Entrepreneurship Ecosystem Overview

Jharkhand

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Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Jharkhand ranks #4 in India on ‘Ease of Doing Business’ index

of 2017-18 according to the Department of Industrial Policy andPromotion's (DIPP).

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Govt. & Regulatory Support

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MSME DI Ranchi

The institute provides MSME’s with the following services:-

• Technical Assistance: MSME DI Ranchi guides prospective and existingentrepreneurs in selection of product, process & machinery, Plant layout,Raw material selection, Modernization, Quality improvement, Productdevelopment, Energy conservation, Pollution control etc.

• Skill Development: MSME DI Ranchi regularly organizes trainingprogrammes for prospective entrepreneurs, for management personnel ofMSEs and for developing skills required for small enterprises.

• Economic Investigation & Statistics: The Institute guides prospectiveentrepreneurs in selection of products and location. It periodicallyprepares District Industrial Potentiality Survey Reports of all the 24districts of Jharkhand.

• Market Development & Export Promotion facilities.

http://sisiranchi.nic.in/Services.html

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Single Window Clearance

Government of Jharkhand has established the Center for IndustrialDevelopment and promotion activities: Single Window System tofacilitate entrepreneurs and to expedite clearances and approvals forinvestment proposals.http://jharkhandindustry.gov.in/procedure_SWC.htm

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Access to Finance

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Schemes:

• Jharkhand Startup Policy 2016• Jharkhand Industrial And Investment Promotion Policy 2016• Jharkhand Industrial Park Policy-2015• Jharkhand Export Policy of 2015• Food Processing Industry Policy of 2015• Jharkhand ITeS Policy 2016• ESDM Policy 2016

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Jharkhand Startup Policy 2016The policy aims to create an enabling environment for creating successfuland innovative enterprises in the state. With this startup policy initiative,the state government aims to encourage the startups in the sectors likeInformation Technology, Health, Tourism, Agriculture, Biotechnology, andAlternative Energy. Incentives under the scheme:

• 100 % reimburse of VAT paid by Startups. The Government of Jharkhand reimburse 100% of the patent filling cost.

• 100% reimbursement of registration fee/stamp duty/transfer duty paid by startups on purchase of land.

• A reimbursement of 50% on lease rentals up to INR 5 lakh per annum formaximum period of three years. A reimbursement of 30% of the amountpaid to internet service provider shall be reimburse up to INR 60,000annually on furnishing self-certified bills for 5 years since registration ofStartup.

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http://www.jharkhand.gov.in/documents/10179/54825/Startup%20Policy%202016

• Local Preference Intender for Startups registered in Jharkhand.

• All existing government/proposed IT or Industrial parks will have 10% ofspace earmarked for startups.

• Government of Jharkhand will pool a fund of INR 250 crore in phases overthe next five years, Starting with INR 50 crore. Separate corpus fund of INR50 crore to support entrepreneurship in the state.

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Jharkhand Industrial And Investment Promotion Policy 2016

The policy aims to convert Jharkhand into a favoured destination forinvestors and to promote sustainable Industrial growth of the State. Theobjective of the policy is to:-

• Improve the Business Eco-system

• Development of Industrial Infrastructure

• Development of MSME Sector

• Development of incubation centres for startups

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Incentives, Exemptions and Concessions under the policy are:-

• Comprehensive Project Investment Subsidy (CPIS)

• SC/ST/Women/Handicapped Entrepreneurs will avail 5% additional benefitunder CPIS

• Industrial units will enjoy 100% exemption / reimbursement of stamp dutyand registration fee for land directly purchased from the raiyats / acquiredthrough consent award

• Quality certification from B.I.S. and other internationally recognisedinstitutions @ 50% of the expenditure incurred up to maximum of Rs.10.00 lakh.

• financial assistance of 50% of the expenditure incurred, up to a maximumof Rs. 10 lakh, per patent.

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http://jharkhandindustry.gov.in/JIIPP2016.pdf

Jharkhand Industrial Park Policy-2015

• Any private institution, industry house or any large project will be eligiblefor setting up Private Industrial Park including Sector Specific IndustrialPark.

• The state govt. will bear 50% of the project cost (up to a max. Rs 10 cr.)incurred on development of infrastructure in the General Private IndustrialPark.

• The state govt. will bear 50% of cost (up to a max. Rs 7 cr.) incurred ondevelopment of infrastructure in the Sector Specific Private Industrial Park

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http://www.jharkhand.gov.in/documents/10179/54877/Jharkhand%20Industrial%20Park%20Policy%202015

Jharkhand Export Policy of 2015• The policy aims to strengthen export related infrastructure with special

focus on MSME sector. Incentives under the policy are:-

• Exemption from Electricity Duty- 100% Export Oriented Units (EOUs), ITand Bio-technology units industries in Special Economic Zone (SEZs) andElectronics Hardware Technology Parks will be exempted from paying ofelectricity duty for a period of 10 years.

