LexThe ORISSA INDUSTRIES (FACILITATION) ACT, 2004
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The Orissa Industries (Facilitation) Act, 2004
Act 14 of 2004
Keyword(s):
Clearances, District Level Single Window Clearance Authority, Entrepreneur,
High Level Clearance Authority, Industrial Policy Resolution, Industrial Unit,
Nodal Agency, State Level Single Window Clearance Authority
67
. . ORISSA ACT 14 OF2004
THE ORISSA INDUSTRIES (FACILITATION) ACT, 2004
TABLE OF CONTENTS
PREAMBLE
SECTIONS
CHAPTER I
1 Short title, extent and commencement.
2. Definitions. . ,
CHAPTER ll
CONSTITUTIONS AND .FUNCT!ONS OF DIFFERENT
CLEARANCE AUTHORITIES
3. High Level Clearance Authority.
4. State Level Single Window Clearance Authority.
5. District Level Single Window Clearance Authorities.
6. Special Committees. .
7. Appeal.
8. Appointment of Nodal Agencies.
9. Combined Application Form:
10. Self certification.
11. Deemed approval.
12. Rationalisation of inspection.
I 3. Power to make rules.
14 Direction by Government.
CHAPTER 111
MISCELLANEOUS
15. Exemption.
16. Offences and penalties.
17. Overriding effect of the Act.
18. Protection of action taken in good faith.
19. Power to remove doubts and difficulties.
69
ORlSSA ACT 14 OF 2004
*THE ORISSA INDUSTRIES (FACILITATION) ACT, 2004
[ Received Ihe assent of the Governor on the 241h December. 2004, first published in an
Exlraordinary issue of Ihe Orissa Gazette, dated the 31 st December, 2004 (No. 1857)l
AN ACT TO PROVIDE FOR THE CONSTITUTION OF CLEARANCE AU,TliORlTlES AT THE
DISTRICT AND STATE LEVEL FOR SCRUTINY, CONSIDERATION AND FINAL
DISPOSAL OF THE APPLICATIONS OF THE ENTREPRENEURS
PROPOSING TO START INDUSTRIES IN THE STATE AND
FOR MATTERS CONNECTED THERNV ITH
OR INCIDENTAL THERETO. . .
BE it enacted by the Legislature of the State of Orissa in the Fifty-fifth Year
of the Republic of India as follows :-
CHAPTER I
PRELIMINARY
Shorl tille, 1. (I) This Act may be called the Orissa industries (Facilitation) Act, 2004.
exlenl and
mmmwrzment . (2) It shall extend to the whole of the State of Orissa.
(3) .It shall come into force at once.
- Definifions, - 2. In this Act unless the context otherwise requires,-
(a) 'Authority' means any statutory body, Corporation or other Aulhority
established by the Government, which are enlrusled with the powers
-.
or responsibility to grant or issue clearances;
(6) 'Clearances' means supply of No Objection Certificates, allo'tments,
consents. approvals, permissions, registrations, enrolments, licences
or.the like, by the Deparlments of Stale or Central Government,
Authorities or any other bodies;
(c) 'Deparlrnent' means a Department of ihe Stale Government;
(d) 'Dislricl Level-Single Window Clearance Aulhority' means an Authority
consliluled under Section 5 OF this Act;
(e) 'Entrepreneur' means a person or body of persons or a Company,
having majority portion of inveslrnen t o; conrolling interest in an
industry or enterprise;
(0 r~overnment' means the State Government of Orissa;
(g) 'High Level Clearance Authority' means a Commitlee constituted
. under Seclion 3 of this Act; . .
(h) 'Industrial Policy Resolution' means the Pollcy issued by Industries
Department from time to time;
(4 'Industrial Unit' means any industrial undertaking located inside the
Slate and engaged in any manufacturing or servicing activity as
' detailed in the Industrial Policy Resolution from time to time;
liJ 'Nodal Agency' means the Nodal Agency at Ihe State Level or at the
District Level consliluted under Section 8 of this Act;
,
-
'For the Bill, See Onssa Gazetle. Exlraordinary dated the 31 st December 2004 (NO. 1857)
70
(k) 'Notification' means a notificalion published in the Orissa Gazette
and the word 'notify' will be conslrued accordingIy;
(I) 'Prescribed' means prescribed by rules made under this Act; and
(m) 'State Level Single Window Clearance Aulhorit), means a committee
conslituled under Section.4 of this Act. -
- CHAPTER I1
CONSTITUTIONS AND FUNCTIONS OF DIFFERENT
CLEARANCE AUTHORITIES
High Level
Clearance
Authority.
