Investment Facilitation Mechanism - Gujarat Government Resolution

1. Investment Facilitation Mechanism
Government of Gujarat
Industries and Mines Department
Resolution No IND/102009/379948/I
Sachivalaya, Gandhinagar
Dated 17th July 2009
Ref.:
(1) Industries and Mines Department GR No. IDL/1196/506/I dated 22nd July,
1977.
(2) Industries and Mines Department GR No. IND/10/2008/148622 dated 11th
March, 2008.
(3) Industries and Mines Department GR No. IND/10/2008/251723/I dated
22nd May, 2008.
(4) Final Report of the Sub-Committee of Collectors at District Level (Doing
Business Committee) dated 30th August, 2008.
PREAMBLE
Liberalization and globalization have had a positive impact on the industrial
development in the State and have led to a substantial increase in the investment
potential. In this context and keeping in view the rapid technological changes, it has
been experienced that one of the most critical reform challenges lies in improving the
ease of doing business. While Gujarat already possesses a business friendly image,
with a view to secure the above objective, it is considered necessary to prepare a
blueprint for further improvement of the business environment in the State. The
State Government has taken up activities related to simplification of various
procedures for the establishment of industries from the viewpoint of prospective
investors in the Industrial Sector. A Committee on Doing Business was constituted
under the chairmanship of the Chief Secretary vide GR dated 11th march, 2008
referred to at (2) above.
The issue was deliberated in the “Doing Business Committee”, which, after due
deliberations has recommended the introduction of a mechanism with the prime
objective of facilitating the ease of doing business in the State.
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2. RESOLUTION
In view of the background narrated above, and on the basis of the recommendation
of the Sub Committee on Doing Business and in partial modification of the GR
referred to at (1) above, and after due consideration, the State Government is
pleased to introduce the Investment Facilitation Mechanism as prescribed below:
2. Definitions: In this Resolution, unless the context, otherwise requires,-
(1) "Clearances" means grant or issue of no-objection certificate, allotments,
consents, approvals, permissions, registrations, memorandum, enrollments, licenses
and the like, by any competent authority or authorities in connection with the setting
up of an industrial undertaking in the State and shall include all such clearances
required till the industrial undertaking starts commercial production.
(2) "Competent Authority" means any department or agency of the State
Government, Authorized Agency, Gram Panchayat, Municipality or other local bodies,
which are entrusted with the powers and responsibilities to grant or issue clearances
under the State laws.
(3) "District Investment Facilitation Committee" (District Committee) /
"State Level Investment Facilitation Committee" (State Committee) /
"High Level Investment Facilitation Committee" (High Level Committee)
means the committee constituted under this order.
(4) "Industrial Undertaking" means the undertakings specified by the State
Government in this regard which are engaged in manufacturing or processing or
both or providing services or doing any other business or commercial activity;
(5) “In principle approval” means a general approval to an investment
proposal for facilitation purposes only and is subject to obtaining of specific
clearances from concerned competent authorities.
(6) "Nodal Agency" means the agency notified at the State level or at the District
level under this order.
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3. (7) "Time Limit" means period within which it is mandatory to process and
dispose of the applications.
3. Constitution, Powers And Functions of District Investment
Facilitation Committee :
(1) It is decided to constitute a District Investment Facilitation Committee (District
Committee). Accordingly the District Committee is constituted as below:
(a) District Collector Chairman
(b) District Development Officer Vice Chairman
(c) General Manager of DIC Member Secretary
(d) Regional Manager GPCB Member
(e) Regional Manager GIDC Member
(f) Nominee of MD of concerned Electricity Member
Distribution Company
(g) Nominee of Chairman of GWSSB Member
(h) Nominee of NWRWS&K Dept Member
(i) Nominee of Commissioner Commercial Tax Member
(2) The District Committee shall exercise the following powers and perform
the following functions, namely:-
i. to meet at such times and places but at least once a month as the Chairman
of the Committee may decide and transact business as per such procedure
as may be prescribed.
ii. to receive applications for all clearances for setting up industrial undertaking
in the district with proposed investment upto the amount as may be decided
by the Government under Para 17 .
iii. to grant in principle approval for proposals upto the amount prescribed by
the Government as above, as may be possible but in any case not later than
30 days from the date of receipt of the application as per the procedures
prescribed in this regard.
iv. the competent authorities shall proceed to issue the required clearance
within the time limit stipulated under Para 12 subject to compliances by the
entrepreneur of provisions of the applicable State Laws and the rules made
there under.
v. to review and monitor the processing of applications by the competent
authorities and to forward the orders of the competent authorities to the
applicant.
