OSFC / Financing Institution / GM – PM, DIC  with date of approval

:

 

 

 

12.

Means of finance & name of financing agency

 

 

 

 

 

 

a.

Self Finance

Rs.

 

 

b.

Bank Finance

Rs.

 

 

c.

OSFC

Rs.

 

 

 

13.

District under which covered

:

 

 

 

14.

Ancillary / Priority / Located in approved cluster

:

 

 

 

15.

Whether Fixed Assets have been verified, date of verification & amount

:

 

 

 

16.

Rate of Subsidy

:

 

 

 

17.

Total Amount Admissible

:

 

 

 

18.

Amount sanctioned if any earlier (SLC sanction date)

:

 

 

 

19.

Balance Admissible

:

 

 

 

20.

Present Status of the unit

:

 

 

 

21.

Documents to be furnished

:

 

i)

Ownership of land (Title Deed / Sale Deed)

 

ii)

Partnership Deed / Memorandum and Article of Association

 

iii)

Copy of PMT / PRC / IL for GOI / DGTD Certification

 

iv)

Approved Scheme/Project report

 

v)

Sanction order of the Term Loan

 

vi)

Valuation report on land & building with approval plan if located in Urban area

 

vii)

Valuation report on plant & machinery

 

viii)

Application form duly filled in

 

ix)

Annexure – B(3) as per Rule 7.5 of CIS Rules.

 

x)

Affidavit on non-availment of subsidy earlier on this project.

 

xi)

Certificate on satisfactory working  as per Rule 2(2)

 

xii)

Certificate on Ancillary / Priority status / Approved Cluster

 

xiii)

Certificate from the competent authority against the fixed assets as per Rule 6(5)

 

xiv)

All assets must be supported with documents, bills, vouchers, etc. which must be signed by the entrepreneur & countersigned by concerned GM/PM, DIC / OSFC Officer

 

xv)

A certificate that the additional investment to the extent of 33% in plant and machinery has been made of the original undepreciated book value (prior to under taking E.M.D).

 

 

 

FOOT NOTE :

 

a)                                  In case of own or ancestral land, the date of issue of PRC will be the date of first investment.

b)                                  In case, land has been purchased after issue of PRC, actual date of purchase of land will be taken as date of first investment.

 

In case, the cost of Fixed Assets acquired exceeds the schematic provisions, the reasons with justification for the excess investment should be explained while recommending the proposal.

 

a)              While making valuation of the civil construction, the period of construction should be indicated and the valuation should be done strictly as per the Schedule of Rates, approved by the OSFC corresponding to that period.

b)              In the valuation of plant & machinery, it would be certified that the acquired plant & machinery are new and that the cost has been duly paid for.

 

A certificate should be furnished by the GM/PM, DIC that the land on which the industrial unit is established, belongs to the Promoter and that the promoter is the absolute owner of the land.

 

Annexure – B (3)

(See Rule 7.5)

 

1.         The cost of the Project of M/s._____________________________________________ as given by the unit has been approved by this institution while sanctioning the term loan.

 

2.       While submitting application for provisional registration the unit furnish scheme in support of the cost of the project given above. (This relates to cases to be sponsored by DIC). 

3.       We have verified the fixed assets, acquired by the unit & the valuation of the fixed assets vis-à-vis the schematic provision is given below : 

Item of Fixed Assets

As per Scheme

Actual Expenditure incurred.

1.

Land

 

 

2.

Building

 

 

3.

Electrical Installation

 

 

4.

Plant & Machinery

 

 

5.

Installation & Erection

 

 

6.

Loading, unloading, transportation, duties, taxes, etc.

 

 

7.

Miscellaneous Fixed Assets

 

 

8.

Contingency on Building and plant & machinery

 

 

 

Total

 

 

 

4.       Fixed Capital Investment has been made for the first time for setting up the unit forwarding the application in Annexure – B(1). 