Slate Level
Single Window
Clearance
Aulharily. .
. 3. (1) Government may, by notification in the Oflicial Gazette, conslitute
from time to time, a Committee known as the High Level Clearance Authority
under the ChairmanshTp of the Chief Minister consisting of such other ex oficio
members, as may be specified therein which shall examine and consider proposals
for Industrial and other Projects to be set up in the State where lhe amount of
investment 'is rupees fifty crores or more or such higher ainount as may fixed by
the Government from time to time and shall have the power to direct concerned
Departments or Aulhorities to issue the required clearances within the specified
lime limit subject to compliance of Ihe provisions of the applicable Acts and , ,
Rules or Orders and Inslructions in force by the Industria!.Unit.
(2) The members of the Aulhority under this Seclion shall personally
allend the meetings and in case of exigencies may depute a senior level official
with written authorisalion to take appropriate decisions in the meetings.
(3) The Authority under this Section shall,-
(a) meet at such times and places and shall adopt such procedures
to transact its business as may be prescribed;
(b) examine the proposals brought before it, for selling up Industrial
' Unils; and
(cJ take decisions and communicate its decisions to the entrepreneurs
. and the Departments or Ihe Authorities concerned within the
prescribed time li-mit.
(4) The Aulhwity under this Section shall be the final Authority in granting
approvals for the projects placed before it and the approvals given by it shall be
binding on all the Departments or Authorities concerned and such Departments
or Authorities shall issue the required clearances within the prescribed time limit.
4. (I) Government may, by notification in the Official Gazette, conslitute,
from time to time, a Cornmillee under the Chairmanship of the Chief Secretary
known as the State Level Single Window Clearance Authority hereinafter in lhis
Section, referred to as the said Authority consisting af such other ex ofich
members as may specified therein.
(2) The said Authority shall examine and consider proposals lor industrial
and other projects to be set up in the State where the, amount of investment is
rupees lhree crores or more but less lhan rupees fifty crores or such amount as .
may be fixed by Government, from lime to time.
71
(3) Every member of the said Authority shall personally altend the meetings
and in case of exigencies he may depute a senior level official with written
authorisition 10 take appropriale decisions in Ihe meetings.
(4) The said Authority may exercise the following powers and shall perform
the following funclkns, narneiy :-
I
(j) to meet at such limes and places as the Chairman of the said.
Aulhority may decide and transacl business as per the procedure '
as may be prescribed;
(iij to review and monitor Ihe processing of applicalians by the
' competent authority, and lo'forward the orders of the competent
authority lo the applicanl;
(iio to inform the applicant of the da(e on which lhe application was
received by the competent adhority and the date ori which such
applicalion may be deemed to have been approved in the case of
deemed approval;
(iw) to review and monitor the functioning and performance of District
Level Single Window Clearance Authorities; and
(v] to exercise such other powers and perform such other functions
as may be prescribed.
(5) The said Authority shall be Ihe final authority in granting approvals on
proposals for the projects under sub-section (2) placed before it and the approvals
given by il shall be binding on Ihe Deparlmenls or Authorities concerned and
such Departmenls or Aulhorities shall issue the required clearance within the
specified time limit subjecl to comliances of the provisions of the applicable Acl
or Rules or Orders or Instructions by the Industrial Unit.
(6) The said Aulhority shall examine the prdposals brought before it for
setting up Industrial Unils and other projects and sf-tall take a decision and
communicate its decision to the entrepreneurs and the Departments or Authorities
concerned wilhin the prescribed time limit.
Districl Level 5. (1) Government may, by notification in the Official Gazelte, conslitute, a
Single Window
Clearance Cornmillee in each district known as District Level S-ingle Window Clearance
Aulhonlies. Authority hereinafter in this Section, referred lo as District Authority, under Ihe
Chairmanship of the Collector of such district consisting of such other ex oficio
members as may-be specified in the notification and such authorily shall examine
and consider proposal for induslrial and other projects to beset up in ihe respeclive
districls, where the aiount of investment is less than rupees lhree crores or any
amount fixed by Gover'hment from lime to time.
(2) The District Authority shall exercise the following powers and perform
Ihe following functions, namely ;-
(i,J to meet at such times and places as (he Chairman of the D'istrict
Authority may decide and transact business as per Ihe procedure
as may be prescribed;
{id to review an; monitor the processing-of applications by the
competent authorilies and to forward the orders of the competent
authorities to the applicant;
72
(iii) to issue deemed approval as provided in Section 11 of this Acl;
- (ivJ to exercise such other powers and to perform such functions as
may be prescribed.
