Tuesday, December 23, 2008

Rajasthan Policies

New Hotel Policy 2006
The Tourism Policy of Rajasthan 2001 envisages creation of adequate and suitable infrastructure like accommodation, transport, communication links and other essential amenities।

The Tourism Policy of Rajasthan 2001 envisages creation of adequate and suitable infrastructure like accommodation, transport, communication links and other essential amenities. Although, Tourism Policy 2001 has identified provision of suitable accommodation for various categories of tourists as the most crucial component of tourism, however, the growth of hotel industry in Rajasthan has been dismal during the last five years. The rapid increase of tourist inflow in the State has thrown up an immediate requirement for accommodation facilities in all categories. With a view to bridging the gap between current demand and supply of hotel accommodation in Rajasthan and in view of the projected growth of tourism in the coming decade a new Hotel Policy 2006 has been announced by the State Government in June 2006. The provisions of concessions & facilities on the New Hotel Policy would apply only to new Hotels & accommodation units.

THE NEW HOTEL POLICY 2006 - PROVISIONS: -

1. State Government shall ensure easy availability of suitable lands for development of Hotel/Accommodation infrastructure by taking following steps:-

(a) JDA/UITs/Municipal Bodies /Gram Panchayats and Collectors of each district shall identify and reserve adequate land (create land bank for hotels) for setting up of hotels. Within this land Bank of hotels there shall be separate hotel land identified and reserved for the following categories of hotels namely (i) Budget hotels, 1/2/3 Star Hotels (ii) Mid-Market hotels (4 Star Hotels) (iii) Luxury hotels 5 Star / 5 Star deluxe & above.

Industrial Policy

1. PREAMBLE
1. Rajasthan has been in the forefront of Economic Reforms. It was the first State in the country to adopt the International Competitive bidding route for setting up power projects. It was also the first in the country to announce a State Road Policy, facilitating the entry of private enterprise in the Roads sector. A new, simplified Sales Tax Act has been introduced by the State Government. The Mineral, Marble and Granite policies of 1994 have promoted scientific exploration and exploitation of the State's rich minerals. The Industrial Policy 1994 has brought about a significant change in its investment climate. The Rural Non Farm Policy of 1995 - the first of its kind in the country - has helped focus efforts on growth and employment through rural industrialisation.

2. With a series of policy initiatives taken in the last few years, most roadblocks to the private sector's entry in Infrastructure have been removed. The State is poised for significant developments in the Power Sector. The prospects for development of Solar energy are promising. There are indications of a significant oil and natural gas reserve, which could change the face of Western Rajasthan's economy.

3. Rajasthan is now among the six fastest growing States of the country. Its Eighth Plan Outlay constituted an increase of 283% over that of the Seventh Plan. During the past five years the average growth rate of investment in the large and medium sector has been 33% and in the SSI sector over 15%. Over the same period, exports from the State have grown at an annual average rate of 53%.

4. The experience of implementing the State's 1994 Industrial Policy has also brought to light certain deficiencies and practical problems, which need to be redressed. There are areas like Infrastructure and Human Resource Development which require even greater attention than has been accorded in the past. The New Industrial Policy of the State is thus an exercise to reflect these developments and to launch new initiatives to take advantage of the emerging opportunities.

2. OBJECTIVES
The principal objective of the new Policy is to make Rajasthan the most preferred State for investment in the identified sectors and to ultimately achieve global competitiveness. While governed by this basic goal, the Policy will lay special emphasis on accelarating the overall pace of Industrial growth, increasinemployment opportunities, improving productivity, ensuring sustainable development and strengthening the SSI, Tiny and Cottage Industry sector.

3. STRATEGY
1. The above objectives will be achieved by adopting a strategy which enables focussed growth. Thus, the new strategy envisages development of clusters offering economies of agglomeration and thrust sectors.
2. The task of improving infrastructure would be given the highest priority. The plans for infrastructure development will take into account the resource endowment and the growth potential of each area.
3. Special emphasis will be given to the development of Thrust sectors, which have been identified keeping in view their infrastructural requirements, growth potential and the capacity to generate employment.
4. Simplification of rules and procedures, timely and smooth delivery of services will receive continued attention. Special efforts will be made for developing Government - Industry partnership in the implementation of the Policy.
5. Greater emphasis will be laid on development of human resources for emerging requirements of industry.
6. The basic approach of all the initiatives will be to encourage increasingly greater participation of private enterprise in the State's economic growth.

