State Level Best Practices for Investment Promotion
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Transcript of State Level Best Practices for Investment Promotion
State Level Best Practices for Investment Promotion At present, 10 state-level best
practices are being studied by DIPP
These best practices will be carefully documented for nationwide replication
Sources used for identifying these practices include:
NIUA Study (2008) World Bank ‘Doing
Business’ report (2009) Surveys by CII Presentations made by
states
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Construction Permits
Property Registration
Paying Taxes
State-level Single Windows
Planned Industrial Development
Breakup of 10 Best Practices
Identified Best Practices
GIS System, Bhubaneshwar Development Authority
E Stamping, New Delhi
Land Acquisition Package,Haryana
Water & Sewerage connection and Occupancy Permit, Greater Noida
Registering, filing & payment of state V.A.T and CARD, Andhra Pradesh
Standardization of Property Documents, Rajasthan
SIR Ordinance, Gujarat
Single Window System for Industries, Orissa
List of Best PracticesProcedure Best Practices Key Feature
1. Issue of Construction Permits by Area Development Authority.
‘GIS System’ of BDA (Orissa)
Comprehensive development plan for the town was integrated with Remote Sensing maps to prepare up-to-date land use map
2. Water & Sewerage Connection Greater NOIDA (UP)
Provision of water connection with all civil works is done before giving possession to allottee
3. Occupancy Permit ‘Architect on Record’ of Greater NOIDA (UP)
Approvals given on certification by Registered Architects
4. Registration, Filling and Payment of State V.A.T
Andhra PradeshSimplicity in Registration, electronic filing of return & payment of taxes
5. Encumbrance & Title Verification
CARD of Andhra Pradesh
Search of Title, Property Registration & Valuation are done electronically
List of Best PracticesProcedure Best Practice Key Feature
6. E-Stamping Delhi Secured electronic payment of stamp duty
7. Standardization of Property Documents Rajasthan
Ease of preparing property documents due to standardization of property documents
8. Land Acquisition Package Haryana
The land owners will be paid annuity for 33 years over & above the usual land compensation
9. Single Window System for Industries Orissa
Submission of composite application and single nodal point of contact
10. SIR Ordinance GujaratTo facilitate development of economic hubs as per global standards
Best Practices Relating to Construction Permits
Geographic Information System (GIS) - BDA
• GIS was developed by BDA for capturing,
managing & analyzing geographical
information such as types of land, census
tracts, sites, roads, buildings etc.
• Comprehensive development plan for the
town was integrated with Remote Sensing
maps to prepare up-to-date land use map
• Digitalization of BDA Development plans
using GIS system first implemented in
1999 and subsequently updated
constantly
Geographic Information System (GIS) - BDA
Key Benefits to Public• It is fastest to obtain land use permission (1 day) in Bhubaneshwar
In India on an average it takes 16 days to obtain land use permission
In Bhubaneshwar, it used to take 50 days to obtain land use permission
Key Benefits to Government• Helps State Revenue Authority to know the up to date
status of land utilization • Effective development control and reduction in
unauthorized constructions
GIS System - Bhubaneshwar Development Authority
Legal & Administrative Changes The Orissa Development Authorities Act, 1982 was revised to give legal status to the GIS
system
Land use information cell was established to provide information related to land use and building byelaws to the public
Proper training was provided to staff to use new computerized system
Technology Maps were digitalized using ARCINFO and ARC VIEW software
Financial Implications Project was funded by BDA internal funds
Recovery of cost planned through user fees (i.e. 100 Rs/ User)
Water & Sewerage Connection - GNIDA
Key Features• Provision of water & sewerage connection with all civil works are done before giving possession to
allottee.
• Design / Specification / Modules for water & sewer connections institutionalised according to land-use and plot sizes
• GNIDA using this practice since 1998-99
• Layout for sectors along with detailing of Water & Sewer connections to individual plots are pre planned
Key Benefits to Public• It is fastest to obtain water and sewerage
connections (7days) in Greater NOIDA
In India on an average it takes 16 days to obtain permanent water & sewerage connection
Key Benefits to Government• Pre-possession of connections avoids repetitive
road cutting at later stages
Architect on Record – Greater NOIDA (GNIDA)
Key Features GNIDA empowers the architects registered with the Council of Architecture (COA) for
sanction/ approval of Building Plans/ Occupancy Certificate on individual residential plots allotted by the authority
GNIDA using this practice since 2003 Acknowledgement of application along with checklist to the authority deemed as receipt
of Occupancy / Completion Certificate
Key Benefits to Public• Immediate grant of occupancy permit
approval facilitated by third party certification
Key Benefits to Government• No separate staff to be engaged for
granting occupancy permit
• Also no payment are required to be paid to architect by GNIDA
Best Practices Relating to Paying Taxes
Registration, Filing & Payment of State VAT in AP
Key Benefits to Dealers• Registration certificate is issued within 24
hours in case of non risk dealers• Dealers are not required to pay fee and
security deposit at the time of registration• Simplicity due to electronic payment and
filing
Key Benefits to Government• There was a 20.21% growth in tax revenues
after implementation of this system.