' (3) Every member of the District Authority shall attend the meeting
convened under clause (i) of sub-sectinn (2) personally and in case he is unable
lo attend the meeting, he may depute a senior level'oficer with a written '
authorisition to take appropriate decision in the meeting. -
(4) The District Authority shall examine the proposals brought before it
for setting up Industrial Units and other projects in its respective Districts and
shall take decision and communicate its decision to the enlrepreneurs and the
Departments-or Authorities concerned wilhin the prescribed time limit.
(5) The District Aulhorily shall be Ihe final Aulhority in granting approvals
for the projects placed before it and the approvals given by the District Authority .
shall be binding on all the Departmenls or Authorities concerned and such
Departments or Authorities shalI issue thelequired clearances wilhin the specified
'
Iime lirnil, subject lo compliance of provisions of the applicable Acts and Rules or
Orders or lnstruclions by the Industrial Units.
Special 6. (I) Government may, by notification, constitute Special Single Window Committees.
Clearance Committees for any specified purpose, specified area or specified
sector and delegate to them such powers and functions as Government may
deem fit.
(2) A special committee shall consist of such number of ex ofticio
members of whom one shall be nhminated by Government as Chairman by way
of issuing nolificalion.
Appear. 7. Any person aggrieved by the decision of the High Level Clearance
Authority, SIale Level Single Window Clearance Authorilyor District Level Single
Window Clearance Authority may, within thirty days from [he date of receipt of
, ., communication of the decision of the Authorities, appeal lo the Appellate Authority
as may be prescribed.
, -
Appointment 8. (1) Government may, by notification in the Official Gazelle, constitute a of Ndal
Agencies. ,
Nodal Agency at the State Level and the District Industries Centres shall be the
Nodal Agencies at the ~iskicl Level, to undertake industrial promolion activities
and to facilitate investors.
{2,J Functions of the State Level Nodal Agency shall be as follows i-
(0 inveslment promotional activities at the State, National and
International level;
(ii) State's image building to altract investments;
W investment climate improvement exercises;
(I+) render necessaryassislance and feed back in policy formulation
for industrial progress;
(v} guide and assist entrepreneurs lo set up induslries in Ihe State;
73
(w] prepare and regularly update an information booklet providing
complete particulars relating 10-
(a) State and Central Industrial Policies;
(6) Department or Aulhorityuvise procedures to obtain he required
clearances: ,
(c) general information on industrial stalus and advantages
existing in the, Stale;
(d) salient features of applicable Acts and Rules in relalion to
Industry, Labour, Safety. Welfare, Pollution Control, Taxes,
Duties, etc.; and
(e) any other matter useful to lhe entrepreneurs;
{vii) 'issue and receive Combined Application Form from entrepreneur
and arrange required clearances from the Departments or
Authorilits concerned,. wilhln the specified time limit;
(viiiJ provide secretariat and other support services to High Level
Clearance Authorily and State Level Single Window Clearance
Authority;
(ix) set up task force consisting of senior level representatives from
key Depaflmenls and Authorities to review periodically the status
' of implementation of !he 'Projects and to sort out problems, if any.
(3) Functions of Ihe Dislrict Level Nodal Agency shall be as fallows :-
(i) investment promolional activities at the distrid level; ' '
(14 District's Image building to attract investments;
(iiiJ inveslment clirnaie improvement exercises;
(ivJ guide and assist entrepreneurs tb set up Industries in the Dislrict;
0 issue and receive Combined Application Form fiom entrepreneurs
and arrange required clearances from the Deparlments or
Authorities concerned, wilhin (he specified ime limit;
(4 provide secretarial and olher support services to Dislrict Level
Single Window Clearance Authority;
(vii) Set up a task' force consisting of representatives from key
~epadments or Authorities to review periodically Ihe slatus of
irnplementalion of the projects and lo sort out problems, if any.
Combined
Applicalion 9. (7) Government may prescribe the Combined Application Form for the
I
I ~m. use of entrepreneurs whose projects are to be approved by any of the clearance
Authorities as an alternative to the existing forms prescribed under any applicable
Acts or ~uies or Orders or lnstruclions for obtaining Ihe required clearances and
\ all Departments and Authorhies concerned shall accept the Combir,ed ApplicaBon ,
Form for processing and issue of requlred clearances.