• Land allotment to export units- The state will give priority to export unitswhich are having over 50% exports of total production, during allottingland in the industrial area. Also, units will be allowed to pay the total costof land/shed in Industrial Area Authorities in six half yearly equalinstallments.

• Transport Subsidy for Shipment to Ports- Transport subsidy will beprovided on the basis of cost that the exporters have paid for shipmentand exporting. However, the maximum amount of subsidy will be that ofRs. 10 lakh.

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http://www.jharkhand.gov.in/documents/10179/54877/Jharkhand%20Export%20Policy%202015

Food Processing Industry Policy of 2015

The policy aims to create favourable ambience to set up Food processingUnits in the state through competent infrastructure, balanced economicdevelopment and attracting investment from both India and abroad.Incentives provided are as under:-

• Grants-in-aid: 35.00 % of the Cost of Plant & Machinery and Technical CivilWorks, subject to a maximum of Rs. 500.00 lakhs in General Areas .45.00% of the Cost of Plant & Machinery and Technical Civil Works, subjectto a maximum of Rs. 500.00 lakhs in Integrated Tribal DevelopmentProject (ITDP) Areas.

• 50% of the cost of Machinery / Equipment and Technical Civil Works (TCW)and other eligible items mentioned in Para 5.4 above subject to amaximum of Rs. 5.00 Lakhs

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http://www.jharkhand.gov.in/documents/10179/54877/Jharkhand%20Food%20Processing%20Industry%20Policy%202015

Jharkhand ITeS Policy 2016

The policy aims to to accelerate IT growth in state. Incentives under thepolicy are:

• 100% reimbursement of Stamp duty, registration fee and transfer duty

• Recruitment assistance of INR 20,000 per employee

• Reimbursement of income tax for all units started new within 5 calendaryears

• Reimbursement of patent filing, provident fund, interest on loan andtechnology acquisition support

• 100% of NET VAT/Service Tax paid per annum for different durations

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http://www.jharkhand.gov.in/documents/10179/54825/ITes%20Policy%202016

ESDM Policy 2016

FISCAL INCENTIVES under the policy are:-

• 100% reimbursement of Stamp duty, registration fee and transfer duty

• Reimbursement of income tax for all units started new within 5 calendaryears

• Reimbursement of capital investment, interest, patent filing, technologyacquisition

• Reimbursement of Provident Fund, product certification, employmentrebate on cost of land, transport and entry tax

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http://www.jharkhand.gov.in/documents/10179/54825/ESDM%20Policy%202016

Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• XLRI Jamshedpur-ENTREPRENEUR DEVELOPMENT CENTRE (EDC): They conduct training programmes and courses for entrepreneurs. http://www.xlri.ac.in/resources/edc.aspx

• Cambridge Institute of Technology: The Entrepreneurship Development Cell (EDC) was started with the object of promoting specialized knowledge in the field of entrepreneurship development. http://www.citranchi.ac.in/Club_Society_Cell.aspx

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• IIM Ranchi: E-Cell at IIM Ranchi is devoted to the cause of promotingentrepreneurship among students.http://www.iimranchi.ac.in/?page_id=5284

• Xavier Institute of Social Service: Entrepreneurship DevelopmentalProgram-Department of Entrepreneurship Development Programs of XISS,Ranchi is conducting various Entrepreneurship development programs andskill development programs of National level since1974. http://test.xiss.ac.in/?page_id=455

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• Jharkhand Entrepreneurs Network will connect Entrepreneurs,Ideas,Capital and Government together to enable a vibrantentrepreneurial ecosystem inJharkhand. https://jharstory.wordpress.com/2016/08/15/jharkhand-entrepreneurs-network/

• MSME-Development Institute Ranchi: The institute organizesEntrepreneurship Development Programmes and offers consultancyservices to prospective entrepreneurs.http://sisiranchi.nic.in/sp_programs_desc.html

• Startup2day : A powerful networking platform to support start-ups,established entrepreneurs, investors, mentors, channel partners,vendors & other strategic interdependent players in the eco-systemengage with each other. http://startup2day.in/index

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• GBI Global Business Incubator: http://gbiindia.in/jh.php

• Re Rise is an incubation & acceleration centre with co-working facilities.https://www.rerise.in/Co-Working

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Thank You.

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