Policy for Promotion of Agro-Processing and Agri-Businesses, 2010

Procedure for availing the benefits under the Policy

 

Government of Rajasthan has announced Policy for the Promotion of Agro-Processing & Agri-Businesses, 2010. (English, Hindi) (hereinafter referred to as the Policy)  The State has also announced a separate Rajasthan Investment Promotion Scheme, 2010. (hereinafter referred to as RIPS, 2010) While the RIPS, 2010 covers investments in a number of sectors, in view of special focus on agriculture, a number of additional benefits have been granted to agro-processing and agri-business enterprises  under the Policy 2010. Such enterprises would ALSO be eligible to all incentives under the RIPS, 2010.

2.         Policy for the Promotion of Agro-Processing & Agri-Businesses, 2010 is also available at the website rsamb.rajasthan.gov.in. Incentives under the Policy are available to agro-processing and agro-business enterprises listed at Annexure-I. National Industries Classification, 2008 (NIC-2008) forms the basis of classification of industries and businesses for the purpose of eligibility under the Policy. Agro-processing means processes that use agricultural products, agri-waste and intermediate agricultural products to produce products in a manner that there is transformation  in the nature of the agricultural product. There must be a change in the product classification at 6 digit level in the Indian Trade System Classification (Harmonised System) and there must be a value addition of at least 30%.

3.         Agro-processing and agri-businesses are entitled to the following incentives:

i.               Incentives under RIPS, 2010

Projects covered under this Policy are eligible for all incentives admissible under the RIPS, 2010, as amended from time to time. However, projects eligible for higher incentives under this Policy would be entitled for incentives at a higher level as per this Policy.

ii.             Additional Incentives/concessions under the Policy.

a.             Incentive for new Employment Creation (Para 8)

b.            Electricity Duty concession (Para 9)

c.             Stamp duty concession (Para 10)

d.            Concessions on land related issues (Para 11)

i.               Conversion of land

ii.             Simplified conversion process in designated agro-processing zones

iii.            Land allotment on lease basis

iv.           Exemption from the Agricultural Land Ceiling Act

v.             Extended period of lease over private land

e.             Incentive for market development and diversification (Para 12)

f.              Incentives for quality and standards (Para 14)

g.             Concession on direct purchase and market fee (Para 15)

h.             Incentive for new project development (Para 17)

i.               Incentives for ‘Early Bird’ projects (Para 18)

j.              Human Resource Development: Concessional allotment of land and incentives for training (Para 19)

k.            Infrastructure Support (Para 20)

i.               Common infrastructure projects

ii.             Centres of Excellence, Crop Development Institutes

iii.            Infrastructure support in agro processing zones

iv.           Support for Food Parks

v.             Private Mandi Yards/e-Markets

l.               Research & Development (Para 21)

m.           Venture Capital Fund (Para 22)

iii.            Incentives/assistance admissible under ongoing/specific schemes/programmes (Para 23)

4.         Implementation Mechanism: Eligibility of projects for benefits under this Policy would be considered and approved by the empowered  Committees at District and State level. The State Government has issued order dated 16.7.2010 constituting the following Committees These Committees also have the powers vested with the District Level Screening Committee and the State Level Screening Committee respectively under RIPS, 2010 and will also approve incentives to eligible enterprises under RIPS, 2010.

a.       Micro, Small and Medium Enterprises by the District Level Sanctioning Committee (DLSC) comprising of

i

District Collector

Chairperson

ii

Joint/Deputy Director Agriculture

Member

iii

Deputy Director Horticulture

Member

iv

Deputy/Assistant Commissioner, Commercial Taxes

Member

v

Senior Accounts personnel posted at district headquarter not below the rank of Treasury Officer

Member

vi

General Manager, District Industries Centre

Member Secretary

 

b.      Other than Micro, Small and Medium Enterprises by the State Level Empowered Committee (SLEC) comprising of

i

Principal Secretary/Secretary Agriculture & Horticulture

Chairperson

ii

Principal Secretary/Secretary in-charge of Finance Department or his representative

Member

iii

Principal Secretary/Secretary in-charge of Industries Department or his representative

Member

iv

Principal Secretary/Secretary in-charge of Revenue Department or his representative

Member

v

Commissioner/Director Agriculture Department

Member

vi

Director Horticulture Department

Member

Vii

Director Agriculture  Marketing

Member

vii

Administrator RSAMB

Member Secretary

Commissioner Investment & NRIs shall be a permanent invitee to SLEC.

