Whereas, the Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) Act, 2014 (Act No.3 of 2014) has been enacted by the State of Telangana:-
And whereas, in exercise of the powers conferred under sub-section (3) of Section 1 of the said Act, Government have issued a notification appointing dated the 17th June, 2015 bringing the said Act in to force;
And whereas, in exercise of powers conferred under sub-section (1) of Section 26 of the said Act, Government have felt it necessary to frame Rules, for the implementation of the provision of the said Act.
Accordingly, the following notification will be published in an Extra-ordinary Issue of the Telangana Gazette, dated the 17th June, 2015.
N O T I F I C A T I O N
In exercise of the powers conferred by sub-section (1) of Section 12 and sub-section (1) of Section 13 read with sub-section (1) of Section 26 of the Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) Act, 2014 (Act No.3 of 2014), the Governor of Telangana hereby makes the following Rules:-
R U L E S
1. Short title, extent and Commencement:
(i) These rules may be called The “Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) Rules, 2015”.
(ii) It shall extend to the whole of the State of Telangana.
(iii) These rules shall come into force with effect from the date of publication of notification.
2. In these rules unless the context otherwise requires :
(i) “Act” means the “Telangana State Industrial Project Approval and Self Certification System (TS-iPASS) Act, 2014” (Act No. 3 of 2014).
(ii) Acknowledgement” means the acknowledgement issued under these rules.
(iii) “Authorized Representative of the Nodal Agency” means an Officer not below the rank of Asst. Director in the case of Nodal Agency attached to District Committee and an Officer not below the rank of Dy. Director in the case of Nodal Agency attached to the State Committee, as authorized by the Chairman of the representative committees.
(iv) “Combined Application Form” means the form in Annexure I and Annexure II as the case may be or in their online form;
(v) “Check List” means list included in the Combined Application Form under these rules.
(vi) “District Level Nodal Agency” is the agency notified by the Government under Section 6 (1) of the Act.
(vii) “District TS-iPASS Committee” is the committee notified under Section 3(1) of the
(viii) “Fees Receipts” means online payment receipt or the original challan receipts issued by the Government Treasury as a proof of payment or demand drafts issued by a Scheduled Commercial Bank.
(ix) “Form of Authorization” means the authorization in which a member of the District TS-iPASS Committee or the State TS-iPASS Committee shall authorize a representative to attend the meeting of the respective committee on his / her behalf.
(x) “Form for informing deemed approval” means the format (including online) in which the deemed approval is informed under these rules.
(xi) “Form for communication of orders” means the form (including online) in which the District Committee and State Committee shall communicate orders to the applicant.
(xii) “Form of Receipt by Competent Authority” means the form (including online) in which the Competent Authority acknowledges receipt of application or additional information from the nodal agency.
(xiii) “Form of Reference” means the form (including online) in which the District Committee and State Committee shall forward cases for review or revision.
(xiv) “Form of Self-Certification” is the form appended to these rules in which certificate has to be furnished by the applicant or in its online form.
(xv) “Register of Applications” means the Register (including online documentation) prescribed in these rules in which the details of the applications are entered.
(xvi) “Section” means a section of the Act.
(xvii) “Single Point TS-iPASS Approval” means the approval (including online) accorded by the District TS-iPASS Committee or the State TS-iPASS Committee on the basis of approval given by the Competent Authority or in case of Self-certification provided by the Applicant.
(xviii) “State Level Nodal Agency” is the agency notified by the Government under Section 5 (1) of the Act.
(xix) “State TS-iPASS Committee” is the committee notified under Section 4(1) of the Act.
(xx) “Time Limit” means the number of working days within which a decision has to be taken by the Competent authority, from the date of receipt of application.
3. Notifying the Constitution of Committees and Nodal Agency:
A. District Level Industrial Project Approval and Self Certification System Committee (District TS-iPASS Committee) and District level Nodal Agency.
