Conditions

CONDITIONS & CONCESSIONS FOR AGRI MEGA PROJECTS

1.         Conditions at the time of submission of the Project
            Fixed Capital Investment in the proposed Project would be Rs.25 crore or more.

2.       Conditions of LOI after fulfillment of which Agreement is to be signed.

           (i)   In principle approval of the financial institution / bank for funding the project may be submitted by the Promoter to the
                 concerned Nodal Agency. If the project is to be set up entirely with own funds, the details of financial resources may be provided.
            (ii) Details of land on which project is to be set up may be given.

3.         Time-period
            The Project will have to be implemented in 5 years from the date of signing of agreement by the Company with State Government, unless extended for further period of not more than 1 year by the Government on the request of the Promoter for the reasons to be recorded in writing.

4.         Concessions
            4.(a) Fiscal
          
(i)        100% exemption from payment of Mandi Fee, Rural Development Fee and Infrastructure Cess on purchase of fruits & vegetables directly from farmers for processing by the unit for 10 years.
         
(ii)         75% exemption from payment of Mandi Fee, Rural Development Fee and Infrastructure Cess on purchase of non-FCI grade foodgrains, barley and maize (except custom milling of paddy) directly from farmers for processing by the unit for a period of 10 years.

(iii)        Exemption from basic stamp duty at the current applicable rate on purchase of land for the designated purpose.
(iv)       Declaration of factory premises of the unit as private Mandi yard and permission for direct purchase of foodgrains/maize/
             barley/fruits/vegetables required for processing by the unit.
(v)       100% exemption on electricity duty on captive consumption of power          generated by the unit.
(vi)       50% exemption on electricity duty on purchase of power from PSEB for 5 years from the date of release of connection.

(vii)      Link Advance Consumption Deposit with the actual consumption of power. However, in the first instance, the unit will deposit ACD at
            applicable rates.

(viii)     Supply of power as per normal rates available to continuous processing industry. However, the unit will pay nominal peak load charges.

            4.(b) Facilitation

(i)         Sanction of power connection by Punjab State Electricity Board within a stipulated period of 60 days from date of filing of application
             with them.

(ii)        Single window clearances for pollution/environment, change of land use, and sanction of buildings and all architectural plans.
           (iii)        Last mile connectivity in respect of metalled road and street lighting from main road to the project site.
           (iv)        Issuance of Licence on Fast Tract for brewing of Beer and Distillation of Grain alcohol.
           (v)         Treating Agri Mega Projects on par with the IT industry regarding working hours by Department of Labour.
           (vi)        Allotment of land wherever Panchayats are willing, as per the policy of Department of Rural Development and Panchayats.

5.         Above concessions may be given as a matter of practice in each case. Additional concessions may be considered by the Empowered Committee keeping in view the nature and special circumstances and the size of the project.