How Do I

1.1. What drives the decision of where to lease the land in DTA or SEZ in Gopalpur Industrial Park?

Gopalpur Industrial Park has earmarked 1,235 Acres for a multi-product Special Economic Zone (SEZ) and 1,735 Acres for a Private Industrial Park cum Domestic Tariff Area (DTA). A unit looking to lease land in either of the zones are eligible for various incentives by the state and federal Government but its Net Foreign Exchange (NFE) earning will have to be positive or at least $1 per Year. SEZs are generally treated as foreign territories in India, hence units in SEZs enjoy duty free imports of capital goods and raw materials required for production. They can also sell their products to local market after paying the necessary custom duties and taxes. Units in DTA will have to pay the necessary customs and duties to import capital goods and raw materials.

Please refer to the incentives section to learn more about the incentives offered by the State and Federal Government.

1.2. What are the steps to setup a manufacturing unit in DTA in Gopalpur Industrial Park?

To set up a manufacturing unit in the Domestic Tariff Area (DTA), a prospective unit holder/ customer needs to follow the steps given below.

I. APPLICATION FORM

The prospective customer will have to fill up an application form (link here) and then share with Tata Steel Special Economic Zone Limited (TSSEZL). The application form captures information related to the customer, nature of business, land and infrastructure facilities demand, project details etc. TSSEZL collects such information only to assess the feasibility of the project in Gopalpur Industrial Park and to prepare a commercial offer

II. VISIT TO THE SITE

Once TSSEZL determines that the project will be feasible, it will facilitate the site visit of the customer to Gopalpur Industrial Park. The customer will be given an overview of the various infrastructure facilities and existing operational units and the nearby social infrastructure facilities during the visit. The proposed plot options will be marked for the customer to inspect and decide.

III. COMMERCIAL OFFER

Once the customer freezes the plot option, the commercial offer is prepared. The commercial offer consists of the land premium, common infrastructure premium, premium for utility infrastructure, pay per consumption of utilities and miscellaneous fee, if any.

IV. SIGNING OF MEMORANDUM OF UNDERSTANDING (MOU)

If the customer agrees to the plot option and commercial offer, a Memorandum of Understanding (MoU) will be signed between TSSEZL and Customer. The customer will have to pay a non-refundable advance of 25% of the total consideration, i.e., the one-time premium for land and infrastructure facilities. The validity of the MoU will be for a period of 3 months.

V. SECURING APPROVAL AND DUE DILIGENCE

The Customer will have to apply for project approval in the GoSwift of Government of Odisha. Generally, the Government of Odisha (GoO) provides all the approval in 30 days. At the same time, the Customer can also conduct a due diligence of the property on its own or by a law firm.

VI. SIGNING OF SUB-LEASE DEED AND INFRASTRUCTURE AGREEMENT

Before the expiry of the MoU, the customer will have to sign a sub-lease deed and infrastructure agreement with TSSEZL. Before signing the sub-lease deed and infrastructure agreement, the customer will have to pay the remaining 75% of the total consideration. After obtaining necessary approval from Government authorities including the local development authority, the customer can do ground-breaking and commence project construction work.

VII. COMMENCE OPERATIONS OF THE UNIT

Once the project construction is over, the customer can start operating the manufacturing unit by receiving the necessary statutory clearances.

1.3. What are the steps to setup a manufacturing unit in SEZ in Gopalpur Industrial Park?

To set up a manufacturing unit in the Special Economic Zone (SEZ) in Gopalpur Industrial Park, a prospective unit holder/ customer needs to follow the steps given below.

I. Application Form

The prospective customer will have to fill up an application form (link here ) and then share with Tata Steel Special Economic Zone Limited (TSSEZL). The application form captures information related to the customer, nature of business, land and infrastructure facilities demand, project details etc. TSSEZL collects such information only to assess the feasibility of the project in Gopalpur Industrial Park and to prepare a commercial offer.

II. VISIT TO THE SITE

Once TSSEZL determines that the project will be feasible, it will facilitate the site visit of the customer to Gopalpur Industrial Park. The customer will be given an overview of the various infrastructure facilities and existing operational units and the nearby social infrastructure facilities during the visit. The proposed plot options will be marked for the customer to inspect and decide.

III. COMMERCIAL OFFER

Once the customer freezes the plot option, the commercial offer is prepared. The commercial offer consists of the land premium, common infrastructure premium, premium for utility infrastructure, pay per consumption of utilities and miscellaneous fee, if any.

IV. SIGNING OF MEMORANDUM OF UNDERSTANDING (MOU)

If the customer agrees to the plot option and commercial offer, a Memorandum of Understanding (MoU) will be signed between TSSEZL and Customer. The customer will have to pay a non-refundable advance of 25% of the total consideration, i.e., the one-time premium for land and infrastructure facilities. The validity of the MoU will be for a period of 3 months.

V. Securing Approval and Due Diligence

The Customer will have to register the project inwww.sezonline-ndml.co.in to obtain necessary approvals as a SEZ unit by following the procedures outlined here. FALTA SEZ is the nodal agency for facilitating such approvals for the SEZ in Gopalpur Industrial Park. After obtaining the approval as a SEZ unit, the customer will have to apply for the necessary approvals in the GoSwift portal of Government of Odisha. Generally, the Government of Odisha (GoO) provides all the approval in 30 days. At the same time, the Customer can also conduct a due diligence of the property on its own or by a law firm.