(I) In exercise of powers conferred under Section3 (1) of the said Act, the Government hereby constitute the District Telangana State Industrial Project Approval and Self Certification System Committee (District TS-iPASS Committee) for each district, with following members:
(i) The District Collector … Chairman
(ii) The Joint Collector … Vice-Chairman
(iii) Zonal Manager, Telangana State Industrial … Member
Infrastructure Corporation (TSIIC) of the District
(iv) Deputy Chief Inspector of Factories … Member
(v) Environmental Engineer, Telangana State
Pollution Control Board … Member
(vi) Superintendent Engineer, Telangana State Southern
Power Distribution Company Ltd., / Telangana State
Northern Power Distribution Company Limited … Member
(vii) District Panchayat Officer … Member
(viii) District Fire Officer … Member
(ix) Deputy Chief Electrical Inspector to Government/ … Member
(x) Regional Deputy Director of Town & Country Planning … Member
(xi) Inspector of Boilers … Member
(xii) District Registrar … Member
(xiii) Deputy/Assistant Commissioner, Commercial … Member
(xiv) Assistant Director, Mines & Geology … Member
(xv) Any other members, as and when required. … Spl. Invitee
(xvi) General Manager, District Industries Centre … Member Convener
(II) In exercise of the powers conferred under Section 5(2) of said Act, the Government of Telangana hereby notifies all the District Industries Centre as the Nodal Agency for the District TS-iPASS Committee for the respective district.
Functions of the District TS-iPASS Committee:
1. Ensuring all online queries/ actual applications are forwarded to the concerned immediately and that online system is dynamically updated;
2. Organizing Pre-Scrutiny of the applications twice a week.
3. Providing single point TS-iPASS approvals on behalf of relevant departments.
4. Monitoring the TS-iPASS applications at the department level.
5. Examine and forward appropriate cases to the State level committee in case of rejection of clearances by the competent authority.
B. State Level Industrial Project Approval and Self Certification System Committee (State TS-iPASS Committee) and State level Nodal Agency.
(I) In exercise of powers conferred under Section 4(1) of the said Act, the Government hereby constitute the State level Telangana State Industrial Project Approval and Self Certification System Committee (State TS-iPASS Committee) for the state, with the following members:
(i) The Special Chief Secretary /Principal Secretary/Secretary,
Industries & Commerce Department … Chairman
(ii) Vice Chairman & Managing Director, Telangana State
Industrial Infrastructure Corporation … Member
(iii) Member Secretary, Telangana State
Pollution Control Board … Member
(iv) Chairman & Managing Director of Telangana State
Southern Power Distribution Company Limited &
Telangana State Northern Power
Distribution Company Limited … Member
(v) Special Officer/Vice Chairman,
Hyderabad Metropolitan Development Authority … Member
(vi) Principal Secretary/Secretary/Spl Secretary,
Environment Forest Science &Technology … Member
(vii) Commissioner, Panchayat Raj Department … Member
(viii) Commissioner, Commercial Taxes Department … Member
(ix) Inspector General, Stamps & Registration … Member
(x) Secretary to Chief Commissioner, Land Administration … Member
(xi) Director General, Fire Service Department … Member
(xii) Director General, Drug Control Administration … Member
(xiii) Chief Electrical Inspector to Government … Member
(xiv) The Commissioner & Director, Municipal Administration … Member
(xv) Director of Factories … Member
(xvi) Director, Town & Country Planning … Member
(xvii) Director of Boilers … Member
(xviii) Director, Mines & Geology … Member
(xix) Any other member as and when required … Spl. Invitee
(xx) The Commissioner of Industries, Telangana … Member- Convener
(II) In exercise of the powers conferred by Section 5(1) of said Act, the Government of Telangana hereby appoints the Commissionerate of Industries as the Nodal Agency for the State Committee and this Agency shall be headed by the Commissioner of Industries.
Functions of State TS-iPASS Committee:
1. Ensuring all online queries/ actual applications are forwarded to the concerned immediately and that online system is dynamically updated;
2. Organizing Pre-Scrutiny of the applications twice a week
3. Issuing final orders on cases referred by District Committees
4. Providing single point TS-iPASS approvals as per Competent Authority’s approval
5. Monitoring the TS-iPASS applications at District, State & Competent Authority level
6. Examine and forward appropriate cases to the Government for review of the decision taken by the competent authority with regard to rejection of approval.
