Simplifying incentives procedure to industries by RTGS NEFT under IIPP 2010-15


Government of Andhra Pradesh have issued orders on the operational guidelines for implementing the Industrial Investment Promotion Policy (IIPP) 2010-15.

Commissioner of Industries, Hyderabad has stated that Government vide Memo No.351/81/DCM.II/2012, Finance (DCM-I) Department, dt:04-07-2012 have issued instructions on drawal of funds from deposit accounts – PD Account, wherein the PD Administrators are advised to furnish the information to State Bank of Hyderabad for transfer of amounts through ECS / NEFT/ RTGS in the prescribed format along with a soft copy provided by the State Bank of Hyderabad. A committee with the following members was constituted to examine the issue and submit the report for simplifying the procedure of the releasing funds to the industrial units:

1. President, AP Spinning Mills Association.

2. President, FAPCCI

3. General Manager, APSFC

4. Convener, SLBC

5. Joint Director (IIPC). O/o. Commissioner of Industries.

The Committee made the following recommendation for simplifying the procedure of releasing the incentives to Industries by RTGS/NEFT:

(1).    Facility of opening of a non-operative savings account be provided to the unit holder by the Bank and the same shall be opened, so that        the   Bank   may   access   this   account   and   credit   the subsidy/incentive received from Commissioner of Industries, appropriately into the unit holder’s loan account.

(2).   Opening of separate PD A/c. jointly by Commissioner of Industries and Finance Department instead of APSFC & Finance Department for speedy processing of disbursement of incentives.

(3).    State Bank of Hyderabad, Treasury Branch will be requested to furnish details of the transactions, including name of the unit, amount, reasons for  rejection and date of amount credited, so as to minimize the delay in case of returned cases.

(4).   The representative of SLBC suggested opening on non-operative savings account into which subsidy amount would be deposited. After adjusting the term loan the Bank will credit the balance into the unit holder’s loan account.

3.   The recommendations of the Committee were placed in the State Level Committee meeting held on 01-03-2013 and decision of the SLC is as follows:

(1). The SLC has examined the report submitted by the constituted Committee and decided to implement the procedure as   suggested By        the  Committee  for  simplifying  the  procedure  of  releasing sanctioned incentives amount to the industries.

(2). Further, the SLC has decided to recommend the issue to the Government for issuing certain amendments to the Operational Guidelines  under  IIPP 2010-15 vide G.O.Ms.No.42, Industries & Commerce (IP) Department, dated: 05-05-2011:

(3). For opening a non-operative savings account be provided to the unit holder by the Bank and the same shall be opened, so that the Bank may access this account and credit the subsidy/incentive received from      Commissioner  of  Industries,  appropriately  into  the  unit holder’s non-operative savings account instead of term lending institution .

4.    The  Commissioner  of  Industries,  Hyderabad  has  requested  to  issue necessary amendments to the Operational Guidelines for Industrial Investment Promotion Policy 2010-15.

5.     Government after careful examination of the proposal of Commissioner of Industries, A.P, Hyderabad hereby amend the Operational Guidelines for Industrial Investment Promotion Policy 2010-15 issued vide G.O.Ms.No.42, Ind & Com (IP) Dept., Dt:05.05.2011, as appended to these orders.

6.     The Commissioner of Industries, Hyderabad shall take necessary action in the matter accordingly.

7.   This order is issued with the Concurrence of Finance Department vide their U.O.No.17994/249/Expr. I&C/2013, Dt:24/07/2013.

ANNEXURE TO G.O.MS.NO.162, IND & COM (IP) DEPT, DT:04.12.2013

AMENDMENTS

 

Para

No.

As per G.O.Ms.No.42 Industries & Commerce (IP) Department, dated:

05/05/2011

Read As

24.3 In  respect  of  SLC  sanction  the General Managers after receipt of individual proceedings preceded by consolidated  proceedings  shall obtain an agreement bond in prescribed proforma, advanced stamped receipt and assignment letter and forward the   same in original to the disbursing Agency APSFC/ its branch along with assignment letter and stamped receipts in original   after satisfying himself on the physical verification that the Enterprise/Industry is working continuously, the assets are intact and there is no change in the management, no change of financial institution and also the Enterprise/Industry complying  with the  conditions, if  any, imposed in the consolidated proceedings. In respect of SLC sanction the General Managers after receipt  of  individual proceedings preceded by consolidated proceedings shall obtain an agreement bond in prescribed pro- forma, advanced stamped receipt and assignment letter   and   forward   the same in original to the Commissioner of industries after satisfying himself on the   physical   verification that the Enterprise/ Industry is     working continuously,   the   assets are intact  and there is no change  in  the management, no change of financial  institution and also the Enterprise/ Industry   complying   with the conditions, if any, imposed  in  the consolidated proceedings.
24.5 In case of disbursements of Reimbursements of Stamp duty and Transfer duty, rebate in land cost in

