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The Haryana Enterprises Promotion Act, 2016 (6 of 2016)

Haryana · state statute
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THE  HARYANA  ENTERPRISES  PROMOTION  ACT,  2016
(HARYANA   ACT  NO. 06 OF 2016)
TABLE  OF CONTENTS
Sections :
1. Short title and commencement.
2. Definitions.
3. Haryana Enterprise Promotion Board.
4. Empowered Executive Committee.
5. Haryana Enterprises Promotion Centre.
6. Bureau of Industrial Policy and Promotion.
7. Foreign Investment Promotion Board and Non Resident Indian
Investment cell.
8. District Level Clearance Committee.
9. Online Composite Application Form.
10. Undertaking.
11. Deemed clearances.
12. Notified services.
13. Grievance Redressal Mechanism.
14. Appellate Authority.
15. Penalties.
16. Act to over-ride other laws.
17. Power to make rules.
18. Protection of action taken in good faith.
19. Power to remove difficulties.
20. Repeal and savings.
2016 : Hr. Act 06] THE HARYANA ENTERPRISES PROMOTION ACT, 2016
226
227
1 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 21st March, 2016 page–4137.
1THE  HARYANA  ENTERPRISES  PROMOTION  ACT,  2016
(Haryana Act No. 6 of 2016)
[Received the assent of the Governor of Haryana, on the 7th April, 2016
and was first published for general information in the Haryana Government Gazette
(Extraordinary), Legislative Supplement Part I of the 11th April, 2016].
 Year  No. Short title Whether repealed or otherwise
affected by Legislation
  1  2 3  4
 2016  6 The Haryana Enterprises
Promotion Act, 2016
AN
ACT
to provide for simplification of regulatory framework and to assist
the promoters in speedy implementation of industrial and other projects in the
State of Haryana by providing single point time bound clearances required
for setting up of enterprise under one roof and reducing the procedural
requirements, rationalizing the documents and to ensureease of doing business
for the promotion of industrial development and facilitation of new investments
and to provide for an investor friendly environment in the State of Haryana.
Be it enacted by the Legislature of the State of Haryana in the Sixty-seventh
Year of the Republic of India as follows:-
1. (1) This Act may be called the Haryana Enterprises Promotion Act, 2016.
(2) It shall be deemed to have come into force with effect from the
14th August, 2015.
2. In this Act, unless the context otherwise requires, -
(a) “any State law” means any law made or adopted by the State
Legislature;
(b) “authority” means any Department of the State Government or a
local authority or any statutory Board, Corporation or any other
authority established by the State Government and entrusted
with the powers and responsibility for grant or issue of clearances
in connection with the setting up of an enterprise in the State;
Short title and
commencement.
Definitions.
2016 : Hr. Act 06] THE HARYANA ENTERPRISES PROMOTION ACT, 2016
228
(c) “clearances” means grant or issue of no objection certificate,
allotment, consent, approval, permission, registration, enrolment,
licence by any authority in connection with the setting up of
enterprise in the State or expansion of existing enterprise;
(d) “deemed clearance” means a clearance deemed to have been
given on the expiry of a period specified under the rules prescribed
under this Act or any State law;
(e) “District Level Clearance Committee” means a Committee
constituted under section 8;
(f) “District Industries Centre” means the office of Joint Director or
Deputy Director, Industries and Commerce Department, Haryana
at district level;
(g) “entrepreneur” means an entity who decides to set up an
enterprise and includes (i) an individual; (ii) a Hindu undivided
family; (iii) a company; (iv) a registered firm; (v) a Limited Liability
Partnership as per the Limited Liability Partnership Act, 2008
(Central Act 6 of 2009); (vi) an association of persons or a body
of individuals, whether incorporated or not, in India or outside
India; (vii) any corporation established by or under any Central,
State or Provincial Act or a Government Company as defined
under clause (45) of section 2 of the Companies Act, 2013 (Central
Act 18 of 2013); (viii) any body corporate incorporated by or
under the laws of a country outside India; or (ix) a co-operative
society registered under any law relating to co-operative society;
(h) “Empowered Executive Committee” means the Committee
constituted under section 4;
(i) “enterprise” means an undertaking engaged in manufacturing,
processing or both or providing service including software
development;
(j) “Haryana Enterprises Promotion Board” means the Board
constituted under section 3;
(k) “Haryana Enterprises Promotion Centre” means the Centre
constituted under section 5 ;
(l) “prescribed” means prescribed by the rules made under this
Act;
(m) “State” means the State of Haryana;
(n) “State Government” means th e Government of the State of
Haryana.