C . Telangana State Wide Investment Facilitation Board (T-SWIFT) at State Level
In exercise of the powers conferred by sub-section (1) of Section 7 of the Act, the Government of Telangana hereby constitute “The Telangana State Wide Investment Facilitation Board (T-SWIFT)” at State Level for state of the Telangana, with the following members:
(i) Chief Secretary to Government, Government of Telangana … Chairman
(ii) Principal Secretary/Secretary to Government, Energy Department … Member
(iii) Principal Secretary/Secretary to Government, EFS&T Department … Member
(iv) Principal Secretary/Secretary to Government, Finance Department … Member
(v) Principal Secretary/Secretary to Government, Revenue Department … Member
(vi) Principal Secretary/Secretary to Government, Irrigation Department … Member
(vii)Principal Secretary/Secretary to Government, MA&UD Department … Member
(viii)Principal Secretary/Secretary to Government, Panchayat Raj … Member
and Rural Development Department
(ix) Principal Secretary/Secretary to Government, Home Department … Member
(x) Principal Secretary/Secretary to Government, Labour, Employment … Member
Training and Factories
(xi) Any other member as and when required. … Special Invitee
(xii) The Special Chief Secretary/Principal Secretary/
Secretary to Government, Ind. & Com. Department … Member-Convener
Functions of T-SWIFT board:
1. Processing the clearance of Mega Projects
2. Issuing of in principle approval to the mega Projects on receipt of Self Certification
3. Extend provisional approval within 15 days of receipt of self certification after a preliminary scrutiny.
4. Pursue with departments through Nodal Officer and obtain clearances before the commencement of production.
Nodal Agency for Mega Projects: The industrial promotion cell/chasing cell in the office of CMO, under the overall superintendence of Chief Secretary, will be the Nodal Agency for monitoring Mega Projects. The functions of the Nodal Agency will be:
1. Issuing Acknowledgement (online/otherwise) to applications;
2. Information dissemination on reasons for delay in approvals and forwarding grievances to the competent authorities.
3. Preparing and providing status reports on applications to the respective committees.
4. Pursuing the clearance of applications with concerned authorities, disbursing approvals & intimations to the applicant.
5. Providing secretarial support to respective committees.
6. Taking up policy level issues before the T-SWIFT Board based on the processing of applications and issues arising therein.
4. Notifying the investment limit up to which the application for clearances shall be made to the District and State TS-iPASS Committee.
1. In exercise of the powers conferred by Section 17 of said Act, the Government of Telangana hereby notifies District TS-iPASS Committee constituted in terms of Section 3(1) of the Act, shall have the power to receive and process the applications for all the clearances for setting up of enterprises in the state of Telangana with proposed investment limit on Plant & Machinery and all other such component constituting capital expenditure, not exceeding Rs.5.00 Crores (Rupees Five Crores only)
2. In exercise of the powers conferred by Section 17 of the said Act, the Government of Telangana hereby notifies State TS-iPASS Committee constituted in terms of Section 4(1) of the Act, shall have the power to receive and process the applications for all the clearances for setting up of enterprises in the state of Telangana with proposed investment limit on Plant & Machinery and all other such components constituting capital expenditure, of more than Rs.5.00 Crores (Rupees Five Crores) and up to Rs.200 Crores (Rupees Two hundred Crores) and where the projected employment in first two years of its operations is up to 1000 workforce.
