Chhattisgarh Logistics Park Policy
Chhattisgarh Logistics Park Policy
Department of Commerce and Industries, Chhattisgarh has launched Logistics Park Policy. The key objective of this policy is to create a leading business destination and to promote ease of doing business. Under this policy, the Government provides all factors necessary for business development, namely, good governance, infrastructure, power, stable labour eco-system, talent pool, mineral resources and forest produce. These factors enable ease of doing business in the State and attract investment for business and development purposes. In this article, we will look at the Chhattisgarh Logistics Park Policy in detail.
Know more about MSME Policy
Objectives
The objectives of the Chhattisgarh Logistics Park Policy are explained in detail below:
- To promote Logistics Service and improve storage capacity within the State
- To use Mechanized and Modern procedures in Logistic infrastructure
- To create new avenues of employment
- To encourage private investments
- To attract investment from leading industrial houses of the country
- To provide retail goods and service at reduced prices by reducing commerce and trade costs
- To improve the efficient utilization of skilled labour in the State
Chhattisgarh Logistics Park Policy
The essential features and highlights of multimodal logistics park policy are as follows:-
- Fixed Capital Investment Subsidy
- Interest Subsidy
- Exemption in Electrical Duty
- Grant for Purchase of Technology
- Employees Provident Fund (EPF)
Policy Period
Chhattisgarh Logistics Park Policy will be applicable for five years. This policy commences from 01 April 2018 and ceases on 31 March 2023.
Eligibility Criteria
The following enterprises can establish logistics Park in the State:
- Proprietary Firm
- Partnership Firm
- Cooperative Societies
- Limited Liability Companies (LLP)
- Company Organization
Essential Condition
- Applicant should have a single stretch of minimum 15 acres of land for development of Logistics parks with a minimum storage capacity of 50000 MT.
- Minimum fixed capital investment of Rs.15 crores is needed for the development of infrastructure in the park.
- The applicant organization should have a minimum net worth of Rs.7.5 Crores.
- New Logistics Park within the State will be eligible for Grant, Subsidies and incentives defined in the Chhattisgarh Logistics Park Policy.
- The applicant needs to establish a logistics park within 30 months from the date of acceptance for establishment.
- An MoU will be compulsorily executed between the Department of Commerce and Industries, GoCG and applicant after acceptance.
- Direct Industries may extend the project execution period for the maximum period of 6 months subject to merits.
- Eligibility of grants, subsidies, incentives will be subject to fulfilment of minimum employment conditions as well as minimum work performance envisaged.
- For the development of Logistics park in the State, condition of Industrial policy for minimum employment to the domicile of Chhattisgarh will be applicable, i.e., unskilled labour -90 %, skilled labour – 50% and Managerial cadre – 33%
- The Bank or Financial Institution should principally finance the logistics park project.
- The applicant needs to furnish details in a Detailed Project Report (DPR) of Logistics Park for different components with proposed capacities along with utilization schedule timelines
- Applicant availing benefit under the Logistics Park Policy will not be eligible for benefits of similar nature offered under the scheme.
- Applicant need to furnish an affidavit that built up warehousing capacity in the Logistics Park will be used for the purpose of storage only for a minimum of ten years
- The applicant has to develop warehouse and other related infrastructure and facilities as per defined standards and norms, in the absence of which applicant will be disqualified for benefits of this policy.
