The Cabinet Committee on Economic Affairs (CCEA) gave its approval for extension of the Special Package of Industrial Incentive for Uttarakhand and Himachal Pradesh from January 7, 2013 to March 31, 2017.
Welcoming the decision, Union Commerce and Industry Minister Anand Sharma said that it will help generate gainful employment especially for the rural youth. It will also give a fillip to manufacturing and the small and medium enterprises in these two States. The objective of the scheme is to create an enabling growth and industrialisation of these States and generation of more employment. All new and existing industrial units on substantial expansion would be eligible for Central Capital units at the rate of 15 per cent of their investment in plant and machinery.
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.Only those units that pre-register under the scheme, commence commercial production/ operation before March 31, 2017 and file claims within one year of the commencement of commercial production shall be eligible for subsidy under the scheme.
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.
Expenditure on purchase / procurement / installation of second hand plant and machinery will not be eligible for subsidy under the Central Capital Investment Subsidy Scheme. A single unit cannot avail subsidy both from the Central as well as State Government for the same purpose. The New Industrial Policy and other concessions for Uttarakhand and Himachal Pradesh were announced on January 7, 2003 for a period of 10 years, keeping in view the fact that these States lag in industrial development.
The objective of the policy is 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.