Investment Facilitation Mechanism                                  Government of Gujarat                             Indus...
RESOLUTIONIn view of the background narrated above, and on the basis of the recommendationof the Sub Committee on Doing Bu...
(7) "Time Limit" means period within which it is mandatory to process anddispose of the applications.3. Constitution, Powe...
vi.       to inform the applicant of the date on which the application was received by            the competent authority....
ii.     to receive applications for all clearances for setting up industrial undertaking          in the district with pro...
5. Constitution, powers, functions of High Level InvestmentFacilitation Committee :(1) It is decided to constitute a High ...
v.       to review and monitor the processing of applications by the competent            authorities, the State Committee...
7. Powers and functions of Nodal Agency: (1) The functions of the Nodal Agency shall among others include the following,  ...
2) The Nodal agency shall also place the applications before the concerned      committee for the decision on grant of in ...
12. Time limits for processing of applications:(1) The State Government may prescribe time limits for disposal of applicat...
14. Revision of district level cases by State Committee:(1) The State Committee may, either suo motto or on a reference, e...
(c) High Level Committee - All applications related to the establishment of             industrial undertakings not covere...
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Investment Facilitation Mechanism

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Investment Facilitation Mechanism - Gujarat Government Resolution

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Investment Facilitation Mechanism

  1. 1. Investment Facilitation Mechanism Government of Gujarat Industries and Mines Department Resolution No IND/102009/379948/I Sachivalaya, Gandhinagar Dated 17th July 2009Ref.: (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.PREAMBLELiberalization and globalization have had a positive impact on the industrialdevelopment in the State and have led to a substantial increase in the investmentpotential. In this context and keeping in view the rapid technological changes, it hasbeen experienced that one of the most critical reform challenges lies in improving theease 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 ablueprint for further improvement of the business environment in the State. TheState Government has taken up activities related to simplification of variousprocedures for the establishment of industries from the viewpoint of prospectiveinvestors in the Industrial Sector. A Committee on Doing Business was constitutedunder the chairmanship of the Chief Secretary vide GR dated 11th march, 2008referred to at (2) above.The issue was deliberated in the “Doing Business Committee”, which, after duedeliberations has recommended the introduction of a mechanism with the primeobjective of facilitating the ease of doing business in the State. 1
  2. 2. RESOLUTIONIn view of the background narrated above, and on the basis of the recommendationof the Sub Committee on Doing Business and in partial modification of the GRreferred to at (1) above, and after due consideration, the State Government ispleased 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, licensesand the like, by any competent authority or authorities in connection with the settingup of an industrial undertaking in the State and shall include all such clearancesrequired till the industrial undertaking starts commercial production.(2) "Competent Authority" means any department or agency of the StateGovernment, Authorized Agency, Gram Panchayat, Municipality or other local bodies,which are entrusted with the powers and responsibilities to grant or issue clearancesunder 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 StateGovernment in this regard which are engaged in manufacturing or processing orboth or providing services or doing any other business or commercial activity;(5) “In principle approval” means a general approval to an investmentproposal for facilitation purposes only and is subject to obtaining of specificclearances from concerned competent authorities.(6) "Nodal Agency" means the agency notified at the State level or at the Districtlevel under this order. 2
  3. 3. (7) "Time Limit" means period within which it is mandatory to process anddispose of the applications.3. Constitution, Powers And Functions of District InvestmentFacilitation Committee :(1) It is decided to constitute a District Investment Facilitation Committee (DistrictCommittee). 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 performthe 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. 3
  4. 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 InvestmentFacilitation 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. 4
  5. 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. 5
  6. 6. 5. Constitution, powers, functions of High Level InvestmentFacilitation Committee :(1) It is decided to constitute a High Level Investment Facilitation Committee (HighLevel 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 thefollowing 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. 6
  7. 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 StateCommittee 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. 7
  8. 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. 8
  9. 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. 9
  10. 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 aremade together with a single call letter and no separate and one by one query israised 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 ascompetent authority shall be monitored by the High Level Committee. 10
  11. 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. 11
  12. 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 aboveshall 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 DevelopmentThis issues with the concurrence of Finance Department dated 10/2/2009 receivedon 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 DepartmentCopy: 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 12

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