Section 10

Section 10 of Bihar Logistic Policy. CCTV system for each unit for continuous monitoring with storage back-up of at-least 1 month Note: State Investment Promotion Board (SIPB) may take decision regarding the criteria of minimum land requirement for different projects on case to case basis depending on parameters like availability of la

CCTV system for each unit for continuous monitoring with storage back-up of at-least 1 month Note: State Investment Promotion Board (SIPB) may take decision regarding the criteria of minimum land requirement for different projects on case to case basis depending on parameters like availability of land, urban/ rural area, etc. 7. Incentives for Multi Modal Logistics Parks, Logistics Parks and Logistics Units This Policy recognizes the need for additional incentives to eligible Multi Modal Logistics Parks, Logistics Parks and Logistics Units to further improve the investment prospects in Bihar's logistics sector. 7.1 Guiding Principles These provisions/ principles shall be applicable to all eligible Multi Modal Logistics Park, Logistics Parks, and Logistics Units under this policy. i. This policy shall come into force from the date of its notification. The said date shall be considered as the effective date of this policy from which its provisions shall come into force and shall be applicable for 5 years. ii. The incentives under this Policy to Logistics Park and Multi Modal Logistics Park shall be offered after the completion of the facility as per the submitted Detailed Project Report (DPR) and atleast one Logistics Unit is in operational condition. . Incentives to the Logistics Units will be provided after the commencement of commercial operation by the logistics Units. iii. Shareholding value of Multi Modal Logistics Park or Logistics Park of more than 50% of asset cost cannot be transferred until 5 years from last payment of incentive. iv. In the event of change in ownership or management of a unit, the same shall be intimated by the unit to the competent authority as defined by the Department of Industries from time to time. If required, a revised Letter/ Eligibility Certificate shall be issued to the unit (in the name of new owner) for balance incentives. The eligibility period shall not be extended under any circumstances and shall continue to be defined with effect from the original date of production. v. BIADA will provide the land above the minimum land requirement as per this policy, for setting up of MMLP, Logistics Park, ICD, CFS, Warehouse and Cold Chain as mentioned in this policy. BIADA can also develop and lease the Logistics Park and Multi Modal Logistics Park by developing the basic infrastructure as submitted in the Detailed Project Report. vi. The private industrial park can be established by an individual promoter/ partnership firm/ - LLP/ company or any entity registered under the Companies Act/ Societies Act. vii. Applicant need to establish a Logistics Park within 30 months and Multi Modal Logistics Park within 42 months from date of acceptance for establishment. Competent authority of the Department of Industries, Government of Bihar may extend project execution period for the maximum period of 6 months subject to merit. viii. The promoter shall not create residential units in the industrial park or convert the industrial park into a real estate project. The industrial park shall only be used for industrial use. All private industrial parks shall be notified as industrial lands. Under no circumstances a private industrial park shall be put into any other use other than for industrial purposes. ix. The rates for the industrial plots in the private industrial park would be ascertained by the promoter. The State Government would not have any role in this. x. The incentives under this Policy to the eligible Multi Modal Logistics Park, Logistics Park and Logistics Units covered under clause 7 shall be in addition to the benefits eligible under the Bihar Industrial Investment Promotion Policy, 2016 (BIIPP 2016). However, the maximum limit of incentive under this Policy shall be subject to capping as per clause 7.2, 7.3, 7.4, and 7.5 of this Policy. xi. The promoter of the park would create a fund called "Development Reserve Fund (DRF)" for the development of external infrastructure of the park. The promoter would contribute 5% of the fund collected through land allotment and 10% of the Annual Net Profit in the DRF. The DRF would be maintained in the form of a fixed deposit. A committee would be constituted for the operation of the DRF. The committee would consist of promoter/ representatives of the promoter and units operating in that park. At any point of time, a maximum of 33% of DRF can be used for the development of the appropriate infrastructure. Further, the promoter would charge a maintenance fee from the operating units in the park. The same committee would be responsible for the operation of the fund created from the maintenance fee collected. xii. The maximum value of total incentives that can be availed under this policy will not exceed INR 150 Crore. xiii. For the purpose of calculation of incentive under this policy, the approved project cost shall mean the project cost finally approved by the State Government. The approved project