Print Print
Guide To Entrepreneurs


Organizational Structure

Part III

Department wise procedures - in brief

  3.1 In order to process and accord the required clearances / approvals by the respective departments and agencies, it is necessary that investors furnish the required information and provide necessary documents. Making available all the requirements at a stretch as far as possible to the concerned departments / authorities through KUM helps in speedy processing by the departments / authorities and also ensures obtaining the required clearances in time.

  3.2 To facilitate investors for arranging documents required by the respective departments / agencies well in time, the basic procedures and particulars of requirement are given below:

A. KIADB

  3.3 Karnataka Industrial Areas Development Board (KIADB) is engaged in acquiring and developing industrial lands in different industrial areas. In case the investor desires, KIADB acquires land in specific location of investor's choice and develops the land if required, at entrepreneur's cost. KIADB industrial lands are generally of 'ready to occupy' condition with all basic infrastructure facilities.

  3.4 For allotment of land, investor may apply to KIADB through CAF. The KIADB allots the land on lease - cum - sale basis and the period of lease is ten years. The allottees are required to set up the industry within a specified time frame. Further, allottees are required to construct the factory and other buildings as per the plan approved by the Directorate of Factories & Boilers [DFB]. The stipulations on coverage, set back, floor area are to be followed as spelt out in the agreement to be executed between the KIADB and allottee at the time of allotment.

  3.5 Along with the application following documents / enclosures are to be provided :

       [i] PRC/PMT/IEM/LoI/IL whichever is applicable - in duplicate.

      [ii] Memorandum and Articles of Association / Partnership Deed and Certification of incorporation issued by the ROC / Certificate of registration issued by Registrar of Firms / Registration Certificate issued by the Registrar of Co-op. Societies / Societies / others, if any - in duplicate.

      [iii] Project Profile - in duplicate

      [iv] Bio-Data of the Promoters in duplicate.

      [v] Plan drawn to scale indicating utilization of land and list of machineries - in duplicate.

     [vi] DD No. __________________ Dtd. ____________ for Rs. _________ issued by ______________ Bank ______________ Branch in favour of Executive Member, KIADB toward the EMD.

     [vii] DD No. __________________ Dtd. ____________ for Rs. _________ issued by ______________ Bank ______________ Branch in favour of Executive Member, KIADB towards ___________ % cost of land (for more details visit:  (www.kiadb.kar.nic.in) .

                                                                                                                                                                                    Top

B. Department of Factories and Boilers                                                                                         

  3.6  DFB mainly deals with health, safety, welfare of the workmen employed in factories, regulation of working hours, wages, leave etc, to ensure conducive working environment in the factories.

3.7     Any establishment defined as 'factory ' under The Factories Act, 1948 is required to register and obtain approval of plans for factory building and layout of plant and machineries from the Director of Factories & Boilers [DFB].

The State Level Site Appraisal Committee constituted by the Government of Karnataka will grant permission for initial location / expansion of a factory involving a hazardous process and to monitor the industrial safety and occupation hazardous in such factories to prevent industrial disasters.

All entrepreneurs who intend to install and use boiler which comes under the definition of the Indian Boilers Act, 1923 are also required to register under the said Act.

Definition of Factory:

  3.8  Factory means any premises where 10 or more workers are working and manufacturing process is being carried on with the aid of power or where 20 or more workers are working and manufacturing process is being carried on without the aid of power.

  3.9  The State Government has notified certain activities as factories under Sec.85 [i] of the Act even though the employment is less than 10 persons with the aid of power or without the aid of power.

To obtain the plan approvals following documents are required to be submitted along with CAF:

[1] Plans of factory building drawn to the scale (in triplicate) showing

  • Site of the factory
  • Immediate surrounding buildings, roads, drains, etc.
  • Elevation and necessary cross sections of various buildings, natural lighting, ventilation and means of escape in case of fire.
  • Position of the Plant and Machineries, aisles and passage ways.

[2] A flow chart of manufacturing process with details of

  • Chemicals used at various stages
  • Stages of manufacturing activities
  • Removal of dust, fumes, gases, trade wastes and effluents

[3] Consent from the KSPCB indicating the conditions stipulated for disposal of wastes and effluents.

[4]In case of existing building, certificate of stability in Form 1A issued by a person possessing a Degree in Civil or Structural Engineering.

[5] Questionnaire requiring information by the CIF and B duty completed.

 [6] Entrepreneur has to submit Possession Certificate / Lease Agreement / Sale Deed / Rent Agreement Certificate pertaining to land document.

 [7] DD / Cheque / Challan No. ______________ Dtd _______________ for Rs. 250/- (in respect of factories employing less than 500 employees and Rs. 500/- in respect of others) drawn in favour of Director of Factories and Boilers, Bangalore towards the plan approval fee.

 The Department of F&B will scrutinize all the documents. If the same is in order, permission will be granted within 30 days from the date of submission of Application.(for more details visit: www.labour.kar.nic.in )

  3.10 Once the construction activity of the factory building is completed entrepreneurs are required to obtain factory registration and licence.