(2) Entrepreneurs, inlending to set up industries may submit the
application. duly f lled in, along with required documents, either to the State Level
~odal ~~enk~ or la the District Level Nodal Agency, depending upon Ihe amouni
of investment proposed to be made in setting up the induslries.
Sell
ceriificalion.
Deemed
approval.
Power to
make rules.
Direction by
Governrnenl.
74
70. (1) Every entrepreneur shall furnish a Self certification al Ihe time of
submitling the duly completed application form to the Nodal Agency, undertaking
that he would comply with the provisions af applicable Acts and Rules or Orders -
or Instructions.
(2) Such underlaking shall be furnished in the prescribed format on a
non-judicial stamp paper of the value equivalent to a security bond or as fixed by
the Governrnenl from time to time.
(3) All Departmenls or Authoriries concerned shall accept the self
certification . . for the purpose of issuing the required clearances.
(4) Entrepreneur who fails lo complywith the underlaking as furnished in
Ihe self certification, shall be liable to pay fine amounting to rupees five thousand
for the first such offence and rupees ten thousand for the second offence and if
the offence is repeated lhereafter such entrepreneur shall be liable for legal aclion
as specified under the relevant provisions of applicable Acts and Rules or Orders
or Instructions.
'
11. (I) EveryDepartment or Authority concerned, shall issue the required
clearances after prbcessing the application as required under Ihe applicable law
wilhin the specified time limit and in case of failure to issue the required clearances
wiihin the specified time limit, such clearances shatl be deemed to have been
issued and the entrepreneurs may proceed with the impIementation of the project.
(2) The deemed approvals shall continue to be in force until the Formal
clearance is issued by the Departments or Authorities concerned.
(3) The Nodal Agency shall communicate in wfiling to the entrepreneurs
allowing the deemed approval as per the provision and a copy marked to Ihe
Department or Authority concerned.
(4) In the eventuality of delay which results in issue of deemed approval.
the Heads of the Departmenls or Aulhority shall be liablefor imposition of penalty
as prescribed.
72. (1) Inspections under the provisions of applicable Acts and Rules or
Orders or Instructions by different Authorities shall be conducled jointly with the
Office of the Labour Commissbner, Chief Inspector of Factories and Boilers and
Orissa State Pollution Control Board, once in a year and such inspections shall
be based on random selection and shall be organised in the manner as may be
prescri6~.
(2) lnspections against specific complaints may be conducted with
authorisation by the ~eads of the Departmenb and inspections in respect of
pollution and .safety aspects may be conducted as required under the relevant
Acts and Rules or Orders or Instructions.
13. Government may, by notification in the Official Gazette make rules for
effective implemenlation of Ihe provisions of this Act.
14. Government may, from time to time, issue policy directions as deemed
necessary to the clearance Aulhorities for the purpose of carrying out the objective
of this Act and the concerned clearance Authority shall be bound to follow and
act upon such direclions.
Offences and
Penall~es.
Overriding,
effect of the
Acl.
Protection or
action laken in
gad faith.
Power la
remove doubts
and
dificullies.
MISCELLANEOUS
15. Government may, by nolification, exempt any clearances from any of
the provisions of this Act.
16. Where an offence under this Act has been cammilled with the consent
or connivance of. or that comrnissi~n of the offence is attributable to any neglect
on the part of, any Director,,Manager, Secretary or other officer authorised in that
behalf of the Company, such Director, Manager, Secretary or such other officer
shall also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
Explanation -For the purposes of this Section,-
. (a) "Companf means any body corporate and includes a firm or other
association of individuals; and
b "Director" in relation to a firm means a parlner in the firm.
17. Save as otherwise provided in this Act lhe'provisions of this Act shall
have effect notwithstanding anything inconsisteni [herewith conlained in any other
State Law or Rules or Orders or Instructions f& [he time being in force or any
custom or usage or any instrumenls having effect by virtue of any such law.
, 18. No suit or legal proceedings shall be instituted against, or damage .
claimkd from, the clearance authoiities or members or employees of such
authorities for anything, which is in good faith, done or intended to be done, or for
any order passed in good faith, in pursuance of this Act and the Rules framed
thereunder.
19. If any doubt or difficulty arises after Ihe commencement of this Act or
otherwise. in giving effect to the pravisions of this Acl, the Government may, by
order, do anything not inconsistenlwilh the provisions of this Act which appears
to ii to be necessaryor expedient for the purpose of rernbving the doubt or difficulty.