5.       1st Fixed Capital Investment has been made on ______________ by way of acquisition of land / construction of building / acquisition of plant & machinery, etc. 

 

Signature & Designation of Officer

forwarding the application with seal

 

N.B – Strike out whichever is not applicable.

 

 

 

 

Annexure – B (4)

 

ORISSA STATE FINANCIAL CORPORATION

OMP SQUARE, CUTTACK-3

(Please see Rule – 7.6)

PROFORMA FOR AGENDA NOTE TO BE SUBMITTED

TO THE STATE LEVEL COMMITTEE

 

1.

Agency for disbursement of State Investment Subsidy

:

 

 

 

2.

Name & Address of the Unit

:

 

 

 

 

 

:

3.

Location of Industrial Unit

 

 

 

:

4.

Date of Application by the Unit

 

 

 

:

5.

Date of Registration

 

 

 

:

6.

Constitution & Category

 

 

 

 

7.

a.

Whether new unit / expansion or an existing unit

:

 

b.

In case of new industrial unit, actual date of commencement of production

:

 

c.

Incase of expansion :

 

 

 

i)

Date of commencement of production of the existing industrial unit

:

 

 

ii)

Actual date of commencement of production before and after expansion

:

 

 

 

8.

SSI Registration / Industrial License no. with date thereof

:

 

 

 

9.

Date of starting fixed capital investment

:

 

 

 

10.

Employment Generated

:

 

 

 

11.

Production

:

 

Date

Value Amount (Rs.)

Evidence produced

 

 

 

 

 

 

12.

Project cost including margin for working capital

:

 

 

 

13.

Means of Finance:

:

 

Share Capital Loan

 

Amount

Remarks

 

a.

Financial Institution

 

 

b.

Bank

 

 

c.

Other Institution

 

 

d.

Internal Resources

 

 

e.

Other Capital subsidy

 

 

 

 

14.

Details of fixed capital investment submitted for approval

::

Position as  on ___________

 

Fixed Capital investment as per scheme

Actual Expenditure

Evidence produced certificate from

 

a.

Land

 

 

b.

Building (needed for the unit)

 

 

c.

Plant & Machinery

 

 

d.

Installation & Erection

 

 

e.

Loading, Unloading, Transportation, Duties, Taxes, etc.

 

 

f.

Electrification & installation

 

 

g.

Miscellaneous fixed assets

 

 

h.

Contingency

 

 

i.

Others

 

 

 

Total

 

 

 

 

 

15.

Amount of State Investment Subsidy eligible is

Rs.

 

 

(Rupees

 

 

)

 

@ 10% / 15 %.

 

 

 

 

 

a.

Amount previously sanctioned if any

:

 

b.

Balance amount eligible now

:

 

 

 

16.

In case of expansion investment before expansion and percentage of expansion

:

 

 

 

17.

Recommendations :

 

 

 

 

 

Remarks

 

 

 

 

 

 

 

18.

Default position

 

 

 

 

 

 

Signature

19.

Decision of the State Level Committee Meeting held on

 

 

 

 

 

 

 

 

 

 

Chairman / Member Secretary

 

 

State Level Committee

Annexure-C(I)

See Rule – 8 (2)

ORISSA STATE FINANCIAL CORPORATION : OMP SQUARE : CUTTACK – 753008

SANCTION ORDER

No. OSFC / SUB / _______________/ date.

 

To

          M/s.______________________

 

Sub:-  10/15% capital investment subsidy scheme. 

Ref:    Your application for capital investment subsidy.  

Dear Sir,

            We are pleased to inform you that the State Level Committee / DLC in its ___________ meeting held on __________ has sanctioned a subsidy of Rs. __________ (Rupees ______________________) only to your unit at a rate of 10/15% under the provisions of CIS Rules, 2003 as new or E/M/D.

          The said sanction of subsidy is subject to the following conditions in addition to the conditions prescribed under the scheme.

