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West
Bengal
IT Incentive
Scheme
GOVERNMENT OF WEST BENGAL
DEPARTMENT OF INFORMATION TECHNOLOGY
4, CAMAC STREET, 7TH FLOOR, KOLKATA-700016
NOTIFICATION
WHEREAS the State Government
had considered it necessary and expedient to draw up a comprehensive
Incentive Scheme for IT Industry and IT enabled services on the
basis of WEST BENGAL INCENTIVE SCHEME, 2001:
And whereas the Governor was pleased to introduce
the WEST BENGAL IT INCENTIVE SCHEME 2001.
And whereas the said scheme was notified on
November 13, 2001.
And whereas the said scheme was supposed to
have come into effect from 1st day of November, 2001. And whereas
the said scheme could not be made operational owing to certain
procedural anomalies in this scheme and accordingly the Governor
was pleased to introduce the WEST BENGAL IT INCENTIVE SCHEME,
2004, making suitable amendments in the scheme of 2001 and whereas
the West Bengal IT Incentive Scheme 2004 is going to expire on
31.08.09 and it is appreciated that a new scheme has to be launched
on and from 01.09.2009 now, therefore, by making suitable amendments
in the scheme of 2004, the Governor is pleased to introduce the
West Bengal IT Incentive Scheme, 2009, which follows hereunder.
1. Short Title:
This scheme may be called The West Bengal IT
Incentive Scheme, 2009 (hereinafter referred to as the IT Incentive
Scheme, 2009) for IT/IT Enabled Services Projects of large and
small-scale units (hereinafter referred to as IT Units) to be
set up in the State.
2. Commencement and Duration:
Unless specifically mentioned against the respective
items of incentives sanctioned under the IT Incentive Scheme 2009,
it shall come into effect on and from the 1st day of September
2009 in the whole of West Bengal and shall remain valid for a
period of five years ending on the 31st August 2014.
However, units, which have been set up on or
after 1st January, 2000 may be granted incentives under this scheme
as a special case subject to the condition that if these units
have drawn any incentives under the earlier scheme (West Bengal
Industrial Scheme, 2000) then such incentives may be adjusted
against the incentives which may be admissible under the new scheme.
3. Definitions:
In the IT Incentive Scheme, 2009, unless the
context otherwise requires,
i. IT Industry includes IT software and hardware;
IT software Industry means IT software, IT services and IT enabled
services, where no factory operation is involved; IT hardware
includes electronic industries.
ii. "ITeS" means Information Technology
Enabled services
iii. "State Government" means the
Government of West Bengal and "Central Government" means
the Government of India;
iv. "W.B.E.I.D.C" means the West Bengal
Electronics Industry Development Corporation Limited;
v. "State Financial Institutions"
means the W.B.I.D.C. and the W.B.F.C.;
vi. "Authorised Agent" means W.B.E.I.D.C.,
as agent specially authorized by the State Government for operation
of IT Incentive Scheme, 2009.
vii. "Unit" means any IT project in
large and small scale sector,
viii A Large or Small Unit means a unit as defined
as such by the Government of India from time to time.
ix. "New Unit" means an IT unit in
the large/small scale sector which is established and commissioned
by the entrepreneur in West Bengal for the first time on or after
the 1st September, 2004 and is registered with the WBEIDC Ltd.
x. "Existing IT Unit" means an unit
in the large/ small scale sector, which exists in West Bengal
and was functioning before it started commercial production in
its expanded portion on or after the 1st September, 2004;
xi. "Approved Project" means the IT
project of a unit and for which registration certificate and eligibility
certificate have been issued under the IT Incentive Scheme 2004;
xii. "Approved Location" means the
location of the approved project registered with the concerned
authority of the Central Government/the State Government;
xiii. "Approved Industrial Complex"
means any industrial complex set up in the public or private sector
in the State approved by the State or Central Government;
xiv. "Eligible IT Unit" means an IT
Unit in the large/small sector having registration certificate
issued by the Director of Industries / WBEIDC and eligibility
certificate by the WBEIDC.
xv. "Expansion of Existing Unit" means
expansion for the same item(s) of production/expansion of services
within existing approved capacity or for expansion for enlarged
approved capacity or for manufacture of a new item with an approved
capacity; The expansion of the existing unit will be considered
as an eligible new IT unit.