4. INFRASTRUCTURE

The overall approach towards the development and upgradation of infrastructure will be a combination of optimum utilization of the State's resources and involvement of the private sector. Specific measures will be taken to develop. Sectoral Clusters taking into account the needs of the targetted industry.
1. Board of Infrastructure Development and Investment
The Board of Investment has been reconstituted as the Board of Infrastructure Development and Investment to ensure greater focus on industry-related infrastructure. It will ensure formulation of perspective plans for different regions, inter-sectoral co-ordination and effective monitoring for timely provision of facilities in industrial areas.
2. Project Development Corporation
Based on the Memorandum of Understanding signed with Infrastructure Leasing and Financial Services Limited (IL&FS) and Housing Development and Finance Corporation (HDFC) a Project Development Corporation (PDCOR) has been set up in the private sector, with equity partcipation by the State Government. The company will offer Investment Banking Reports on commercially profitable projects, tie up finances and offer projects for implementation to prospective investors.
3. Establishment of Business Centres
In important industrial areas of the State, establishment of Business Centres in the private sector will be encouraged. Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO) will provide land and/or buildings for these Centres where facilities like office and conference space, telephone, fax and photo copying facilities etc. would be available to entrepreneurs.
4. Special Industrial Complexes
Special Industrial Complexes are being developed in the State by RIICO to meet the requirements of specific industries, paticularly of thrust sectors, at the following locations :

1. 1. Gems & Jewellery EPIP & Gem Park, Jaipur
2. Hosiery Chopanki, Bhiwadi
3. Auto Ancilliary Ghatal (Bhiwadi) & Sitapura (Jaipur),
4. Ceramics Khara, (Bikaner)
5. Software Technology EPIP, (Jaipur)
6. Electronics & Telecomm. Kukas, (Jaipur)
7. Textiles Bhilwara, Sanganer, Sitapura, Pali, Jodhpur, Balotra
8. Agro Industries IGNP Area
9. Leather Manpur-Macheri
10. Wool Industries Beawar, Bikaner
11. Handicrafts Shilpgram, (Jodhpur and Jaisalmer)
12. Dimensional Stone Kishangarh, Udaipur, Chittorgarh

5. Other Related Aspects
1. Efforts will be made to reduce project implementation time through provision of essential infrastructure facilities like roads, power, street lights and water supply. An industrial area will be declared as developed after these specific facilities have been provided. Service charges will be recovered only with effect from the date of declaration of the industrial area as developed. Missing links in the existing industrial areas would be identified and steps taken to provide the required facilities.

2. Efforts would be made to provide social infrastructure facilities like housing, schools, hospitals/dispensaries, shopping centres etc. in important industrial areas. Some of the industrial areas would be developed as industrial townships.

3. The Industrial Complexes being developed in the National Capital Region of the State would be further strengthened in terms of infrastructure facilities.

4। The entire belt around N.H.8 from Jaipur to Bhiwadi would be taken up for integrated industrial development. A blue print for development of industrial townships in this belt would be prepared keeping in view the increased flow of investments in this region.

Road Policy

The rates of toll have been revised so that the investment can be recouped in 10-15 years itself - matching the maturities of usual long-term loans that are provided to such projects।

In 1994, the State Government promulgated the Policy on Road Development in Rajasthan. The policy envisages the connecting of villages in areas deficient in roads, connecting panchayat headquarters, developing and strengthening the medium and low density traffic roads and construction of interstate links and bridges.

The private sector is being invited to participate in the construction of financially-viable bridges bypasses, Rail Over-Bridges (ROBs) and tunnels, etc. In such projects, investments are expected to be recovered through the levy of toll.

The rates of toll have been revised so that the investment can be recouped in 10-15 years itself - matching the maturities of usual long-term loans that are provided to such projects. The present toll rates will be increased by 30 per cent on November 1, 2000 and again by 40 per cent on November 1, 2004. A State Road Development Fund was created in 1994-95 to provide seed money/balance investment for projects backed by financial institutions.

If the private investor cannot recover the investment made in the facility within the concession period, the Government shall repay the remaining amount in the last year of the period for which finance is arranged to the private entrepreneur/financial institution.

The government will prepare the project report including the technical details. It will also arrange for acquisition of land for construction of the project, arrange to shift all utilities and make available land free from all encumbrances.
A model concession agreement has also been formulated, the key features of which are:
The Government can enter into a tripartite agreement whereby the promoter can surrender his right to construct the project and collecting the toll in case of default by the promoter, in favour of the lending institution.
The promoter can exploit wayside land to create facilities outside the road boundary and for advertising within the road boundary during the concession period.

A three-member arbitration panel to be constituted in case of any dispute.
The private sector is welcome to invest in several projects like:
Bridges on major rivers like Chambal, Parvati, Kali Sindh, Parvan, Mahi, Luni, etc.
Bypasses to major district towns on state roads and national highways.
Construction of Rail Over-Bridges (ROBs) at level crossings and tunnels on state roads and national highways.
Improvement of state highways.
Construction of wayside facilities, truck terminals and transport nagars.
Construction of urban improvement projects and urban transportation projects.
Construction of tourism-related infrastructure facilities.
Maintain-Operate-Transfer (MOT) Scheme

Under the Maintain-Operate-Transfer scheme, the entrepreneur can recover his investment by the levy of a toll। After a fixed period of time, the entrepreneur will transfer these roads back to the State. The MOT will thus enable the maintenance and development of new roads in the State without straining the financial sources of the Government.

Power Policy

Rajasthan has been recognised as one of the two leading states that have vigorously pursued power sector reforms। The focus of these reforms is to provide an environment that is conducive for private sector participation.