cost shall be the basis for determining the incentives. xiv. Completion of Logistics Park and Multi Modal Logistics Park here will mean the completion of the construction of infrastructure as per DPR before the first Logistics unit is allotted. xv. Investor(s) availing incentives under any other Bihar State policies/schemes shall not be eligible to avail incentives under this policy, as the policy is unilateral and binding. Investor(s) availing any incentives under Government of India policies/schemes has to notify the same to Department of Industries, Government of Bihar before availing incentives under this policy. xvi. All the infrastructure projects for the development of Logistics Park, Multimodal Logistics Park and Logistics Units viz Warehouse, Cold Chain, Inland Container Depot and Container Freight Station which qualifies as per the minimum criteria defined in this policy, shall be updated by BIADA on the portal of PM Gati Shakti National Master Plan. 7.2 Incentives for Logistics Park S. No. Incentives Quantum of Incentives Policy 1. Capital Investment Subsidy Proposals received during first two years from date of notification of this policy · 20% of Fixed Capital Investment (FCI), subject to a Bihar Logistics Policy, 2023 S. No. Incentives Quantum of Incentives Policy maximum of INR 20 Crore whichever is lower Proposals received from third year onwards from date of notification of this policy · 15% of Fixed Capital Investment (FCI), subject to a maximum of INR 10 Crore whichever is lower Proposals received during first two years from date of notification of this policy 2. Interest Subvention · Interest subvention shall be 10% or actual rate of interest on term loan, whichever is lower, to the extent 50% of the Fixed Capital Investment subject to a limit of INR 60 Crore. Bihar Logistics Policy, 2023 Proposals received from third year onwards from date of notification of this policy · Interest subvention shall be 10% or actual rate of interest on term loan, whichever is lower, to the extent 40% of the Fixed Capital Investment subject to a limit of INR 50 Crore. 3. Tax-related Incentives 100% reimbursement against tax related incentives (SGST deposited and Electricity duty on power including captive power) for a period of 5 years from the date of commencement of commercial operation. This shall have a maximum limit of 100% of the Fixed Capital Investment (FCI). 4. Skill Development Subsidy Logistics Park Developer providing skill training in warehouse management & logistics management will be reimbursed up to Rs. 20,000 per employee/BSDM rates / actual rate whichever is lower for employee/staff domiciled in Bihar. The employment period should be a minimum 1 year. 5. Employment Cost Subsidy 50 % reimbursement (in case of male workers) and 100% reimbursement (in case of female workers) of expenditure on account of contribution toward ESI and EPF scheme for a period of 5 years for new units for those employees who are domicile of Bihar. The maximum limit for reimbursement will be Rs. 1000 - per month for SC/ST and women employees and Rs. 500/- per month for a general employee. 6. Exemption of Stamp duty/ Registration fees 100% exemption of stamp duty/registration fees levied on lease/ sale /transfer of industrial land/shed and also those outside the jurisdiction of Industrial Area Development Authority. This would be available to all the new units only and given only for first time. 7. Exemption of Land Conversion Fees 100% exemption on land conversion fees of agricultural land after completion of the Logistics Park as per DPR. Capital Investment Subsidy will be disbursed after completion of Logistics Park as per DPR as follows: First Instalment: 50% of the eligible amount after 12 months from allotment to the first unit of a minimum 12 acres or 50% of the Logistics Park area whichever is lower Second Instalment: 30% of the eligible amount after 24 months from allotment to the next unit of cumulative 20 acres or 80% of the total of the Logistics Park area whichever is lower Third Instalment: 20% of the eligible amount after 36 months from allotment to the next unit of cumulative 25 acres or 100% of the total of the Logistics Park area whichever is lower 7.3 Incentives for Logistics Units S. No. Incentives Quantum of Incentives Policy Proposals received during first two years from date of notification of this policy · ICD - 20% of FCI, subject to a maximum of INR 10 Crore whichever is lower · Warehouse - 20% of FCI, subject to a maximum of INR 6 Crore whichever is lower . Cold Chain - 20% of FCI, subject to a maximum of INR 4 Crore whichever is lower · CFS - 20% of FCI, subject to a maximum of INR 3 Crore whichever is lower Bihar Logistics Policy, 2023 · ICD - 15% of FCI, subject to a maximum of INR 8 Crore whichever is lower · Warehouse - 15% of FCI, subject to a maximum of INR 4 Crore whichever is lower . Cold Chain - 15% of FCI, subject to a maximum of INR 3 Crore whichever is lower · CFS - 15% of FCI, subject to a maximum of INR 2 Crore whichever is lower Proposals received during first two years from date of notification of this policy 2. Interest Subvention · Interest subvention shall be 10% or actual rate of interest on term loan, whichever is lower, to the extent 50% of the Fixed Capital Investment subject to a limit of INR 30 Crore. Bihar Logistics Policy, 2023 Proposals received from third year onwards from date of notification of this policy . Interest subvention shall be 10% or the actual rate of 1. Capital Investment Subsidy Proposals received from third year onwards from date of notification of this policy S. No. Incentives Quantum of Incentives Policy interest on term loan, whichever is lower, to the extent of 50% of the Fixed Capital Investment subject to a limit of INR 20 Crore. 