The District Level Sanctioning Committee and the State Level Empowered Committee could invite other officials, as may be required.

 

Procedure to be followed for availing the benefits under the Policy

5.                  Exemption from Stamp duty and/or Conversion Charges: Concession from stamp duty and land conversion charges would be utilized by enterprise before the commencement of commercial production as these activities take place during the setting up of the project. Exemption from these charges would be given as per the following procedure:

(a)    Every Enterprise making investment for setting up of a New Enterprise or for Modernization/ Expansion/ Diversification under this Policy shall submit a duly completed application in Form-I, (Word; PDF) for availing exemption from Stamp duty and/or Conversion Charges. The application shall be accompanied with a copy of the project report, duly certified by a Chartered Accountant, and an affidavit in support of the facts of the application, to the Member Secretary of the concerned Committee.

(b)    Member Secretary of the concerned Committee shall register the application and a registration number shall be allotted to the proposal. The registration number will be handed over to the applicant in case the application is made in person or sent to the applicant in case application is received through mail, physical or electronic, within 7 days of receipt of the application.

(c)    Member Secretary of the concerned Committee shall as soon as possible, but not later than a week, issue an Entitlement Certificate in Form-II. (Word, PDF) This period could be extended by the Member Secretary for reasons to be recorded in writing. In no case the time for issue of entitlement certificate should exceed 30 day.

(d)    This certificate shall be valid for two years or up to the date of expiry of the operative period of the Scheme whichever is earlier. However, in case the Member Secretary of the concerned Committee is of the opinion that the Entitlement Certificate could not be utilized by the applicant investor due to reasons largely beyond his control, validity of the certificate can further be extended, for two years or up to the date of expiry of the operative period of the Scheme, whichever is earlier.

(e)    Member Secretary of the concerned Committee shall forward copies of the Entitlement Certificate in Form-II, to the concerned department/authority immediately. Thereupon, the Stamp Duty and/or Conversion Charges would be exempt to the extent as provided in Scheme and mentioned in the Entitlement Certificate.

6.                  Exemption from Electricity Duty and Mandi Fee: Exemption from electricity duty and Mandi fee are available  to the enterprise on the commencement of commercial operation. Claims for exemption from electricity duty and/or Mandi fee shall be dealt with in the following manner:

a.       Enterprises making new investment or investment for Modernization/ Expansion/ Diversification  and seeking exemption from payment of Electricity Duty and/or Mandi Fee under the Policy  should submit duly completed application in Form-I, (Word, PDF)   to the Member Secretary of the concerned Committee within 90 days of commencement of commercial production/ operation. In case the proposal has already been registered and a registration number issued, the same should be mentioned in the application form. Such application shall be accompanied with the following documents,

1.      Copy of project report duly certified by Chartered Accountant;

2.      Proof of investment;

3.      Copies of Challan for the amount of contribution of EPF and/ or ESI deposited or copy of insurance policy obtained for medical treatment;

4.      Proof of deposit of Electricity Duty/ Mandi Fee, it deposited already; and

5.      An affidavit in support of the facts of the application.

b.      Member Secretary of the concerned Committee shall register the application and a registration number shall be allotted to the proposal, if not already issued. The registration number will be handed over to the applicant in case the application is made in person or sent to the application in case application is received through mail, physical or electronic within 7 days of receipt of the application.

c.             Member Secretary of the concerned Committee shall complete the examination and inter departmental consultation, if required, in the next 30 days and place the completed application before the appropriate Committee within 45 days from the receipt of the application unless the time period is specifically extended for reasons to be recorded in writing. Every case where the time period has been extended shall be placed before the following meeting of the concerned Committee for information.

d.            Where the application has been filed beyond the time period as provided in sub-clause (a) above, the appropriate Committee having been satisfied with the genuineness of cause of delay may condone the delay not exceeding 180 days in filing of the application from the prescribed date of application.