Rajasthan has been recognised as one of the two leading states that have vigorously pursued power sector reforms. The focus of these reforms is to provide an environment that is conducive for private sector participation. The key components of the power sector reforms are as follows.

Management of demand to conserve and promote efficient use of energy and ensure environmental protection.
Tariff reforms. First-level revision in tariffs has already been approved by the State Cabinet.

Establishment of an independent
regulatory commission to regulate the functioning of the power sector on sound commercial principles.
Unbundling the State's electricity board into separate, Government-owned generation, transmission and distribution companies.
Promotion of competition among various power sector entities.

Corporatisation and commercialisation of the emerging power sector entities to make the power sector attractive for potential investors.
The State Government will retain the role of policy formulation।

Granite Policy

In exercise of the powers conferred by rule 65A of the Rajasthan Minor Mineral Concession Rules, 1986, the State Government in the interest of mineral development, hereby notifies the procedure for grant of prospecting licence and mining lease for Granite as under,

Grant of mining lease in Government land.-
1. Mining lease in the Government land. shall be granted by method of application under Chapter-II of the Rajasthan Minor Mineral Concession Rules, 1986.

Provided that where the Government land has been reserved under rule 73 of the Rajasthan Minor Mineral Concession Rules, 1986 and existence of Granite therein has been established by a team of Superintending Mining Engineer and Superintending Geologist, the plots for mining lease shall be delineated and allotted by application.

2. The plots delineated under proviso to subclause (1) shall be notified for grant of mining lease by the Director with the prior intimation to the Government, in atleast two daily news papers having wide circulation in the State and also on website. The notification shall be published atleast 30 days before the date of receipt of applications in respect of grant of mining lease.

3. The size of plot/area shall be 3.00 hectares but it may be changed by the Director for reasons to be recorded in writing.

* Restrictions on grant and renewal of mining lease

1. Restrictions provided under rule 4 of the Rajasthan Minor Mineral Concession Rules, 1986 shall apply in respect of a mining lease granted or renewed under this notification.

2. No mining lease shall be granted unless it is satisfied that there is evidence to show that the area for which the lease is applied for has been prospected earlier for granite or the existence of granite therein has been established otherwise.

3. Mining lease shall be granted only in favour of such applicant who undertakes to deploy the mine machinery prescribed under Annexure-1 within one year from the commencement of the lease: Provided that if mine machinery prescribed. under Annexure-1 has not been deployed within the prescribed period of one year, the competent authority may allow a further period of six months on payment of a penalty equal to 50% of the annual deadrent.

4. Provided also that an area upto 50.00 hectares may be granted by State Government to a person who has made an investment exceeding RS. 10.00 Crores in mine mechanization and/or installation of processing plant(s) in the State, Explanation:- A person who has acquired land and has made atleast 50% of the capital investment envisaged in installation of gang saw/circular saw shall be deemed to have taken effective steps for the installation of such plant(s).

5. For the purpose of determining the total area referred to in sub-clause (4) the area already held under a mining lease by an applicant or by any member of his/her family individually or as a partner of a firm shall be deducted from the maximum area which could be granted.

Prospecting Licence:

1. The period for which a prospecting licence may be granted shall not exceed one year.

Provided that a prospecting licence may be renewed for a period upto one year if the competent authority is satisfied that such period is required to complete the prospecting operations.

2. An application for a prospecting licence and its renewal shall be made to the Mining Engineer/ Assistant Mining Engineer concerned in Form-A and Form-B respectively.

3. No person shall acquire one or more prospecting licences covering a total area of more than 50 hectares in the entire State. ` Provided that area that may be granted or renewed under a prospecting licence shall be 5.00 hectares or more.

4. Every such application shall be, accompanied by:

* a fee of Rs.1000/- or as enhanced by the State Government from time to time which shall not be refunded;

* a plan of the area together with description report connecting one of the corner pillars with a fixed reference point in the vicinity.

* (i) a valid no dues certificate from the Mining Engineer/ Assistant Mining Engineer concerned if the applicant holds or has held any mineral concession.

Provided that where the applicant is a partnership firm or a private limited company, such certificate shall be furnished by all partners of the partnership firm or all members of the private limited company, as the case may be;

Provided further that a properly sworn affidavit stating that no dues are outstanding shall suffice subject to the condition that the certificate required as above it furnished within sixty days from the date of application failing which the application shall become invalid;

Provided further also that where 'any injunction has been issued by a court of law or other competent authority staying recovery of any dues, the non payment thereof shall not be treated as a disqualification for the purpose of granting or renewing a prospecting licence;

Provided further also that no dues certificate shall not be required where a person has furnished an affidavit to the satisfaction of the State Government, stating that he does not or did not hold any mineral concession of any type;

1. an affidavit stating that no dues of the department are outstanding against any member of his family.

2. an affidavit giving particulars of mineral-wise areas already held by the applicant or with any person having joint interest or already granted but not executed or registered or applied but not sanctioned.

4. an affidavit to the effect that the area applied by him is a Government land and, not owned by other person or Khatedar. Provided that where the land is not owned by the applicant, has obtained surface rights over the area or has obtained the consent of the owner of the land to undertake prospecting operations.

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