  3.11   For factory registration and obtaining licence, application to be made in Form 2 alongwith following documents:

  • No Objection Certificate from Fire Department in case Factory is situated in multistoried building for effective fire and emergency management.
  • Partnership deed in case of firm, Memorandum and Articles of Association in case of company, KST& CST certificate in case of proprietorship firms.
  • List of partners / directors with their residential addresses
  • Prescribed registration fees (As per tables A & B enclosed).
  • On site emergency preparedness plan for approval by DFB, in respect of Hazardous process factories as defined under schedule -I of the Factories Act, 1948.  

  3.12  The occupier has to submit the application, 15 days in advance before the factory commences production. The factory licence is required to be renewed every year, with the payment of prescribed fees. Application made with all necessary documents will be scrutinized by visiting the factory and license will be granted after due verification within 30 days.

Establishments other than factories.

  3.13  Commercial establishments and trade activities which are not covered under the Factories Act, 1948, are required to get themselves registered under Karnataka Shops & Commercial Establishments Act,1961 which is being administered by the Labour Department.

  3.14  Such establishments / activities are required to register with the jurisdictional Labour Inspector/ Senior Labour Inspector after filling up Form A , available free of cost with the respective authorities.

  3.15  The registration fee is as under:

                   Without any worker - Rs. 125/-

                 1 to 9 workers - Rs. 250/-

                 10 to 19 workers - Rs.2,500/-

                   20 to 49 workers - Rs. 6,250/-

                   50 to 99 workers - Rs. 12,500/-

                   more than 100 workers - Rs. 25,000/-

  3.16  The registration is valid for five years and is to be renewed for further, period through Form AA alongwith fees prescribed as above (for more details visit: http://www.labour.kar.nic.in ).

                                                                                                                                                                                    Top

C. Karnataka State Pollution Control Board [KSPCB].                                                                        

  3.17  The Karnataka State Pollution Control Board is a constitutional authority vested with responsibility of control of pollution. The Board implements the provisions under the Water (Prevention and Control of Pollution) Act 1974, the Air (Prevention & control of Pollution) Act, 1981, the Water (Prevention & control of Pollution) Cess Act 1977, Hazardous Waste (Management and Handling) Rules under the EP Act and other Rules stipulated by GoK under EP Act from time to time.

  3.18  For the purpose of enforcement industries are categorized broadly as Red, Orange and Green category depending on the nature of activity and pollution potential.  

  3.19 Any industry before taking steps for establishment after selection of site shall obtain the Consent for Establishment from the Board under Water (P&CP) and Air (P&CP) Acts and if necessary Hazardous Waste (M&H) Rules.

Besides obtaining Consent for Establishment, industry after establishment and before going for production (trial or regular) has to obtain Consent for operation under the Water Act and Air Act and if required, authorization under Hazardous Waste (Management and Handling) Rules.

  3.20  Separate applications are prescribed to obtain consent / authorization under the relevant Acts / Rules. The consent applications can be downloaded from Board's website or the applications can be obtained free of cost from any of the Regional Offices. The type of application form and the time limits for issue / refusal of the consent which is completed in all respect are as follows:

 

Applicable Act & Application Form

Purpose

If the application is complete in all manner, it will be generally disposed within

Water Act -

Form XIII

Air Act -

Form I

CFE for RED category - EIA projects

CFE for RED category-non EIA projects with

  • Investment more than Rs.5 crores
  • Investment less than Rs.5 crores.

CFO for RED category under Water Act with

  • Investment more than Rs.5 crores
  • Investment less than Rs.5 crores.

120 days

60 days

45 days

60 days

45 days

Water Act -

Form OG

Air Act   -

Form OG

CFE for Orange & Green Category

21 days

Water Act -

Form XIII

Air Act   -

Form I

CFE for Orange & Green Category

21 days

The completed applications are to be submitted to the concerned regional offices (except seven Bangalore - based Regional Offices for which Help Desk is established at Parisara Bhavan, No. 49, Church Street, Bangalore-01) of the Board with the prescribed consent fee which is as under:

Sl No

Capital Investment (Rs.)

Consent fee (Rs.)

