State-level NRI Engagement


The State Government has offered a number of special incentives to promote rapid and effective industrialisation of the entire region. The State offers concession on lands to be used for industrial set ups, and incentives/exemption of premium on conversion of land from agriculture to industrial. Some of the key policy initiatives undertaken or planned by the Government are highlighted below:

# The State Government is planning to form a policy to provide land for housing for the NRIs in the State Capital and other important places through the concerned urban development authorities and housing boards

# It would also allocate land to large NRI industrialists to set up their corporation headquarters in the State capital and other locations on preferential basis

# It also plans to reserve some seats for children of NRIs setting up industries in the State in engineering and medical and other professional Institutions

Further, the State Government has set up a Non-Resident Oriya (NRO) Facilitation Cell at Industrial Investment Promotion Corporation of Odisha Limited (IPICOL) (for investment promotion and other matters), at Odisha Computer Application Centre (for IT and BPO related services) and at Resident Commissioner's Office at New Delhi (for general facilitation). The Facilitation Cell for NROs extends a full co-operation and support to the NROs in the growth and development of Odisha and respond to queries and proposals of the NROs and provide information and follow up support whatsoever the NROs need for the advancement of the State.


The Government of Rajasthan has introduced Rajasthan Single Window and Clearance Act, 2011 to ensure time-bound clearances for projects and investment proposals. It acts as a one-stop information centre for clearances and providing an electronic-based, transparent system for online tracking of application/forms.

Further, the Government has recently announced Rajasthan Investment Promotion Scheme (RIPS) 2010 for setting up of new enterprise, enterprises going for expansion, modernisation and diversification, and projects set-up for common social good. The new scheme also simplifies the procedure for grant and disbursement of subsidy, and creates transparency in system, by introducing the system of online disbursement of subsidy.

Some of the highlights of RIPS 2010 are following:
# RIPS 2010 provides investment subsidy to all eligible investors of an amount equal to 30 per cent of the tax deposited, without any linkage with payment of interest and wages1

# The maximum amount of subsidy shall be 50 per cent of the tax deposited, i.e. VAT and CST or SGST

# Employment generation subsidy has been announced at INR 10,000 per employee/annum

# For entrepreneurs belonging to categories including Women, SC/ST, or persons in disability category, an additional investment subsidy amounting to 10 per cent of the taxes deposited has been kept.


The Government of Punjab provides various benefits such as tax exemptions, incentives, etc. to attract more NRI investments in the State. The Government being aware of the immense contribution of the Punjabi NRIs to the socio-economic development of the State has set up a separate Ministry for NRI Affairs in March 2007 to facilitate NRIs/PIOs investments.

The State Government has come up with New Industrial Policy 2009 to create conducive investment climate through infrastructure creation and to make the small scale industry competitive. Further, a special cell in the Directorate of Industries, "Udyog Sahayak", has been established to provide "single window" facility and to ensure time-bound clearance to all investment proposals received from NRIs.
Some of the benefits of the Punjab SEZ Act, 2009 for NRIs are as follows:

# Exemption from Stamp Duty, Registration Fee and Social Security Cess on purchase of land & on first transfer or lease of immovable property within SEZ

# Allocation and transfer of land within SEZ by way of sale or lease

# Permission for generation of electricity in or outside SEZ for consumption of units

# No electricity duty on generation, transmission, distribution and consumption of electricity within SEZ

# Single-tier Project Approval Committee for evaluation of the projects


The Government of Kerala has designed a package of policy measures and incentives, which seeks to make Kerala one of the most attractive investment destinations in the country. These policy documents provide numerous opportunities for the investors by creating a favourable business climate in the State. Some of them are:

# The Government of Kerala has introduced the Single Window Clearance System in the State to provide comprehensive support for investors who are planning projects in Kerala. The State Government has also set up a number of industry specific parks / estates across the State to help non-resident investors to set up manufacturing units

# National Bank for Agriculture and Rural Development (NABARD) has released a comprehensive list of various schemes for Microfinance, Financial Inclusion, Village Development, Credit Support, Institution Development, Rural Infrastructure Development and Production Credit Support to help NRIs

# Kerala State Industrial Development Corporation Limited (KSIDC) has proposed to give a special interest rebate of 2 per cent on loans sanctioned and completed legal documentation for NRI promotee companies in order to attract NRI Investment in the state during the period from 31/7/2012 to 31/7/2013

Policies Initiatives
Some of the policy initiatives taken in the State for NRIs are:

# Upto 100 per cent equity with full repatriation facility for capital and dividends in various sectors such as Export Trading Companies, Hotels and Tourism-related Projects, Hospitals & Diagnostic Centres, Power, Housing & Real Estate Development, etc.2

# Income Tax is at a flat rate of 20 per cent on income arising from Shares or Debentures of an Indian Company2

# Acquisition of shares of an Indian company, through a general body resolution, upto 24 per cent of the paid up value of the company on non-repatriation basis2

# Upto 100 per cent Equity in any Proprietary or Partnership engaged in industrial, commercial or trading Activity on non-repatriation basis2

# NRIs are allowed for investment in Government Securities, Units of UTI, National Plan/Saving Certificates.

July 2013

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