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4. vi. to inform the applicant of the date on which the application was received by
the competent authority.
vii. to forward cases with remarks and relevant documents to the State Authority
for decision as per Para 13.
viii. to invite Competent authorities or experts, who are not members of the
Committee, as special invitees at any meeting of the District Committee as
desired by the Chairman or Member Secretary of the Committee.
ix. the Member of the District Committee shall attend the meeting convened
under Para 3(2)(i) personally and in case he is unable to attend the meeting,
he may depute a senior level officer with a written authorization to take
appropriate decision in the meeting.
x. such other powers and functions as may be assigned by the Government.
4. Constitution, powers and functions of State Level Investment
Facilitation Committee :
(1) It is decided to constitute a State Level Investment Facilitation Committee (State
Committee). Accordingly the State Committee is constituted as below:
(a) Additional/Principal Secretary, Industries & Mines Chairman
Department
(b) Additional/Principal Secretary, Revenue Department Member
(c) Additional/Principal Secretary, Energy & Petrochemicals Member
Department
(d) Additional/Principal Secretary, Forest & Environment Member
Department
(e) Additional/Principal Secretary, Finance Department Member
(f) Industries Commissioner Member
(g) Member Secretary, G.P.C.B. Member
(h) Managing Director, iNDEXTb Member
(i) Additional Industries Commissioner Member Secretary
(2) The State Committee shall exercise the following powers and perform the
following functions, namely:-
i. to meet at such times and places but at least once a month as the Chairman
of the Committee may decide and transact business as per such procedure
as may be prescribed.
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5. ii. to receive applications for all clearances for setting up industrial undertaking
in the district with proposed investment upto the amount as may be decided
by the Government under Para 17 .
iii. to grant in principle approval for proposals upto the amount prescribed by
the Government as above, as may be possible but in any case not later than
30 days from the date of receipt of the application as per the procedures
prescribed in this regard.
iv. the competent authorities shall proceed to issue the required clearance
within the time limit stipulated under Para 12 subject to compliances by the
entrepreneur of provisions of the applicable State Laws and the rules made
thereunder.
v. to review and monitor the processing of applications by the competent
authorities and District Committees and to forward the orders of the
competent authorities to the applicant.
vi. to inform the applicant of the date on which the application was received by
the competent authority.
vii. to forward cases with remarks and relevant documents to the High Level
Committee for decision as per Para 15.
viii. to invite Competent authorities or experts, who are not members of the
Committee, as special invitees at any meeting of the State Committee as
desired by the Chairman or Member Secretary of the Committee.
ix. the Member of the State Committee shall attend the meeting convened
under Para 4(2)(i) personally and in case he is unable to attend the meeting,
he may depute a senior level officer with a written authorization to take
appropriate decision in the meeting.
x. the State Committee shall;
(a) Consider and decide cases under Para 14;
(b) Exercise such other powers and functions as may be
assigned by the Government.
(3) The decisions of the State Committee shall be binding on the District
Committees.
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6. 5. Constitution, powers, functions of High Level Investment
Facilitation Committee :
(1) It is decided to constitute a High Level Investment Facilitation Committee (High
Level Committee). Accordingly the High Level Committee is constituted as below:
(a) Chief Minister Chairman
(b) Minister Revenue Member
(c) Minister Finance Member
(d) Minister Industries Member
(e) Minister Forests Member
(f) Chief Secretary Member
(g) Additional/Principal Secretary, Industries & Member
Mines Department
(h) Additional/Principal Secretary, Revenue Member
Department
(i) Additional/Principal Secretary, Energy & Member
Petrochemicals Department
(j) Additional/Principal Secretary, Forest & Member
Environment Department
(k) Additional/Principal Secretary, Finance Member
Department
(l) Industries Commissioner Member Secretary
(2) The State Committee shall exercise the following powers and perform the
following functions, namely:-
i. to meet at such times and places but at least once a month as the Chairman
of the Committee may decide and transact business as per such procedure
as may be prescribed.
ii. to receive applications for all clearances for setting up industrial undertaking
in the district with proposed investment upto the amount as may be decided
by the Government under Para 17 .
iii. to grant in principle approval for proposals upto the amount prescribed by
the Government as above, as may be possible but in any case not later than
30 days from the date of receipt of the application as per the procedures
prescribed in this regard.
iv. the competent authorities shall proceed to issue the required clearance
within the time limit stipulated under Para 12 subject to compliances by the
entrepreneur of provisions of the applicable State Laws and the rules made
thereunder.