Red

Orange

Green

1

1 lakh & below

200

150

100

2

Exceeding 1 lakh and not exceeding 5 lakh

500

250

200

3

Exceeding 5 lakh and not exceeding 10 lakh

1,500

1,250

1,000

4

Exceeding 10 lakh and not exceeding 25 lakh

2,000

1,750

1,500

5

Exceeding 25 lakh and not exceeding 50 lakh

3,000

2,500

2,000

6

Exceeding 50 lakh and not exceeding 1 crore

6,000

5,000

4,000

7

Exceeding 1 crore and not exceeding 5 crore

15,000

12,500

10,000

8

Exceeding 5 crore and not exceeding 10 crore

20,000

17,500

15,000

9

Exceeding 10 crore and not exceeding 25 crore

30,000

25,000

20,000

10

Exceeding 25 crore and not exceeding 50 crore

50,000

40,000

30,000

11

Exceeding 50 crore and not exceeding 250 crore

75,000

60,000

50,000

12

Exceeding 250 crore and not exceeding 500 crore

1,00,000

90,000

75,000

13

Exceeding 500 crore and not exceeding 1000 crore

1,50,000

1,25,000

1,00,000

14

Above 1,000 crore

2,00,000

1,75,000

1,50,000

    • The different hierarchy which is adopted for processing consent application (completed in all respect as per the check list) is as follows:

                                                                                                                                                                                    Top

                                                                                                                                                                                    Top

3.22 Board has also evolved periodicity of consent renewal / authorization.The details are as below:

Consent / authorization

Category of units

Validity period

CFE

Red - EIA category

5 years from the date of issue

Red - Non EIA category

3 years from the date of issue

Orange, Green

2 years from the date of issue

CFO

Red - Large, Medium

Once in 2 years

Orange - Large

Once in 2 years

Orange - Medium

Once in 2 years with an option for annual renewal

Red, Orange - Small

Once in 3 years with an option for annual renewal

Green - Large, Medium, Small

  • If the Capital investment is less than Rs.25 lakhs - 10 year valid consent is issued by collecting one year consent fee
  • If the Capital investment is more than Rs.25 lakhs - 10 year valid consent is issued by collecting five year consent fee.

Authorization underBMW Rules

All category

3 years

Authorization underHMW Rules

All category

5 years

Registration underPlastic Rules

All category

3 years

For more information you can visit http://www.kspcb.kar.nic.in ).   

                                                                                                                                                                                    Top

D.Department of Forests, Ecology and Environment:

  3.23 The Ministry of Environment and Forests, Government of India issued a Notification No. SO 1533 on 14th September 2006 imposing certain restrictions and prohibitions on new projects or activities, or on the expansion or modernization of existing projects or activities based on their potential environmental impacts. This Notification supersedes the of earlier Notification No. SO 60 (E), dt. 27.1.1994. .

  3.24  Prior Environmental Clearance (EC)

Following projects or activities shall require prior environmental clearance from the concerned regulatory authority – Ministry of Environment and Forests, GoI for the matters falling under Category ‘A’ in the Schedule to the Notification No. SO 1533 and State Environment Impact Assessment Authority (SEIAA) at State level for matters falling under Category ‘B’ in the Schedule to the said Notification :

       (i)All new projects or activities listed in the Schedule to this notification;

       (ii) Expansion and modernization of existing projects or activities listed in the Schedule to this notification with addition of capacity beyond the limits specified for the concerned sector, that is, projects or activities which cross the threshold limits given in the Schedule, after expansion or modernization;

       (iii) Any change in product - mix in an existing manufacturing unit included in Schedule beyond the specified range.

Categorization of projects and activities

       (i) All projects and activities are broadly categorized in to two categories - Category ‘A’ and Category ‘B’, based on the spatial extent of potential impacts and potential impacts on human health and natural and man made resources.

       (ii) All projects or activities included as Category ‘A’, shall require prior environmental clearance from the Union Ministry of Environment and Forests (MoEF) on the recommendations of an Expert Appraisal Committee (EAC) constituted by the Central Government for the purposes of this notification.

       (iii) All projects or activities included as Category ‘B’ in the Schedule, will require prior environmental clearance from the SEIAA. The SEIAA shall base its decision on the recommendations of a State Expert Appraisal Committee (SEAC) constituted. In the absence of a duly constituted SEIAA or SEAC, a Category ‘B’ project shall be treated as a Category ‘A’ project.

Appraisal Committees

       The same EACs at the Central Government and SEACs at the State Level shall screen, scope and appraise projects or activities in Category ‘A’ and Category ‘B’ respectively.

Application for Prior Environmental Clearance (EC)

       An application seeking prior environmental clearance in all cases shall be made in the prescribed Form 1 and Supplementary Form 1A, if applicable. The applicant shall furnish, along with the application, a copy of the pre-feasibility project report except that, in case of construction projects or activities in addition to Form 1 and the Supplementary Form 1A, a copy of the conceptual plan shall be provided, instead of the pre-feasibility report. .

  3.25   Stages in the Prior Environmental Clearance (EC) Process for New Projects

The environmental clearance process for new projects will comprise of a maximum of four stages, all of which may not apply to particular cases. These four stages in sequential order are:

  • Stage 1 - Screening
  • Stage 2 - Scoping
  • Stage 3 - Public Consultation
  • Stage 4 - Appraisal

Stage 1- Screening

The projects requiring an Environmental Impact Assessment report shall be termed Category ‘B1’ and remaining projects shall be termed Category ‘B2’

In case of Category ‘B’ projects or activities, this stage will entail the scrutiny of an application seeking prior environmental clearance made in Form 1 by the concerned SEAC for determining whether or not the project or activity requires further environmental studies for preparation of an EIA for its appraisal prior to the grant of environmental clearance.