xvi. In case of expansion of an existing IT
unit, the fixed capital investment made or to be made on approved
project shall increase the total value of the fixed capital investment
of the unit by not less than 25% of the net value of fixed asset
of land, building and plant and machinery including computer hardware
and computer software as on 1st September, 2004 or Rs 50 lakh,
whichever is less.
xvii. "Expanded Portion" means the
portion expanded with additional capacity on or after the 1st
September 2004 with approval of the State Government. In the event
of an amalgamation, the amalgamated company will be eligible for
the incentive for the amalgamating company provided that amalgamating
company shall forego its incentive claim for their past operation.
xviii. The "fixed capital investment"
shall be calculated as follows:
a) Land: actual price or premium
paid for the land free hold or lease hold / and or built up space
free hold or lease hold as deemed necessary for the approved project
at the approved location by the authorized agent.
b) Building: the actual expenditure
incurred for construction of the office building, as necessary
for the approved project at the location but not residential quarters.
The interior decoration, furniture & fixture, electrical installations,
air conditions shall not come under the provision.
c) Plant & Machinery: fixed
capital investment in plant & machinery shall be calculated
as below:
The cost of plant, and machinery as erected
at the approved location, including the cost of productive equipment
such as computer hardware, computer software etc and items pertaining
to pollution abatement measures but excluding the cost of any
second hand plant and machinery, computer hardware, computer software
etc as also plant and machinery purchased and installed under
hire purchase agreement as necessary for the approved project
at the location but not residential quarters. In the case of plant
and machinery taken on lease, the leasing fees/charge shall be
taken into account, provided that on the expiry of the leasing
contract, the said plant and machinery, computer hardware, computer
software become the property of the IT unit.
d) Advances: Advances paid
to suppliers of plant and machinery for the approved project of
the eligible IT unit on or after 1st September 2004 may be taken
into account in calculating the total fixed capital investment.
However the special cases mentioned in clause 2 shall be applicable.
4. Applicability of the IT Incentive
Scheme, 2009:
The IT Incentive Scheme, 2009 shall generally
be applicable to all large and small-scale project units to be
set up and also to expansion projects of existing unit on or after
1st September 2004. However, units, which have been set up on
or after 1st January 2000 may be granted incentives under this
scheme as a special case subject to the condition that if these
units have drawn any incentives under any earlier state scheme,
then such incentives may be adjusted against the incentives which
may be admissible under the new scheme. The units may be in the
private sector, co-operative sector, joint sector as also companies/undertakings
owned or managed by the State Government.
5. Eligibility Criteria for IT Incentives
under the 2009 Scheme:
5.1 Any IT project to which this scheme applies
shall be eligible for securing an Eligibility Certificate provided;
a) the project is covered by a detailed feasibility
report / project report prepared for the purpose.
b) the project has been approved and sanctioned
by the Central Financial Institutions or the Commercial Banks
or the State Financial Institutions, recognized Pvt. Financial
Institution as the case may be. In the case of projects with arrangement
of finance from own resources, issue of Eligibility Certificate
shall be considered provided the WBEIDC is satisfied about the
arrangement of such finance.
c) In case a subsidiary company succeeds the
business of its parent company, between 1st January, 2000 and
31st August, 2004, the subsidiary company may be treated as a
special case and the eligibility for drawing the incentive shall
devolve upon the subsidiary company.
d) Division of a Company claiming incentive
which has declared to have been set up after the 1-1-2000 but
before 31/8/2004, irrespective of the date of incorporation of
the parent company, the division of the company may be considered
for incentive from a date the division has been registered with
STP, Kolkata and /or any other EOU scheme offered by Government
of India.
6. Classification of development areas
and backward areas
6.1 For the purpose of determination of types
and quantum of incentive available under the Scheme for the approved
projects, according to their location, the State shall be classified
in the following groups:
Group A - Kolkata Municipal Corporation
Group B - Howrah, Hooghly, North 24 Parganas,
South 24 Parganas (excluding the area under jurisdiction of the
Kolkata Municipal Corporation), Burdwan, Nadia and Purba Medinipur
districts.
Group C - Murshidabad, Birbhum, Purulia, Bankura,
Malda, Coochbehar, Uttar Dinajpur, Dakhin Dinajpur, Jalpaiguri,
Darjeeling and Paschim Medinipur districts.
7. State Capital Investment Subsidy:
7.1 An eligible IT unit located in a group 'A
& B' area and set up in the State on or after 1st September
2004, will be entitled to State Capital Investment Subsidy @ 7.5%
of the Fixed Capital Investment subject to a limit of Rs. 150.00
lakh payable in 5 equal yearly installments.