2.       From the evidence furnished by you from time to time for the purpose of sanction of subsidy, the fixed capital investment of the unit already set up has been estimated as under.

 

1.

Land

Rs

 

2.

Building & other civil construction

Rs

 

3

Plant & Machinery

Rs

 

4

Elect. & Installation

Rs

 

5

Contingency

Rs

 

6

Installation & erection of Machinery

Rs

 

7

Loading, Unloading duties- Taxes

Rs

 

8

Other Fixed assets (Misc.)

Rs.

 

 

Total

Rs.

 

 

          Based on the above, the amount of 10/15% subsidy to which you are entitled to is determined at Rs. ________________.

3.         The above sanctioned can be disbursed in full subject to availability of funds on capital investment subsidy account for your unit at _____________. An attested copy of the sanction letter of any of the bank from whom loan has been obtained for financing the project should also be furnished.

4.       You shall have to furnish advance stamped receipt in triplicate for each installment of disbursement on the following proforma on the letterhead of the unit.

          “Received with thanks from __________________________________ sum of Rs. _________ (Rupees ________________________) only by cheque /draft No. ____________dated_____________ on account of 10/15% capital investment subsidy as per the terms and conditions laid down in the agreement executed by us on _____________.

5.       You shall also have to execute an agreement and the agreement shall be on stamp paper of Rs.3/-, which shall be kept by us/ this corporation.

6.       The agreement should be executed by the proprietor, in the case of proprietory concern,

7.       In case of partnership, agreement should be executed by all the partners, however, if any one of the partner hold a general power of attorney he may execute the agreement on behalf of the remaining partners. In those case please furnish a certified copy of the partnership deed. Registered with Registrar of Firms under Indian Partnership Act, 1932.

8.       Erasures, if any should be properly, initialed No. blank should be left in the agreement and all the blanks should be filled in with proper initials.

9.       Alongwith the above agreement duly executed, you are requested to furnish a certified true copy of the resolution passed by the Board of Director of your company in the prescribed proforma enclosed herewith. (This is applicable in case of limited company).

10.     You shall also have to produce a certificate on the satisfactory working for 3 years i.e. a period of 36 months from the date of production as recorded in PMT Regd. Certificate from your finance duly countersigned by the concerned GM, DIC.  

Yours faithfully,

 

Jt. General Manager/Manager(Subsidy)

OSFC

 

 

ANNEXURE-C(2)

(See Rule-8.2)

AGREEMENT

 

            This INDENTURE made in this __________ day of  ______2003 between a private/public limited company incorporated under companies Act, 1956, a cooperative society registered under the Orissa Cooperative Society Act 1962 and having its registered office at _______

 

OR

 

Carrying on business as a sole proprietor / partners in the firm with the name and style of    M/s. ______ _____________ having its office at _________________ hereinafter called the entrepreneurs (which expression shall unless it be repugnant to the context or meaning there of be deemed to include its successor or successors and assigns / the partners for the time being of the said firm and their assigns/his/their, executors, administrators and assigns) of the first part, and the Governor of Orissa exercising the executive powers of the Government of the State of Orissa (here in after referred to as “the Governor” which expression shall unless it be repugnant to the context or meaning the thereof be deemed to include his successor of successors and assigns) of second part, and the Orissa State Financial Corporation, a Corporation established under section-3 of the State Financial Corporation Act, 1951 (hereinafter called the  Corporation) of the Third part, where as :- 

a)               The Government of Orissa have framed a scheme under Orissa Capital Investment Subsidy Rules, 2003 for the Industrial units with a view to promote growth of Industries standing therein that Government of Orissa will grant a subsidy to the parties who set up new industries in the districts of the State if the said parties satisfy the terms and conditions laid down under the said rule which shall be deemed to be a part of this agreement.

b)               The Government of Orissa (hereinafter referred to as the Government as appointed the Orissa State Financial Corporation (hereinafter referred to as the Corporation) to act as the Agent for the disbursement of the said investment subsidy.