Stage 2- Scoping

Scoping refers to the process by which the Expert Appraisal Committee in the case of Category ‘A’ projects or activities, and State level Expert Appraisal Committee in the case of Category ‘B1’ projects or activities, determine detailed and comprehensive Terms Of Reference (TOR) addressing all relevant environmental concerns for the preparation of an EIA Report in respect of the project or activity for which prior environmental clearance is sought.

The TOR shall be conveyed to the applicant by the EAC or SEAC within sixty days of the receipt of Form-1. If the Terms of Reference are not finalized and conveyed to the applicant within sixty days of the receipt of Form-1, the Terms of Reference suggested by the applicant shall be deemed as the final Terms of Reference approved for the EIA studies.

Applications for prior environmental clearance may be rejected by the regulatory authority concerned on the recommendation of the EAC or SEAC concerned at this stage itself.

Stage 3 - Public Consultation

All Category ‘A’ and Category ‘B1’ projects or activities shall undertake Public Consultation, except certain cases.

After completion of the public consultation, the applicant shall address all the material environmental concerns expressed during this process, and make appropriate changes in the draft EIA and EMP. The final EIA report, so prepared, shall be submitted by the applicant to the concerned regulatory authority for appraisal. The applicant may alternatively submit a supplementary report to draft EIA and EMP addressing all the concerns expressed during the public consultation.

Stage 4 - Appraisal

Appraisal means the detailed scrutiny by the EAC or SEAC of the application and other documents like the Final EIA report, outcome of the public consultations including public hearing proceedings, submitted by the applicant to the regulatory authority concerned for grant of environmental clearance.

Then EAC or SEAC shall make categorical recommendations to the regulatory authority concerned either for grant of prior environmental clearance on stipulated terms and conditions, or rejection of the application for prior environmental clearance, together with reasons for the same.

The appraisal of all projects or activities which are not required to undergo public consultation, or submit an EIA report, shall be carried out on the basis of the prescribed application Form-1 and Form-1A as applicable, any other relevant validated information available and the site visit wherever the same is considered as necessary by the EAC or SEAC concerned.

The appraisal of an application shall be completed by the EAC or SEAC concerned within sixty days of the receipt of the final EIA report and other documents or the receipt of Form-1 and Form-1A, where public consultation is not necessary. The recommendations of the EAC or SEAC shall be placed before the competent authority for a final decision within the next fifteen days.

Validity of Environmental Clearance

The validity of Environmental Clearance is meant the period from which a prior environmental clearance is granted to the start of production operations by the project or activity, or completion of all construction operations in case of construction projects. The validity of EC shall be ten years in the case of River Valley projects, thirty years for mining projects and five years in the case of all other projects and activities.

  3.26   The entrepreneur will have to apply for environment clearance from EAC or SEAC after obtaining CFE from KSPCB. Till environment clearance is received, no construction work relating to setting up of industry shall be undertaken.

(ii) Projects covered under CRZ Notification

  3.27 Projects coming in the coastal areas of the State shall adhere to the provisions of Coastal Regulation Zone (CRZ) notification No. S.O.(E) 114 (E) dt. 19.2.1991, (Thereafter amended from time to time). Govt. of Karnataka has appointed designated officers for the purpose of examining requests for grant of building licenses in the CRZ areas of coastal districts vide G O No. FEE/21/EAA/2000 dtd. 14/12/2001. For any project coming in the restricted areas of coastal districts, 'No Objection Certificate' from the designated officer is essential. Applications form for CRZ Clearance is enclosed as annexure (for more information you can visit http://www.parisara.kar.nic.in and http://www.karnatakaforest.gov.in ).

E.Village Panchayats / Town Panchayats / Local Authorities                                                            

  3.28 Projects coming in the jurisdiction of Village Panchayat / Town Panchayats are required to obtain permission for construction of factory building and installation of machineries from the respective Village Panchayat as per Karnataka Panchayat Raj Act, 1993. For this permission, CAF may be used.

  3.29 As per the Karnataka Town and Country Planning (KTCP) Act, 1961 an entrepreneur is required to apply to BDA / UDA / Planning Authority / BBMP / Urban Local Body in the prescribed application form to erect / re-erect / make alterations of an industrial building. As per the Act, it is necessary to obtain Commencement Certificate and Building Licence from the local authorities. The fees to be paid for permission for industrial buildings are linked to the area of the building and its location.

  3.30 n case the land is designated for use other than the industrial use as per the Outline Development Plan (ODP)/ Comprehensive Development Plan (CDP), approval for change of land use for industrial purpose has to be obtained from the Government as per Section 14 (A) of the KTCP Act, 1961.