THE HARYANA ENTERPRISES PROMOTION ACT, 2016 [2016 : Hr. Act 06
229
3. (1) The State Government shall, by notification constitute the Haryana
Enterprises Promotion Board under the Chairmanship of the Chief Minister and
such other members, as may be prescribed.
(2) The Haryana Enterprises Promotion Board shall consist of a two tier
system viz. the Empowered Executive Committee at State Level and the District
Level Clearance Committee at district level for grant of project clearances.
(3) The Haryana Enterprises Promotion Board shall be the Apex body for
all matters relating to the enterprise development and shall perform the following
functions, namely:-
(i) to frame the regulations and procedures for conduct of its
business and allocating functions to the Empowered Executive
Committee;
(ii) to create, sanction, abolish and re-designate the posts in the
Haryana Enterprises Promotion Centre and the District Industries
Centres;
(iii) to monitor, supervise and review the functioning of the
Empowered Executive Committee and the District Level Clearance
Committees;
(iv) to approve any incentives, relaxations, exemptions or grant
clearances on the recommendations of the Empowered Executive
Committee in mega projects and ultra mega projects beyond the
package of fiscal incentives under the Enterprises Promotion
Policy, 2015;
(v) to grant clearance on the recommendations of the Empowered
Executive Committee and the District Level Clearance Committee,
where the powers of approval are vested with the State
Government;
(vi) to approve the annual budget, accounts and reports including
audit reports of the Haryana Enterprises Promotion Centre; and
(vii) to adopt such procedure for transaction of its business, as may
be prescribed.
4. (1) The State Government shall, by notification, constitute the
Empowered Executive Committee for considering the projects with such
investment and for grant of Change of Land Use permission for such area, as may
be prescribed, under the Chairmanship of Principal Secretary to the Chief Minister
and such other members, as may be prescribed. The Empowered Executive
Committee shall exercise powers of authority as devolved upon it under respective
Acts, rules or regulations, if any, regarding grant of clearances and incentives in
time bound manner upto the stage/ date of commencement of production/
operations of project. In case any authority is unable to devolve its power to the
Haryana
Enterprise
Promotion
Board.
Empowered
Executive
Committee.
2016 : Hr. Act 06] THE HARYANA ENTERPRISES PROMOTION ACT, 2016
230
Empowered Executive Committee,it shall delegate such powers to its officer
deputed in the Empowered Executive Committee.
(2) The Administrative Secretary of Industries and Commerce Department
shall be the Chief Executive Officer and shall perform such functions, as may be
prescribed. The Managing Director, Haryana State Industrial and Infrastructure
Development Corporation Limited shall be the Additional Chief Executive Officer
and the Director General or Director, Industries and Commerce Department shall be
the Deputy Chief Executive Officer. The office of the Empowered Executive
Committee shall be located in the Directorate of Industries and Commerce, Haryana,
Chandigarh. The staff of the Directorate of Industries and Commerce, Haryana,
shall be suitably fortified with the deputationists from various departments to
serve the Empowered Executive Committee.
(3) The Empowered Executive Committee shall work under the overall
supervision and guidance of the Haryana Enterprise Promotion Board and shall
perform the following functions:-
(i) to adopt such procedure for transaction of its business, as may
be prescribed;
(ii) to process online composite application forms for grant of
clearances for setting up of new projects or expansion of existing
units with such proposed investments, as may be prescribed;
(iii) to inform the entrepreneur the date on which such application
may be deemed to have been approved in the case of deemed
clearances;
(iv) to review and monitor the processing of applications received
by the Haryana Enterprises Promotion Centre;
(v) to grant approvals for establishment of industrial parks in private
sector;
(vi) to act as single point agency for resolution of issues pertaining
to multiple departments and settling the inter-departmental
disputes of the existing industrial units;
(vii) to carry out such other functions, as may be assigned to it by
the Haryana Enterprises Promotion Board or the State
Government;
(viii) to refer any matter to Haryana Enterprises Promotion Board with
its recommendations or suggestions.
(4) The Empowered Executive Committee shall be the final authority for
granting clearances. The clearances given by the Committee shall be binding on
the authority concerned.