• Cost of tax collection came down significantly
Key Features• Registration certificates are issued through VATis, an online software application• e-Registration application software has been developed and will be launched shortly. This
will help dealers to apply for V.A.T registration online ( Internet)• Dealers can file the return through internet and e-seva centers• Dealers can view the details of returns and the payments filed by them through the internet using ‘Dealer ledger’ application facility
Registration, Filing & Payment of State VAT in AP
Legislative and Administrative changes• The Andhra Pradesh Value Added Tax (V.A.T) Act, 2005 came into force on 1 April 2005
• The V.A.T Act in Andhra Pradesh is administered by the Commercial taxes department (department to collect VAT and other taxes)
• Training was provided to tax officials prior to implementation of V.A.T
Technology• Custom build software was developed to handle registration, filing & to accept payment of
V.A.T
Best Practices Relating to Property Registration
Computer Aided Registration of Deeds (CARD) - AP
Key Features CARD is a simplified and decentralized digital property registration system through 200
Sub- Registrars’ offices (SRO) of Andhra Pradesh
This system simplifies and expedites the registration process, provides certificates for
non encumbrance and assists in market valuation of properties
In 1997 CARD system was introduced in two SRO
In 1998 CARD system was extended to about 432 SRO
CARD was adjudged one of the ten finalists in the International Innovation awards 2000
Computer Aided Registration of Deeds (CARD) - AP
Key Benefits to Public• Approximately 1 day is required to register property under CARD system
Earlier it used to take approx 17 days to register property
Key Benefits to Government• Land revenue growth of 19.75% was
recorded in the year preceding when CARD system was introduced
• Within Six months of the launch of the CARD project, about 80% of all land registration transactions were carried out electronically
3.32
9.76
19.75
% Growth (in net revenue)
1997-98 1998-99 1999-00
AP Land Registration Revenue, 1997-2000
Computer Aided Registration of Deeds (CARD) - AP
Legal & Administrative Changes The Registration Act, 1908 (Central Act), in its application to the state of AP, was amended to facilitate
for the following: • The process of registration of any category of documents may be completed and copying
done with the help of electronic devices like computers, scanners and CDs and copies preserved and retrieved when required.
• Copies of documents registered and stored electronically, retrieved, printed and certified by the sub-registrar shall be received as evidence
• The software to be used for registration shall be prescribed by the Inspector General. SROs were divided into 3 categories based on the number of documents registered and the revenue
derived from each office. One to three weeks training was organized for different categories of officers ( cost 9% of total project
cost )
Technology A 386 server operating with 14 terminals was set up at a cost of about $31,000 (Rs 13.3 lakh)
Financial Implications Initially USD US$3 million (Rs.13 crore) were spent.
E Stamping - Delhi
Key Features E Stamping is computer based stamping of documents where record keeping agency
maintains the database electronically instead of physical stamping of documents which could be forged or duplicated
Have special Security features such as optical watermark, 2D Barcode and microprint (superfine printing of important details invisible to naked eyes)
Delhi government introduced E-stamping since 1st Apr 2008 Prevented circulation of Fake Stamp papers in market
E Stamping - DelhiKey Benefits to Public
No fear of fake paper or forgery. The certificate generated is tamper proof
Certificate generated has a Unique Identification Number
Key Benefits to Government Curbs the revenue loss in future due to fake or forged stamp
papers Saving on the cost of printing and handling of Stamp papers The new system generate the audit trail, MIS reports, verify
certificate
Standardization of Property Documents -Rajasthan
Key Benefits to Public Ease of preparing property documents due to standardization of property
documents Enables self preparation of property registration documents
Key Features• Bureau of Investment Promotion of Rajasthan introduced 34 types of standardized
property registration documents
• This practice was implemented under Sarathi project which was initiated in 2003
• Time for entire process of registration was brought down from 72 hours to 25 minutes
Best Practices for State Level Single Windows
Single Window Clearance - Orissa
Key Features 18 out of 20 major approvals / clearances are provided
through single nodal point by using a Combined Application
form (CAF)
Provision for deemed approval by department/ authority, in
case the approval is not granted within the time limit specified
by GoO under Orissa Industrial (Facilitation) Rules
Single Window Clearance - Orissa
Key Benefits to Private Firms• Time Bound Clearances – Faster
clearances Concerned authority process the
application and communicate its decision to the nodal agency within the time limit specified (not to exceed 30 days from set time limit)
Key Benefits to Government• Higher industrial growth will contribute to
overall economic growth
• High rate of Orissa’s Economic growth through industrialization The economic growth rate is up from 4
% in the 1990s to about 8.5 % over the past five years
Single Window Clearance - Orissa
Legal & Administrative Changes Orissa Industries Facilitation Act (OIFA) 2004 was introduced to facilitate single window industrial
clearance Industrial promotion and Investment corporation of Orissa Ltd. (IPICOL) was designated as state level
nodal agency and high level clearance authority DIC was designated as District level Nodal Agency OIFA envisages a three-tier approval mechanism for according expeditious clearance to industrial
projects based on the level of investment. • District Level Single Window Clearance Authority (for investments up to Rs. 50 crore)• State Level Single Window Clearance Authority (for investments more than Rs.50 crore but less
than Rs. 1,000 crore)• High Level Clearance Authority (for investments more than Rs. 1,000 crore)
Financial Implications Govt. of Orissa charge process fee within Rs.l.00 lakh to Rs.2 .00 lakh depending on
the value of the application
Single Window Clearance - Orissa
Source: CII telephonic discussions with Team Orissa and State Presentations
Need for Single Window Clearance in Orissa Approximately 20 approvals are needed to set up an Industry in Orissa. To transform the state from a ‘lagging state’ to a rapidly developing industrial State.