3. All other cases will be taken up by T-SWIFT Board at the State level.
5.Combined Application Form:
In exercise of the powers conferred by section 8(1) of the said act the Government hereby prescribe the combined application forms (including online forms).
a) The applicant seeking clearances as required for establishment of an Enterprise shall apply in the Combined Application Form (including its online form) in Annexure-I.
b) The applicant seeking clearance required for operation of an industry before commencement of commercial production, shall apply in the Combined Application Form (including online form) prescribed in Annexure-II.
c) The Combined Application (including online form) Form duly filled in shall be submitted by attaching the relevant enclosures, certificates, attachments, fees, etc., (either manually or online)
d) The applicant shall furnish self-certification (including in online form) as prescribed in Annexure-III along with the application at the time of submission of application forms
e) There shall be a check list appended to the common application forms which shall be completed and signed/certified online by the applicant and scrutinized & accepted by the authorized representative of the nodal agency.
f) The authorized representative of the nodal agency shall satisfy himself /herself that:
(i) The application is in complete shape;
(ii) All relevant and prescribed documents have been enclosed (manual or online); (iii) The prescribed fees receipts have been paid online or proof enclosed;
(iv) Self Certification has been done online or furnished by the applicant;
(v) The checklist has been filled correctly (manual or online) and submitted/signed by the applicant.
6. User Charges :
The applicants shall pay user charges (online or otherwise) as prescribed in the Annexure-IV. These charges are subject to revision by the Government from time to time. The charges so collected shall be accrued in an escrow account, to be maintained by the State Level Nodal Agency (Commissioner of Industries) and will be used for meeting all such expenses are required to implement the Act including, inter-alia, recurring expenditure like purchase of consumables, travel cost with regard to TS-iPASS, conducting pre-scrutiny meetings, TS-iPASS District and State level meetings and other incidental expenses.
7. Pre-Scrutiny of Applications:
The Commissioner of Industries, at State Level and General Manager, DIC, at the District Level shall conduct pre- scrutiny meeting twice a week preferably Tuesday & Friday by inviting the competent authorities or their representative. The online system will be such that it will not accept applications, which are incomplete in any respect. The system will automatically issue acknowledgements to all such cases, which are complete in all respects. Till such time all applications are processed through the online system, the following have to be followed in the pre-scrutiny.
(I) Accept those applications which are complete in shape and issue acknowledgement.
(II) Ask for additional information in case of incomplete applications in accordance with the rules prescribed under this Act.
(III) The Nodal Agency will issue an acknowledgment to the applications, which are found to be in complete shape.
8. Processing and Monitoring of applications:
A record, date wise along with all relevant details will automatically be captured online for all such applications which are complete and in compliance with various requirements under the Act. The actionable points will be sent to the concerned Head of the Departments (HODs) through online immediately once the application has been accepted online, for examination and necessary action at their end and follow up reports/compliance shall be uploaded by respective HODs for their part within prescribed time. The District Nodal Agency, State Nodal Agency and T-SWIFT Board shall review regularly (at least once in a month) on the status of cases, timeliness in approval process and pendency and shall cause necessary action in all such cases where there are pendency (for reasons other than those requiring approvals/clearances from central government agencies). The Commissioner of Industries will have an end to end online system in place which will have all features pertaining to capturing of information, tracking, online payment and shall host various reports. All concerned departments shall use either this online system and it will get seamlessly linked to their existing online system.
The following procedure shall be followed (and its equivalent in online format):
(i) The particular of the application for which the acknowledgement is issued is to be entered online/in the register in the prescribed format approved by CoI.
(ii) The online particulars so entered/Register of applications shall be scrutinized and approved by the Head of the Nodal Agency at the end of each working day.
(iii) The relevant parts of the common application form along with enclosures shall be sent to the competent authorities within three working days from the date of issue of acknowledgement.
(iv) The competent authority shall process the application and communicate the decision to the nodal agency within the prescribed time limit as mentioned in the Annexure-VI.
(v) Under the provisions of Section 12(4) of the said Act, the competent authority may ask for additional information from the applicant, only once within three days from receipt of the application and before the expiry of the time limit, under intimation to the nodal agency.
(vi) In the case covered under Section 12(4), the time limit will be applicable from the date the additional information has been furnished.
(vii) The competent authorities will send their approvals within the time limit to the Nodal Agencies, which in turn will issue a consolidated TS-iPASS approval certificate to the applicant along with the competent authorities approval order.
