Advantage of Jharkhand Pharma policy

Roadmap for inviting Pharma Industry in the State of Jharkhand.

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Medicine
Picture: Pixabay

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.

Medicine Factory
Picture: Pixabay

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. NoStatePercentage of SubsidyUpper LimitRemarks
1Gujarat@ 25% on eligible loan amountRs. 35 lakh only. Additional 10 lakh for fixed capital above 10 croresLow percentage incentive and low upper limit
2Assam@ 30 % of capital investment.Rs. 5 coresHigh percentage incentive and medium upper limit
3Himachal Pradesh@ 30 % of plant and Machinery InvestmentRs. 5 coresHigh percentage incentive and medium upper limit
4Tamilnadu@ 25 % of plant and Machinery InvestmentRs. 30 lakhLow percentage incentive and low upper limit
5Jammu & Kashmir@ 30 % of plant and Machinery InvestmentR.s 7.5 coresHigh Percentage incentive and medium upper limit
6JHARKHAND@25 % of fixed capital investment subjectRs. 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 entrepreneursLow Percentage incentive and High upper limit

2. Incentive on Interest Rate

Incentive on Interest Rate – Govt of Jharkhand:

S. NoStatePercentage subsidy and yearUpper LimitRemarks
1Gujarat@ 7% for interest levied For 7 yearLoan up to Rs. 35 lakhs per annumHigh percentage, long period and low Limit
2Assam@ 3% for interest levied For 5 yearNo limitLow percentage, medium period and No Limit
3Himachal Pradesh@ 3% for interest levied For 3 yearRs. 10 lakhs/annum- A Category Rs. 15 lakhs /annuum– B category Rs. 20 lakhs/annum -C CategoryLow percentage, short period and low Limit
4Tamilnadu@ 5% for interest levied For 6 yearOnly for ultra-mega projectMedium percentage, long period and low Limit
5Jammu & Kashmir@ 6% for interest levied For 7 yearNo limitHigh percentage, long period and No Limit
6JHARKHAND@ 5% for interest levied For 5 yearRs. 15 Lakhs – Micro enterprises Rs. 50 lakhs – Small enterprises 1 crore – Medium enterprises 3 crores – non MSMEs sector unitsMedium percentage, Medium period and Medium Limit

3. Incentive on GST

Incentive on GST – Govt of Jharkhand:

S. NoStateParticularsRemarks
1GujaratDe-link incentives from SGST.Up to 12% given to the large industries for setting up manufacturing operationsMedium
2AssamReimbursement of CGST and IGST for a period of 5 years.High
3Himachal PradeshReimbursement of Net SGST paid @ 50 % for A category @70 % for B Category @80 % for C categoryMedium
4Tamilnaduthere is no provision of refund of input tax paid on capital goods, as the formula prescribed_
5Jammu & KashmirFor 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
6JHARKHANDNew 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 12yearsHigh

4. Working capital incentive

Working capital incentive – Govt of Jharkhand:

S. NoStateParticularsRemarks
1GujaratNot GivenLow
2Assam% 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
3Himachal PradeshNot GivenLow
4TamilnaduNot GivenLow
5Jammu & KashmirAll 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
6JHARKHANDNot GivenLow

5. Electricity subsidy

Electricity subsidy – Govt of Jharkhand:

S. NoStatePercentage subsidy and yearSilent Feature
1GujaratElectricity Duty for 5 years.Medium
2AssamNot givenLow
3Himachal Pradesh15% on energy chargesMedium
4Tamilnaduan electricity tax exemption for a period of 5 yearsMedium
5Jammu & KashmirNot givenLow
6JHARKHANDSubsidized 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. NoStatePercentage subsidy and yearSilent Feature
1GujaratNot givenLow
2AssamNot givenLow
3Himachal PradeshNot givenLow
4TamilnaduPreference to local Micro and Small-Scale Enterprises by placing at least 25% of the total ordersHigh
5Jammu & KashmirNot givenLow
6JHARKHANDNot givenLow

7. Transport subsidy

Transport subsidy – Govt of Jharkhand:

S. NoStatePercentage subsidy and yearSilent Feature
1GujaratNot givenLow
2Assama) 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
3Himachal PradeshNot givenLow
4TamilnaduNot givenLow
5Jammu & KashmirNot givenLow
6JHARKHANDThe 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 SahebganjHigh

8. Turnover subsidy

Turnover subsidy – Govt of Jharkhand:

  S. NoStatePercentage subsidy and yearSilent Feature
1GujaratNot givenLow
2AssamNot givenlow
3Himachal PradeshNot givenLow
4TamilnaduNot givenLow
5Jammu & Kashmir3% Turnover incentive shall be provided for all exiting units registered in under GST in the UT of Jammu & Kashmir.High
6JHARKHANDNot givenLow

9. Income Tax Reimbursement

Income Tax Reimbursement – Govt of Jharkhand:

S. NoStatePercentage subsidy and yearSilent Feature
1GujaratNot givenLow
2AssamIncome Tax reimbursement of first 5 years.low
3Himachal PradeshNot givenLow
4TamilnaduNot givenLow
5Jammu & KashmirNot givenHigh
6JHARKHANDNot givenLow

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