7.2 An eligible IT unit located
in Group C area and set up in the State on or after the 1st September
2004, will be entitled to State Capital Investment Subsidy @ 10%
of the Fixed Capital Investment subject to a limit of Rs. 250.00
lakh payable in 5 equal yearly installments.
8. Interest Subsidy/ Training Subsidy:
8.1. An eligible new IT unit for its approved
project will be entitled to Intererst Subsidy/ Training Subsidy
on the annual interest liability on the Term Loan borrowed from
a Commercial Bank/ Financial Institution for implementation of
approved project and providing training to fresh employees for
the approved project respectively, at the rates given below;
Group A & B:-25% of the
annual liability on the Term Loan borrowed for an approved project
and Rs. 20,000/- or one month salary whichever is lower to a maximum
750 candidates subject to a ceiling of Rs. 150.00 lakh per year
for five years.
Group C: - 25% of the annual
liability on the Term Loan borrowed for an approved project and
Rs. 20,000/- or one month salary whichever is lower to a maximum
750 candidates subject to a ceiling of Rs. 150.00 lakh per year
for seven years. However the Training Subsidy ceases on 31st March,
2013 while the Interest Subsidy will continue to be operating
further.
8.2. A separate scheme, has
been formulated to assist IT & ITeS companies to develop Human
Resource and generate employment in the state, will also run concurrently
under the name and style as “West Bengal Scheme of Assistance
to IT and ITeS for Human Resource Development 2008” effective
from 1st April, 2008 and shall remain valid for a period of five
years ending on 31st March, 2013.
8.3. West Bengal Scheme of
Assistance to IT and ITeS for Human Resource Development 2008
shall be incorporated in the IT Incentive Scheme 2009 (clause
8, Interest Subsidy/Training Subsidy) under the following applicability.
The details of the scheme is under Annexure – A.
Option 1:
An eligible company may claim only “Interest Subsidy”
under IT Incentive Scheme 2009 on the Annual interest liability
on the Term Loan borrowed from a Commercial Bank /Financial Institution
for implementation of the said project. The amount is fixed at
Rs. 150.00 lakhs per year for five years for Group A and B category
locations and Rs.150.00 lakhs per year for seven years for Group
C category location.
Option 2:
An eligible company may claim only “Training Subsidy”
as enumerated in West Bengal Scheme of Assistance to IT &
ITeS for Human Resource Development – 2008. The scheme will
come into effect from 1st April, 2008 for five years only upto
31st March, 2013. However the earliest period of start of training
for consideration of Training Subsidy will be on or after 01.01.2007.
The amount is fixed at Rs. 150.00 lakhs per year for five years
for all categories of locations A, B & C.
Option 3:
An eligible company may claim both “Interest Subsidy”
and “Training Subsidy” and such companies will be
governed by both the schemes as in OPTION 1 and OPTION 2, but
the combined limit of both the schemes shall not exceed Rs. 150.00
lakhs per year. Both the schemes will run concurrently for five
years for all the category of locations i.e. A, B & C. However
the companies falling in category C location can draw only “Interest
Subsidy” for further two years beyond five years.
“Provided that a unit can opt for either Option 1 or 2 or
3 as above but not any two or three simultaneously and that the
option has to be clearly exercised before claiming any subsidy
either of the Schemes.”
9. The Interest Subsidy will
be payable annually subject to submission of a statement/certificate
by the lending Banks/Financial Institution certifying that the
IT unit has paid the due interest to the institutions on the due
dates.
10. Waiver of Electricity Duty:
An eligible IT unit or ITeS unit for its approved project will
be entitled to waiver of electricity duty on the electricity consumed
for its production/operation activity for a period of 5 years
from the date of commercial production/operation.
11. Employment Generation Subsidy:
11.1 An eligible IT unit in the large and medium
scale sectors, employees of which are recruited through employment
exchange or otherwise, will be entitled to reimbursement to the
extent of 50% of the expenditure incurred by it for paying its
contribution towards Employees State Insurance (ESI) and Employees
Provident Fund (EPF) depending on the location of the unit as
follows:
i. Group 'A & B' area: 5 years;
ii. Group 'C' area: 7 years.
