Centre approves new industrial development schemes for Himachal, JK and Uttarakhand

New Delhi, April 28: In a bid to boost the industrialization sector in Himachal Pradesh, Jammu and Kashmir and Uttarakhand, the central government has notified new industrial development schemes.

 

According to the new industrial development schemes, all new industrial units undertaking substantial expansion in manufacturing sector and services sector including bio-technology and hydel power generation Units up to 10 MW will be eligible for the incentives. However, there is a negative category of goods that will not be eligible for incentives.

The new Industrial Development Scheme for Himachal Pradesh and Uttarakhand will be eligible for five years i.e from April 1, 2017 to March 31, 2022. While the new Industrial Development Scheme for Jammu and Kashmir will be effective from June 15, 2016 to March 31, 2022.

Notification issued by the central government said that the units in the state will be provided central capital investment incentive for access to credit at the rate of 30% of the investment in plant and machinery with an upper limit of Rs 5 crore. “The project cost will need to be appraised by a Scheduled Commercial Bank or Financial Institution before the proposal of assistance is approved by the Empowered Committee of DIPP,” the notification added.

The notification also stated that the units should start commercial production within 18 months of approval. The units will be eligible for an interesting incentive of 3% on working capital credit advanced by the scheduled banks or central or state financial institutions for first five years from the date of commencement of commercial operation While examining the proposals for incentive, government will consider factors such as cost disadvantage, project viability, bankability, employment generation and promoters’ risk capital.

“Preference will also be given to eligible industrial units under the micro, small and medium enterprises. The government will form an empowered committee chaired by secretary, Department of Industrial Policy and Promotion, secretaries of the department of expenditure, representative of think-tank NITI Aayog and secretaries of the concerned ministries and the chief secretary of the state, for selection of beneficiaries under the scheme,” the government notification underlines.

In the end, the government notification also noted that all eligible new industrial units and existing industrial units on their substantial expansion located in these states will be eligible for reimbursement of 100% insurance premium on insurance of building and plant and machinery for a maximum period of five years from the date of commencement of commercial operation.

Industry Minister of Himachal Pradesh Bikram Singh hailed the announcement of Industrial Development Scheme by the Centre for new and existing industrial units engaged in manufacturing and service sector in the state.

Bikram Singh also added that the state government has also decided to waive 2 percent and 1 percent fees collected earlier on rental charges from industrial units. Limits of unearned increase which was earlier charged at the rate of 50, 30 and 20 percent have been substantially reduced to 20, 10 and 5 percent respectively.

He, in the end, said that CM Jai Ram Thakur had also announced to give the incentive of partial reimbursement of SGST as the incentives to industrial units pertaining to VAT/CST had ceased after enforcement of GST.