3. Tax related Incentives 100% reimbursement against tax related incentives (SGST deposited and Electricity duty on power including captive power) for a period of 5 years from the date of commencement of commercial operation. This shall have a maximum limit of 100% of the Fixed Capital Investment (FCI). BIIPP. 2016 Skill Development Subsidy Logistics Unit providing skill training in warehouse management & logistics management will be reimbursed up to Rs. 20,000 per employee/BSDM rates / actual rate whichever is lower for employee/staff domiciled in Bihar. Employment period should be minimum 1 year. 5. Employment Cost Subsidy 50 % reimbursement (in case of male workers) and 100% reimbursement (in case of female workers) of expenditure on account of contribution toward ESI and EPF scheme for a period of 5 years for new units for those employees who are domicile of Bihar. The maximum limit for reimbursement will be Rs. 1000 - per month for SC/ST and women employees and Rs. 500/- per month for general employees. 6_ Exemption of Stamp duty/ Registration fees 100% exemption of stamp duty/registration fees levied on lease/ sale /transfer of industrial land/shed and also those outside the jurisdiction of Industrial Area Development Authority would be available to all the new units only and given only for first time. 7. Exemption of Land Conversion Fees 100% exemption of land conversion fees of agricultural land. "Capital Investment Subsidy will be disbursed after completion of Logistics Units as per DPR as follows: First Instalment: 50% of eligible amount after 12 months or 50% of the project completion as per DPR whichever is earlier Second Instalment: 30% of eligible amount after 24 months or 80% of the project completion as per DPR whichever is earlier Third Instalment: 20% of eligible amount after 36 months or 100% of the project completion as per DPR whichever is earlier 7.4 Incentives for Multi Modal Logistics Park (MMLP) S. No. Incentives Quantum of Incentives Policy Proposals received during first two years from date of notification of this policy · 20% of Fixed Capital Investment (FCI), subject to a maximum of INR 25 Crore whichever is lower Proposals received from third year onwards from date of notification of this policy · 15% of Fixed Capital Investment (FCI), subject to a maximum of INR 15 Crore whichever is lower Bihar Logistics Policy, 2023 2. Interest Subvention Proposals received from third year onwards from date of notification of this policy · Interest subvention shall be 10% or actual rate of interest on term loan, whichever is lower, to the extent 40% of the Fixed Capital Investment subject to a limit of INR 50 Crore. 3. Tax related Incentives 100% reimbursement against tax related incentives (SGST deposited and Electricity duty on power including captive power) for a period of 5 years from the date of commencement of commercial operation. This shall have a maximum limit of 100% of the Fixed Capital Investment (FCI). 4. Skill Development Subsidy MMLP developer providing skill training in warehouse management & logistics management will be reimbursed up to Rs. 20,000 per employee/BSDM rates / actual rate whichever is lower for employee/staff domiciled in Bihar. Employment period should be minimum 1 year. 5. Employment Cost Subsidy 50 % reimbursement (in case of male workers) and 100% reimbursement (in case of female workers) of expenditure on account of contribution toward ESI and EPF scheme for a period of 5 years for new units for those employees who are domicile of Bihar. Maximum limit for reimbursement will be Rs. 1000 - per month for SC/ST and women employee and Rs. 500/- per month for general employee. 6. Exemption of Stamp duty/ Registration fees 100% exemption of stamp duty/registration fees levied on lease/ sale /transfer of industrial land/shed and those outside the jurisdiction of Industrial Area Development Authority would be available to all the new units only and given only for first time. 1. Capital Investment Subsidy Proposals received during first two years from date of notification of this policy . Interest subvention shall be 10% or actual rate of interest on term loan, whichever is lower, to the extent 50% of the Fixed Capital Investment subject to a limit of INR 60 Crore. Bihar Logistics Policy, 2023 S. No. Incentives Quantum of Incentives Policy 7. Exemption of Land Conversion Fees 100% reimbursement of land conversion fees of agricultural land. Capital Investment Subsidy will be disbursed after completion of Multi Modal Logistics Park (MMLP) as per DPR as follows: First Instalment: 50% of eligible amount after 12 months from allotment to the first unit of minimum 12 acres or 50% of the MMLP area whichever is lower V Second Instalment: 30% of eligible amount after 24 months from