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7. v. to review and monitor the processing of applications by the competent
authorities, the State Committee and the District Committees and to forward
the orders of the competent authorities to the applicant.
vi. to inform the applicant of the date on which the application was received by
the competent authority.
vii. to invite Competent authorities or experts, who are not members of the
Committee, as special invitees at any meeting of the High Level Committee
as desired by the Chairman or Member Secretary of the Committee.
viii. the Member of the High Level Committee shall attend the meeting convened
under Para 5(2)(i) personally and in case he is unable to attend the meeting,
he may depute a senior level officer with a written authorization to take
appropriate decision in the meeting.
ix. the High Level Investment Facilitation Committee shall;
(a) Consider and decide cases under Para 16;
(b) Exercise such other powers and functions as may be
assigned by the Government.
(3) The decisions of the High Level Committee shall be binding on the State
Committee and the District Committees.
6. Constitution, powers and functions of Nodal Agency:
(1) iNDEXTb shall be the nodal agency at the State level.
(2) A separate cell shall be established in iNDEXTb, which shall be headed by an
officer not below the rank of Joint Commissioner of Industries/ GM or equivalent.
(3) Operational teams each comprising 3 persons viz. an MBA, a graduate and a data
entry operator/ computer expert shall be constituted and personnel engaged by
the nodal agency on contractual basis on such terms and conditions and with
such qualifications as may be decided by the Nodal Agency.
(4) It shall be competent for the nodal agency to deploy such manpower in the state
headquarters or in the districts as it may deem fit.
(5) The State Government may also constitute a Nodal Agency at the district level as
it may deem fit.
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8. 7. Powers and functions of Nodal Agency:
(1) The functions of the Nodal Agency shall among others include the following,
namely:-
(a) to guide and assist entrepreneurs to set up industries in the State,
(b) to carry out investment promotion activities,
(c) to render necessary assistance in policy formulation for industrial
progress,
(d) to provide secretarial support to the High Level Committee , the State
Committee or, as the case may be, the District Committee ,
(e) under the superintendence, direction and control of the High Level
Committee , State Committee or, as the case may be, the District
Committee , the Nodal agency shall arrange to issue combined application
form, acknowledge all applications filed before it and shall forward the
applications to the concerned competent authority within seven working
days. The Nodal Agency shall pursue the clearance of the applications
with the competent authorities,
(f) to perform any other function as may be entrusted to it by the State
Government,
(2) The State level Nodal agency shall in addition to the functions referred to above
shall also prepare and regularly update an entrepreneurs guide providing
complete particulars relating to -
(a) State and Central Industrial policies.
(b) Procedure to obtain the required clearances from the departments
and authorities.
(c) Information on industrial status and advantages existing in the State.
(d) Salient features of Acts and the rules made thereunder applicable to
an industrial undertaking, and
(e) Any other information useful to the entrepreneurs.
8. Application for clearances:
(1) All applications for clearances shall be submitted along with the required fees and
the processing fee of the Nodal agency in the prescribed manner to the Nodal
Agency.
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9. 2) The Nodal agency shall also place the applications before the concerned
committee for the decision on grant of in principle approval.
(3) The applications shall also be forwarded by the Nodal agency to the competent
authority for processing and disposal.
(4) The Government may from time to time specify the processing fees of nodal
agencies.
9. Powers to call additional information :
(1) On receipt of an application under Para 8, the competent authority or the Nodal
Agency may, as the case may be, obtain further additional information from the
applicant as required, through the Nodal Agency, with an advance copy of the
same to the applicant.
(2) The applicant shall furnish the required information as expeditiously as possible
to the competent authority and also to the Nodal Agency simultaneously.
(3) The competent authority shall send its orders sanctioning or rejecting the
application, as the case may be, to the Nodal Agency so that the same can be
given to the applicant within the time frame prescribed.
10. Combined Application Form (CAF):
(1) The State Government may prescribe combined application forms which may
consist of existing forms or new forms in lieu of the existing forms and may
prescribe the manner of submission of such forms.
(2) All Departments or competent authorities concerned shall accept such application
forms for processing and issue of required clearance.