However, in cases where the concerned Committee is satisfied with the genuineness of cause of delay of more than 180 days, it may condone the delay in filing of the application. In such cases, the total period of benefit regarding the extent of time shall be calculated from the date of the commencement of commercial production/ operation, but the flow of benefit shall take place from date of issuance of Entitlement Certificate.

e.       In case the Committee approves the entitlement of the enterprise for the benefit(s), Member Secretary of the concerned Committee shall issue Entitlement Certificate in Form-V (Word, PDF) and shall forward copies to all concerned immediately but not later than fifteen days from the date of decision taken by the Committee in its meeting, unless specifically extended for reasons to be recorded in writing.

f.        Where the Committee is of the opinion that the enterprise is not eligible to avail the benefit of the Scheme, it shall provide the enterprise an opportunity of being heard and shall record the reasons of rejection. Decision of the Committee shall be communicated by the Member Secretary of the concerned Committee in Form-XI, (Word, PDF) to the enterprise and all concerned immediately but not later than thirty days from the date of decision taken by the Committee in its meeting, unless specifically extended for reasons to be recorded in writing.

7.                  Filing Claim of Subsidies: The Policy provides for employment based capital investment subsidy to eligible enterprises. This is in addition to the investment and employment generation subsidy admissible under RIPS, 2010. These subsidies are  admissible after the commencement of commercial operations. Claims for this subsidy shall be dealt with in the following manner:

a.       The Enterprises making new investment or investment for Modernization/ Expansion/ under the Policy, shall submit duly completed application in Form-VI (Word, PDF) (For New or Sick Enterprise) or Form-VII, (For Modernisation/Expansion/Diversification) (Word, PDF), as the case may be, within 90 days of commencement of commercial production to the Member Secretary of the concerned Committee. In case the proposal has already been registered and a registration number issued, the same should be mentioned in the application form. The application shall be accompanied by the following documents:

1.      Copy of project report duly certified by Chartered Accountant;

2.      Proof of investment;

3.      Copies of Challan for the amount of contribution of EPF and/ or ESI deposited or copy of insurance policy obtained for medical treatment;

4.      Proof of deposit of VAT/CST or SGST (whenever introduced), if deposited already;

5.      An affidavit in support of the facts of the application; and

6.      Certificate of valuation by Chartered Accountant in Form-XIII, (Word, PDF) and Form-XIV, (Word, PDF) as the case may be.

7.      An undertaking that it shall provide employment to the extent of 50% in the first two years, of the maximum level of employment attained in the preceding 3 years from the date of its declaration as a Sick Industrial Enterprise, followed by 100% employment within five years, in case of revival of Sick Industrial Enterprise.

b.      The Member Secretary shall place the completed application before the appropriate Screening Committees within 45 days from the receipt of the application unless specifically extended for reason to be recorded in writing.

c.    Where the application has been filed beyond the time period as provided in sub-clause (a) above, the concerned Committee having been satisfied with the genuineness of cause of delay, may condone the delay not exceeding 180 days in filing of the application from the prescribed date of application.

However, in cases where the concerned Committee      having been satisfied with the genuineness of cause of delay for more than 180 days, may condone delay in filing of the         application. In such cases, the total period of benefit regarding the extent of time shall be calculated from the date of the commencement of commercial production/ operation, but the          flow of benefit shall take place from date of issuance of Entitlement Certificate.

d.      In case the concerned Committee approves the entitlement of the enterprise for the benefit, the Member Secretary shall issue Entitlement Certificate in From-VIII, (Word, PDF) and shall forward the copies to all concerned immediately but not later than fifteen days from the date of decision taken by the Committee in its meeting, unless specifically extended for reasons to be recorded in writing.

e.       Where the concerned Committee is of the opinion that the enterprise is not eligible to avail benefit of the Scheme, it shall provide an opportunity of being heard to the enterprise and shall record the reasons of rejection. The decision of the Committee shall be communicated in Form-XII, (Word, PDF)  by the Member Secretary of the committee to the enterprise and all concerned immediately but not later than thirty days from the date of decision taken by the Committee in its meeting, unless specifically extended for reasons to be recorded in writing.