Components of Logistics Park
The main components of the logistic park are explained in detail below:
| Sl.No | Necessary Infrastructure | Logistics Services |
| 1 | Land | Goods transport |
| 2 | Land development | Loading, Unloading |
| 3 | Access road | Warehousing |
| 4 | Power supply | Custom and other clearances |
| 5 | Water supply | Assembling of goods |
| 6 | Internal roads and drainage | Technical testing |
| 7 | Logistics Infrastructure | Quality inspection |
| 8 | Plant and machinery | Supply chain management |
| 9 | Basic infrastructure | Facility of weighing |
| 10 | Construction of silos | Facility of Packing |
| 11 | Insurance and other related financial assistance facilities | |
| 12 | Air cargo |
Subsidy Details
Fixed Capital Investment Subsidy
|
Type of Area |
15 to 40 Acre Logistics Park |
Above 40 Acre Logistics Park |
| In industrially developing areas | 35% of eligible fixed capital investment, maximum limit Rs.10 Crores | 35% of eligible fixed capital investment, maximum limit Rs.12.50 Crores |
| In industrially backward | 40% of eligible fixed capital investment, maximum limit Rs.12.5 Crores | 40% of eligible fixed capital investment, maximum limit Rs.15 Crores |
Interest Subsidy
The rate of interest subsidy on term loan for Logistics Park is tabulated here:
|
Type of Area |
Interest Subsidy |
| In industrially developing areas | 50% of the total annual interest paid, up to 6 years, maximum limit Rs.60 lakh per annum |
| In industrially backward |
60% of the total annual interest, paid up to 7 years, maximum limit Rs.100 lakh per annum |
Electricity Duty Exemption
The electricity duty exemption will be allowed only for New Logistics Parks:
|
Type of Area |
Interest Subsidy |
| In industrially developing areas | Full exemption up to 08 years from the date of commencement of commercial activity in Logistic parks |
| In industrially backward | Full exemption up to 10 years from the date of commencement of commercial activity in Logistic parks |
Stamp Duty Exemption
Full exemption from stamp duty will be allowed for the following cases:
- Land purchased or leased subject to maximum limits in DPR
- Debt related deed documents of any Bank/Financial institution from the date of approval of debt till three years
Quality Certification Subsidy
The logistics parks established in the State will be reimbursed 60% of the amount spent, maximum Rs.1.50 lakhs for obtaining ISO and ZED certification or other internal certification.
Technical Patent Subsidy
The logistics park established in the Chhattisgarh will be promoted for patent registration. They will be reimbursed 60% of the amount spent, maximum Rs.6 lakhs per patent subject to successful patent registration
Technology Purchase Subsidy
The logistics park established in the State will be reimbursed 60% of the amount spent maximum Rs.60 lakhs on purchase of technology from the NRDC or other Government Research centres.
Differently abled Employment Subsidy
The logistics parks established in the Chhattisgarh will be encouraged to provide permanent employment to differently abled persons under the Persons with Disabilities Act, 1995, will be reimbursed 25% of the net salary /remuneration as subsidy amount.
Reimbursement of EPF Contribution
The applicant will receive the reimbursement of the employee provident fund contribution for a period of upto 05 years, maximum Rs.1 lakh /year
Reimbursement will be given as below:
- Female employee – 100%
- Male employee – 75%
Rebate in Vehicle Registration Fee
Rebate on 50% of the registration fees for registration of maximum 50 new vehicles (having a capacity of not less than 9 MT each) will be provided as per DPR.
Application Process
- For the development of new Logistics Parks at suitable places in State, expression of interest will be invited online by Commissioner or Director of Industries, which will be finalized by State Level Committee.
- After the recommendation of the State Level Committee, registration and project implementation, monitoring of selected parks will be done by Director / Commissioner Industries
- After selection, only one park in each district will be eligible for grants, relief and subsidies of first come, first serve basis.
Distribution of Fixed Capital Investment Subsidy
First Installment
30% of the grant will be issued after complementation of 40% of the total project.
Second Installment
After the completion of 75 of the total project, the applicant can get 30% of the grant.
Third Installment
After the completion of 100% of the total project, 40% grant will be issued.
- Assessment of infrastructure for the payment of the grant will be done by the agency appointed by the State Government.
- For the payment of grants, a NOC from Banks/Financial institution who sanctioned loans to the applicant will be required.
Responsibility of Logistics Park Developer
- A legal occupation of maximum 15-acre land
- The developer needs to operate/ maintain the logistics park for a minimum of 10 years. Thereafter the management of operation can be transferred to the third party after written permission of Commissioner, industries
- Non-establishment of logistics park within the prescribed time period, the disbursed grants and subsidy amount will be liable for recovery as per the land revenue arrears
- Developer need to follow the condition for providing employment in the required number to Domicile of Chhattisgarh
- The applicant has to commission the logistics park within 30 months from the date of acceptance.
Get in touch with InidaFilings to start new Logistics Park