VI. SIGNING OF SUB-LEASE DEED AND INFRASTRUCTURE AGREEMENT

Before the expiry of the MoU, the customer will have to sign a sub-lease deed and infrastructure agreement with TSSEZL. Before signing the sub-lease deed and infrastructure agreement, the customer will have to pay the remaining 75% of the total consideration. After obtaining necessary approval from Government authorities including the local development authority, the customer can do ground-breaking and commence project construction work.

VII. COMMENCE OPERATIONS OF THE UNIT

Once the project construction is over, the customer can start operating the manufacturing unit by receiving the necessary statutory clearances.

1.4. What are the procedures to register the sublease deed?

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1.5. What are the various approvals required before operating a manufacturing unit and what are the procedures to obtain such approvals?

The following is the list of approvals required for operating a manufacturing unit.

Approvals Required for Pre-establishment

Sl. No List of Approvals DTA SEZ
1 Letter of Approval (LoA)
2 Acceptance Letter of the LoA
3 Plot Allocation Letter
4 Bond cum Legal Undertaking (BLUT)
5 Service Tax Exemption Letter
6 Exemption Letter for Taxes & Material Purchase
7 Industrial Enterprise Memorandum (IEM) for Large Industries
8 GST Registration
9 Consent to Establish under Water and Air Act
10 Building Plan Approval
11 Registration under Odisha Shop and Commercial Establishment Act,1956
12 Approval of Factory Plan
Approvals Required for Pre-operations
Sl. No List of Approvals DTA SEZ
13 Udhyog Aadhar for MSME Industries
14 Registration for Profession Tax
15 Consent to Operate under Water and Air Act
16 No Objection Certificate from Fire Department
17 Registration and Licensing of Factories
18 Inspection of Boilers & issue of provisional orders to operate boilers
19 Registration of Boilers
20 Steam Pipeline Drawing Approval
21 Endorsement of Certificates of Boiler Operation Engineers, Boiler Attendants and Welders issued by other States
22 Registration of establishment under Contract Labour(R & A)Act,1970
23 License for contractors under provision of The Contracts Labour (Regulation and Abolition) Act, 1970
24 Registration under Industrial Employment Standing Order Act, 1946
25 Trade License
26 Permission for Water Supply connection
27 Building Occupancy Certificate
28 Permission for Power Supply connection
29 License under Drug and Cosmetics Act
30 Permission under Hazardous Waste (Handling & Management) Rules

To set up a manufacturing unit in Special Economic Zone (SEZ), approvals mentioned in Sl#1 to Sl#6 will have to be obtained from the Development Commissioner (DC) of FALTA SEZ by using the website www.sezonline-ndml.co.in and by following the procedure outlined here. The unit holder shall also have to apply for the necessary approvals in the GoSwift portal of Government of Odisha.

To set up a manufacturing unit in Domestic Tariff Area (DTA), the unit holder shall have to apply for the necessary approvals in the GoSwift portal of Government of Odisha.

While Tata Steel Special Economic Zone Limited (TSSEZL) does not have any role in providing the approvals required for a manufacturing unit but it can help facilitate the approval process by liaising with the various departments of Government of Odisha.

1.6. What are the taxes applicable for Land and Infrastructure?

The following is the envisaged tax structure for the various products and services of Gopalpur Industrial Park.

Sl. No Products and Services Component Taxes Applicable
1 Land Premium Goods and Services Tax (GST) – 18%
2 Infrastructure Premium Goods and Services Tax (GST) – 18%
3 Industrial Shed on Rent Goods and Services Tax (GST) – 18%
4 Operation & Maintenance Charges Goods and Services Tax (GST) – 18%
5 Water Usage Goods and Services Tax (GST) – 18%
6 Sewage Treatment Goods and Services Tax (GST) – 18%
7 Effluent Treatment Goods and Services Tax (GST) – 18%

The Unit Holder shall have to bear the stamp duty and registration fees, as applicable as per the norms of Govt. of Odisha.

1.7. What are the procedures to avail the Industrial infrastructure facilities?

A. Demand Assessment of the Manufacturing Unit

B. Sign of Infrastructure Development, Operation & Maintenance Agreement. Payment for using the Industrial Infrastructure facilities are to be done as follows:

  • A one-time non-refundable amount for using the common infrastructure facilities such as Road, Drainage Network, Power and Utility Infrastructure etc.
  • Pay per consumption of utilities such as Water, Effluent and Sewage Treatment etc. to TSSEZL and Power to SouthCo. A security deposit of consumption amount for 3 months for Water, Effluent and Sewage will be levied by TSSEZL.
  • A yearly Operation & Maintenance Charges for using the Common Infrastructure facilities. A security deposit of 1-year period will have to be paid by the unit holder.

C. The responsibilities of the utilities are as under:

  • For Power: TSSEZL shall provide power connection to the nearest E-house and the unit holder shall have to make arrangements to tap power from there. The distance of the E-house from the identified plot will be shared by TSSEZL during the time of sharing the Commercial Offer.
  • For Water: TSSEZL shall provide the water connection point close to the identified plot boundary (within 5 – 10 meters distance).
  • For Sewage/ Effluent: TSSEZL shall provide the Common Sewage Network connection point close to the identified plot boundary (within 5 – 10 meters distance).
  • For Drainage Network: TSSEZL shall provide the drainage connection network close to the identified plot boundary.