(viii) In the wake of non-receipt of competent authorities approval within the prescribed time limit, the nodal agency shall process to issue TS-iPASS approval for the said unit, basing on the self-certification of the unit holder. For those cases where the additional information as required by the competent authority from the applicant is pending, the TS-iPASS approval certificate will be put on hold until the required information is furnished in complete shape by the applicant to the competent authority.
(ix) Status reports shall be placed before the District TS-iPASS Committee and the State TS-iPASS Committee by the respective nodal agency.
(x) The status of disposal of applications shall be monitored by the District TS-iPASS Committee and the State TS-iPASS Committee once in a fortnight.
(xi) The District Nodal Agency and the State Nodal Agency shall communicate the approvals and rejections in the format in Annexure-VII (A)/VII(B) or Annexure VIII(A)/VIII(B) as the case may be.
(xii) The District Nodal Agency shall submit a fortnightly report on the processing of applications to the State Nodal Agency.
(xiii) The State Nodal Agency shall ensure there are no delays at any level, either at the District level Nodal Agency or at the state level. Cases involving delays shall be placed before T-SWIFT Board on a regular basis.
9. Time limits for processing and disposal of applications:
Under the provisions of Section 12(1), (2), (3) of the Act, the time limits for processing and disposal of applications by the competent authority shall be a maximum of 30 days from the date of issue of Acknowledgement (including online) for the units with investments less than Rs.200 Crores in capital expenditure or for those where no clearances from agencies other than State Govt. are required. Efforts will be made that all mega project approval application cases, which are complete in all respect at the time of filing (including online) and which do not require any clearances from agencies other than the State Government, shall be given approvals within 15 working days.
10. Notifying of clearances where the provision of deemed approval shall apply:
The provisions of deemed approval under Section 13(1) of the Act shall be applicable to all pending approval applications requiring clearances which are not issued within the time limits prescribed in Annexure VI, provided these applications were complete in all respects at the time of their acceptance (including online) and there are no further information/query pending and where the delay is granting approval is held up for want of clearances from agencies/departments/institutions other than those of the state government. The TS-iPASS approval certificate so issued to the units after the prescribed time limits has lapsed is binding on all concerned department.
11. Land to be vested with Telangana State Industrial Infrastructure Corporation for the purpose of setting up of an industry/manufacturing unit:
Government land, as notified (in accordance with Sec 1(3) of G.O.Ms.No.67 dated 26/02/2002 along with amendments in G.O.Ms.No.274 dated 12/06/2007) from time to time by the Government, shall vest with TSIIC for the purpose of setting up of industry/manufacturing or any other purpose as considered by Telangana State Industrial Infrastructure Corporation. All such lands will, however, continue to be protected by the respective revenue authorities till such time these lands are put in use by Telangana State Industrial Infrastructure Corporation. Memo No 8218/Assn.1(3)/2015-1, Revenue (Assgn) Dept, dated May 31st, 2015 transferring 1,45,682.99 acres of government land to TSIIC also is covered under this clause.
Telangana State Industrial Infrastructure Corporation will be the designated notified authority for all such land and shall take all necessary actions including setting up of IALAs for management of such lands appropriately. Since the said land is meant for setting up industry /other such specified purpose, no conversion of land would be needed for such land and thus no conversion charges need to be collected for such lands, unless otherwise stated by the government for the extent falling under HMDA and for the time period as stated. Further, the layout approvals and building plans for proposals pertaining to these lands shall be accorded by TSIIC duly collecting required fees/charges and apportioning it with the respective local bodies as per the existing rules.
12. Resumption of Lands:
In case the land is allotted by the Government or Telangana State Industrial Infrastructure Corporation or any other Government agency either on market value or otherwise, the Company or allottee has to complete the financial closure within 1 (one) year and start the operations within 2 (two) years from the date of permission, failing which the land will be resumed back.