8.                  Procedure for Disbursement of Capital Investment and Employment Linked Subsidy

a.       The enterprise to whom an entitlement certificate has been issued will apply for disbursement of subsidy in Form-IX (Word, PDF) to Assistant Commissioner/ Commercial Taxes Officer of the area where the enterprise is registered with the Commercial Taxes Department along with proof of deposit of tax and copy of Challan for the amount of contribution of EPF and/or ESI or copy of insurance policy obtained for medical treatment of employees.

b.      On receipt of the application, the officer concerned shall verify the facts mentioned in the application and shall pass an order for sanction cum disbursement of Subsidy's in Form VAT-37B, within 15 days from the receipt of application, subject to availability of Budget provision.

c.       The said sanction in Form VAT-37B, shall be forwarded to the concerned Treasury Officer for deposit of subsidy amount for the subsequent tax period (s) of the applicant by way of adjustment through treasury Book Transfer (BT).

d.      The Treasury Officer shall take necessary steps to pass adjustment order Book Transfer (BT) without any delay and shall forward two copies of duly adjusted Form-VAT37B to the Assistance Commissioner/ Commercial Taxes Officer. A copy of same shall also be forwarded to the office of the Accountant General. The Assistance Commissioner/ Commercial Taxes Officer shall forward a copy of Form VAT-37B to the applicant as a proof of disbursement of subsidy.

e.       Any order passed under this clause by the Assistance Commissioner/ Commercial Taxed Officer shall be subject to the provisions of the Rajasthan Value Added Tax Act, 2003, the Central Sales Tax Act, 1956, any related to SGST (whenever introduced) and rules made there under. The provisions of Recovery and Appeal in the said Acts shall mutatis Mutandis apply for such orders.

9.                  Procedure for Disbursement of other Subsidies under the Policy

a.      Market Development & Diversification

i.        Sending samples abroad for test marketing: Application for assistance for sending samples abroad for test marketing  must be made to General Manager, RSAMB. Assistance of 50% of the cost of sending samples to one country, subject to a maximum of Rs. 50,000  per beneficiary, is admissible. The application should give details of the sample sent, country where sample was sent, details of cost incurred with documentary evidence and an undertaking that the product was not being exported to this country for. The applicant would be responsible for complying with all legal and other requirements. Assistance would be available for different products in the same other country. However assistance would not be admissible for sending the same product sample in another country.

The State Government has issued detailed guidelines, vide order dated 16.8.2010, for availing this assistance.

ii.      Export of fruits and vegetables from the State

Assistance of 20% of the FOB value or Rs. 3.50 per kg or actual freight, whichever is less, subject to a maximum of Rs. 10 lakh per beneficiary per year  would be admissible  on air freight for export of fruits and vegetables from the State. This assistance would be admissible for a period of three years. The assistance is also admissible for exports from Indira Gandhi International Airport, New Delhi besides the Jaipur International Airport.

The exporter would need to file the claim with General Manager, RSAMB within 30 days of the consignment reaching the destination in the prescribed format. The exporter may opt to file a consolidated claim every quarter. Claims received after the prescribed period shall not be entertained.

The State Government has issued detailed guidelines, vide order dated 16.8.2010, for availing this assistance.

iii.    Marketing of horticulture produce of the State

In order to promote marketing of orange, kinnow and other horticulture produce,  as the State Government may notify from time to time, in the country, the Policy provides a subsidy of 25% of rail freight subject to a maximum of Rs. 10 lakh per beneficiary per year for a period of three years. This assistance is admissible for transportation to a distance exceeding 500 km. Period of three years shall be reckoned from the date of first railway freight receipt.

Claims for this assistance should be filed with General Manager, RSAMB within 30 days of the transportation by rail giving details of the consignment sent, copies of the railway receipt and other relevant details. An option of filing a consolidated claim for every quarter is available. Claims received after the prescribed period shall not be entertained. For the purpose of this assistance only the railway freight would be considered and any surcharge, demurrage, levy, etc. would not be considered.

The State Government has issued detailed guidelines, vide order dated 16.8.2010,  for availing this assistance.

b.      Global Competitiveness, Quality & Certification

i.        Patent & Design Registration

In order to encourage Indian Industries to strive towards global competitiveness, the Policy provides for incentives for Patents, Designs and Quality Certification. An assistance of 3 times the fee paid, subject to a maximum of Rs. 1 lakh,  for getting a Patent under the Indian Patents Act or for registering design under the Indian Design Act  would be admissible.