11.2 An eligible IT unit in
the small scale sector will be entitled to reimbursement to the
extent of 75% of the expenditure incurred by it for paying its
contribution towards Employees State Insurance (ESI) and Employees
Provident Fund (EPF) depending on the location of the unit as
follows:
i. Group 'A & B' area: 5 years;
ii. Group 'C' area: 7 years
11.3 The reimbursement of the
expenditure prescribed at the sub para 11.1 and 11.2 above will
be payable annually based on minimum statutory limit subject to
the condition that the IT unit has paid its contribution towards
ESI & EPF on due dates.
12. Refund of Stamp Duty & Registration
Fees:
12.1 An eligible IT unit irrespective of its
location will be entitled to refund of 100% of stamp duty and
registration fee required for the purpose of registration of documents
within the State relating to purchase/acquisition of land and
building for setting up of the approved project.
12.2 Notwithstanding anything
contained anywhere in the Scheme the incentive prescribed at para
12.1 above shall be admissible from 1st September 2004.
12.3 For IT enabled Services,
requirement of land will be assessed at the rate of 0.3 acre for
every 100 jobs created. If a unit acquires land in excess of this
limit no concession in respect of stamp duty and registration
fees for excess land shall be allowed.
12.4 Industrial Complex and
Centres set up with infrastructural facilities will be entitled
to refund of 50% of Stamp Duty and Registration Fee for the first
sale in relation to such Complex & Centres. This will be admissible
from the date of issue of the Notification by the Finance Department.
Infrastructure facilities must include the following
items:
(i) Road; (ii) Water Supply; (iii) Power; (iv) Drainage Facilities;
(v) Any other relevant items (vi) Land; (vii) Building; (viii)
Broad band Connectivity;.
13. Subsidy for quality improvement
in the Small Scale Sector: An eligible IT unit in the
Small Scale Sector shall be reimbursed 50% of the expenditure
up to a maximum of Rs. 5.00 lakh for obtaining ISI Certification
/ ISO 9000 for approved Institutions/ Research Laboratories.
14. Incentives for approved expansion
project of an existing unit: An existing IT unit for
its approved expansion project will be entitled to all the incentives
mentioned above in this Scheme subject to fulfillment of the conditions
prescribed for the respective item for a new unit.
14.1 IT industries on their
relocation to approved industrial complex maybe considered by
the State Government for Capital Investment Subsidy. The quantum
of subsidy will be 7.5% of fresh investment in plant and machinery,
computer hardware, computer software subject to maximum of Rs.
150.00 lakh in case of A and B category areas and 10% of fresh
investment in plant and machinery, computer hardware, computer
software in case of C category areas depending on merit of each
case to be paid in 5 equal annual installments.
15. Mega Projects: Notwithstanding
anything contained any where in the Scheme, the State Government
may consider granting special package of incentives under this
Scheme to a Mega Project on case by case basis, based on pioneer
nature of projects, locational aspects, state of the art technology,
scope of further related investment etc.
16. Power to amend and/or relax/or repeal:
Notwithstanding anything contained in any of the provisions
of the IT Incentive Scheme 2009, the State Government may act
anytime to
i. make any amendment to this Scheme or repeal
it, but the commitments already made for an approved project shall
not be affected by any such amendments or repeal:
ii. make any relaxation in applying the provision
of this Scheme but such relaxation shall be made on the merit
of the approved project in each case, as the State Government
may consider necessary and appropriate;
iii. may issue instructions and guidelines to
facilitate implementation, to remove anomalies and to clarify
interpretations of the provisions of this Scheme.
Operational Procedures of West Bengal
IT Incentive Scheme 2009
An IT Unit claiming to be eligible for incentives available under
West Bengal IT Incentive Scheme,2009 shall submit an application
to the Managing Director, West Bengal Electronics Industry Development
Corporation Ltd., Webel Bhavan, Block EP & GP, Sector –V,
Bidhannagar, Salt Lake, Kolkata – 700 091 for registration
of the unit in the Form No-1 annexed here to. Any application
submitted for registration of any project under the said Scheme
shall be treated to be validly submitted within the period of
operation of the scheme.
1.1 On receipt of application
for registration of any project, the Managing Director, WBEIDC
Ltd. shall make as expeditiously as possible, scrutiny of / enquiry
into the particulars furnished by the applicant unit and on being
satisfied that the application in terms of the provision of the
said scheme is in order, shall register the applicant unit with
a number and issue a certificate for such registration to the
applicant unit and also for issue the eligibility certified with
the concurrence of the Department of Information Technology, Govt.
of West Bengal. If, however, any application is found not to be
eligible for Registration under the IT Incentive Scheme 2009,
the MD, WBEIDC will issue a letter of rejection to the applicant
unit.