11. Self certification:
(1) Every entrepreneur or his authorized representative shall furnish a 'Self
Certification' in such form as may be prescribed at the time of submitting the
application form to the Nodal Agency.
(2) The self certification furnished by the entrepreneur or his authorized
representative shall be accepted by the concerned Departments or the competent
authorities for the purpose of issue and granting clearance.
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10. 12. Time limits for processing of applications:
(1) The State Government may prescribe time limits for disposal of applications, not
exceeding 90 days within which it shall be mandatory to process and dispose of
applications by the competent authorities. The Government may also prescribe
time limits for disposal of the application where additional information is called
for from the applicant.
(2) The competent authority may ask for additional information at any time before
the expiry of the period stipulated for the disposal of such clearance through
the Nodal Agency with an advance copy of the same to the applicant:
Provided that the competent authority shall strictly ensure that all the queries are
made together with a single call letter and no separate and one by one query is
raised causing delay in clearance and unnecessary harassment to the applicant.
(3) After receipt of the additional information, the competent authority shall pass
orders on the application before the expiry of the prescribed time limit from the
date of receipt of such additional information.
13. Review of district level cases:
(1) The District Committee may, either suo motto or on an application, examine any
order passed by any competent authority, rejecting any clearance or approving
it, and if the District Committee considers that there are valid grounds for a
change in such decision, it shall forward such case to the Secretary of the
concerned department with remarks and relevant documents for a decision
alongwith a copy to the State Committee.
(2) The State Committee shall monitor the disposal of the cases referred to the
concerned departments.
Provided that the cases relating to the orders passed by the State Government as
competent authority shall be monitored by the High Level Committee.
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11. 14. Revision of district level cases by State Committee:
(1) The State Committee may, either suo motto or on a reference, examine any
orders passed by the District Committee and pass appropriate orders as it deems
fit and such orders shall be final.
15. Review of State level cases:
(1) The State Committee may, either sue motto or on an application, examine any
order passed by any competent authority, rejecting any clearance or approving it,
and if the State Committee considers that there are valid grounds for a change in
such decision, it shall forward such case to the Secretary of the concerned
department with remarks and relevant documents for a decision alongwith a copy
to the High Level Committee.
(2) The High Level Committee shall monitor the disposal of the cases referred to the
concerned departments.
16. Revision of State level cases by High level Committee:
(1) The High Level Committee may, either sue motto or on a reference, examine
any orders passed by the State Committee and pass appropriate orders as it
deems fit and such orders shall be final.
17. Pecuniary jurisdiction of committees:
(1) The pecuniary jurisdiction of the District, State and High Level Committees are
as under -
(a) District Committee - All applications relating to the establishment of
Micro, Small and Medium Enterprises as defined by the Micro, Small and
Medium Enterprises Development Act, 2006 and subsequent amendments
made thereto including notifications made thereunder.
(b) State Committee – All applications related to the establishment of
industrial undertakings not covered under Para 17(1)(a) and where the
investment amount does not exceed Rs. 1000 crores.
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12. (c) High Level Committee - All applications related to the establishment of
industrial undertakings not covered under Para 17(1)(a) and where the
investment amount is in excess of Rs. 1000 crores.
18. Guidelines:
1) The State Government may issue further guidelines as may be necessary to
operationalise the objectives of this resolution.
19. Expenditure:
The expenditure required to fulfill the objectives of this resolution as narrated above
shall be incurred under the budget head as mentioned below:
Demand No. 49
Major Head 2852 Industries
80 (800) Other expenditure
(24) IND-5 Promotional efforts for Industrial Development
This issues with the concurrence of Finance Department dated 10/2/2009 received
on the file No. MIS/102008/2977/G of this Department.
By order and in the name of the Governor of Gujarat.
(Shridevi Shukla)
Deputy Secretary to Government of Gujarat
Industries and Mines Department
Copy:
1. Secretary to H.E. Governor*
2. Principal Secretary to Hon. CM
3. Advisor to CM
4. Personal Secretary to all Hon. Ministers
5. Under Secretary to the Chief Secretary
6. Principal Secretary, Finance Department
7. Industries Commissioner
8. Commercial Tax Commissioner, Ahmedabad
9. Managing Director iNDEXTb
10. All Boards & Corporations of I & M Dept.
11. Accountant General Ahmedabad/Rajkot*
12. All Officers of I & M Dept.
13. All Branches of I & M Dept.
14. Select File
* by letter
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