(5) The Empowered Executive Committee may appoint from time to time,
any sub- committee under the Chairmanship of Administrative Secretary to
THE HARYANA ENTERPRISES PROMOTION ACT, 2016 [2016 : Hr. Act 06
231
Government, Haryana, Industries and Commerce Department and experts from
Industries or related fields as it considers necessary, to assist it in carrying out its
functions and to facilitate investment in the State.
5. (1) The State Government shall constitute the Haryana Enterprises
Promotion Centre with Administrative Secretary to Government, Haryana, Industries
and Commerce Department as the Chief Executive Officer and consisting of such
other members, as may be prescribed.
(2) The Haryana Enterprises Promotion Centre shall provide secretarial
service to the Haryana Enterprises Promotion Board and the Empowered Executive
Committee and shall have complete data base on availability of land, water, power,
finance etc. and the Acts, rules, regulations and bye-laws of all the institutions
engaged in industrial development. The Haryana Enterprises Promotion Centre
shall showcase the State as an ultimate destination for investment and it shall
perform the following functions, namely:-
(i) to act as a single point contact agency under one roof to provide
information and hand-holding services for venture location to
prospective entrepreneurs particularly with regard to various
clearances needed for implementation of the projects, availability
of land and present level of infrastructure in the State and to
assist entrepreneurs in submission of applications for approvals/
registration to different organizations;
(ii) to receive applications for the allotment of industrial plot to
Non-Resident Indians and foreign investors under reserved
quota of Haryana State Industrial and Infrastructure
Development Corporation Limited and Haryana Urban
Development Authority for processing;
(iii) to keep close liaison with offices of Ministry of Commerce and
Industry, Ministry of External Affairs, Ministry of Food
Processing etc. to capture the projects at the initial stage
especially with regard to foreign direct investment;
(iv) to perform any other function, as may be prescribed.
6. (1) The Investment Promotion Centre constituted under the Haryana
Industrial Promotion Act, 2005 (6 of 2006), shall be renamed as the Bureau of
Industrial Policy and Promotion and shall function under the guidance of the
Administrative Secretary to Government, Haryana, Industries and Commerce
Department. The Director or Director General, Industries and Commerce Department
shall be the Chief Executive Officer and shall have its offices at Delhi and
Chandigarh.
(2) The objective of Bureau of Industrial Policy and Promotion shall be
to policy outreach, continuous engagement with the industry in an ongoing basis,
tracking investment proposals, investment promotion, resolving issues relating to
Haryana
Enterprises
Promotion
Centre.
Bureau of
Industrial Policy
and Promotion.
2016 : Hr. Act 06] THE HARYANA ENTERPRISES PROMOTION ACT, 2016
232
Non-Resident Indian and foreign direct investment, hand-holding investors and
converting investment queries into investment commitments.
(3) The officers not below the rank of Divisional Town Planner, Assistant
General Manager, Haryana State Industrial and Infrastructure Development
Corporation Limited, Environment Engineer, Assistant Director Industrial Safety
and Deputy General Manager, Uttar Haryana Bijli Vitaran Nigam, Deputy General
Manager, Dakshin Haryana Bijli Vitaran Nigam, Joint Director, Industries,
consultants, professionals from the consultancy firms or such other officers as
recommended by the Chief Executive Officer with the approval of State Government
shall be part of the Bureau of Industrial Policy and Promotion.
7. The State Government shall, by notification, constitute Foreign Investment
Promotion Board and Non-Resident Indians Investment Cell for catalyzing foreign
direct investments and non-residents investments in the State.
8. (1) The State Government shall, by notification, constitute District Level
Clearance Committee under the Chairmanship of the Deputy Commissioner having
such members, as may be prescribed. The authority shall delegate its power to the
members of the District Level Clearance Committee for grant of clearances under its
respective Acts, rules or regulations, if any, for approval of  projects with such
investment or for grant of Change of Land Use permission for such area, as may be
prescribed.
(2) The District Level Clearance Committee shall perform the following
functions, namely:—
(i) to adopt such procedure for transaction of its business, as may
be prescribed;
(ii) to process online composite application forms for grant of
clearances for setting up industrial units with proposed
investment;
(iii) to review and monitor the processing of applications by the
District Industries Centres;
(iv) to inform the entrepreneur the date on which such application
may be deemed to have been approved in the case of deemed
clearances; and
(v) such other functions, as may be prescribed.
(3) The District Level Clearance Committee shall be the final authority to
grant clearances. The clearances given by the District Level Clearance Committee
shall be binding on the authority.