  3.31 The investor is also required to get Trade Licence from the concerned Village Panchayats in case of storing certain dangerous materials as prescribed in the Karnataka GP Act. For obtaining this trade license, CAF may be used. (for more information you can visit http://rdpr.kar.nic.in and http://municipaladmn.kar.nic.in ).

                                                                                                                                                                                    Top

F. Karnataka Power Transmission Corporation Limited [KPTCL] /ESCOMS                                                       

  3.32 KPTCL/ Regional Electricity Supply Companies (BESCOM, MESCOM, HESCOM, GESCOM & CESCL) are engaged in transmission and distribution of electrical power to the consumers in the State. The procedures related to supply and connections are governed by Karnataka Electricity Regulatory Commission [electricity supply & distribution] Code, 2000-01.

  3.33 For power connection, consumers are required to apply to the concerned Executive Engineers in the respective subdivision in a prescribed application form and with a registration-cum-processing fee of Rs.100/- for LT connections and Rs.250/- for HT connections (For this CAF may be used )

  3.34 The applications for LT power supply shall be filed at least 30 days before the expected date of supply in case where the service lines have been laid and power supply is readily available. The power sanction will be communicated within 15 days of receiving the application.

  3.35   In case of HT service, power sanction shall be communicated within 30 days of application and in case of EHT, within 45 days.

  3.36   Alongwith the application form, attested copies of the following documents are to be furnished:

  • Site plan with proposed location of the metering cubicle / meter board.
  • Latest Tax paid receipt.
  • License / permit / NOC from local body.
  • Route Map to locate the premises.
  • MOU / Articles of Association / Partnership Deed.
  • Proof of ownership of the premises or proof of occupancy
  • Lease Agreement in case of leased building.
  • Sanctioned plan (in case of multi - storeyed buildings)
  • Architects plan with location of the transformer marked (in case of Multi storeyed buildings).
  • Receipt for having paid the required Registration Fees.

  3.37 The authority to sanction power is delegated to the field level officers as indicated below :

[i] LT installations upto 67 HP - AEEs at Sub-divisional level

[ii] HT installations upto 500 KVA - EEs at Divisional level

[iii] 501 KVA -1000 KVA - SEEs at Circle level

[iv] 1001 KVA - 2000 KVA - CEEs at Zonal level

[v] 2001 KVA & Above - ESCOM

  3.38 KPTCL has nine zonal area offices viz Bangalore Metropolitan, Bangalore Rural, Chitradurga, Mangalore, Mysore, Hubli, Belgaum, Gulbarga and Bellary, headed by Chief Engineers Electrical [CEE]. There are 17 Circles, headed by Superintending Electrical Engineers [SEE]. 57 Divisional Offices headed by Executive Engineers [EE] and over 270 Sub-divisional offices headed by Assistant Executive Engineers [AEE].

  3.39For temporary power supply, the consumer will have to apply in the prescribed form to the O&M section / Subdivision office of KPTCL. No registration fee is payable, but service charges of Rs.50/- is to be paid per installation along with advance estimated power consumption charges.(for more information you can visit www.hescom.co.in and www.mesco.in )

                                                                                                                                                                                    Top

G. Electrical Inspectorate                                                                                                                        

  3.40 The Department of Electrical Inspectorate accords statutory approval for the electrical installations such as transformer installation under Rule 63, Generator installations under Rule 47 'A', M.S. Building installations under Rule 50 'A', Neon Sign installation under Rule 71 and 'X' rays installation under Rule 73 as required under Indian Electricity Rules, 1956. That apart, the lift installations will be sanctioned under the Karnataka Lift Act, 1974 and Rules 1976, the Cinematography installations under Karnataka Cinematography Act, 1964 and Rules 1976, Video installation under Karnataka Video Rules, 1984.

The drawings indicating the overall electrical scheme showing the protective scheme, cable cross sections, switchgear details, earthing details, equipment locations and clearances shall be cleared for all the electrical installations of transformer, DG sets, etc.,

In respect of M.S. Buildings, the overall electrical scheme with interior wiring scheme, floor drawings, floor loads and their respective controls and provisions of generator for the essential loads of the fire hydrant, corridor lightings, fire lift, yard lightings, staircase lightings, etc., shall be furnished for clearance of the same. In such buildings, provisions of Lighting Arrestor Aviation lights etc., shall be made apart from the other requirements under National Electrical Code 1985.

The Head Office of the Department of Electrical Inspectorate is located presently at Mysugar Building, J.C. Road, Bangalore - 560 002 headed by Chief Electrical Inspector to Government. Whereas, each district is headed by a Deputy Electrical Inspector, each division is headed by an Electrical Inspector located in the important industrial district. This apart, six Deputy Chief Electrical Inspectors are located at Bangalore (South), Bangalore (North), Tumkur, Mangalore, Bellary and Dharwad. Bangalore (South), Bangalore (North), Tumkur, Mangalore, Bellary and Dharwad.

