Last Updated on September 20, 2021 by The Health Master
Advantage of Jharkhand Pharma policy
The government of Jharkhand has rolled out the Jharkhand Industrial and Investment Promotion Policy (JIIPP) 2021 with priority for pharma sector, keeping the noble vision to make Jharkhand as the “Pharmacy of East India.
The policy makers have identified pharma sector as one of the high priority areas because it has emerged as a key growth driver and attracted FDI worth over Rs. 3,000 crore in the period between April and September in 2020 alone.
The department of health and family welfare in the state is now in the preparation of an exclusive pharma policy on the basis of JIIPP to boost the pharma sector.
Suman Kumar Tiwari, Deputy Director at the Department of Drugs Control Administration and in-charge of pharma policy preparation, said that this is a dream project of Arun Kumar Singh, Very senior IAS officer working as Additional Chief Secretary, Department of Health & Family Welfare, Govt of Jharkhand.
He further added “Under the dynamic leadership of Arun Kumar Singh, IAS able to take proactive approach in all spectrum of incubator, facilitator, & regulators in state of Jharkhand under whose leadership a team of dedicated vibrant officers are working 24×7 for single company single officer to facilitate all single window clearance & red carpet welcome for any further assistance”.
“Already big industries like Nutraceuticals & Pharmaceuticals are working with team of Jharkhand official for job creation & value addition inside the state” he added.
In Jharkhand, there are already 55 allopathic drug manufacturing units and one unit of medical devices are operating.
Sumant has also elaborated a Roadmap for inviting Pharma Industry in the State of Jharkhand.
Besides, 22 manufacturers produce ayurvedic products, nine companies manufacture homoeopathic drugs and three companies engage in cosmetic preparations. He said the state has all the potential for mineral drugs and drugs to be made from herbal sources.
He also briefed about the advantages of the incentives for setting up industry in the state of Jharkhand. Detailed incentives has been shown the table below:
Comparative chart of Incentive – Jharkhand Industry Policy
1. Incentive on the Capital Investment
Incentive on the Capital Investment – Govt of Jharkhand:
| S. No | State | Percentage of Subsidy | Upper Limit | Remarks |
| 1 | Gujarat | @ 25% on eligible loan amount | Rs. 35 lakh only. Additional 10 lakh for fixed capital above 10 crores | Low percentage incentive and low upper limit |
| 2 | Assam | @ 30 % of capital investment. | Rs. 5 cores | High percentage incentive and medium upper limit |
| 3 | Himachal Pradesh | @ 30 % of plant and Machinery Investment | Rs. 5 cores | High percentage incentive and medium upper limit |
| 4 | Tamilnadu | @ 25 % of plant and Machinery Investment | Rs. 30 lakh | Low percentage incentive and low upper limit |
| 5 | Jammu & Kashmir | @ 30 % of plant and Machinery Investment | R.s 7.5 cores | High Percentage incentive and medium upper limit |
| 6 | JHARKHAND | @25 % of fixed capital investment subject | Rs. 1 crore- Micro units Rs. 5 Crores-Small units Rs. 10 Crores-Medium units Rs. 25 crores – non- MSMEs. Additional benefit to SC/ST /Women/ Differently abled entrepreneurs | Low Percentage incentive and High upper limit |
2. Incentive on Interest Rate
Incentive on Interest Rate – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Upper Limit | Remarks |
| 1 | Gujarat | @ 7% for interest levied For 7 year | Loan up to Rs. 35 lakhs per annum | High percentage, long period and low Limit |
| 2 | Assam | @ 3% for interest levied For 5 year | No limit | Low percentage, medium period and No Limit |
| 3 | Himachal Pradesh | @ 3% for interest levied For 3 year | Rs. 10 lakhs/annum- A Category Rs. 15 lakhs /annuum– B category Rs. 20 lakhs/annum -C Category | Low percentage, short period and low Limit |
| 4 | Tamilnadu | @ 5% for interest levied For 6 year | Only for ultra-mega project | Medium percentage, long period and low Limit |
| 5 | Jammu & Kashmir | @ 6% for interest levied For 7 year | No limit | High percentage, long period and No Limit |
| 6 | JHARKHAND | @ 5% for interest levied For 5 year | Rs. 15 Lakhs – Micro enterprises Rs. 50 lakhs – Small enterprises 1 crore – Medium enterprises 3 crores – non MSMEs sector units | Medium percentage, Medium period and Medium Limit |
