Govt extends special package of industrial incentives for HP and Uttarakhand

New Delhi, May 24 (KNN)  To create an enabling environment for industrial development and to provide a fillip to private investment in these states, the Central Government has approved the extension of a special package of industrial incentives for Himachal Pradesh and Uttarakhand.

According to an official notification, the scheme has been extended from January 7, 2013 to March 31, 2017.

The main objective of the scheme is to encourage private entrepreneurs to set up more industrial units in these states, leading to overall growth and industrialisation as also generation of more employment.

All new industrial units and existing units on substantial expansion would be eligible for Central Capital Investment Subsidy at the rate of 15 per cent of investment in plant and machinery subject to a ceiling of Rs 30 lakh.

The maximum limit of eligible subsidy will be Rs 30 lakh for large industries; for MSME, the maximum ceiling will be Rs 50 lakh.

Subsidy would be available to all new and existing units on substantial expansion located in notified areas as well as to “thrust industries" for units located anywhere in these states.

Incentive on substantial expansion will be given to units affecting an increase by not less than 25 per cent in the value of fixed capital investment in plant and machinery for the purpose of expansion of capacity, it said.

The New Industrial Policy and other concessions for Himachal Pradesh and Uttarakhand were announced on 7th January, 2003 for a period of ten years to provide the required incentives as well as enabling environment for industrial development, improve availability of capital and increase market access to provide fillip to private investment.

The industrial units registered before January 7, 2013 under the erstwhile scheme of subsidies and have filed the claims within one year from the date of commencement of commercial production would be eligible for subsidies under erstwhile scheme, the notification said.

“Units which have registered on or after January 7, 2013 would be covered under the present scheme. However, if such a unit has not registered with District Industry Centre, due to non-existence of the package during  the intervening period or not submitted claim within one year of the date of commencement of commercial production, the unit can do so not later than May 31, 2014,” the notification further added.

Himachal Pradesh has been able to attract 300 per cent more investment as compared to the pre-incentive package level. On an average, total investment generated in Himachal Pradesh is above Rs 12,500 crore and number of units set up has grown by 28 per cent while growth in employment generation is more than 33 per cent. 

In Uttarakhand, investment generated is close to Rs 30,000 crore, which is 42 times the level in the year 2000. The number of units set up has grown by more than 130 per cent while growth in employment generation is more than 490 per cent for the same period.