IEs/IDAs, Power  consumption charges, Commercial Tax, such reimbursement amounts will be paid to the industrial Enterprises concerned, in favour of the Enterprise/Industry through crossed Account payee cheque.     The GM, DICs on receipt of the individual proceedings shall obtain a self certification,  utilization  certificates in  prescribed  proforma  and advanced stamped receipt from the Enterprise/Industry and forward the same in original to APSFC     after physically  verifying  the running of the Enterprise/Industry.

In  case  of  disbursements of Reimbursements of Stamp  duty  and  Transfer

duty, rebate in land cost in

IEs/IDAs, Power consumption charges, Commercial Tax, such reimbursement  amounts will  be  paid  to  the industrial Enterprises concerned, in favour of the Enterprise/Industry through RTGS/NEFT to account.     The GM, DICs on receipt of the individual proceedings shall obtain a self certification, utilization certificates in prescribed proforma and advanced stamped receipt  from the Enterprise/Industry and forward  the  same  in original to the Commissioner of Industries after   physically   verifying the running of the Enterprise/Industry.

 

 

24.6 Government will allocate the funds for    disbursement    of    incentives under the scheme.   The funds so allocated will be drawn and kept in the P.D. Account of APSFC. Government   will   allocate the funds for disbursement of   incentives   under   the  scheme.  The  funds  so allocated will be drawn and kept in the  P.D.Account of Commissioner of Industries.
24.7 The disbursements are made in a bunch of cases through consolidated proceeding    separately for    SLC sanctions and DLC sanctions observing the chronological order of such meetings held.      The consolidated proceedings indicating the name of the industry, amount sanctioned and amount released  to Managing Director, APSFC under copies to DICs, Branch Managers of APSFC concerned, etc., The disbursements are made in a bunch of cases through          consolidated proceeding separately for SLC sanctions and DLC sanctions observing   the chronological order of such meetings held.     The consolidated proceedings indicating the name of the industry,  amount sanctioned and amount released to the Accounts Officer, O/o. Commissioner of Industries.
24.8 In respect of SLC   sanctions, after the issue of individual proceedings

issued by the Member Convener of

SLC, in favour of industrial enterprises in the form prescribed under copies to the Managing Director,  APSFC,  the  Branch Manager of APSFC / Financial Institutions which have  sanctioned term   loans   and   working   capital loans and the General Manager, DIC concerned.     After receipt of assignment letter and advance stamped receipt, the Managing Director, APSFC / Branch Manager, APSFC, shall release the subsidy amount to the individual Enterprises through    crossed / Account. payee cheques   in   the   name   of   the Financial Institution    (in whose favour assignment letter was given by the beneficiary    industrial enterprise Account). industrial enterprise and send the same to the respective  Financial  Institution direct under intimation to the beneficiary industrial enterprise and the General Managers.     DIC concerned.    If the APSFC happens to be the Financial Institution, which has sanctioned the term loan, the subsidy amount is released to the industrial enterprise after crediting the same to the Account. of the industrial enterprise with APSFC.  In case of industrial Enterprises which have   availed   any   bridge   loans against the anticipated subsidy, the

In    respect        of    SLC

sanctions,  after  the  issue of individual proceedings issued by   the Member Convener   of   SLC,      in favour of industrial enterprises in the form prescribed under copies to the Managing Director, APSFC,  the  Branch Manager of APSFC / Financial Institutions which have  sanctioned  term loans and  working capital loans and the General Manager, DIC concerned. After receipt of assignment letter  and  advance stamped receipt, the Commissioner of Industries shall release the subsidy amount to the individual Enterprises  account through RTGS/NEFT     (in whose favour assignment letter was given by the beneficiary industrial enterprise Account) and send the same to the respective Financial Institution direct under intimation to the beneficiary.   In case of industrial   Enterprises which have availed any bridge loans against the anticipated subsidy, the subsidy  amount  shall  be

 

 

  subsidy  amount  shall  be  released first   to   the   Financial   Institution

which has sanctioned and released bridge loan, to discharge the liability

in  full  against  such  sanction  and balance amount, if any, would be

released in the manner prescribed above.

released    first    to    the

Financial Institution which has      sanctioned      and

released  bridge  loan,  to

discharge  the  liability  in full   against such sanction and   balance   amount,   if any, would be released in the manner prescribed above.