Claims for this assistance may be made on a plain paper to the General Manager, RSAMB, giving details of the Patents and/or Designs registered under the aforesaid Acts, documentary proof of the fee paid to the concerned Agency and copy of the document registering Patent and/or design.

This assistance would be approved by the State Level Empowered Committee (SLEC).

ii.      Quality Certification

In order to encourage Indian Industries to obtain international standards in quality and thereby achieve  global competitiveness, the Policy provides for incentives for internationally accepted quality/environmental certification, viz., OHSAS, SA8000, ISO 14001,.  An assistance of 2 times the fee paid, subject to a maximum of Rs. 1 lakh,   would be admissible.

Claims for this assistance may be made on a plain paper to the General Manager, RSAMB, giving details and copy  of the Certification obtained and  documentary proof of the fee paid to the concerned Agency and copy of the document registering Patent and/or design.

This assistance would be approved by the State Level Empowered Committee (SLEC).

c.       Project Development Support

An assistance of 50% of the cost of preparing the Detailed Project Report (DPR), subject to a maximum of Rs. 5 lakh per enterprise within a period of 5 years, is admissible. This assistance will be given for projects requiring preparation of a specialized DPR

Application for sanction of this assistance may be made to General Manager RSAMB on plain paper giving details of the applicant enterprise, its area of main activity, activity proposed to be taken up for which a DPR is required along with justification, agency to which the preparation of DPR has been assigned, basis for selection of the agency, cost of preparation of DPR to be paid to the agency, time for completion of DPR, and status of work. RSAMB may also prescribe the format of application for this assistance. However, at this stage no format has been prescribed.

The proposal will be considered by the State Level Empowered Committee. The SLEC will after considering the proposal take a decision. SLEC may also consider the suitability of the agency to whom preparation of DPR has been assigned and may  approve the proposal subject to fulfillment of certain conditions. Decision of SLEC in this regard shall be final. In case the proposal is approved by the SLEC, the assistance will be released  only after the unit commences commercial production and subject to complying with the conditions imposed by SLEC.

The State Government has, vide order dated 16 August 2010, issued detailed guidelines for availing assistance for preparation of DPR.

d.      Retail Marketing of Fresh and Processed Fruits and vegetables

In order to encourage setting up of chains of established retail outlets in processed food and fresh fruits and vegetables, the Policy extends the benefits under RIPS., 2010 to such enterprises provided the share of these products is at least 80% in their annual turnover.

Application for subsidy and incentives under this category may be made as per the procedure prescribed for the respective item, viz., Investment, Employment Generation Subsidy, exemption from electricity duty, Mandi Fee as per outlined earlier. After sanction, this amount would be disbursed through the Department of Agriculture.

e.      Early Bird Projects

The Policy at para 17 provides for higher level of incentives for ‘early bird’ projects, which have an investment of Rs. 25 crore or more and come into commercial production by 31 March 2012. While the benefits of electricity duty and Mandi fee will be availed after the commencement of commercial production, the benefits for stamp duty and land conversion charges would be availed before the commencement of commercial production. In this case since higher level of incentives are linked with the condition of minimum investment and commencement of commercial production, which can be ascertained only at the time of commercial production, it has been decided that projects claiming benefits under the ‘early bird’ category would be in the first instance allowed concessions available to early bird projects with the condition that the promoter would give an undertaking to the effect that in case the conditions for early bird projects were not met, the excess benefits along with interest refunded. In case the conditions for early bird projects are not met, the excess amount allowed as incentives along with interest could also be recovered from the benefits admissible under the Policy and RIPS, 2010.

Notification dated 5.8.2010 for electricity duty exemption for early bird projects.

Notification dated 5.8.2010 for stamp duty exemption for early bird projects.