Project Clearance
Annual Inspection
s
Annual Inspection
s
Project Clearance
Secretarial Services Project Appraisal Reports
Consultation & Escort Services Nodal
AgencyInvestors Concerned Departments
Clearance Authorities
Post Implementation Facilitation
Best practices for Planned Industrial Development
Rehabilitation & Resettlement of Land Owners - Haryana
Key Features Under this the developers are liable to pay Rs.30,000/- per acre per annum with annual
increase of Rs.1,000/- per acre for a period of 33 years for the land acquired for setting up of SEZ, technology city and park
In case of acquisition by the State Government, the payment shall be Rs 15,000 /acre per annum with an annual increase of Rs 500 / acre
The allotment of Plots will be made to each co-sharer depending upon his share in the land acquired for HUDA and HSIIDC as per scale mentioned in the entitlement
This policy is applicable to all those lands where award of compensation was announced on or after 5th March, 2005
Rationale for This Policy• To facilitate private sector developers to acquire land for industrial/ commercial purpose
Rehabilitation & Resettlement of Land Owners - Haryana
Key Benefits to Land Owners Other source of long term sustainable income in form of fixed annuity Provision of yearly increment In addition to the residential plots, commercial sites, measuring 2.75 X 2.75 mtrs. will be
allotted in HUDA sectors• Such allotment shall be made to each co-sharer provided his share exceeds 2.5 acres, otherwise
all the co-sharers will be allotted a single site
Key Benefits to Private Developers State Government assists in the acquisition of land for all the joint venture projects for
development of SEZs The State Government also assists in acquiring left out pockets to ensure contiguity of
SEZs.
Rehabilitation & Resettlement of Land Owners - Haryana
Key Benefits to Government Facilitates land acquisition by private sector - will boost industrial infrastructure
development in Haryana
As a result of Policy for Rehabilitation & Resettlement of land owners, many private
sector players have shown interest in the state for developing Industrial Model
Townships, Industrial Parks and Technology Cities through private initiatives as well
as in public private partnership
SIR Act 2009 - GujaratWhy SIR Act ?
Around 38 % of the Delhi-Mumbai Industrial Corridor (DMIC) fall in Gujarat
As part of DMIC, six mega industrial nodes (four industrial areas and two investment regions) have been proposed to be set up in Gujarat
On 6th January, 2009, the Gujarat Government promulgated a legal framework – The Gujarat Special Investment Regional Ordinance, 2009
SIR Act 2009 - GujaratKey Features
The Ordinance enables to establish, develop, operate and regulate the Special
Investment Regions in Gujarat
The state government is empowered to declare Investment Region or Industrial
Area and designate them as Special Investment Region (SIR) by notification
An Investment Region will be developed in an area of more than 100 sq. kms and
an Industrial area will be developed in an area of more than 50 sq. kms
The Ordinance provides for effective internal dispute settlement mechanism by
setting up a three tier system.
SIR Act 2009 - Gujarat
Legal & Administrative Changes The proposed structure under SIR Ordinance will comprise of an Apex Authority (GIDB), a Regional Development Authority (RDA) for each region, a Project Development Agency and project specific SPVs. The Apex Authority and RDA will make provisions for development, operation, regulation,
management, planning and to grant permission and approval for any economic activity or amenity to be established in the SIR
Key Benefits to industry/ projects
The ordinance provides for a single window clearance system
• The Apex Authority- the GIDB will be the point of contact for establishing an economic activity, infrastructure or amenity in the SIR
Key Benefits to Government It Will help government to set up world
class hubs of economic activity on the
lines of fast growing countries of the
world