c)               The Entrepreneurs have set up an industries at    ________ on plot No. __________ Khata No. ___________ measurement of area ______________ Mouza ______________ District __________ standing in the name of _____________ and have satisfied other conditions of the capital investment subsidy scheme and have, therefore, become entitled to the benefits under the said capital investment subsidy.

d)               The entrepreneurs by their application dated the day of ______ 200___ applied to the Government for the grant of (Rupees ______________________________________ 10/15% capital investment subsidy amounting to Rs. __________lakh (Rupees ________________) and whereas :-

i)                 Relaying on the said application and subsequent representations made by the entrepreneurs, the Government have sanctioned 10/15% capital investment subsidy of Rs. ____________ and the Corporation has agreed to pay the same on behalf of the Government to the entrepreneur on their executing the necessary documents as hereinafter appearing and creating the fixed assets to the tune of Rs. _________

 

Now this INDENTURE witness and it is hereby agreed by and between the parties hereto as under :- 

            1.         In consideration of the Government agreeing to give to the entrepreneurs under the said scheme, in such installments the Government in its sole discretion think fit, an aggregate amount of _______________ and by way of the capital investment subsidy to the entrepreneurs creating the fixed assets of Rs. ____________ for the purpose of the said unit and the entrepreneurs do and each of them do hereby covenant with the Government as under :-         

i)                 The Corporation will be entitled in its sole discretion to make disbursement of the capital investment subsidy or of any part thereof of either in one or more installments to the party on it complying with the terms & conditions of the State subsidy scheme and of this agreement.

ii)               In the event of the State Level Committee ultimately deciding for any reasons whatsoever that the entrepreneurs are entitled to a lesser amount of subsidy the excess amount of the capital investment subsidy shall be repaid by the entrepreneurs or to the corporation as agent of the Government  alongwith interest thereon  @ 12 ½% per annum or such other higher rate as the Government might decide from time to time from the date of payment of the said amount of Rs. ____________ or any part thereof paid under this agreement till the repayment.

iii)              The entrepreneurs shall duly observe and perform the covenants and the conditions to be observed and performed by him/them under the said scheme.

iv)              The entrepreneurs shall not without prior approval of the State Level Committee change the location of the whole or any part of the industrial unit or affect any substantial change in the said project within a period of 5 years from the commercial production of the unit.

v)               The entrepreneurs shall promptly furnish to the corporation/Director of Industries / Government. All the information asked for any the Director of Industries / Corporation / government and furnish to the Corporation / Government / Director of Industries certified copies of its audited balance sheet and profit & less amount within a period of 6 months from the end of the year and also such other periodicals statements in such form and by such dates as may be prescribed by the Government from time to time.

vi)              The said sum of Rs. ________________ of such part thereof as may have been till then paid by the Government to the entrepreneurs shall become forthwith repayable by the entrepreneurs to the Government in each and every of the following events namely ;-

a)              If the entrepreneurs go out of production within 5 years from the date of start of commercial production.

b)         i)          If the entrepreneur(s) change(s) the location of whole or any part of the industrial unit or effect any substantial construction or disposal of substantial part of their total fixed capital investment within a period of 5 years after going into commercial production.

ii)               If the entrepreneurs shift the registered office of the unit outside the State without taking prior permission of the State Government.

c)       If any information furnished by the entrepreneurs in his/their application for the subsidy or otherwise particularly regarding location, capital investment and production, capacity of the said unit prior to the sanctioning of the sum of Rs. ____________ as the subsidy is found to be incorrect or false or misleading and there has been suppression if any material / fact.

d)       If a distress of execution shall be levied upon any property of the entrepreneurs or any part of the said factory or a received thereof be appointed.

e)              If the entrepreneurs shall commit a breach of any one of the covenants or provisions herein contained and on his its/their part to be observed and performed.