24.9 In respect   of DLC   sanctions, the

General Managers, DIC shall be forwarding the sanctions of DLCs to the Additional Director  of Industries and   Member-Secretary      of   SLC along with statement in the form prescribed, individual proceedings sanctioning after the issue of consolidated proceedings, individual proceedings are issued in favour of individual   Enterprises in the form prescribed  under  copies      to Managing  Director, APSFC , Branch Manager, APSFC , Financial Institutions which have  sanctioned term   loans   and   working   capital loans and General Manager, DIC concerned.     After receipt of assignment letter and advance stamped receipt, the Managing Director, APSFC , Branch Manager, APSFC,     shall release the subsidy amount to the individual Enterprises through     crossed/Account. payee cheques   in   the   name   of   the Financial Institution    (in whose favour assignment letter was given by the beneficiary industrial Enterprise    Account). industrial enterprise and send   the same to the respective Financial institution direct under intimation to the beneficiary industrial enterprise and the General Managers, DIC concerned.    If the APSFC happens to be the Financial Institution, which has sanctioned the term loan, the subsidy amount is released to the industrial enterprise after crediting the same to the Account of the industrial enterprise with APSFC.  In case of industrial Enterprises which have   availed   any   bridge   loans against the anticipated subsidy, the subsidy amount shall be released first   to   the   Financial   Institution which has sanctioned and released bridge loan, to discharge the liability in full   against such sanction and balance amount, if any, would be released in the manner prescribed

In     respect     of     DLC

sanctions, the General Managers, DIC shall be forwarding the sanctions of DLCs   to the Additional Director of Industries and Member-Secretary of SLC along  with  statement  in the form prescribed, individual proceedings sanctioning after the issue of  consolidated proceedings, individual proceedings  are  issued in favour of individual Enterprises   in   the form prescribed under copies to the Financial Institutions which  have  sanctioned term loans and working capital loans and General Manager, DIC concerned. After receipt of assignment letter  and  advance stamped receipt, the Commissioner of Industries shall release the subsidy amount to the individual Enterprises  account through RTGS/NEFT     (in whose favour assignment letter was given by the beneficiary industrial Enterprise Account).   In case of industrial Enterprises which have availed any bridge loans against the anticipated subsidy,  the  subsidy amount shall be released first to the Financial Institution which has sanctioned and released bridge loan, to discharge the liability in full against such sanction and balance amount, if any, would be released in the manner prescribed above. The subsidy amount released under    the    scheme    is

 

 

  above.      The  subsidy  amount released   under   the   scheme   is

treated  as  front  end  subsidy  and

Bank/Financial institution can only adjust the liability as on date i.e.

overdue  amount  and  release  the

balance  amount  as  per  the procedure   in   vogue   and   total subsidy released shall not be adjusted towards outstanding loan amount.

treated    as    front    end subsidy       and       Bank/

Financial   institution   can only adjust the liability as

on    date    i.e.    overdue amount  and  release  the

balance amount as per the procedure  in  vogue  and

total subsidy released shall not  be  adjusted  towards

outstanding loan amount.

24.10 In respect of APSFC financed industrial     Enterprises,     subsidy

amounts sanctioned and released shall not be credited to the Account

of respective industrial Enterprises if they  are  sick,  closed  change  of

management taken place or sold away, change of financial institution

etc.   Also   wherever   the   General

Manager, DICs finds an industrial enterprise sick, closed, change of management taken place, change of financial institution etc. or for any other reason not worthy of receiving subsidy till further examination, the Managing Director, APSFC / Branch Manager, APSFC shall not disburse the subsidy to such Enterprise/industry on written intimation given to them by the General Managers DICs, or by Commissioner  of  Industries.     In case of above two situations, the subsidy shall be disbursed only after further clearance given by the Additional Director of Industries.

Wherever    the    General

Manager, DICs finds an industrial  enterprise  sick,

closed,        change        of

management taken place, change of financial institution etc,   or for any other reason not worthy of receiving      subsidy  till further examination,   the Commissioner of Industries shall not disburse the subsidy to such Enterprise/industry on written intimation given to them by    the General Managers DICs.  In case of above two situations, the subsidy shall be disbursed only after further clearance given by the State Level Committee.

G.O.Ms.No. 162 Dated:04-12-2013
1. G.O.Ms.No.42, Industries and Commerce (IP) Department, dated:5.05.2011.
2. From the Commissioner of Industries, Hyderabad, Letter
No.39/1/2013/RTGs, Dt:13.05.2013 and 12.07.2013.

Simplifying the procedure of releasing the incentives to industries

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