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