3. Incentive on GST
Incentive on GST – Govt of Jharkhand:
| S. No | State | Particulars | Remarks |
| 1 | Gujarat | De-link incentives from SGST.Up to 12% given to the large industries for setting up manufacturing operations | Medium |
| 2 | Assam | Reimbursement of CGST and IGST for a period of 5 years. | High |
| 3 | Himachal Pradesh | Reimbursement of Net SGST paid @ 50 % for A category @70 % for B Category @80 % for C category | Medium |
| 4 | Tamilnadu | there is no provision of refund of input tax paid on capital goods, as the formula prescribed | _ |
| 5 | Jammu & Kashmir | For 300% investment made in plant and machinery, all eligible units will be granted Goods & Service Tax Linked Incentive (GSTLI) equal to 100% of Gross payment of GST. | High |
| 6 | JHARKHAND | New MSME units: 100 % of the net SGST for 5 years.New Large Units: 100 % of the net SGST for 7 years.New Mega Units : 100 % of the net SGST for 9 years.Ultra mega Units: 75% % of the net SGST for 12years | High |
4. Working capital incentive
Working capital incentive – Govt of Jharkhand:
| S. No | State | Particulars | Remarks |
| 1 | Gujarat | Not Given | Low |
| 2 | Assam | % on the outstanding working capital loan for five years with ceiling of Rs. 50 lakhs (Fifty lakh) only for 100% investment in plant and machinery. | High |
| 3 | Himachal Pradesh | Not Given | Low |
| 4 | Tamilnadu | Not Given | Low |
| 5 | Jammu & Kashmir | All existing eligible units can avail interest subvention @5% on working capital loan for a maximum of 5 consecutive years with Rs. 1 Cr. For 5 year for manufacturing as well as service sector units. | High |
| 6 | JHARKHAND | Not Given | Low |
5. Electricity subsidy
Electricity subsidy – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Silent Feature |
| 1 | Gujarat | Electricity Duty for 5 years. | Medium |
| 2 | Assam | Not given | Low |
| 3 | Himachal Pradesh | 15% on energy charges | Medium |
| 4 | Tamilnadu | an electricity tax exemption for a period of 5 years | Medium |
| 5 | Jammu & Kashmir | Not given | Low |
| 6 | JHARKHAND | Subsidized rate of Rs. 1 Per unit in the billed amount of utility as reimbursement basis for 5 years 100 % Exemption. | High |
6. Government purchase preference
Government purchase preference – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Silent Feature |
| 1 | Gujarat | Not given | Low |
| 2 | Assam | Not given | Low |
| 3 | Himachal Pradesh | Not given | Low |
| 4 | Tamilnadu | Preference to local Micro and Small-Scale Enterprises by placing at least 25% of the total orders | High |
| 5 | Jammu & Kashmir | Not given | Low |
| 6 | JHARKHAND | Not given | Low |
7. Transport subsidy
Transport subsidy – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Silent Feature |
| 1 | Gujarat | Not given | Low |
| 2 | Assam | a) Reimbursement of 20% cost to transportation through Railway. Reimbursement of 20% cost of Transportation through inland waterways.Reimbursement of 33% cost of transportation through Air. | High |
| 3 | Himachal Pradesh | Not given | Low |
| 4 | Tamilnadu | Not given | Low |
| 5 | Jammu & Kashmir | Not given | Low |
| 6 | JHARKHAND | The amount of subsidy will not exceed Rs 10 Lakhs during a financial year for an exporter. An additional 10% extra of eligible subsidy will be given to the units which export the items from ICD at Jamshedpur or Multimodal Terminal at Sahebganj | High |
8. Turnover subsidy
Turnover subsidy – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Silent Feature |
| 1 | Gujarat | Not given | Low |
| 2 | Assam | Not given | low |
| 3 | Himachal Pradesh | Not given | Low |
| 4 | Tamilnadu | Not given | Low |
| 5 | Jammu & Kashmir | 3% Turnover incentive shall be provided for all exiting units registered in under GST in the UT of Jammu & Kashmir. | High |
| 6 | JHARKHAND | Not given | Low |
9. Income Tax Reimbursement
Income Tax Reimbursement – Govt of Jharkhand:
| S. No | State | Percentage subsidy and year | Silent Feature |
| 1 | Gujarat | Not given | Low |
| 2 | Assam | Income Tax reimbursement of first 5 years. | low |
| 3 | Himachal Pradesh | Not given | Low |
| 4 | Tamilnadu | Not given | Low |
| 5 | Jammu & Kashmir | Not given | High |
| 6 | JHARKHAND | Not given | Low |
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