1.2 The MD, WBEIDCL shall maintain
a separate register for each district mentioning the group to
which district belongs and also enter there all relevant details
in respect of the project necessary to carry out the purpose of
the said scheme.
2. After the Registration Certificate
being issued WBEIDC Ltd. will scrutinise the particulars necessary
for issue of the eligibility certificate by them and also make
such further enquiry as may be deemed necessary in respect thereto.
If on such scrutiny/enquiry the corporation is satisfied that
such unit is eligible for one or more than one incentive available
under the terms of the scheme, an Eligibility Certificate shall
be forthwith issued by the said corporation to such applicant
unit.
3. The MD, WBEIDC Ltd. may cause
an inspection if they consider so necessary anywhere in any case
under the IT Incentive Scheme 2009.
4. An IT Unit, after receipt
of the ‘Eligibility Certificate’ from WBEIDC Ltd.
may apply for the incentives to which it may be entitled, under
West Bengal IT Incentive Scheme,2009 in the manner as prescribed
below:
4.1 State Capital Investment Subsidy:
An eligible IT unit shall submit an application to the Managing
Director, WBEIDC Ltd. in the Form No – II as appended hereto
for the purpose. The Corporation, if on scrutiny of the documents
is satisfied, will work out the admissibility of the Capital Investment
Subsidy and will as early as possible inform the applicant of
the quantum of admissibility of such subsidy and the mode of disbursement
thereof, by the Corporation.
4.2 Interest Subsidy:
An eligible IT unit may apply to the Managing Director, WBEIDC
Ltd. for Interest Subsidy on the interest liability on account
of the loan secured by the unit from Bank(s) / Financial Institution(s)
in the Form No. III. The Corporation, if satisfied about the payment
of interest to the Bank(s) / Financial Institution(s) according
to the norms of the scheme, will sanction interest subsidy in
favour of the applicant unit to be credited to its account maintained
in the concerned Bank(s) / Financial Institution(s) under an intimation
to the unit.
4.3 Waiver of Electricity Duty:
An eligible IT unit may apply to the Directorate of Electricity
Duty for waiver for electricity duty in Form No. - IV annexed
hereto with a copy to the Managing Director, WBEIDCL . The Managing
Director, WBEIDCL after receipt of copy of application from the
IT unit will cause an enquiry and ascertain the actual date of
commencement of commercial production to the IT unit and communicate
the date of commencement of commercial production of the project,
for which the benefit is claimed, to the Directorate of Electricity,
following the required norms, with a copy to the applicant unit.
4.4 Employment Generation Subsidy:
An eligible IT unit may apply to the WBEIDC Ltd. in the Form No
- V annexed hereto, for reimbursement of admissible subsidy on
account of expenditure incurred for contribution towards Employees
States Insurance and / or Employees Provident Fund with a certificate
issued by the respective authorities regarding contribution made
by them in the manner as per Annexure-A to Form No - V. The Corporation
on scrutiny of papers will sanction and disburse the subsidy as
admissible to the unit.
4.5 Refund of Stamp Duty and Registration
Fee:
An eligible IT unit may apply to the MD, WBEIDC for refund of
Stamp Duty and Registration Fee as may be admissible according
to provision of the scheme in the Form No - VI annexed hereto.
5 Capital Investment Subsidy to IT Units:
IT Industries on their relocation to approved
industrial complex, if such relocation is accompanied with modernisation,
may be considered by the State Government to Capital Investment
Subsidy. The quantum of subsidy will be 7.5% of fresh Investment
in plant and machinery, computer hardware, computer software,
subject to maximum of Rs. 150.00 lakh in case of A and B category
of areas and 10% of fresh investment in plant and machinery, computer
hardware, computer software, in case of C category areas. The
payment of subsidy shall be staggered over a period of 5 years.
5.1. The MD, WBEIDCL will verify the application
with the books of accounts of his office and if on verification
the unit is found to be eligible for Capital Investment Subsidy,
in terms of the provision of the scheme, he will record his recommendations
in the Format at Annexure - A to Form No - VII and arrange for
sanction and disbursement of the admissible Capital Investment
Subsidy to the applicant unit.
This issues with the concurrence of the Finance
Department vide their U.O No. 19, dated; 29.07.2010
By order of the Governor
SD/- SIDDHARTH
Principal Secretary to the
Government of West Bengal
ANNEX-A:
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