v Regulatory Environment v
Pre Investment Approvals : Recent changes in
the industrial policy have abolished industrial licensing for all but a short list of
industries. Similarly, approval for foreign investment and technology collaborations are
now automatic under certain conditions (Ref. Appendix A).
The
main pre-investment State level approvals relate to clearance from the pollution control
angle and from the point of view of zoning regulations in case land is purchased from
private parties.
The investor would of course need to approach various State
agencies for obtaining land in the industrial areas, Telecom and power connections, for
financial support and for availing various State incentives. Information on procedures and
agencies in this regard is provided in Section/ Setting up on Industrial Unit'.
Contracts Law : Indian contracts law
is very similar to and patterned on the British Contracts law. However, as the Indian
judicial process is rather slow, it is common practice to provide for arbitration
proceedings in case of disputes. Arbitration awards, when registered, have the force of a
court judgement.
Patents, Trademarks and Copyrights :
Patent are normally granted for a period of 14 years, from date of patent except in the
case of foodstuffs and medicines, where the period is 5 years from date of sealing or 7
years from date of patent whichever is shorter. Under the Patents Act 1970, foreign
patentees are treated on the same footing as Indian patentees if there is reciprocity of
protection. India has recently become a signatory of GATT. It is expected that the Indian
patent legislation will be substantially modified bringing the patent provisions close to
the general practice in the industrialised countries.
India is a signatory of the Universal Convention and Berne
Convention on Copyrights. The Copyrights Act has been recently amended and the provisions
regarding protection of copyrights are stringent and similar to those in the
industrialised countries.
Environmental Regulations :
Environmental regulation in India requires both pre-investment approvals and on-going
compliance from industry. Projects in certain specified pollution/hazardous industries
require site clearance from the Central Ministry of Environment. Rajasthan's pollution
control laws are similar to those applicable in other states in India and are implemented
by the Rajasthan State Pollution Control Board (RSPCB) . The State Government has recently
drawn up a list of small scale industries that do not need pre-investment approvals from
the RSPCB.
Taxation : The principal taxes applicable in the
country are income tax (on individuals as well as industrial enterprises) and taxes on
transactions, including Central and State sales tax Excise duty on production Custom duty
on imports.
The State Government offers various incentives to investors
in terms of exemption / deferment of taxes accruing to the State (refer sub section on
incentives later in this section). Similarly, the Central Government offers lower rates of
Custom duty on project imports and income tax incentives for new investment and exports.