(4) The District Level Clearance Committee shall examine the order passed
by any authority, rejecting any clearance or approving it with modification and if
the District Level Clearance Committee considers that there are valid grounds for a
Foreign Investment
Promotion
Board and Non
Resident Indian
Investment Cell.
District Level
Clearance
Committee.
THE HARYANA ENTERPRISES PROMOTION ACT, 2016 [2016 : Hr. Act 06
233
change in such decision, it shall take a decision after recording the reasons, which
shall be binding on the authority.
9. There shall be an online composite application form for the use of
entrepreneurs on the web portal of the Industries and Commerce Department for
receiving online composite applications forms. On receiving an application, the
Haryana Enterprises Promotion Centre or the District Industries Centre shall collate,
process, secure clearances from the authorities in such manner, as may be prescribed.
All the processing and clearances shall be given in respect of authority through
the web portal.
10. Every entrepreneur shall furnish an undertaking in such form, as may be
prescribed at the time of submitting the duly completed online composite application
form that he shall comply with the provisions of this Act and the rules made
thereunder, and in case of non compliance of any provisions of the Act or rules
made thereunder, the entrepreneur shall be liable to penalties as provided under
section 15.
11. (1) The Haryana Enterprises Promotion Centre and the District Industries
Centre shall issue clearances within such time limit, as may be prescribed after
obtaining approval of the Haryana Enterprises Promotion Board, Empowered
Executive Committee or District Level Clearance Committee, as the case may be,
failing which such clearances shall be deemed to have been issued.
(2) The entrepreneur may proceed to execute the work or take other action
following the deemed clearance, but not so as to contravene any of the provisions
of this Act or rules made thereunder.
12. The Industries and Commerce Department may notify industrial services
relating to industrial promotion in the State under the Haryana Right to Service
Act, 2014 (4 of 2014).
13. The State Government shall create a grievance redressal mechanism for
resolving the grievances of the entrepreneurs.
14.  (1) Any person aggrieved by the decision of the Empowered Executive
Committee may within a period of thirty days from the date of receipt of
communication of the decision of the Committee, appeal to the Haryana Enterprises
Promotion Board in such manner, as may be prescribed.
(2) Any person aggrieved by the decision of the District Level Clearance
Committee may within a period of thirty days from the date of receipt of
communication of the decision of the Committee appeal to the Empowered Executive
Committee in such manner, as may be prescribed.
(3) The appellate authority shall after following such procedure, as may
be prescribed, dispose of the appeal within the period of one month from the date
of its receipt.
Online
Composite
Application
Form.
Undertaking.
Deemed
clearances.
Notified services.
Grievance
Redressal
Mechanism.
Appellate
authority.
2016 : Hr. Act 06] THE HARYANA ENTERPRISES PROMOTION ACT, 2016
234
15. Any entrepreneur who fails to comply with the conditions of undertaking,
for the first instance of non-compliance shall be liable to pay fine which shall be
fifty thousand rupees and for subsequent non-compliance, shall be liable to pay
fine which may extend to one lakh rupees.
16. The provisions of this Act and the rules made thereunder shall have effect
notwithstanding anything inconsistent therewith contained in any other State
Law.
17. (1) The State Government may, by notification, make rules to carry out
the purposes of this Act.
(2) Every rule made under this Act shall be laid, as soon as may be, after
it is made, before the House of the State Legislature while it is in session.
18. No suit or legal proceedings shall lie against the Chairman of the Haryana
Enterprises Promotion Board, the Empowered Executive Committee, the District
Level Clearance Committee or other members of the Board or Committees or any
officer or employee of such Board or Committees in respect of anything which is in
good faith done or intended to be done under this Act or any rule made thereunder.
19. If any difficulty arises in giving effect to the provisions of this Act, the State
Government may, by order, not inconsistent with the provisions of this Act, remove
such difficulty.
20. (1) The Haryana Industrial Promotion Act, 2005 (6 of 2006), is hereby
repealed.
(2) Notwithstanding such repeal, anything done or any action taken under
the Act so repealed shall be deemed to have been done or taken under the
corresponding provisions of this Act.
Penalties.
Act to over-ride
other laws.
Power to make
rules.
Protection of
action taken in
good faith.
Power to remove
difficulties.
Repeal and
savings.
THE HARYANA ENTERPRISES PROMOTION ACT, 2016 [2016 : Hr. Act 06

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