Mandi fee Exemption Notification for Early Bird Projects

f.        Human Resource Development

Proposal for assistance for human resource development under para 19 of the Policy should be submitted to RSAMB with necessary details including the name of  the Institute, nature of course offered, number of student, details of approval for the course by the respective regulatory body or State Government, as the case may be. The assistance would be available for three years @ Rs. 750 per trainee per month, subject to a maximum of Rs. 25 lakh per institute per year.

g.      Research & Development

An assistance of 50% of the cost of research and development projects subject to a maximum of Rs. 20 lakh per institute per year is admissible. The assistance is admissible only to the R&D projects approved by the State Level Empowered Committee. The enterprise seeking assistance under this provision must apply to the RSAMB with full details of the proposal, the sponsoring institute and heir past experience. RSAMB could prescribe a format for this purpose. At present no format has been prescribed.

The assistance would normally be admissible for a period of three years. The SLEC could considering the merits of the proposal approve the assistance for a maximum period of 5 years.  The enterprise would be required to commence the R&D activity within a period of six months from the approval of the proposal, Assistance for R&D would be released in proportion to the expenditure incurred by the enterprise, subject to a maximum of Rs. 20 lakh in a financial year. The enterprise would be required to submit half yearly reports or as prescribed by the SLEC on the progress of the R&D activity.

The State Government has, on 16.8.2010, issued detailed guidelines for availing assistance for undertaking R&D activities.

10.              Other Concessions and benefits

a.      Direct Purchase and Market Fee

Procedure for availing the concession on the Mandi fee is covered in para 7 above. Amendment to the Rajasthan Agriculture Produce Markets Act, 1961,  to permit direct purchase within the Market area is in process. Notification has been issued on  9.7.2010 under the Rajasthan Agriculture Produce Markets Act 1961 to exempt direct purchase by agro-processing  industries from mandi fee.

b.      Contract farming

Section 22N of the Rajasthan Agriculture Produce Markets Act, 1961, and Rule 7A of the Rajasthan Agriculture Produce Markets Rules, 19963 deal with contract farming. While there are no restrictions on purchase of produce under contract farming within market proper, mandi fee as prescribed is payable on such purchases.

c.       Assistance from Venture Capital Fund

Rajasthan Asset Management Company manages the SME Tech Fund RVCFII. As per the Private Placement Memorandum of the Fund, agreed upon by the various contributors, Agri-Business Units using new technologies and innovations are eligible for venture capital fiancé from the Fund.

Rajasthan Asset Management Company could be contacted at:

 

Rajasthan Asset Management Company Pvt. Ltd.

(Managers to Rajasthan Venture Capital Fund)

7th Floor, Ganga Heights,

Bapu Nagar,Tonk Road,

Jaipur, Pin:-302005 Rajasthan (India)

Phone: +91 141 4106280(D), +91 141 4076281/2/3;

Fax : +91 141 4071687; website www.rvcf.org

 

11.              Procedure for Allotment of Land for Various Activities in the Policy

a.       The Policy provides for allotment and leasing of Government land for various purposes. The State government has set up a Committee under the Administrator, RSAMB, and including Director Agriculture Marketing and General Manager, RSAMB to examine the requests for allotment of land  and to make recommendation to the Government. The State Government has also amended the guidelines for allotment of land in Mandi area and such allotment shall be made by the State Government. Land for agro-industries shall be allotted at the industrial reserve rate applicable of the nearest industrial area of RIICO.

b.      Application for allotment of land may be made in the Form-XV (Word, PDF) to General Manager, RSAMB with brief details of the promoters, proposed activity, likely investment and employment, requirement of land with justification.

c.       Land after allotment will have to be used for setting up the proposed enterprise within a period of two years failing which the allotment shall stand cancelled and the land shall vest in the Government.

d.      Agriculture Department, Government of Rajasthan, has issued Notification dated 9.7.2010 for 25% concession on the rate of land for setting up agro-processing industries in the designated areas of general APMCs, and 50% concession in case of special APMCs, using the agriculture produce from the same APMC. Such land would be required to be put to use for the purpose for which it is allotted within 2 years from the date of allotment failing which the land shall vest with the APMC concerned.