The individual delegated powers to the officers of this department to clear the electrical installations are briefly detailed below : 

Designation

H.T. installation

(KVA)

D. G. set installation (KVA)

M. S. Building installation

 

Chief Electrical Inspector to Govt.

> 2000

> 2000

> 24 meters

Dy. Chief Electrical Inspectors

>1000 <2000

>1000 <2000

Upto 24 meters

Electrical Inspectors

> 300 <1000

>350 <1000

Building with LT load upto 24 mtrs

Dy. Electrical Inspectors

upto 300

upto 350

-

 
 

 The Department also monitors the collection of electrical tax on consumption for consumed units from grid power as well as generated power from captive generation / IPP generation as required under Karnataka Electricity (Taxation on consumption) Act, 1959.

Any exemption of electricity tax on the consumed units for self shall be availed at the specific instance of the Energy Department under the exclusive provisions contained under Section 8 of Karnataka Electricity (Taxation on consumption) Act, 1959.   However, all such exemptions are subject to compulsory filing of returns of such generation and utilization in form B & D to the Department of Electrical Inspectorate.   All units supplied to others whether free or at a cost is taxable under Section 4 of the Karnataka Electricity (Taxation on Consumption) Act, 1959 at the prevailing rates notified from time to time.

  3.41  In case of LT connections where the height of the building is less than 15 meters, drawings etc will be approved by ESCOMs.   In case the building height is more than 15 meters, the drawing etc., are required to be approved by the Electrical Inspectorate, even in case of LT connections. ;

  3.42 The Deputy Electrical Inspector, located at 20 district head quarters [old districts] are empowered to approve the drawing and issue the fitness certificate where the installed capacity of the transformer is less than 300 KVA. In case the transformer capacity is more than 300 KVA and upto 1000 KVA, the approvals are to be obtained at divisional level offices, headed by concerned Deputy Chief Electrical Inspector, located at Bangalore (N), Bangalore (S), Tumkur, Mangalore, Bellary and Dharwad. If the installed capacity exceeds 1000 KVA, approval granted by the Chief Electric Inspector after inspection and recommendation by Deputy Chief Electrical Inspector.

  3.43 In case the installed transformer capacity is more than 2000 KVA, the required approvals are to be obtained from the Chief Electrical Inspector at headquarters in Bangalore.

  3.44 The Electrical Inspectorate is also authorised to witness the disputed meter while rating of the same.

                                                                                                                                                                                    Top

H. Commercial Tax                                                                                                                             

  3.45 From 1st April, 2005, Value Added Tax (VAT) has been introduced in Karnataka. If the taxable turnover of any dealer (not just the profit) within Karnataka, is more than Rs.2.00 lakh, in any 12 month period, he becomes a taxable dealer and must register for VAT, if all or part of the business is in Karnataka. Taxable turnover is the total value of all sales which are taxed at 12.5%, 4%, 1% & 20%.

Any dealer with a total turnover of less than Rs.15.00 lakh, will also be required to register but may opt to pay VAT or pay tax under a 'composition' scheme. Under 'composition', tax is to be paid on total turnover of their sales at a composite rate without input tax rebate. Quarterly payments are to be made to Commercial Tax Department and they will not be allowed to charge VAT on their sales, except dealers executing works contract.

  3.46 Registration would require filled-in application FormVAT1, passport size photograph and fee of Rs.500/-. Fee is not charged for renewal. Individual companies and businesses should be registered separately. Branches or divisions of the same company or business should register only in the name of the main organizations. Branches or units of corporate bodies have the option to register separately.

  3.47 Once registered for VAT, the investor can reclaim VAT that he has charged on goods that are used to set up business, subject to certain conditions. The claim can be made on first VAT return. Normally, this will include VAT on goods bought for business that are not yet sold and also VAT on certain capital equipments, purchased not more than 3 months before date of registration.

  3.48 Records of all sales including that bought, produced and disposed should be maintained. An account of all the VAT that has been charged and paid by the investor, showing the values of goods subject to each rate of tax, for each period, covered by his VAT returns - called VAT account shall be kept.

VAT returns are required to be made every month using Form VAT 100 (every three months, using Form VAT 120, under the 'composition' scheme). The period covered by this return is called a tax period. Details of what has been bought and sold in that period are to be filled. Investor must pay any tax due or claim a repayment of excess tax paid or adjust the same for future liability. As tax periods end on fixed dates through out the year, first tax return may not cover a period of exactly one or three months.

  3.49After registration, any changes in business that may affect registration details, has to be recorded on Form VAT 3, wherein VAT registration No. (TIN) and address have to be included. There are penalties for failing to register, for failing to file correct returns or for failing to pay the tax due at the correct time. If the investor fails to register, he will be liable for the VAT on all the goods he has sold from the date on which he should have registered. Investor can apply for cancellation of registration on the grounds of closure of business or because the level of his taxable sales has fallen below threshold for registration and must re-register, if it exceeds the threshold, in any 12 month period (for more information visit http://ctax.kar.nic.in )

  3.50 The Dept. of Legal Metrology (formerly known as Dept. of Weights and Measures) is engaged in maintenance of accuracy in all weights and measures used in trade, commerce and industry. The department also ensures correct quantities for the price paid and protects consumer interest.