13. Clearances pertaining to Gram-Panchayats (GP):
For the Government lands handed over to the Telangana State Industrial Infrastructure Corporation, all required approvals including layout and building approvals, will be issued by Telangana State Industrial Infrastructure Corporation (in accordance with Sec 1(3) of G.O.Ms.No.67 dated 26/02/2002 along with amendments in G.O.Ms.No.274 dated 12/06/2007). However, the revenue will be shared with the Grampanchayats, as per rules. Concerned Departments will issue necessary orders. For other category of lands where an application has been for setting up of an industry, the respective application will be examined and processed in accordance with the relevant local body rules & regulations. The PR&RD department shall work out fixed rate per acre as conversion charges for such lands, duly specifying conditions. Further the layout and building approvals for all such proposals shall be cleared within a fortnight in accordance with and what’s followed by Hyderabad Metropolitan Development Authority (HMDA).
14. Clearances from Hyderabad Metropolitan Development Authority (HMDA):
Hyderabad Metropolitan Development Authority (HMDA) shall accord layout and building approval of the industrial/manufacturing units within two weeks in all such cases, which are confirming to the zoning plan or are not objectionable. Similarly, the process for conversion of land usage shall be simplified by HMDA for lands (which are not objectionable) to see that conversion is granted within two weeks in such cases. HMDA shall develop online processing of such cases at the earliest, if not in place, and also provide a link to its online facility with TS-iPASS site so that such applications are transferred and processed online automatically.
Municipal Administration & Urban Development Department shall issue necessary orders amending existing procedure for change of land use pattern within Urban Development Authority limits/ Town & Country Planning limits for issuing the permission for change of land use within two weeks.
15. Water requirement
Ten percent (10%) of water from all irrigation projects has been earmarked for industrial use and bulk charges will be paid by TSIIC to the concerned authorities which will then apportion the same on respective industries.
16. Review and Revision of decisions of competent authorities:
A. Under the provisions of Section 15(a), in case of rejections of applications seeking clearances or approvals with modification under the state laws by the competent authority, the District TS-iPASS committee may either suo-motu or based on an application from the industry, shall examine such cases and will forward appropriate cases in the form of reference to the State TS-iPASS Committee (Annexure-IX) and the State TS-iPASS committee will process such cases as per Section 15(b) of the Act.
B. Under the provisions of Section 16, in case of rejections of applications seeking clearances or approvals with modification under the state laws by the competent authority, the State Nodal Agency shall examine the issues involved and forward appropriate cases in the form of reference (Annexure-IX), to the Government. The decision of T-SWIFT will be final.
17. Right to Clearances & Grievance redressal under TS-iPASS:
The applicant has the right to ask for approval or seek explanation for the delay in approvals, if they are not issued within time limit as prescribed in the Act and where clearances are not pending with agencies other than state government. It will be incumbent upon the concerned department /officer concerned to answer for such delays and HoD of the concerned Department shall be accountable for timely processing.
(a) The unit holder seeking information on the reasons for delay in approvals shall make a request in writing/online to the nodal agency;
(b) The nodal agency shall seek a report (including online) from the concerned department within 2 working days. The concerned department shall either process immediately or
furnish proper reason for delay within the next 5 working days (including online) from the date of receipt of the notice.
(c ) If the concerned department fails to give a decision on the request for information within 5 days from the date of receipt of application, the concerned officer in the department shall be levied a penalty.
(d) In all such cases, a penalty of Rs.1000/- (Rupees one thousand only) for each day till approval is accorded or reason for rejection/delay in approval is furnished. However, the total amount of such penalty shall not exceed Rs.25,000/- (Rupees Twenty Five Thousand only) and all cases, where penalty exceeds this said amount shall be reported to T-SWIFT. The penalty is subject to revision by government from time to time.
(e) The penal amount so collected shall be credited into the Government Treasury in the head of account as shown at Annexure-IV.
As per the provisions of the Section 19 of the said Act, the applicant shall be penalized with fine as prescribed by the government from time to time as well as rectification of the defect if he / she or the organization as the case may be fails to comply with the conditions or undertaking in self-certification given to the Nodal Agency.