allotment to the next unit of cumulative 20 acres or 80% of the total of the MMLP area whichever is lower Third Instalment: 20% of eligible amount after 36 months from allotment to the next unit of cumulative 25 acres or 100% of the total of the MMLP area whichever is lower 7.5 Special Incentive Package for Special Class Entrepreneurs Special Class Entrepreneurs shall be entrepreneurs belonging to scheduled caste, scheduled tribe (SC / ST), extremely backward class (EBC), economically weaker section (EWS), women, differently abled persons, war widows, acid attack victims and third gender section of the society. Following special incentive package will be admissible to Special class entrepreneurs Interest Subvention: . The rate of interest for Special class entrepreneurs will be increased by 15% of the applicable rates, i.e., it will be 11.5% or actual rate of interest on term loan, whichever is lower diawil " The maximum limit of interest subvention shall also be increased by 15% of the applicable limits, i.e., for Logistics Unit it shall be 57.5% of the Fixed Capital Investment or INR 23 Crores whichever is lower. 7.6 Submission of Application under this Policy For availing incentive under this Policy, the eligible units would be required to submit Stage-1 application . Every application for Stage-1 clearance submitted by an entrepreneur for setting up a Multi Modal Logistics Park, Logistics Park or Logistics Units shall be processed in the next seven (7) working days. Applications that are complete in all respects shall be accorded Stage-1 clearance and the same shall be communicated to the concerned entrepreneur. Eligible units that have availed Stage-1 clearance prior to the date of notification of this Policy shall also be covered under this Policy provided they have not availed the Financial Clearance. 7.7 Timeline to be followed by Entrepreneurs and Department of Industries (i) Stage-1 Clearance: For availing incentive under this Policy, the eligible units would be required to submit Stage-1 application. Application for Stage-1 clearance should be submitted on the Single Window Clearance portal (swc2.bihar.gov.in) of Department of Industries (Dol). Every application for Stage-1 clearance submitted by an entrepreneur under this policy shall be processed in the next seven (7) working days.

(ii) Land allotment by BIADA: Entrepreneurs should submit an application for land allotment of the Logistics Park, Multi Modal Logistics Park or Logistics Unit on the BIADA portal (https://biadabihar.in). The application shall be disposed of by BIADA within the next thirty (30) working days.

(iii) Financial Clearance: Entrepreneurs should submit an application for Financial Clearance on the Single Window Clearance portal (swc2.bihar.gov.in) of the Department of Industries. 8. Policy Implementation, Monitoring and Grievance Redressal 8.1 Policy Implementation i. The Department of Industries, Government of Bihar shall be the nodal agency responsible for the implementation of this policy in the State. odal ii. The Director Technical Development, Department of Industries shall be the nodal officer for the Policy. A logistics division shall be created for inter-department coordination which shall work under the overall supervision of an Empowered Committee headed by the Additional Chief Secretary/Principal Secretary/Secretary, Department of Industries, and an Executive Committee headed by the Director Technical Development, Department of Industries. The logistics division may engage services of a Project Management Agency (PMA) for implementation of the Policy. iii. Incentives under this policy shall be processed as per the provisions of Bihar Industrial Investment Promotion Act, 2016 and Bihar Industrial Investment Promotion Rules, 2016. iv. Units applying for an incentive under this policy shall apply on the Single Window Clearance (SWC) portal of the Department of Industries, Government of Bihar. V. The Government of Bihar shall promote logistics parks/ units in the State. For this purpose, the State Investment Promotion Board (SIPB) constituted as per Section 4 of the Bihar Industrial Investment Promotion Act, 2016 shall be empowered to issue directions to concerned Departments/ Agencies of the State Government. All NOCs, permissions and clearances required by logistic parks/ units from other Departments/ Agencies of Bihar Government shall be provided through Single Window Clearance (SWC) portal of the Department of Industries, Government of Bihar. vi. Department of Industries shall extend hand-holding support to the Investors setting up MMLP, logistics parks or Logistics Units in land allotment from Bihar Industrial Area Development Authority (BIADA), land registration for private land and land-use conversion and other applicable clearances/ licenses/ NOCs. 9. Policy monitoring and grievance redressal i. The implementation of the policy shall be reviewed from time to time and necessary facilitation and course correction shall be undertaken as found necessary to achieve the objectives of this policy. ii. Department of Industries shall develop a web-based interaction mechanism where suggestions and complaints can be directly addressed to the Department of Industries.

Section 10, Bihar Logistic Policy (Act 4260 of 2023).