  3.51Every person who intends to commence or carry on the use of any weight or measure in any transaction or for industrial production is required to get Registration from the Dept. of Legal Metrology. Application for Registration is to be made in Form I accompanied by fee of Rs. 5/- .Within 90 days from commencement of using weights & measures.

  3.52 The Controller of Legal Metrology will include the name of the applicant in a register to be known as register of users and issue a certificate in Form III to the applicant. An application for renewal shall be made in Form IV, 30 days before the expiry of validity of the Registration Certificate. The certificate will be renewed on payment of a fee of Rs. 5/- and the validity of the certificate is for five years.

  3.53 Every weight or measure used or intended to be used in transactions or for industrial production is required to be verified or re-verified and stamped at least once in a year. Such verification will be done in the offices of the Dept. or at the place of its location. On completion of verification and stamping, the authorities will issue a certificate of verification.

  3.54 Separate Application Forms are to be used for the license as below;

  • Manufacturer of weights and measures ( Form LM-1)
  • Dealers in weights, measures, weighing instruments and measuring instruments ( Form LD -1 ) and
  • Repairers of weights, measures, weighing instruments and measuring instruments. (LR-1)

                                                                                                                                                                                    Top

J. Procedures related to purchase /conversion of lands.                                                                     

A) Conversion

  3.55 As per the provisions of Karnataka Town and Country Planning Act, 1961 and Karnataka Land Revenue Act 1964, no industry can come up in the areas earmarked for use other than industrial purposes.

  3.56 In case of agriculture and other lands, land is required to be converted to industrial purposes. For this, investors are required to apply in Annexure I (in 12 copies) as prescribed as under Para 95 of Rule 106(A) of Karnataka Land Revenue Act 1964 to the respective Tahsildar, who in turn will send the application to the respective Deputy Commissioners.

  3.57As per the Circular issued by the Revenue Department vide No. RD: 13: LGP: 2005 dt.2.7.2005, a Single Window System is to be followed for clearance of the application received for land conversion. The process of granting / rejecting conversion shall be completed within 120 days of receipt of the application. Before grant of conversion, the applicant has to pay the conversion fine as indicated in the notice issued by the Single Window Committee constituted for this purpose, vide above said Circular dt.2.7.2005.

  3.58In case the entrepreneur purchases land from KIADB, the necessity of conversion does not arise.

B) Permission to purchase Agricultural land.

  3.59 The Govt. of Karnataka has amended Section 109 of Karnataka Land Reforms Act 1961, w.e.f. 20.10.1995. This amendment enables the Government to permit non-agriculturists to purchase agricultural land for industrial purposes. Accordingly permission would be given by the govt. as detailed below, based on the approval given by DLSWCC in case of tiny & SSI and by SLSWCC / SHLCC in case of medium / large industries:

1

Tiny Industry

:

upto one quarter unit of agriculture land

2

SSI

:

upto one unit of agriculture land

3

Medium / Large Industry having a total invest upto Rs. 50 crore

:

Upto 5 units of agriculture land

4

Medium / Large industry having a total investment of more than Rs. 50 crore

:

Upto 20 units of agriculture land

 

3.60  For horticulture including floriculture and agro based industries:

  • Upto two units of land based on recommendation of DLSWCC.
  • Upto ten units of land based on recommendation of SLSWCC
  • More than ten units of land based on recommendation of SHLCC.

The application for permission to purchase agricultural land by the non agriculturist has to be made in Form 15-A as prescribed under Rule 38 D of the Karnataka Land Reforms Rules 1974 (Specimen given in CAF) to the respective Deputy Commissioners.

  3.61 On receiving the above permission the land shall be utilized for the purpose for which it is proposed within two years from the date of issue of the notification.  

  3.62     What a 'unit' of land means:

     One acre of A class land having soil classification value of 8 annas

     1.3 acres of A class land having soil classification value of below 8 annas

     1.5 acres of B class land having soil classification value of above 8 annas

     2.0 acres of B class land having soil classification value of below 8 annas

     2.5 acres of C class land having soil classification value of above 8 annas

     3.0 acres of B class land having soil classification value of below 8 annas

     5.4 acres of D class land

C) Classification of land:

'A' Class

Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing two crops of paddy [for one crop of sugarcane] in a year.

'B' Class

  • Lands having facilities for assured irrigation from such Government Canals and Government Tanks as are capable of supplying water for growing only one crop of paddy in a year.
  • Lands irrigated by such lift irrigation projects constructed and maintained by the State Government as are capable of supplying water for growing two crops of paddy [or one crop of sugarcane] in a year.