f)                If the entrepreneurs close the said factory for a period exceeding 6 months at a time for reasons other than the labour troubles, want of electric power or raw material or shall cease to carry on business for any reason whatsoever within 5 years from the date of commercial production.

g)              If the entrepreneurs or any of them file a petition for being adjudicated as insolvent or are/is adjudicated as insolvent

h)               If any petition for winding up the entrepreneurs company is presenting to any court or the entrepreneurs company passes any resolution for being wind up.

i)                 If the entrepreneurs fail or neglect to forth with execute such further documents as may be requires by the Government or to duly comply with any direction given to it by the Government or the corporation. In each one of the aforesaid contingencies the entrepreneurs area to repay the whole amount mentioned above with interest thereon @ 12 ½% per annum or such higher rate as the Government might decide from time to time from the date of disbursement of the subsidy till the repayment.

2.       Whenever any sum due and payable by the entrepreneur under these presents shall be in arrears the same shall be deemed to be public demand and may without prejudice to any other right and the remedies of the Government be recovered from the entrepreneurs as a public demand under the Orissa Public Demand Recovery Act, 1962.

3.       The entrepreneurs shall permit any person or persons authorised by the Government in that behalf at any time and from time to time during the usual time or business to inspect and examine any part of the said factory and shall render to him/them such assistance as may be required for the Government and furnish to such person or person as aforesaid all such information relating to the said factory as may be required by such person or persons.

4.       The entrepreneurs shall observe and perform all instruction and direction that may be issued from time to time by the Government or the corporation in relation to utilisation of the said sum of Rs. ______________ and shall for 7 years hereinafter submits to the Government yearly periodical progress reports on the working of the said unit at the time and the form prescribed by Government or the Corporation.

5.               The entrepreneurs shall

a)              Further information asked for by the Government of Orissa or by the State Level Committee or by the Corporation from time to time.

b)              Furnish to the Corporation certified copies of the annual statement of accounts including the balance sheet and also periodical statements in such form and by such dates as may be prescribed by the Government or the Corporation form time to time.

c)               Furnish true copies of documents as may be required by the Government or the Corporation.

6.       The State Government shall reimburse to the corporation such amount as it may have advanced as subsidy to the entrepreneurs under the provision thereof.

7.       In the event of any dispute or difference arising between the parties hereto in respect of or in relation to this agreement or any provision herein contained either during the subsistence of this agreement or thereafter the same shall be referred to the sole arbitration or a suitable person acceptable to the entrepreneurs as well as the Government and / or the corporation or any other person nominated by Govt. and his decision thereof shall be final and binding on the parties. Such arbitration shall be under the provision of the Arbitration Act, 1940 and shall be held in Cuttack.

8.       The entrepreneurs agree that in respect of any matters arising under this agreement the courts at Cuttack along with have exclusive jurisdiction and that the entrepreneurs submit to the same will not object that the courts at Cuttack have no jurisdiction for any reason whatsoever.

9.       In the event of any action arising under any of the clause herein above the entrepreneurs agree to pay to the corporation as agent of the Government legal charges and such other costs as the corporation may be required to incur in connection with the aforesaid action.

10.     The entrepreneurs agree to bear and pay all the costs charged and the expenses incidental to the preparation and the execution of the agreement.  

In Witness whereof of  parties hereto have affixed their common seal of this writing the day and year first herein above written. 

The common seal of :

          Is there into affixed pursuant to the resolution of the Board of Directors of the company passed on the day of in the presence of who has/have put his/their signatures. 

In token of his/their presence in the presence of  

In the witness thereof the entrepreneurs have put their (Respective land here today _____ year herein above written) 

Signed and delivered by the  _________________________

With name in the presence of

 

Signature of Officer

Acting in the premises for on behalf of the Government of Orissa in the presence of

 

Witness

1.

2.

Signature of

For and on behalf of the Corporation.

Witness

1.

2.