12.              Conversion of Land: Procedure for conversion of agriculture land for non agriculture purposes for setting up agro-processing and agri-business enterprises

a.       In case the enterprise chooses to utilize the land owned or procured by them for setting up the agro-processing or agri-business enterprise, they would be required to get the land converted for non agricultural purposes under the Rajasthan land revenue ( Conversion of Agricultural land for Non-Agricultural Purposes) Rules 2008. The format for applying and details to be furnished are available in the Rules.

b.      As per the Policy, the State has delegated the authority for conversion of land for setting up agro-processing and agri-business enterprises upon the District level functionaries, vide Notification dated 14.10.2010. Sub Divisional Officers are now authorized o convert land up to 10 hectares and District Collectors are authorised to convert land exceeding 10 hectares.

c.       The State Government has,  in accordance with para 11(iv) of the Policy, vide order dated  issued directions to the District Collectors to expeditiously deal with maters requiring exemption under the Rajasthan Imposition of Ceiling on Agricultural Land Act.

13.              Infrastructure Development

a.       Private Mandis: In order to strengthen marketing infrastructure and to promote efficiency and competitiveness in the marketing, the State would encourage setting up of private Mandis. In order to support the maintenance and development of these Mandis, the Government has decided to remit 20% of the Mandi fee collected and deposited with the Government to the Private Mandis. Notification to this effect has been issued on 9.7.2010 under the Rajasthan Agriculture Produce markets Act, 1961.

b.      Marketing of agricultural inputs and implements: The Policy provides that land/space on concessional rates would be provided in Mandis  to retail chains specializing in selling of products directly or indirectly used in agricultural/horticultural activities, viz., tractors, agricultural implements, inputs. Order  to this effect has been issued on 9.7.2010 to amend the Immovable property Allotment Policy 2005.Such enterprises would be eligible for allotment of land at 50% of the rates fixed by District Level Committee, being not less than the reserve rates prescribed for the nearest RIICO industrial area.

14.              Terms and conditions: Benefits under the Policy shall be subject to the following conditions:

a.       The Enterprise availing benefits shall comply with all statutory laws and regulations of the State of Rajasthan applicable to the enterprise. Non-compliance may entail cancellation/ withdrawal of the benefits under the Scheme.

b.      The Enterprise availing benefits shall be subject to the conditions, procedures, instructions, clarifications or amendments issued from time to time under the Scheme.

c.       Where on scrutiny or inspection by the officers of Commercial Taxes/ RSAMB/Agriculture Department it is found that the enterprise which has availed the benefits under the Scheme is not eligible for such benefits; a reference shall be made to the appropriate Screening Committees. On being satisfied with the genuineness of the reference the Committee may take appropriate decision including withdrawal of benefits and directions for recovery of the benefits already availed with interest@ 18% per annum.

d.      The Enterprise to which an Entitlement Certificate in Form-VIII has been issued, shall submit return(s) of turnover as prescribed under the Rajasthan Value Added Tax Act, 2003, the Central Sales Tax Act, 1956 or any Act related to SGST (whenever introduced) and shall deposit the amount of tax, electronically, in the manner as prescribed in the said Acts and rules made there under. Failure to do so may entail for non eligibility of subsidy for the quarter in which such default has been made.

e.       The Enterprise to whom an Entitlement Certificate in Form-VIII has been issued shall furnish the application in From-IX,  electronically and the Assistant Commissioner/ Commercial Taxes Officer shall pass subsidy order electronically through the official web-site of Commercial Taxes Department, in the manner prescribed, from the date as may be specified by the commissioner Commercial Taxes, Rajasthan.

f.        The Enterprise availing the benefit of subsidy may, from the date of issuance of notification by the state Government, entail the record of sale, purchase and inventory of goods on the electronic media in digital form ( on line in computer) or in the manner as may be notified by the State Government and shall provide on line access of such record to the assessing authority as prescribed in the Rajasthan Value Added Tax Act, 2003, the Central Sales Tax Act, 1956 or any Act related to SGST, to the officer authorized by the Commissioner Commercial Taxes, Rajasthan, in this behalf.

g.       The investment made and employment generated in the State of Rajasthan would only be eligible for benefits under this scheme.

15.              BREACH OF CONDITION

In case of breach of any of the condition mentioned in RIPS 2010 or the Policy for Promotion of Agro-Processing and Agri-Business 2010,  the benefits availed under the Scheme, shall be withdrawn and recovered along with interest @18% per annum from the date from which the benefits have been availed.