'C' Class

  • Lands irrigated from any Government sources of irrigation, including lift irrigation projects constructed and maintained by Government other than those coming under A Class and B Class.
  • Lands on which paddy crop can be raised or areca crop is grown with the help of rain water.
  • Lands irrigated by lifting water from a river or Government Canal or Government tank.

'D' Class

Lands classified as dry but not having any irrigation facilities from a Government source(for more details visit www.kiadb.kar.nic.in ).

                                                                                                                                                                                    Top

K. Department of Mines & Geology:                                                                                                        

  3.63 Karnataka is one of the mineral rich states of the country, with more than 40,000 sq. kms of greenstone belts, known to contain vast mineral deposits such as Gold, Silver, Platinum, Copper, Diamond, Iron Ore, Manganese, Chromite, Limestone, Dolomite, etc. It has significant deposits of Iron ore, Bauxite, Chromite and Manganese.  

There are evidences of occurrence of gold and associated minerals in Tumkur, Chitradurga, Davanagere, Bellary, Shimoga, Gadag, Dharwad, Raichur, Gulbarga, Kolar and Koppal districts.

Further, Karnataka is known to have Diamond and other semi precious stones, such as Corundum, Garnet, etc. Diamondiferous Kimberlite pipes have been reported from Bellary, Gulbarga and Dharwad districts.Detailed exploration needs to be carried out to locate the diamondiferous kimberlite pipes in the greenstone belts in parts of Tumkur, Raichur and Gulbarga districts.

The State is also endowed with vast reserves of Iron ore deposits, which include both hematite and magnetite varieties. Karnataka's total known iron ore deposits are estimated to be about 4,000 million tons. The total reserves of Limestone and Dolomite is of the order of 20,000 million tons and is available primarily in Gulbarga, Bijapur, Bagalkot, Belgaum and Tumkur districts.

Large varieties of granite deposits are also available in most parts of the State. Some of the varieties of Granites available in Karnataka are: Ilkal pink, multicolour granite, black granite, grey granite, juparano, Hassan green, cats-eye, pink porphyry etc. The total estimated reserves of granite in Karnataka is said to be more than 220 million cubic meters.(for more information visit http://www.mines.kar.nic.in )

  3.64 Procedures for grant of Mining Lease (M.L):

(i) Grant of Prospecting Licence or Mining Lease over virgin area:

If two or more persons or companies have applied for Mining Lease (ML) over fresh free area, the applicant whose application is received earlier, shall have the preferential right to be considered for grant over those whose applications are received later, as per Sec 11(2) of Mines & Minerals (Development & Regulation) Act, 1957. Notifications for grant will be issued after submission of the following documents by the applicant;

  • Mining plan duly approved by Indian Bureau of Mines
  • C.F.E from K.S.P.C.B.
  • N.O.C. from the concerned Deputy Commissioner, if the area is revenue land or forest clearance as per section -2 of Forest Conservation Act, 1980, if the area falls under forest.
  • Consent of the pattadhar, if the land is a patta land.
  • Technical report of the department regarding the occurrence of the mineral.
  • In case of major minerals, where the mining area is more than five hectares, environmental clearance from Ministry of Environment & Forests, GOI and where the mining area is less than five hectares, clearance from the State Dept. of Ecology & Environment.

(ii). Grant of ML over the notified area for re-grant in respect of held area or de-reserved area:

Any area available for regrant (surrendered, lapsed and determined areas) and de-reserved area for grant under Rule 59(1) of Miner Concession Rules, 1960 would be notified in the official Gazette for mining public. If the State Government invites the applications for grant of mining lease by notifying the area in the official Gazette, all the applications received on a particular day specified (after 30 days of the date of publication) shall be considered as first day applications and subsequently received applications shall be treated as subsequent applications. The applications received prior to the date of notifications shall also be treated as deemed to have been received on first day applications for the purpose of assigning priority. Preference will be given as per Section 11(3) of MMR (R & D) Act 1957 and read with Rule - 35 of MCR 1960.

Government will take decision for grant of mining lease after according opportunity as per Rule-26(1) of MCR 1960 and recommendation will be sent to Government of India to accord prior approval as per section 5(1) of MM (R & D) Act, 1957.

The following documents are to be furnished by the applicant, before issue of notification by the State Government;

  • Mining plan duly approved by Indian Bureau of Mines.
  • CFE from K.S.P.C.B.
  • NOC from Forest Dept. as per Act-2 and Forest Conservation Act 1980 (If the area falls under forest).
  • In case of major minerals, where the mining area is more than five hectares, environmental clearance from Ministry of Environment & Forests, GOI and where the mining area is less than five hectares, clearance from the State Dept. of Ecology & Environment.

On receipt of the prior approval from the Government of India, the State Government will issue notification and in turn the Directorate will take action for execution after conducting survey and demarcation.

**********

                                                                                                                                                                                     Top

BANGALORE - One of ten hottest Tech Cities of the World
 
Back   Next  
©2006 KUM. All rights reserved.